Last checked at 21 Mar 2013 07:00
21 March 2013 |
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012
Robinson plc ("Robinson"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2012.
Highlights:
·; Profit before tax was £2.8m (2011: £2.7m).
·; Revenue decreased by 2% to £21.2m (2011: £21.5m) but underlying volumes increased by 2%.
·; Gross margin improved as a result of lower plastic resin costs and improved mix of business.
·; Cash inflow for the year was £1.7m leaving net cash and borrowings of £1.4m.
·; The surplus in the Group's pension fund increased by 1% to £7.7m.
·; A £3.4m restriction in the pension fund surplus has been reflected in the Group's assets.
·; The Board is recommending an increased final dividend for the year of 2.25p per share (2011:2p) raising the total dividend declared in respect of 2012 by 7% to 4p.
·; Diluted earnings per share increased by 9%.
Commenting on the results, Chairman, Richard Clothier said:
"It is pleasing to report continued improvement in profits despite a subdued market environment. Sales volumes increased by 2% year on year but, despite this, revenue declined by 2% due to our contractual arrangements with customers to pass on raw material price reductions. The full year effect of the new business gained during 2012 should ensure revenue growth in 2013."
About Robinson
Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz (Poland), Robinson currently employs around 225 people. It was formerly a family business, with its origins dating back some 165 years. Today the group's main activity is the manufacture and sale of injection moulded plastic packaging. Robinson operates primarily within the food, drink, confectionery, toiletry, cosmetic and homecare sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestle, Kraft, United Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon, Heinz, Boots and Dr Oetker. The Group also has a substantial property portfolio with development potential.
For further information, please contact:
Adam Formela, Chief Executive, Robinson plc | 01246 389287 |
Guy Robinson, Finance Director, Robinson plc | www.robinsonpackaging.com |
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Katy Mitchell, WH Ireland | 0161 832 2174 |
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
CHAIRMAN'S STATEMENT
In what has been a rather dull market I am pleased to report continued improvement in profits. We did secure some important new business earlier in the year that has taken longer than originally anticipated to get into full production but has helped the new year to get off to a good start.
Revenue and profits
Group revenue reduced by 2% in the year but this was affected by plastic resin prices being lower by an average of 9%. As these were passed back to our customers, reported revenues reduced but we estimate that volumes were actually 2% higher in the year. Lower input prices and an improved mix of business contributed to the gross profit improving to 24%. Operating costs were contained and, with the help of a full year's notional rent from Sonoco in respect of the Portland property, profit before tax rose slightly to £2.8m (2011: £2.7m).
Surplus properties
The Group's surplus properties include the Portland factory in Chesterfield which is subject to a 15 year lease to Sonoco, who has a two year rent free period during which it can exercise an option to buy the property. Sonoco has indicated that it is considering exercising that option which expires during 2013. If it does exercise its option then this is likely to result in an exceptional gain and cash inflow and the annual rental income will reduce by £0.4m. The remaining surplus properties have the potential to realise value on disposal once property market conditions improve.
Pension fund
The Group's pension fund surplus increased by 1% to £7.7m despite the reported increase in liabilities driven by fixed interest yields. The Company and trustees anticipate that market conditions will enable a buy out of the liabilities of the fund to be achieved without cost to the Company within the next 6 years. As a consequence of the anticipated buyout the pension asset shown on the balance sheet has been restricted and reduced by £3.4m. This does not affect the underlying value of the pension fund.
Cash, finances and dividend
The net cash inflow for the year was £1.7m after capital expenditure of £0.9m. Net cash less bank borrowing amounted to £1.4m at the end of the year. Shareholders' funds reduced by £0.6m as profits for the year of £2.1m were offset by the reduction in the pension fund surplus, however, with diluted earnings per share up by 9% the Board proposes a final dividend of 2.25p per share to be paid on 1 June 2013 to shareholders on the register at the close of business on 17 May 2013. This brings the total dividend declared in respect of 2012 to 4p per share - an increase of 7% over the previous year.
Outlook
The full year effect of the new business gained during 2012 should ensure revenue growth in 2013, however, in an effort to grow the business further additions to the management team will increase costs which will temporarily limit the full effect of this growth in earnings. Volatility in plastic resin prices can affect margins in the short term and management are anticipating some pressure on selling prices in the current market that may, to some extent, counter the impact of higher volumes. Nevertheless, progress so far in 2013 is positive and in line with our expectations.
