Robinson Regulatory News (RBN)

4 May 2006 11:30

Robinson PLC04 May 2006 FOR IMMEDIATE RELEASE 4 May 2006 Robinson plc AGM Statement Robinson plc ("Robinson" or "the Company"; stock code: RBN), the custom manufacturer of paperboard and plastic packaging based in Chesterfield, will hold its Annual General Meeting today at 11:30am. Richard Clothier, the Chairman, will make the following statement at the meeting: "The tough market conditions in our industry in recent months have been widelyreported and Robinson is not immune. The combined rise in raw material costs,especially resin, and energy costs is proving difficult to pass on. Margins areunder pressure and, in North America, this is exacerbated by the strength of theCanadian dollar. "A slow start in sales this year in Paperboard in the UK has led to a smallnumber of redundancies. Where we have achieved sales gains, they have beenoffset by business moving offshore, a trend particularly evident within ourtoiletries and cosmetics business. "However, the establishment of our new factory in Poland is progressing asplanned. The property acquired last August has been fitted out to the standardsrequired by leading food brands and is already supplying several of ourcustomers who have moved production facilities to Central Europe. In thestart-up phase this inevitably has a negative effect on earnings, but we expectthe unit to start contributing in the second half of 2006. "Given this environment, it is unlikely that the Company will match last year'sunderlying profits, but we anticipate that the sale of some of our surplusproperty will generate substantial additional income. We are in advanced stagesof negotiation over the sale of two properties; contracts will be subject to thebuyer securing the necessary planning consents, but we do expect to realise asignificant surplus to book value on completion." For further information, please contact: Robinson PLCGuy Robinson, Finance Director Tel: 01246 220022 www.r1son.co.ukBankside ConsultantsSue Scott/Michael Padley Tel: 020 7367 8888 ENDS This information is provided by RNS The company news service from the London Stock Exchange