Robinson PLC - Chesterfield-based plastic and paperboard packaging manufacturer - Reports earnings for year-to-date are "well behind" previous year level in a statement ahead of its annual general meeting on Thursday. Shares were trading at 110.50 pence, down 21% on Thursday morning.
"As we indicated in the 2020 full year results, published in March, sharp increases in resin prices, together with some lack of availability, have created volatility in 2021. As a result, margins to date are reduced," the company said.
"Whilst some convertors have been forced to shut down production lines, we have been successful in mitigating the substantial challenge of securing resin supply to continue to operate."
Following its acquisition in February of blow moulded container manufacturer Schela Plast, debt increased to GBP13.1 million at May 31, more than double the GBP6.6 million seen the year before.
Looking ahead, Robinson says raw material shortages and price increases will continue to have a short-term impact on earnings in the first half of 2021.
Current stock price: 110.50 pence; down 21% on Thursday
Year-to-date change: down 28%
By Will Paige; willpaige@alliancenews.com
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Robinson (RBN)