Last checked at 21 Aug 2019 07:00
21 August 2019
Robinson plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019
CHAIRMAN'S STATEMENT
Trading Results
Revenues in the first half of 2019 are 9% higher than the same period last year, with an underlying volume increase of 8%. As we indicated in May, volumes in Q2 were lower, most notably as customers unwound Brexit contingency inventory that had been created in Q1.
Gross margin in the period slightly improved to 20% (2018: 19%), mainly as a result of pricing movements whilst operating costs were 9% higher, largely due to recruitment and training.
Operating profits before amortisation have improved by 48% to £0.8m versus the same period last year and profit before tax increased to £0.3m (2018: £0.1m).
Net debt
Net borrowings at the end of the period were £9.1m (December 2018: £8.8m) after investment of £1.0m in plant and equipment and increased inventory of £0.5m to provide Brexit contingency cover. A final dividend, with respect to 2018, of 3p per share was paid to shareholders on 3 June 2019 (2018: 3p).
Outlook and Dividend
Having undertaken a thorough review of customer demand, despite the ongoing Brexit uncertainty, we continue to target circa 10% annual revenue growth and target for future years progress towards a pre-exceptional return on sales in the range of 6-8%.
The Board is pleased to announce an interim dividend of 2.5p (2018: 2.5p) to be paid on 1 October 2019 to shareholders on the register at 30 August 2019 (record date). The ordinary shares ex-dividend date is 29 August 2019.
Alan Raleigh
Chairman
20 August 2019
For further information, please contact:
Robinson plc | www.robinsonpackaging.com |
Guy Robinson, Finance Director | Tel: 01246 389283 |
finnCap Limited | |
Ed Frisby / Giles Rolls, corporate finance Tim Redfern / Tim Harper, ECM | Tel: 020 7220 0500 |
Note for Editors:
Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire), Warsaw and Lodz (Poland), Robinson currently employs around 325 people. It was formerly a family business, with its origins dating back 180 years. Today the Group's main activity is the manufacture and sale of injection and blow moulded plastic packaging. Robinson operates primarily within the food, household, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as McBride, Proctor & Gamble, Reckitt Benckiser, SC Johnson, and Unilever. The Group also has a substantial property portfolio with development potential.
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
Income statement and statement of comprehensive income | ||||
Income statement | £'000 | Six monthsto 30.06.19 | Six monthsto 30.06.18 | Year to31.12.18 |
Revenue | 17,085 | 15,622 | 32,802 | |
Cost of sales | (13,721) | (12,719) | (26,918) | |
Gross profit | 3,364 | 2,903 | 5,884 | |
Operating costs | (2,576) | (2,371) | (4,370) | |
Operating profit before exceptional items and amortisation of intangible asset | 788 | 532 | 1,514 | |
Exceptional items | - | - | 110 | |
Amortisation of intangible assets | (375) | (392) | (783) | |
Operating profit after exceptional items | 413 | 140 | 841 | |
Finance income - interest receivable | - | 1 | - | |
Finance costs - bank interest payable | (104) | (55) | (156) | |
Finance income in respect of pension fund | - | - | - | |
Profit before taxation | 309 | 86 | 685 | |
Taxation | (86) | (139) | 10 | |
Profit/(loss) for the period | 223 | (53) | 695 | |
Earnings per ordinary share (EPS) | p | p | p | |
Basic earnings per share | 1.3 | (0.3) | 4.2 | |
Diluted earnings per share | 1.3 | (0.3) | 4.2 | |
Statement of comprehensive income | £'000 | Six monthsto 30.06.19 | Six monthsto 30.06.18 | Year to31.12.18 |
Profit/(loss) after tax for the period | 223 | (53) | 695 | |
Items that will not be reclassified subsequently to the Income Statement: | ||||
Re-measurement of net defined benefit liability | 98 | 96 | 193 | |
Deferred tax relating to items not reclassified | (19) | (6) | - | |
79 | 90 | 193 | ||
Items that may be reclassified subsequently to the Income Statement: | ||||
Exchange differences on retranslation of foreign currency goodwill and intangibles | 428 | - | - | |
Exchange differences on translation of foreign operations | 117 | (517) | (138) | |
545 | (517) | (138) | ||
Other comprehensive income/(expense) for the period | 624 | (427) | 55 | |
Total comprehensive income/(expense) for the period | 847 | (480) | 750 | |
Statement of financial position | ||||
