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RPC flaunts recycling creds as plastic sales grow 'significantly'
Amid a rising tide of concern about plastic pollution, RPC Group highlighted its prominent position in the recycling chain as it reported that sales of its plastics had grown "significantly" versus last year.
With trends continuing from the third quarter through to the end of the March year-end, revenues have been driven by organic growth and aided by acquisitions, polymer price and foreign exchange tailwinds, while profitability and cash generation are expected to be in-line with directors' expectations.
Cash flow development was said to be "good" and there remained significant headroom in its debt facilities as continues to build a "healthy pipeline" of acquisition opportunities, following the 75m purchase earlier in March of Nordfolien, a designer and manufacturer of higher-added-value polythene films for both industrial and consumer packaging markets.
RPC is also almost at the end of a three-year process to integrate its European businesses, closing 22 locations and relocating over 300 production lines in order to save an annual 105m in costs by the end of the next financial year.
Addressing shareholder worries about the plastics market, in light of the David Attenborough-led campaign against plastic pollution, RPC pointed out that it is Europe's leading recycler of polyethylene film.
"RPC is continuing its work with the entire plastics supply chain to ensure positive outcomes for the environment," the FTSE 250 company said, highlighting its continued work in developing "products that have minimal environmental impact and that can be easily recycled at the end of their life".
"RPC is helping its customers make the right choices at the design stage by increasing use of its in-house developed tool that uses internationally recognised sustainability measurement criteria, and the group continues to work closely with policy makers and industry bodies."
UK environment minister Michael Gove recently announced a deposit return scheme in England, which is expected to cover single-use glass and plastic bottles, and steel and aluminium cans.
Full details of the scheme are subject to consultation and yet to be decided, including the amount paid to consumers, with costs in Europe ranging from 22p in Germany and 8p in Sweden.
Gove said on Wednesday plastic was "wreaking havoc" on oceans and discarded plastic bottles and cans "end up dumped on pavements and lobbed into rivers, lakes and the sea".
"We have already banned harmful microbeads and cut plastic bag use, and now we want to take action on plastic bottles to help clean up our oceans," he said.
"We need to see a change in attitudes and behaviour. And the evidence shows that reward and return schemes are a powerful agent of change."