Last checked at 25 Aug 2010 07:00
25 August 2010
ROBINSON PLC
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010
Robinson plc ("Robinson" or "the Group"; AIM: RBN), the custom manufacturer of plastic and paperboard packaging, announces its unaudited interim results for the six months ended 30 June 2010.
Highlights:
·; Revenue at £11.5m up 19% - more than reversing the 15% fall experienced last year
·; Profit before tax of £192,000 (Jun-09: loss of £966,000)
·; Interim dividend increased by 50% to 1.5p per share (Jun-09: 1.0p)
·; Debt reduced while working capital has been increased to support growth
Commenting on the results, Chairman, Richard Clothier said:
"It is pleasing to see a return to growth with revenues ahead 19% compared to the same period last year. The business has broadly broken even in our seasonally lower first half and, despite market conditions remaining uncertain, we look forward to reporting progress at the end of the full year. As an indication of our confidence in the outlook, the interim dividend has been restored to its previous level.
During the period Robinson has won a number of new contracts and our operation in Poland continues to make strong progress."
About Robinson
Based in Chesterfield, with additional manufacturing facilities in Kirkby-in-Ashfield and Stanton Hill (Nottinghamshire) in Lodz (Poland) and in Toronto (Canada), Robinson currently employs around 350 people. It was formerly a family business, with its origins dating back some 165 years. Today the Group's main activities are in the manufacture and sale of injection moulded plastic and rigid paperboard packaging. Robinson operates primarily within the food, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestlé, Kraft, United Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon, Boots and Dr Oetker. The Group also has a substantial property portfolio with significant development potential.
For further information, please contact:
| Adam Formela, Chief Executive, Robinson plc | 01246 505196 |
| Guy Robinson, Finance Director, Robinson plc | www.robinsonpackaging.com |
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| Nick Tulloch, Arbuthnot Securities Limited Paul Gillam, Arbuthnot Securities Limited | 020 7012 2000 |
Robinson plc, Chesterfield, S40 2PH, UK. Registered number 39811 (England) AIM code "RBN"
CHAIRMAN'S STATEMENT Six months ended 30 June 2010
I am pleased to report that revenues in the first half have grown by 19% compared with 2009. Taking both 2008 and 2009 together, despite rather indifferent market conditions and after adjusting for raw material price effects, volumes have recovered to pre-recession levels. The growth in revenues this year has been across all our business units with the exception of the paperboard plant in Toronto. Revenues from this unit fell by 30% while revenues in Central Europe rose by 40%. This underlines our strategy of focusing upon growing our business in Europe.
Margins have also recovered despite plastic polymer prices reaching an all time peak due to supply plant capacity issues. Continental polymer prices have lately started to ease and we expect this to spread to Central Europe and the UK during the second half.
Operating costs were 12% lower but this is mainly attributable to the impact of foreign exchange rates on current account balances. However, the result is a small profit at operating level which is an improvement of over £1 million compared with the previous year.
Interest rates have remained low and this has kept financing costs down. The pension fund remains in surplus and the benefit of this continues to be shown in the Group Income Statement in accordance with current accounting regulations. The resulting profit before tax for the period was £0.2m (Jun-09: loss of £1.0m).
Despite working capital being £1.6m higher, due largely to the higher level of trading in the second quarter, net borrowings are £0.4m lower than a year ago. Capital spending has been at a modest level so far this year.
The market conditions for the rest of this year remain demanding especially with retail sales showing signs of moderation. We do not anticipate our main business sectors to be badly affected this year but the run up to Christmas is an important time for the packaging industry and any overstocking would have an impact on early 2011 revenues. We remain optimistic that we will be able to show good progress with both revenue growth and profit improvement by the end of the year. As a result the Board has concluded that an interim dividend of 1.5p (Jun-09: 1.0p) will be paid on 1 October 2010 to shareholders on the register at 3 September 2010.
