Robinson Regulatory News (RBN)

29 Mar 2005 07:00

Robinson PLC29 March 2005 FOR IMMEDIATE RELEASE 29 March 2005 Robinson plc PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004 Robinson plc ("Robinson" or "the Company"; stock code: RBN), the custommanufacturer of paperboard and plastic packaging based in Chesterfield, hasannounced its audited results for the year ended 31 December 2004. Highlights: • These are Robinson's first full-year results since its introduction to AIM on 6th April 2004. • Sales grew by 5% year-on-year to £25.9 million. • Gross margins improved from 13.2% to 15.5%, reflecting a focus on quality and service. The Company was able to largely pass on significant increases in plastic polymer prices. • Operating profit improved to £111,000 from a loss of £1.5 million in 2003. This includes the costs of the introduction to AIM and an abortive acquisition, together totaling £430,000. • The balance sheet remains strong with no debt and free cash at the year end 2004 of £1.8 million. • The Board is recommending a final dividend of 1p per share (2003: nil). Together with the interim dividend, this takes the total for the year to 3p, a 50% increase in comparison to 2003. Commenting on the results, Chairman, Richard Clothier stated: "These encouraging results reflect our strategy to develop the business firstlythrough organic growth. Our focus on product development and innovation will, webelieve, lead to further new business opportunities and we expect to make moreprogress towards achieving satisfactory levels of profitability in 2005." About RobinsonBased in Chesterfield, and with additional manufacturing facilities inKirkby-in-Ashfield, Nottinghamshire, and in Toronto, Canada, Robinson currentlyemploys over 400 people. It was formerly a family business, with its originsdating back some 165 years. Today the Company's main activities are in themanufacture and sale of rigid paper packaging and injection moulded plasticpackaging. Robinson operates primarily within the food, drink, confectionery,cosmetic and toiletry sectors, providing niche or custom manufacture to majorplayers in the fast moving consumer goods market, such as Nestle, Lever Fabergeand Whyte & Mackay. The Company also has a substantial property portfolio withsignificant development potential. For further information, please contact: Jon Marx, Chief Executive, Robinson plc 01246 220022Guy Robinson, Finance Director, Robinson plc 01246 220022 www.r1son.co.uk Barry Saint, Arbuthnot Securities 020 7012 2000Sue Scott/Michael Padley, Bankside Consultants 020 7444 4140 CHAIRMAN'S STATEMENT I am pleased to report that profit before tax improved to £493,000 from a lossin the previous year and our group achieved record sales of £25.9 million, 5%higher than in 2003. During the year the group became a plc, listed on theAlternative Investment Market and returned about £9 million to shareholders byway of a share buyback. The paperboard businesses were responsible for the growth and the UK saw itsfirst increase in sales since moving to the new factory in 1999. This wasachieved despite a deliberate withdrawal from smaller customers that reducedoverall sales by £900,000. Factors contributing to this improved performanceincluded price increases, reduced overheads and the gaining of two newsignificant accounts. The North American paperboard packaging business, locatedin Toronto, gained a significant new US customer during the year and otheraccounts were generally strong despite the weak US dollar. PROFITABILITYGross margin improved from 13.2% to 15.5% reflecting improved productivity,benefits from cutting the tail of less profitable business and our ability tolargely pass on the significant increases in plastic polymer prices.Operating profits recovered to £111,000 from the previous year's losses of£1,552,000. This result was achieved after allowing for exceptional costs of£236,000 for the introduction to AIM and costs of £194,000 after an abortedacquisition. In addition, we made a profit on the disposal of surplus land of£236,000 (2003: £1,154,000). Excluding exceptional items, operating profitsamounted to £541,000 (2003: £411,000 loss) Interest income reduced from £297,000 to £146,000 due to the reduction insurplus cash following the repurchase of 40% of the Company's share capital on28 April 2004. The profit before taxation of £493,000 improved from a loss of £101,000 in 2003.With the proposed increase in dividend offset by the share repurchase, the costof dividends reduced slightly to £418,000. CASH & FINANCIAL POSITIONOur balance sheet remains strong with no debt and free cash at the year end of£1,815,000. Capital expenditure for the year increased to £1,596,000 (2003:£1,140,000) as we continued to invest in new plant and equipment. The net cashinflow from operations during