Robinson Regulatory News (RBN)

Robinson plc

("Robinson", the "Company" or the "Group")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

CHAIRMAN'S STATEMENT

Trading and Cash

Revenues in the first half were 6% below the same period in 2015 with 2% of the reduction due to lower resin prices which were passed on to customers. The lower volumes were primarily in the UK and widespread amongst our customers where it was largely due to reduced call off rather than business losses, with also one customer taking an element of their packaging production in house. Demand in the retail markets, particularly for premium branded goods, continues to be subdued but new business gains have started to come on stream during the period albeit somewhat slower than we had expected.

Reported profits are higher than the previous first half and this is due to exceptional charges last year, relating to the acquisition. The operating profit in this half of £0.2m compares with an underlying £0.8m in 2015 before exceptional items. This underlying reduction in profits was predominantly due to lower revenues, mix and resin price and has resulted in gross margins falling from 21.9% to 19.6%. Operating costs also increased, mainly in Poland, where new management and sales staff have joined the Company to deliver future growth.

Following the £4.3m payment of the final earn-out for the acquisition of Madrox in Poland in May, the cash outflow was £3.8m leaving net borrowings at £4.6m at the end of the period. The underlying cash generated by the Group was positive at £0.5m after spending £0.7m on new plant and machinery.

A final dividend, with respect to 2015, of 3p was paid to shareholders on 1 June 2016 (2015: 2.75p).

Outlook and Dividend

In the short term, the weaker pound has pushed up resin prices in the UK (as these are Euro based) but, on the other hand, it increases the sterling value of our Polish profits and net assets. Planning applications have been submitted for the properties that we are seeking to divest, namely to develop the Boythorpe and Walton Works sites in Chesterfield, and are expected to be determined in the next 2-3 months.

We have been engaged in a considerable effort to strengthen our commercial capabilities including the addition of new sales and management personnel. This investment continues and is adding to the cost structure. However, the objective of course, is to build our business and, although we expect the soft market conditions to continue, new business should progressively fill that gap in the second half. This and further new business, already signed up but not yet in production, will, in the following year, help us to return to our organic growth targets.

The Board has approved an interim dividend of 2.5p (2015: 2.5p) to be paid on 3 October 2016 to shareholders on the register at 26 August 2016. The ordinary shares ex-dividend date is 25 August 2016.

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This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations

Robinson plc

Group Income Statement

Robinson plc

Group Statement of Financial Position

Robinson plc

Group Statement of Cash Flows

Robinson plc

Notes to the Interim Report

1. Basis of preparation

The interim report for the six month period to 30 June 2016 was approved by the directors on 16 August 2016. The interim financial information is not audited.

The interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs). These should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2015 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under sections 498 (2) or (3) respectively of the Companies Act 2006.

2. Taxation

The taxation charge for the six months to 30 June 2016 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2016.

3. Dividends

4. Earnings per share

The calculation of basic and diluted earnings per ordinary share for continuing operations shown on the income statement is based on the profit after taxation of £162,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,394,304: for diluted earnings per share 16,977,012.

5. Exceptional items

The exceptional item of £1,694,000 in 2015 represented the expected extra consideration for the acquisition of Madrox Spolka Jawna ("Madrox") recognised in that year. The final payment to the vendors of £4.3m was paid in May 2016.

6. Going concern

The directors have considered the cash flow forecasts for the Group and the availability of facilities. As at the date of this report, the directors have a reasonable expectation that the Group has adequate resources to continue in business for the foreseeable future. Thus they continue to adopt the going concern basis of accounting.

7. Interim report

Copies of the interim report are available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK or from its website at www.robinsonpackaging.com.