| Richard Clothier |
| 24 August 2010 |
| Chairman |
| Robinson plc |
Robinson plc
Group Income Statement
|
|
|
| Unaudited six months to 30.06.10 | Unaudited six months to 30.06.09 | Audited year to 31.12.09 | ||
|
| Notes |
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
|
|
| Revenue |
|
| 11,519 |
| 9,651 |
| 23,425 |
| Cost of sales |
|
| (9,555) |
| (8,496) |
| (18,709) |
| Gross profit |
|
| 1,964 |
| 1,155 |
| 4,716 |
| Operating costs |
|
| (1,956) |
| (2,227) |
| (4,410) |
| Operating profit/(loss) before exceptional items |
|
| 8 |
| (1,072) |
| 306 |
| Exceptional items | 2 |
| - |
| (38) |
| 66 |
| Operating profit/(loss) after exceptional items |
|
| 8 |
| (1,110) |
| 372 |
| Finance costs |
|
| (52) |
| (41) |
| (92) |
| Finance income in respect of pension fund |
|
| 236 |
| 185 |
| 374 |
| Profit/(loss) before taxation |
|
| 192 |
| (966) |
| 654 |
| Taxation | 3 |
| (88) |
| (84) |
| (230) |
| Profit/(loss) after taxation |
|
| 104 |
| (1,050) |
| 424 |
|
|
|
|
|
|
|
|
|
| Earnings/(loss) per ordinary share (basic and diluted) | 4 |
| 0.7p |
| ( 6.6p ) |
| 2.7p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statement of comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Profit/(loss) for the period |
|
| 104 |
| (1,050) |
| 424 |
| Other comprehensive income |
|
|
|
|
|
|
|
| Actuarial (loss)/gain on retirement benefit obligations |
|
| (100) |
| (59) |
| 69 |
| Currency translation loss |
|
| (302) |
| (622) |
| (182) |
|
|
|
| (402) |
| (681) |
| (113) |
| Taxation relating to actuarial loss/(gain) |
|
| 28 |
| (17) |
| (20) |
| Other comprehensive expense for the period |
|
| (374) |
| (698) |
| (133) |
| Total recognised (expense)/income for the period |
|
| (270) |
| (1,748) |
| 291 |
Robinson plc
Group Balance Sheet
|
|
|
| Unaudited six months to 30.06.10 |
| Unaudited six months to 30.06.09 |
| Audited year to 31.12.09 |
|
|
|
| £'000 |
| £'000 |
| £'000 |
| Non-current assets |
|
|
|
|
|
|
|
| Property, plant and equipment |
|
| 12,406 |
| 12,991 |
| 13,237 |
| Deferred tax assets |
|
| 342 |
| 197 |
| 344 |
| Pension asset |
|
| 6,996 |
| 6,808 |
| 6,996 |
|
|
|
| 19,744 |
| 19,996 |
| 20,577 |
| Current assets |
|
|
|
|
|
|
|
| Inventories |
|
| 2,018 |
| 1,951 |
| 1,535 |
| Trade and other receivables |
|
| 5,779 |
| 4,763 |
| 5,708 |
| Cash |
|
| 158 |
| 172 |
| 334 |
|
|
|
| 7,955 |
| 6,886 |
| 7,577 |
| Non-current assets held for sale |
|
| 2,782 |
| 2,954 |
| 2,782 |
| Total assets |
|
| 30,481 |
| 29,836 |
| 30,936 |
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
| Trade and other payables |
|
| (4,182) |
| (4,731) |
| (5,341) |
| Corporation tax payable |
|
| (204) |
| (184) |
| (218) |
| Borrowings |
|
| (3,321) |
| (3,815) |
| (1,897) |
|
|
|
| (7,707) |
| (8,730) |
| (7,456) |
| Non-current liabilities |
|
|
|
|
|
|
|
| Borrowings |
|
| (1,084) |
| (965) |
| (1,290) |
| Deferred tax liabilities |
|
| (1,574) |
| (1,419) |
| (1,578) |
| Provisions
|
|
| (194) |
| (199) |
| (194) |
|
|
|
| (2,852) |
| (2,583) |
| (3,062) |
| Total liabilities |
|
| (10,559) |
| (11,313) |
| (10,518) |
|
|
|
|
|
|
|
|
|
| Net assets |
|
| 19,922 |
| 18,523 |
| 20,418 |
|
|
|
|
|
|
|
|
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|
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|
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| Equity |
|
|
|
|
|
|
|
| Share capital |
|
| 80 |
| 80 |
| 80 |
| Share premium |
|
| 419 |
| 419 |
| 419 |
| Capital redemption reserve |
|
| 216 |
| 216 |
| 216 |
| Translation reserve |
|
| 643 |
| 507 |
| 947 |
| Revaluation reserve |
|
| 4,461 |
| 4,361 |
| 4,461 |
| Retained earnings |
|
| 14,103 |
| 12,940 |
| 14,295 |
| Equity attributable to shareholders |
|
| 19,922 |
| 18,523 |
| 20,418 |
Robinson plc
Group cash flow statement
|
|
|
| Unaudited six months to 30.06.10 |
| Unaudited six months to 30.06.09 |
| Audited year to 31.12.09 |
|
|
|
| £'000 |
| £'000 |
| £'000 |
| Cash flows from operating activities |
|
|
|
|
|
|
|
| Profit/(loss) after taxation |
|
| 104 |
| (1,050) |
| 424 |
| Adjustments for: |
|
|
|
|
|
|
|
| Depreciation charges and write-down of fixed assets |
|
| 673 |
| 745 |
| 1,477 |
| Profit on disposal of land and buildings |
|
