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LONDON (Alliance News) - Robinson PLC on Thursday said revenue was hit by lower resin prices in the first quarter of 2016, with business gains coming on stream slower than expected, but noted the build-up in contracts commencing in the latter part of the year was very encouraging.
The plastic and paperboard packaging company said revenue for the three months to 2016 was down 10% on the previous year, of which 4.0% was due to lower resin prices which were passed on to customers.
Robinson reported lower volumes in the first quarter, coming from lower demand for its customers' products, which it said was a continuation of trends from the second half of 2015.
Resin prices are increasing, Robinson said, adding that this will reduce margins in the short term before its customer prices are adjusted.
Business gains which it has thought would benefit the period, were coming on stream slower than expected, and looked now to benefit the second half of the year, the company added.
Robinson said it has also submitted a planning application to redevelop 24 acres of land previously used in its former healthcare business in Chesterfield, and said it is anticipated that the application will be determined in the summer. This will allow for negotiations to take place with prospective developers during the second half of 2016.
Shares in Robinson were down 8.6% at 160.00 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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