Profit slips at private equity takeover target RPC
Plastics maker RPC today announced a slight dip in profit ahead of a deadline for its US private equity suitors to make firm bids for the business.
RPC said its adjusted profit before tax fell two per cent to £188.9m in the six months to September 2018.
Revenue for the six months was £1.892bn, a seven per cent increase on the same period last year.
Free cash flow fell 14 per cent to £142.9m, from £166.8m last year.
RPC said foreign exchange translation losses and an adverse polymer price pass-through time lag as well as increases in finance costs from increased debts had hit its profitability.
The company disposed of its Letica Foodservice business for $95m (£74.5m) during the period and said it had identified other parts of its business with £209m of turnover for disposal as its sees to focus on its key strengths and exit markets where it is sub-scale.
Apollo Global Management and Bain Capital are each looking at a takeover of RPC, which this month said the two US firms should make firm buyout bids by 3 December or walk away.