| - |
| (44) |
| (44) |
| Profit on disposal of non-current assets held for sale |
|
| - |
| - |
| (176) |
| Profit/(loss) on disposal of other plant and equipment |
|
| (3) |
| 6 |
| - |
| Decrease in provisions |
|
| - |
| - |
| (5) |
| Other finance income in respect of Pension Fund |
|
| (236) |
| (185) |
| (374) |
| Finance costs |
|
| 52 |
| 41 |
| 92 |
| Taxation charged |
|
| 103 |
| 84 |
| 230 |
| Non-cash items: |
|
|
|
|
|
|
|
| Increase in net pension asset charged to operating profit |
|
| 136 |
| 126 |
| 255 |
| Cost of share options |
|
| 16 |
| 15 |
| 32 |
| Operating cash flows before movements in working capital |
|
| 845 |
| (262) |
| 1,911 |
| (Increase)/decrease in inventories |
|
| (483) |
| (211) |
| 205 |
| (Increase)/decrease in trade and other receivables |
|
| (116) |
| 2,374 |
| 1,323 |
| Decrease in trade and other payables |
|
| (1,256) |
| (2,101) |
| (1,476) |
| Cash (used in)/generated by operations |
|
| (1,010) |
| (200) |
| 1,963 |
| UK corporation tax received/(paid) |
|
| 12 |
| (15) |
| (143) |
| Interest paid |
|
| (50) |
| (101) |
| (158) |
| Net cash (used in)/generated from operating activities |
|
| (1,048) |
| (316) |
| 1,662 |
| Cash flows from investing activities |
|
|
|
|
|
|
|
| Sale of surplus properties |
|
| - |
| 64 |
| 67 |
| Sale of non-current assets |
|
| - |
| - |
| 348 |
| Acquisition of property, plant & equipment |
|
| (117) |
| (386) |
| (841) |
| Disposal of other tangible plant & equipment |
|
| 17 |
| (6) |
| 14 |
| Net cash used in investing activities |
|
| (100) |
| (328) |
| (412) |
| Cash flows from financing activities |
|
|
|
|
|
|
|
| Loans received |
|
| - |
| - |
| 415 |
| Loans paid |
|
| (203) |
| (279) |
| (336) |
| Dividends paid |
|
| (246) |
| (245) |
| (384) |
| Net cash used in from financing activities |
|
| (449) |
| (524) |
| (305) |
| Net (increase)/decrease in cash and bank overdrafts |
|
| (1,597) |
| (1,168) |
| 945 |
| Cash and bank overdrafts at 1 January |
|
| (1,155) |
| (2,100) |
| (2,100) |
| Cash and bank overdrafts at end of period |
|
| (2,752) |
| (3,268) |
| (1,155) |
|
|
|
|
|
|
|
|
|
| Cash |
|
| 158 |
| 172 |
| 334 |
| Overdraft |
|
| (2,910) |
| (3,440) |
| (1,489) |
| Cash and bank overdrafts at end of period |
|
| (2,752) |
| (3,268) |
| (1,155) |
Robinson plc Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2010 was approved by the directors on 24 August 2010. The interim financial information is not audited.
The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention except that they have been modified to include the valuation of certain financial assets and liabilities. The interim financial statements do not constitute statutory financial statements in accordance with section 435 of the Companies Act 2006. The full year figures are derived from the statutory accounts on which the auditors gave an unmodified report. The Group's statutory financial statements prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union have been filed with the Registrar of Companies.
2. Exceptional items
|
| Unaudited six months to 30.06.10 |
| Unaudited six months to 30.06.09 |
| Audited year to 31.12.09 |
|
| £'000 |
| £'000 |
| £'000 |
|
|
|
|
|
|
|
| Profit on disposal of non-current assets held for sale | - |
| - |
|
176 |
| Profit on disposal of land and buildings | - |
| 44 |
| 44 |
| Redundancy | - |
| (82) |
| (154) |
|
| - |
| (38) |
| 66 |
|
|
|
|
|
|
|
3. Taxation
The taxation charge for the six months to 30 June 2010 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2010.
4. Dividends
|
| Unaudited six months to 30.06.10 |
| Unaudited six months to 30.06.09 |
| Audited year to 31.12.09 |
| Ordinary: | £'000 |
| £'000 |
| £'000 |
| Final | 246 |
| 244 |
| 244 |
| Interim | - |
| - |
| 140 |
|
| 246 |
| 244 |
| 384 |
|
|
|
|
|
|
|
5. Earnings per share
The calculation of earnings per ordinary share is based on the profit on ordinary activities after taxation (£104,000) divided by the weighted average number of shares in issue (15,943,501).
6. Interim Report
Copies of the interim report are available from Robinson plc's registered office: Portland, Goyt Side Road, Chesterfield, S40 2PH, UK or from its website at www.robinsonpackaging.com.