the year amounted to £1,503,000 with therepurchase of shares costing £8,997,000, leaving a net cash outflow for the yearof £7,494,000. DIVIDENDThe Board is recommending a final dividend of 1p per share (2003: nil). Togetherwith the interim dividend, this takes the total for the year to 3p (2003: 2pequivalent). This continues the policy outlined in the listing particulars. Itis our intention in the future to pay two dividends per annum - the interim inOctober and the final in June. PENSIONSOur pension fund remains in a healthy position. We closed the final salary(defined benefit) section to new entrants in 1997 and since then have beenoperating a money purchase (defined contribution) scheme. With the sales ofbusinesses that have taken place over the past 15 years and rationalisation ofworkforce, the fund is very mature. We have not adopted the new proposedaccounting standard (FRS17) ahead of its scheduled implementation date as wefeel the accounts will be distorted and the underlying business performancethereby masked. Instead we have opted for full disclosure of the fund'sperformance and financial position by way of a note to the accounts. This showsthe fund has assets with a market value of £46 million and liabilities of £41.2million, giving a surplus of £4.8 million at the end of 2004. The present valueof scheme liabilities has increased by £4.2m during the year, much of which isdue to the actuary's assumptions of longevity. PROPERTY PORTFOLIODuring the year we sold some surplus land at Kirkby-in-Ashfield (UK) for£686,000, yielding a profit over the book value of £236,000. We continue to seekplanning permission for the development of the old Robinson Healthcare site atWalton, but the draft Chesterfield town plan, issued in March 2005, hasindicated that residential developments on this site will, except in exceptionalcircumstances, be considered only after 2011. ACQUISITIONSWe investigated the possible acquisition of a plastic injection moulding companyin Denmark during the year. However, following due diligence, we were unable toagree terms with the vendor and negotiations were terminated. We continue toseek acquisitions of packaging businesses with appropriate synergies and longterm prospects for inclusion within the Group. OUTLOOKWe continue to seek to develop the business both through organic growth andacquisition. Our focus on product development and innovation, together withbetter understanding of our customers' needs, remains a priority and will, webelieve, lead to further sales opportunities. Following the move by some of ourcustomers to Poland, we currently are investigating the possibilities of astartup there. Raw material costs continue to rise in the face of worldwidedemand and energy prices are increasing at rates much higher than the generalinflation level. Nevertheless, sales are currently slightly ahead of the sameperiod last year and overall, we expect another step in 2005 towards achievingsatisfactory levels of profitability in our packaging businesses. Richard Clothier 29 March 2005ChairmanRobinson plc GROUP PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED 31 DECEMBER 2004 Notes 2004 2003 £'000 £'000 Turnover 25,949 24,669Cost of sales (21,919) (21,410) ------- ------Gross Profit 4,030 3,259 ------- ------Overheads, excluding exceptional items (3,489) (3,670)Exceptional items (430) (1,141) ------- -------Total Overheads (3,919) (4,811) ------- -------Operating Profit/(Loss) 111 (1,552)Profit on disposal of land and buildings 236 1,154 ----- ------Profit/(Loss) on ordinary activities before interest 347 (398)Interest received 146 297 ----- ------Profit/(Loss) on ordinary activities before taxation 493 (101)Taxation 2 (238) 618 ----- -----Profit on ordinary activities after taxation 255 517Dividends 3 (418) (457) ------ -----Retained (loss)/profit for the year (163) 60 ====== =====Earnings per ordinary 1p shareBasic and diluted (p) 4 1.32 1.95 All amounts relate to continuing operationsThe accounting policies and notes form an integral part of the financialstatements STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESFOR THE YEAR ENDED 31 DECEMBER 2004 2004 2003 £'000 £'000 Profit for the financial year 255 517Unrealised deficit on revaluation of properties - (9)Currency translation differences on foreign currency netinvestments (25) (55) ---- ----Total gains recognised since last annual report 230 453 ==== ==== GROUP BALANCE SHEETAS AT 31 DECEMBER Notes 2004 2003 £'000 £'000 Fixed assets Tangible fixed assets 15,001 15,771 Investments - - ------ ------ 15,001 15,771 Current assets Stocks 1,640 1,604 Debtors 5,437 5,708 Current asset investments 1,002 8,582 Cash 813 727 ----- ------ 8,892 16,621 Creditors: amounts falling due within one year (5,690) (5,635) ------ ------Net current assets 3,202 10,986 ------ ------ Total assets less current liabilities 18,203 26,757 Creditors: amounts falling due after more than one (622) (282)yearProvisions for liabilities and charges (614) (349) ------ ------Net assets 16,967 26,126 ====== ====== Capital and reserves Called up share capital 80 132 Share premium account 398 398 Capital redemption reserve 216 164 Revaluation reserve 5,138 5,539 Profit and loss account 11,135 19,893 ------ ------Equity Shareholders' Funds 5 16,967 26,126 ====== ====== GROUP CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2004 2003 £'000 £'000 Cash inflow from operating activities Operating profit/(loss) 111 (1,552)Depreciation charges and write-down of fixed assets 1,795 2,710Loss/(profit) on sale of other tangible fixed assets 100 (15)(Increase)/decrease in stocks (36) 15Decrease/(increase) in debtors 448 (66)Increase/(decrease) in creditors 151 (610)(Decrease)/increase in provisions (40) 84 ----- ---- Net cash inflow from operating activities 2,529 566 ----- ---- Returns on investments and servicing of financeInterest received 194 314Interest paid (5) (23) Net cash inflow from returns on investments and servicing of --- ---finance 189 291 --- ---TaxationUK corporation tax received/(paid) 3 (469) --- ---- Capital expenditure and financial investmentAcquisition of tangible fixed assets (1,596) (1,140)Sale of surplus properties 686 1,870Sales of other tangible fixed assets 60 50 ----- ------Net cash (outflow)/inflow from capital expenditure (850) 780and financial investment ----- ------ Equity dividends paid (368) (458) ----- ----Net cash inflow before use of liquid resources and financing 1,503 710 ----- ---- Management of liquid resourcesDecrease/(increase) in short-term cash deposits with UKbanks 7,580 (1,058) ----- ------Net cash inflow/(outflow) from management of liquidresources 7,580 (1,058) ----- ------FinancingRepurchase of share capital (8,997) - ------ ------Net cash outflow from financing (8,997) - ------ ------Increase/(decrease) in cash 86 (348) ====== ====== Analysis of changes in cash during the year Balance at 31 December 2004 813 727Balance at 31 December 2003 727 1,075 --- -----Net cash inflow/outflow 86 (348) === ===== Notes to the financial statements 1. Basis of preparation The preliminary announcement has been prepared in accordance with applicableaccounting standards and under the historical cost convention except thatcertain freehold properties are shown at their revalued amounts. The principal accounting polices of the group have remained unchanged from thoseset out in the group's 2003 annual report and financial statements. 2. Tax on profit on ordinary activities 2004 2003 £'000 £'000 Current tax 191 5Deferred tax 47 (623) --- ---- 238 (618) === ==== 3. Dividends 2004 2003 £'000 £'000 Ordinary: first interim of 1p per share, paid 4 October 2004 139 229: second interim of 1p per share, payable 6 April 2005 139 228: final proposed of 1p per share, payable 3 June 2005 140 - --- --- 418 457 === === 4. Earnings per Share The calculation of basic and diluted earnings per ordinary share is based onprofit on ordinary activities after taxation (£255,000) divided by the weightedaverage number of shares in issue excluding treasury shares (19,381,821). Thenumber of shares in issue has been adjusted for both periods for the 200 for 1share division that took place on 4 March 2004. 5. Reconciliation of movements in shareholders' funds 2004 2003Group £'000 £'000 Profit after taxation for the financial year 255 517Dividends (418) (457) ---- ---- (163) 60Purchase of own shares (8,997) -Other recognised gains and losses 1 333 ----- ----Net(reduction in)/addition to shareholders' funds (9,159) 393Shareholders' funds at 1 January 26,126 25,733 ------ ------Shareholders' funds at 31 December 16,967 26,126 ====== ====== 6. Publication of non-statutory accounts The financial information set out in this preliminary announcement does notconstitute statutory accounts as defined in section 240 of the Companies Act1985. The summarised balance sheet at 31 December 2004 and the summarised profit andloss account, summarised cash flow statement and associated notes for the yearthen ended have been extracted from the Group's 2004 statutory financialstatements upon which the auditors opinion is unqualified and does not includeany statement under Section 237 of the Companies Act 1985. The accounts for the year ended 31 December 2004 are expected to be posted toshareholders in due course and will be delivered to the Registrar of Companiesafter they have been laid before the company at the annual general meeting on 5May 2005. Copies will also be available from Robinson plc's Registered office:Bradbury House, Goytside Road, Chesterfield, S40 2PH. ENDS This information is provided by RNS The company news service from the London Stock Exchange