Last checked at 23 Mar 2012 07:00
23 March 2012 |
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
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 2011.
Highlights:
·; Profit before tax* rose 23% to £2.7m (2010: £2.2m)
·; Revenue* increased by 10% to £21.5m (2010: £19.5m)
·; Spiral wound paperboard tube business sold to Sonoco on1 July 2011 for £3.1m generating a gain on disposal of £1.0m
·; Dividends for the year increased by 15%
* continuing operations
Commenting on the results, Chairman, Richard Clothier said:
"We are pleased to report further growth in revenues and profits from continuing operations in 2011. The sale during the year of the spiral wound paperboard tube business to Sonoco UK Ltd enables the group to focus on the businesses in the group that offer earnings growth. Despite unhelpful economic conditions, we expect new business gains to support further growth in 2012."
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 173 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 and cosmetic 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 REPORT
The results for 2011 show another substantial improvement and, apart from the drop in revenue resulting from our exit from underperforming businesses, the outcome is the best that Robinson has achieved for many years and certainly since it was admitted to AIM in 2004. This arises from two satisfactory developments in the Group. The performance of the plastics packaging business has improved for the second year in succession and the Company has completed a profitable disposal of the long underperforming spiral wound paperboard tube business both in Canada and the UK. The operating results exclude the effect of the disposed businesses which is shown as a separate line at the foot of the Group Income Statement. All of the continuing businesses achieved improved profits in the year.
Revenue and Profits
Group revenue increased by 10% of which half was the result of price increases to cover higher raw material costs and the remainder was a product of increased sales volumes. The higher volumes and stable operating costs improved operating profit by 22% to £2.1m and profit before tax for the continuing business increased to £2.7m (2010 £2.2m), with a £0.1m increase in notional finance income in respect of the pension fund surplus. Exceptional gains of £1.4m from business disposals boosted the profit after tax for the year to £3.3m (2010 £1.2m).
Cash and Finances
Cash flow benefited from the proceeds from the sale of the Chesterfield spiral wound paperboard tube business to Sonoco for £3.1m. This was offset by capital expenditure on new plant and machinery of £1.1m and also an investment in the Glasgow plastic in mould label specialist Scotplast Ltd, which was reported at the half year. Overall borrowings were reduced by £2.8m to £0.6m at the year end.
Dividends
Fully diluted earnings per share from continuing operations have risen by 14% and shareholders' funds strengthened by £2.0m. The Board proposes a final dividend of 2p per share to be paid on 1 June 2012 to shareholders on the register at the close of business on 18 May 2012. This brings the total dividend declared in respect of 2011 to 3.75p per share - an increase of 15% over the previous year.
Surplus Properties
The Group continues to hold several surplus properties that have the potential to realise value on disposal once property market conditions improve. These now include the Portland facility in Chesterfield, which is subject to a 15 year lease to Sonoco, who have a two year rent free period during which they can exercise an option to buy the property. The directors believe the market value of these surplus properties is in excess of their carrying value in these financial statements.
Outlook
Management is committed to maintaining the hard won improvements in efficiency in the plastics business and also to building the top line where we see potential for organic growth particularly in Central Europe and in our rigid paperbox business. So far this year market conditions have remained stable for most of our customers. We remain conscious of the possible effects of adverse economic trends on consumer demand, but due to the Group's exposure to the usually resilient food, drink and toiletry sectors we do not expect revenues to be greatly affected. Our progress so far in 2012 is in line with the Board's expectations.