Richard Clothier
Chairman
21 March 2013Group income statement
FOR THE YEAR ENDED 31 DECEMBER
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| 2012 |
| 2011 |
| £'000 | £'000 | |||||||
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Continuing operations |
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Revenue |
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| 21,171 |
| 21,516 |
Cost of sales | (16,141) | (16,748) | |||||||
Gross profit |
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| 5,030 |
| 4,768 |
Operating costs |
| (2,604) | (2,637) | ||||||
Operating profit before exceptional items |
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| 2,426 |
| 2,131 | |||
Exceptional items |
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| (83) |
| - | ||
Operating profit after exceptional items |
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| 2,343 |
| 2,131 | ||
Finance income - interest receivable |
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| 10 |
| 53 | ||
Finance costs - bank interest payable |
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| (9) |
| (62) | ||
Finance income in respect of pension fund |
| 474 | 550 | ||||||
Profit before taxation |
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| 2,818 |
| 2,672 |
Taxation |
| (723) | (779) | ||||||
Profit after tax from continuing operations | 2,095 | 1,893 | |||||||
Discontinued operations - profit for the year |
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| - |
| 1,398 | |||
Profit for the year | 2,095 | 3,291 | |||||||
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Basic earnings per share | |||||||||
Profit per ordinary share from continuing operations | 13.1p | 11.9p | |||||||
Profit per ordinary share from discontinued operations | 0.0p | 8.8p | |||||||
Profit per ordinary share from continuing and discontinued operations | 13.1p |
20.6p | |||||||
Diluted earnings per share | |||||||||
Profit per ordinary share from continuing operations | 12.6p | 11.6p | |||||||
Profit per ordinary share from discontinued operations | 0.0p | 8.7p | |||||||
Profit per ordinary share from continuing and discontinued operations | 12.6p |
20.3p | |||||||
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2012 | 2011 | ||||||||
£'000 | £'000 | ||||||||
Profit for the year | 2,095 | 3,291 | |||||||
Other comprehensive income | |||||||||
Actuarial loss on retirement benefit obligations | (3,355) | (705) | |||||||
Currency translation gain/(loss) | 215 | (499) | |||||||
(3,140) | (1,204) | ||||||||
Taxation relating to actuarial loss | 922 | 407 | |||||||
Other comprehensive expense for the year | (2,218) | (797) | |||||||
Total comprehensive (expense)/income for the year attributable to the company's shareholders | (123) | 2,494 | |||||||
Statement of financial position
AS AT 31 DECEMBER
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| Group | ||
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| 2012 |
| 2011 |
| £'000 | £'000 | ||
Non-current assets |
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Property, plant and equipment |
| 8,857 |
| 8,763 |
Interests in associate |
| - |
| 250 |
Loan to associate |
| - |
| 200 |
Deferred tax asset |
| 158 |
| 221 |
Pension asset |
| 4,224 | 7,292 | |
| 13,239 | 16,726 | ||
Current assets |
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Inventories |
| 1,608 |
| 1,379 |
Trade and other receivables |
| 6,704 |
| 6,555 |
Corporation tax receivable |
| 165 |
| - |
Cash |
| 1,743 | 333 | |
| 10,220 | 8,267 | ||
Non-current assets held for sale |
| 4,998 | 4,998 | |
Total assets |
| 28,457 | 29,991 | |
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Current liabilities |
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Trade and other payables |
| (4,355) |
| (3,940) |
Corporation tax payable |
| (502) |
| (391) |
Borrowings |
| (307) | (605) | |
| (5,164) | (4,936) | ||
Non-current liabilities |
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Borrowings |
| - |
| (307) |
Deferred tax liabilities |
| (524) |
| (1,372) |
Provisions |
| (187) | (189) | |
(711) | (1,868) | |||
Total liabilities | (5,875) | (6,804) | ||
Net assets | 22,582 | 23,187 | ||
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Equity |
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Share capital |
| 80 |
| 80 |
Share premium |
| 419 |
| 419 |
Capital redemption reserve |
| 216 |
| 216 |
Translation reserve |
| 296 |
| 81 |
Revaluation reserve |
| 4,580 |
| 4,567 |
Retained earnings | 16,991 | 17,824 | ||
Equity attributable to shareholders | 22,582 | 23,187 | ||
Statement of changes in equity
FOR THE YEAR ENDED 31 DECEMBER
Share | Share | Capital | Translation | Revaluation | Retained | Total | ||||||
capital | premium | redemption | reserve | reserve | earnings | |||||||
account | reserve | |||||||||||
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | ||||||
Group | ||||||||||||
At 1 January 2011 | 80 | 419 | 216 | 580 | 4,420 | 15,434 | 21,149 | |||||
Profit for the year | 3,291 | 3,291 | ||||||||||
Other comprehensive expense | (499) | (298) | (797) | |||||||||
Transfer to revaluation reserves as a result of property transactions |
141 |
(141) | - | |||||||||
Tax on revaluation | 6 | - | 6 | |||||||||
Total comprehensive income for the year | - | - | - | (499) | 147 | 2,852 | 2,500 | |||||
Credit in respect of share based payments | 50 | 50 | ||||||||||
Dividends paid | (512) | (512) | ||||||||||
Transactions with owners | (462) | (462) | ||||||||||
At 31 December 2011 | 80 | 419 | 216 | 81 | 4,567 | 17,824 | 23,187 | |||||
Profit for the year | 2,095 | 2,095 | ||||||||||
Other comprehensive income/(expense) | 215 | (2,433) | (2,218) | |||||||||
Transfer to revaluation reserves as a result of property transactions |
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- | - | |||||||||
Tax on revaluation | 13 | - | 13 | |||||||||
Total comprehensive income for the year | - | - | - | 215 | 13 | (338) | (110) | |||||
Credit in respect of share based payments | 63 | 63 | ||||||||||
Dividends paid | (558) | (558) | ||||||||||
Transactions with owners | (495) | (495) | ||||||||||
