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RNS Number : 7139O
Robinson PLC
23 August 2017
 

Robinson plc

 

("Robinson", the "Company" or the "Group")

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

 

 

CHAIRMAN'S STATEMENT

 

Trading and Cash

Revenue of £13.5m was 6% higher than the same period in the previous year, lifted by favourable exchange rates and higher resin prices passed on to customers. Allowing for these effects, sales volume in the first half was very similar to 2016.  Increased costs, including some resin costs not yet passed on to customers, have reduced gross margins and operating expenses have been increased primarily by our action to strengthen the sales team. The resulting profit before tax was £0.3m lower than the same period last year at just above break-even for the first six months (2016: £0.3m).  In addition to the largely temporary effect of resin prices, the lower margins are also as a result of sales mix factors such as consumers trading down from premium branded products in some sectors. As we have reported previously, new business gains have been secured but have taken longer to bring to fruition.

 

With the amortisation of intangible assets and depreciation together amounting to £1.1m, the cash generated from operating activities of £0.9m was sufficient to cover the final dividend for 2016 and the loan repayments but not all the net capital reinvestment.  The latter, at £0.8m, is mainly equipment associated with new business yet to come on stream.  Net debt therefore increased by £0.3m to end the period at £5.2m. A final dividend, with respect to 2016, of 3p was paid to shareholders on 1 June 2017 (2016: 3p).

 

Property

The sale of surplus properties in Chesterfield is progressing and developments for the Walton Mill and Boythorpe Works sites are being discussed with prospective tenants and buyers. This process is likely to take several more months but we do expect some realisations in 2018.

 

Outlook and Dividend

We do expect to see sufficient new business coming through in the second half to achieve growth in revenue for the year as a whole and we expect to continue to build the pipeline for further growth in 2018. Re-organisation of manufacturing to achieve efficiencies and investments in capital equipment to improve capacity and capability are being carried out to support this growth and help to recover margins.

 

The Board has approved an interim dividend of 2.5p (2016: 2.5p) to be paid on 2 October 2017 to shareholders on the register at 1 September 2017. The ordinary shares ex-dividend date is 31 August 2017.

 

 

For more information, please contact:

 

 

Robinson plc


Guy Robinson, Finance Director

Tel: 01246 389283


www.robinsonpackaging.com

FinnCap


Ed Frisby / Giles Rolls - corporate finance

Tel: 020 7220 0500

Stephen Norcross / Sultan Awan - corporate broking


 

 

About Robinson

 

Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz and Warsaw (Poland), Robinson currently employs around 300 people. It was formerly a family business, with its origins dating back some 178 years. Today the Group's main activity is the manufacture and sale of rigid plastic packaging. Robinson operates primarily within the food & drink, toiletries & cosmetics and household sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market. The Group also has a substantial property portfolio with development potential.

 

 

Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England)       AIM code "RBN"

 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Robinson plc

 

Group Income Statement

 

 



Six months to 30.06.17


Six months   to 30.06.16


Year to 31.12.16



£'000


£'000


£'000








Revenue


13,586


12,762


27,459

Cost of sales


(10,950)


(9,716)


(21,201)

Gross profit


2,636


2,775


6,258

Operating costs


(2,221)


(2,151)


(4,120)

Amortisation of intangible asset


(392)


(392)


(783)

Exceptional costs


0


0


190

Operating profit


23


232


1,545

Finance costs - bank interest payable


(51)


(44)


(116)

Finance income in respect of pension fund


30


96


189

Profit before taxation


2


284


1,618

Taxation


(176)


(122)


(390)

(Loss)/profit for the period


(174)


162


1,228















Earnings per ordinary share (EPS)


p


p


p

Basic (loss)/earnings per share


(1.1)


1.0


7.5

Diluted (loss)/earnings per share


(1.1)


1.0


7.3








Statement of comprehensive income


£'000


£'000


£'000








(Loss)/profit for the period


(174)


162


1,228

Items that will not be reclassified subsequently to profit or loss:







Re-measurement of net defined benefit liability


0


0


(3,774)

Deferred tax relating to items not reclassified


0


0


683



0


0


(3,091)

Items that may be reclassified subsequently to profit or loss:







Exchange differences on translation of foreign operations


592


340


766

Other comprehensive expense for the period


592


340


(2,325)

Total comprehensive income for the period


418


502


(1,097)

 

 



Robinson plc

 

Group Statement of Financial Position

 

 