Richard Clothier
Chairman
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2011 | 2010 | ||||||||
£'000 | £'000 | ||||||||
Continuing operations | |||||||||
Revenue |
| 21,516 | 19,507 | ||||||
Cost of sales | (16,748) | (15,081) | |||||||
Gross profit | 4,768 | 4,426 | |||||||
Operating costs | (2,637) | (2,675) | |||||||
Share of results of associate | - | - | |||||||
Operating profit | 2,131 | 1,751 | |||||||
Finance income - interest receivable | 53 | 24 | |||||||
Finance costs - bank interest payable | (62) | - | |||||||
Finance income in respect of pension fund | 550 | 474 | |||||||
Profit before taxation | 2,672 | 2,249 | |||||||
Taxation | (779) | (627) | |||||||
Profit after tax from continuing operations | 1,893 | 1,622 | |||||||
Discontinued operations - profit/(loss) for the year | 1,398 | (468) | |||||||
Profit for the year | 3,291 | 1,154 | |||||||
Basic earnings per share | |||||||||
Profit per ordinary share from continuing operations | 11.9p | 10.2p | |||||||
Profit/(loss) per ordinary share from discontinued operations | 8.7p | ( 2.9p ) | |||||||
Profit per ordinary share from continuing and discontinued operations | 20.6p |
7.2p | |||||||
Diluted earnings per share | |||||||||
Profit per ordinary share from continuing operations | 11.6p | 4.6p | |||||||
Profit/(loss) per ordinary share from discontinued operations | 8.7p | ( 1.9p ) | |||||||
Profit per ordinary share from continuing and discontinued operations | 20.3p |
7.2p | |||||||
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2011 | 2010 | ||||||||
£'000 | £'000 | ||||||||
Profit for the year | 3,291 | 1,154 | |||||||
Other comprehensive income | |||||||||
Actuarial (loss)/gain on retirement benefit obligations | (705) | 513 | |||||||
Release of currency translation reserve on closure of subsidiary | - | (311) | |||||||
Currency translation loss | (499) | (56) | |||||||
(1,204) | 146 | ||||||||
Taxation relating to actuarial (loss)/gain | 407 | (143) | |||||||
Other comprehensive (expense)/income for the year | (797) | 3 | |||||||
Total comprehensive income for the year attributable to the Company's shareholders | 2,494 | 1,157 | |||||||
Statement of financial position
AS AT 31 DECEMBER
Group | ||||
2011 | 2010 | |||
£'000 | £'000 | |||
Non-current assets | ||||
Property, plant and equipment | 8,763 | 12,394 | ||
Interests in associate | 250 | - | ||
Loan to associate | 200 | - | ||
Deferred tax asset | 221 | 288 | ||
Pension asset | 7,292 | 7,696 | ||
16,726 | 20,378 | |||
Current assets | ||||
Inventories | 1,379 | 1,982 | ||
Trade and other receivables | 6,555 | 6,447 | ||
Cash | 333 | 347 | ||
8,267 | 8,776 | |||
Non-current assets held for sale | 4,998 | 2,782 | ||
Total assets | 29,991 | 31,936 | ||
| ||||
Current liabilities | ||||
Trade and other payables | (3,940) | (4,605) | ||
Corporation tax payable | (391) | (542) | ||
Borrowings | (605) | (2,872) | ||
(4,936) | (8,019) | |||
Non-current liabilities | ||||
Borrowings | (307) | (876) | ||
Deferred tax liabilities | (1,372) | (1,701) | ||
Provisions | (189) | (191) | ||
(1,868) | (2,768) | |||
Total liabilities | (6,804) | (10,787) | ||
Net assets | 23,187 | 21,149 | ||
Equity | ||||
Share capital | 80 | 80 | ||
Share premium | 419 | 419 | ||
Capital redemption reserve | 216 | 216 | ||
Translation reserve | 81 | 580 | ||
Revaluation reserve | 4,567 | 4,420 | ||
Retained earnings | 17,824 | 15,434 | ||
Equity attributable to shareholders | 23,187 | 21,149 | ||
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 2010 | 80 | 419 | 216 | 947 | 4,461 | 14,295 | 20,418 | |||||
Profit for the year | 1,154 | 1,154 | ||||||||||
Other comprehensive income | (367) | 370 | 3 | |||||||||
Transfer to revaluation reserves as a result of property transactions |
(41) |
41 | - | |||||||||
Total comprehensive income for the year | - | - | - | (367) | (41) | 1,565 | 1,157 | |||||
Credit in respect of share based payments | 30 | 30 | ||||||||||
Dividends paid | (456) | (456) | ||||||||||
Transactions with owners | (426) | (426) | ||||||||||
At 31 December 2010 | 80 | 419 | 216 | 580 | 4,420 | 15,434 | 21,149 | |||||
Profit for the year | 3,291 | 3,291 | ||||||||||
Other comprehensive income | (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 | |||||
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group | |||||
2011 | 2010 |
| |||
£'000 | £'000 |
| |||