At 31 December 2012 | 80 | 419 | 216 | 296 | 4,580 | 16,991 | 22,582 | |||||
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
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| Group | |||
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| 2012 |
| 2011 |
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£'000 | £'000 |
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Cash flows from operating activities |
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Profit for the year |
| 2,095 |
| 3,291 |
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Adjustments for: |
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Depreciation of property, plant and equipment |
| 892 |
| 1,061 |
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Profit on disposal of other plant and equipment |
| (148) |
| (86) |
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Profit on sale or closure of discontinued operations |
| - |
| (1,891) |
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Decrease in provisions |
| (2) |
| (2) |
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Other finance income in respect of Pension Fund |
| (474) |
| (550) |
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Finance costs |
| 9 |
| 62 |
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Taxation charged |
| 723 |
| 779 |
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Other non-cash items: |
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Pension current service cost |
| 188 |
| 249 |
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Charge for share options | 63 | 50 |
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Operating cash flows before movements in working capital |
| 3,346 |
| 2,963 |
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Increase in inventories |
| (229) |
| (216) |
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Decrease/(increase) in trade and other receivables |
| 341 |
| (1,222) |
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Increase in trade and other payables | 417 | 265 |
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Cash generated by operations |
| 3,875 |
| 1,790 |
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UK corporation tax paid |
| (643) |
| (779) |
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Interest paid |
| (11) |
| (69) |
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Net cash generated from operating activities | 3,221 | 942 |
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Cash flows from investing activities |
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Sale of discontinued operations |
| - |
| 3,729 |
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Investment in an associate |
| - |
| (450) |
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Acquisition of plant & equipment |
| (902) |
| (1,059) |
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Proceeds on disposal of other plant and equipment |
| 254 |
| 172 |
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Net cash (used in)/generated from investing activities | (648) | 2,392 |
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Cash flows from financing activities |
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Loans repaid |
| (335) |
| (647) |
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Dividends paid | (558) | (512) |
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Net cash used in financing activities | (893) | (1,159) |
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Net increase in cash and cash equivalents |
| 1,680 |
| 2,175 |
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Cash and cash equivalents at 1 January | 63 | (2,112) |
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Cash and cash equivalents at 31 December | 1,743 | 63 |
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Cash |
| 1,743 |
| 333 |
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Overdraft | - | (270) |
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Cash and cash equivalents at 31 December | 1,743 | 63 |
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Notes to the financial statements
1. Basis of preparation
Whilst this financial information has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The consolidated and Company financial statements have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union. All standards and interpretations that have been issued and are effective at 31 December 2012 have been applied in the financial statements. The financial statements have been prepared under the historical cost convention. No accounting standards coming into effect in 2012 have had any effect on the financial statements.
In determining whether the Group's 2012 financial statements can be prepared on a going concern basis, the Directors considered all factors likely to affect its future development, performance and its financial position, including cash flows, liquidity position and borrowing facilities and the risks and uncertainties relating to its business activities. As at the date of this report, the directors have a reasonable expectation that the Company and Group have adequate resources to continue in business for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
2. Publication of statutory financial statements
The financial information set out above does not constitute the company's statutory financial statements for the years ended 31 December 2011 or 2012, but is derived from those financial statements. The statutory financial statements for the year ended 31 December 2011 have been delivered to the Registrar of Companies and those for 2012 are expected to be posted to shareholders on 8 April 2013 and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 2 May 2013. Copies will also be available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB and on the Group's website at www.robinsonpackaging.com from 8 April 2013. The auditor has reported on those financial statements; their reports were unqualified and did not contain statements under the Companies Act 2006, section 498 (2) or (3).