30.06.17


30.06.16


31.12.16


£'000


£'000


£'000

Non-current assets






Goodwill

1,041


1,190


1,115

Other Intangible Assets

5,481


6,263


5,872

Property, plant and equipment

15,490


14,437


14,834

Deferred tax assets

119


133


188

Pension asset

0


3,747


0


22,131


25,770


22,009

Current assets






Inventories

2,887


2,363


2,471

Trade and other receivables

8,628


7,249


8,722

Cash

649


1,069


881


12,164


10,681


12,074







Total assets

34,295


36,451


34,083







Current liabilities






Trade and other payables

(4,593)


(4,239)


(4,518)

Corporation tax payable

(169)


(275)


(234)

Borrowings

(5,809)


(4,899)


(5,570)


(10,571)


(9,413)


(10,322)

Non-current liabilities






Borrowings

0


(772)


(201)

Other Payables

(78)


(62)


(78)

Deferred tax liabilities

(680)


(1,429)


(660)

Provisions

(185)


(183)


(185)


(943)


(2,446)


(1,124)

Total liabilities

(11,514)


(11,859)


(11,446)







Net assets

22,781


24,592


22,637













Equity






Share capital

83


82


82

Share premium

732


610


610

Capital redemption reserve

216


216


216

Translation reserve

738


(263)


146

Revaluation reserve

4,324


4,484


4,402

Retained earnings

16,687


19,463


17,181

Equity attributable to shareholders

22,781


24,592


22,637

 



Robinson plc

 

Group Statement of Cash Flows

 

 


Six months to 30.06.17


Six months to 30.06.16


Year to 31.12.16


£'000


£'000


£'000

Cash flows from operating activities






(Loss)/profit for the period

(174)


161


1,228

Adjustments for:






Depreciation of property, plant and equipment

687


747


1,385

Profit on disposal of other plant and equipment

(71)


(55)


(189)

Amortisation of goodwill and customer relationships

465


466


932

Increase in provisions

0


0


2

Other finance income in respect of pension fund

(30)


(96)


(189)

Finance costs

51


38


122

Finance income

0


(6)


(6)

Taxation charged

176


122


390

Non-cash items:






Pension current service cost

108


96


162

Cost of share options

11


19


39

Operating cash flows before movements in working capital

1,223


1,493


3,876

(Increase) in inventories

(339)


(291)


(399)

Decrease in trade and other receivables

500


1,633


222

(Decrease) in trade and other payables

(166)


(747)


(499)

Cash generated by operations

1,218


2,088


3,200

Corporation tax paid

(241)


(71)


(446)

Interest paid

(40)


(44)


(122)

Net cash generated from operating activities

937


1,973


2,632

Cash flows from investing activities






Interest received

0


5


6

Deferred consideration paid on acquisition

0


(4,265)


(4,265)

Acquisition of plant and equipment

(914)


(783)


(1,782)

Disposal of other plant and equipment

121


105


481

Net cash used in investing activities

(793)


(4,938)


(5,560)

Cash flows from financing activities






Loans paid

(259)


(401)


(1,226)

Proceeds from exercise of share options

123


0


0

Dividends paid

(485)


(477)


(877)

Net cash used in financing activities

(621)


(878)


(2,103)

Net decrease in cash and cash equivalents

(478)


(3,843)


(5,031)

Cash and cash equivalents at 1 January

(4,206)


825


825

Cash and cash equivalents at end of period

(4,684)


(3,018)


(4,206)







Cash

649


1,069


881

Overdraft

(5,333)


(4,087)


(5,087)

Cash and cash equivalents at end of period

(4,684)


(3,018)


(4,206)

 



 

Robinson plc

 

Notes to the Interim Report

 

1.   Basis of preparation

The interim report for the six month period to 30 June 2017 was approved by the directors on 22 August 2017. The interim financial information is not audited.

 

The interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs). These should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2016, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2016 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under sections 498 (2) or (3) respectively of the Companies Act 2006.

 

2.   Taxation

The taxation charge for the six months to 30 June 2017 has been calculated based on the estimated effective tax rate on profits before tax for the year to 31 December 2017.

 

3.   Dividends


Six months  to 30.06.17


Six months  to 30.06.16


Year to  31.12.16

Ordinary:

£'000  


£'000  


£'000  

     Final

485


477


479

     Interim

-


-


398


485


477


877

 

4.   Earnings per share

The calculation of basic and diluted earnings per ordinary share for continuing operations shown on the income statement is based on the loss after taxation of £174,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,508,083. There was no difference in the weighted average number of shares used for the calculation of basic and diluted loss per share as the effect of potentially dilutive shares outstanding was anti-dilutive.

 

5.   Going concern

The directors have considered the cash flow forecasts for the Group and the availability of facilities. As at the date of this report, the directors have a reasonable expectation that the Group has adequate resources to continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting.

 

6.   Interim report

Copies of the interim report are available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK or from its website at www.robinsonpackaging.com.

 

 

 


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