Cash flows from operating activities |
| ||||
Profit for the year | 3,291 | 1,154 |
| ||
Adjustments for: |
| ||||
Depreciation of property, plant and equipment | 1,061 | 1,379 |
| ||
(Profit)/loss on disposal of other plant and equipment | (86) | 1 |
| ||
Profit on sale or closure of discontinued operations | (1,891) | (165) |
| ||
Decrease in provisions | (2) | (3) |
| ||
Other finance income in respect of pension fund | (550) | (474) |
| ||
Finance costs | 62 | 66 |
| ||
Taxation charged | 779 | 474 |
| ||
Other non-cash items: |
| ||||
Pension current service cost | 249 | 285 |
| ||
Charge for share based payments | 50 | 30 |
| ||
Operating cash flows before movements in working capital | 2,963 | 2,747 |
| ||
Increase in inventories | (216) | (497) |
| ||
Increase in trade and other receivables | (1,222) | (1,222) |
| ||
Increase/(decrease) in trade and other payables | 265 | (348) |
| ||
Cash generated by operations | 1,790 | 680 |
| ||
UK corporation tax paid | (779) | (114) |
| ||
Interest paid | (69) | (67) |
| ||
Net cash generated from operating activities | 942 | 499 |
| ||
| |||||
Cash flows from investing activities |
| ||||
Sale of discontinued operations | 3,729 | (66) |
| ||
Investment in an associate | (450) | - |
| ||
Acquisition of plant and equipment | (1,059) | (542) |
| ||
Proceeds on disposal of other plant and equipment | 172 | 17 |
| ||
Net cash generated from/(used in) from investing activities | 2,392 | (591) |
| ||
| |||||
Cash flows from financing activities |
| ||||
Loans repaid | (647) | (409) |
| ||
Dividends paid | (512) | (456) |
| ||
Net cash used in financing activities | (1,159) | (865) |
| ||
| |||||
Net increase/(decrease) in cash and cash equivalents | 2,175 | (957) |
| ||
Cash and cash equivalents at 1 January | (2,112) | (1,155) |
| ||
Cash and cash equivalents at 31 December | 63 | (2,112) |
| ||
| |||||
Cash | 333 | 347 |
| ||
Overdraft | (270) | (2,459) |
| ||
Cash and cash equivalents at 31 December | 63 | (2,112) |
| ||
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 2011 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 2011 have had any effect on the financial statements.
IAS 1 Presentation of Financial Statements (Revised 2007) requires presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances. Management considers that this is not necessary this year because the 2010 balance sheet is the same as that previously published.
In determining whether the Group's 2011 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. Closure of subsidiary
On 1 July 2011 the spiral wound paperboard tube business of Robinson Paperboard Packaging Limited was sold to Sonoco Ltd. The results of the discontinued operation, which have been included in the Group income statement, along with further gains relating to the closure of Robinson Paperboard Packaging (North America) Ltd, are shown below. The comparative figures also include the trading results and gain on closure of Robinson Paperboard Packaging (North America) Ltd.
2011 | 2010 | ||
£'000 | £'000 | ||
Revenue | 2,881 | 6,928 | |
Expenses | (3,212) | (7,714) | |
Loss before tax | (331) | (786) | |
Attributable tax expense | 80 | 153 | |
(251) | (633) | ||
Gain on disposal of discontinued operations - spiral wound paperboard tube business |
1,023 |
- | |
Gain on closure of discontinued operations | 626 | 165 | |
Net loss attributable to discontinued operations | 1,398 | (468) |
The net assets of the spiral wound tube business of Robinson Paperboard Packaging Limited at the date of sale were:
2011 | ||||||||
£'000 | ||||||||
Property, plant & equipment | 923 | |||||||
Inventories | 819 | |||||||
Trade receivables | 1,019 | |||||||
Trade payables | (873) | |||||||
Other payables | (50) | |||||||
1,838 | ||||||||
Sale costs | 212 | |||||||
Gain on disposal | 1,023 | |||||||
Total consideration | 3,073 |
3. Publication of non-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 2010, but is derived from those accounts. Statutory financial statements for 2010 have been delivered to the Registrar of Companies and those for 2011 will be delivered following the company's annual general meeting planned for 3 May 2012. Copies will also be available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK and on the Group's website at www.robinsonpackaging.com.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).