RPC Group, the plastic products design and engineering company, grew its revenue by 31% in the third quarter to £898m, driven by acquisitions, polymer price tailwinds and organic growth of over 4%. As at the end of the third quarter, the year to date organic growth rate was 2.6%. RPC said profitability (before and after exceptional items) was in line with management expectations and grew significantly versus the prior year, aided by organic growth and the further realisation of synergies which offset an adverse polymer time lag impact. Cash generation (before and after exceptional items) was also in line with management expectations. The recently enacted Tax Cuts and Jobs Act in the US, which will reduce the federal corporate income tax rate from 35% to 21%, is applicable from 1 January 2018. For the year to 31 March 2018 it is currently expected that the US reforms will have a small positive impact on the group's adjusted effective tax rate, with a one-off non-cash tax credit of around £10m resulting from the revaluation of US related deferred tax assets and liabilities. For the year to 31 March 2019 it is currently expected that the changes will reduce the group's adjusted effective tax rate by approximately 1%, based on the existing mix of profits. Pim Vervaat, RPC's chief executive, said: "I am pleased with the performance of the business in the third quarter and the further progress towards completing the European synergy programme. Through our focus on innovation, sustainability and operating in attractive end markets, we remain confident in continuing to grow through the cycle ahead of GDP and that our Vision 2020 strategy will deliver further value to our shareholders."
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