According to RPC, investor pressure is holding back growth options; share the skid

Muvija M

(Reuters) – The largest plastics packer in Europe PRC Group Plc < PRC .L> investor pressure prevented it from pursue some growth opportunities, The UK company has invested heavily to take advantage of strong demand in China and to produce more recyclable plastics, which fuels the fear that higher expenses will lead to losses on its cash flow. .

The plastics industry is facing stricter regulation in Europe and elsewhere because of environmental concerns, China banning this year the substandard materials for recycling

"The pressure on the l 39; market badessment and divergent views of investors.PPC President Jamie Pike, said Wednesday

that the company had spent more than $ 1.5 billion. Acquisitions over the last two years, said it would give priority to the proposed disposition of some non-core badets as it seeks to generate capital for business expansion or to return to business. to the shareholders The company has not announced a buy-back The brokerage was expecting a £ 100 million buyback.

The shares of RPC weredown 6.7% early in the session and the stock was at the bottom of FTSE Midcap Index

The company said the profitability and development of the flow of cash were in line with expectations, but did not provide figures.

The turnover increased by 5.8% to 964.7 million pounds as of June 30. The Astrapak business in 2017 and the favorable prices of polymers.

(Reportage of Muvija M and Justin George Varghese in Bengaluru, edited by Saumyadeb Chakrabarty)