RPC unveils £100m share buyback as it slows acquisitions

PACKAGING company RPC has begun a £100m share buyback as it scales down its acquisition spree in order to concentrate on its existing businesses.

The firm said yesterday it did not anticipate making any “significant acquisitions” in this financial year, but would be looking to increase organic growth.

In February, RPC agreed a deal to buy US rival Letica for £511m, bringing its total number of acquisitions in the last 12 months to nine.

But last month shares in the company took a tumble as investor confidence wavered over perceived “red flags” in the business. Some analysts suggested that its aggressive acquisition programme concealed poor underlying performance.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said while the lack of deals would hamper short-term growth, it allows the company to prove the value of previous deals.

RPC said yesterday that its revenues for the three months to June 30 were “well ahead” of last year, at £960m. RPC shares closed up 4.5pc at 880p