Statement of financial position | £'000 | 30.06.19 | 30.06.18 | 31.12.18 |
Non-current assets | ||||
Goodwill | 1,215 | 1,115 | 1,115 | |
Other intangible assets | 4,261 | 4,698 | 4,306 | |
Property, plant and equipment | 19,222 | 17,598 | 19,039 | |
Deferred tax asset | 895 | 184 | 868 | |
25,593 | 23,595 | 25,328 | ||
Current assets | ||||
Inventories | 3,485 | 3,019 | 2,972 | |
Trade and other receivables | 9,720 | 9,280 | 10,699 | |
Cash | 1,490 | 676 | 1,358 | |
14,695 | 12,975 | 15,029 | ||
Total assets | 40,288 | 36,570 | 40,357 | |
Current liabilities | ||||
Trade and other payables | (5,090) | (6,349) | (5,897) | |
Corporation tax payable | (122) | (246) | (99) | |
Bank overdrafts | (5,551) | (7,059) | (6,178) | |
Obligations under finance lease contracts | (431) | (64) | (276) | |
(11,194) | (13,718) | (12,450) | ||
Non-current liabilities | ||||
Bank and other loans | (2,700) | - | (2,700) | |
Obligations under finance lease contracts | (1,917) | (74) | (1,049) | |
Deferred tax liabilities | (1,008) | (494) | (1,056) | |
Provisions | (174) | (181) | (174) | |
(5,799) | (749) | (4,979) | ||
Total liabilities | (16,993) | (14,467) | (17,429) | |
Net assets | 23,295 | 22,103 | 22,928 | |
Equity | ||||
Share capital | 83 | 83 | 83 | |
Share premium | 732 | 732 | 732 | |
Capital redemption reserve | 216 | 216 | 216 | |
Translation reserve | 1,371 | 447 | 826 | |
Revaluation reserve | 4,122 | 4,315 | 4,126 | |
Retained earnings | 16,771 | 16,310 | 16,945 | |
Equity attributable to shareholders | 23,295 | 22,103 | 22,928 | |
Statement of cash flows | ||||
Statement of cash flows | £'000 | Six monthsto 30.06.19 | Six monthsto 30.06.18 | Year to31.12.18 |
Cash flows from operating activities | ||||
Profit/(loss) for the period | 223 | (53) | 695 | |
Adjustments for: | ||||
Depreciation of property, plant and equipment | 915 | 850 | 1,795 | |
Impairment of property, plant and equipment | - | - | 189 | |
(Profit) / loss on disposal of other plant and equipment | (16) | - | 209 | |
Amortisation of intangible assets | 375 | 392 | 783 | |
Decrease in provisions | - | - | (7) | |
Finance income | - | (1) | - | |
Finance costs | 104 | 55 | 156 | |
Taxation charged | 86 | 139 | (10) | |
Other non-cash items: | ||||
Pension current service cost and expenses | 98 | 98 | 193 | |
Charge for share options | 5 | 5 | 12 | |
Operating cash flows before movements in working capital | 1,790 | 1,485 | 4,015 | |
Increase in inventories | (513) | (238) | (151) | |
Decrease/(increase) in trade and other receivables | 979 | 436 | (853) | |
(Decrease)/increase in trade and other payables | (818) | 1,158 | 329 | |
Cash generated by operations | 1,438 | 2,841 | 3,340 | |
Corporation tax paid | (95) | (228) | (294) | |
Interest paid | (104) | (55) | (150) | |
Net cash generated by operating activities | 1,239 | 2,558 | 2,896 | |
Cash flows from investing activities | ||||
Interest received | - | 1 | - | |
Acquisition of plant and equipment | (1,041) | (2,055) | (4,355) | |
Proceeds on disposal of property, plant and equipment | 21 | - | 15 | |
Net cash used in investing activities | (1,020) | (2,054) | (4,340) | |
Cash flows from financing activities | ||||
Loans repaid | - | (211) | (221) | |
Loans drawndown | - | - | 2,700 | |
Finance leases drawndown | 1,279 | - | 1,300 | |
Finance lease payments | (256) | (20) | (106) | |
Dividends paid | (485) | (485) | (890) | |
Net cash used in financing activities | 538 | (716) | 2,783 | |
Net increase/(decrease) in cash and cash equivalents | 756 | (212) | 1,339 | |
Cash and cash equivalents at 1 January | (4,820) | (6,158) | (6,158) | |
Effect of foreign exchange rate changes | 3 | (13) | (1) | |
Cash and cash equivalents at end of period | (4,061) | (6,383) | (4,820) | |
Cash | 1,490 | 676 | 1,358 | |
Overdraft | (5,551) | (7,059) | (6,178) | |
Cash and cash equivalents at end of period | (4,061) | (6,383) | (4,820) |
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2019 was approved by the directors on 20 August 2019. 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 2018, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2018 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 2019 has been calculated based on the estimated effective tax rate on profits before tax for the year to 31 December 2019.
3. Dividends
£'000 | Six monthsto 30.06.19 | Six monthsto 30.06.18 | Year to31.12.18 | ||
Ordinary dividend paid: | 2017 final of 3.0p per share | - | 485 | 485 | |
2018 interim of 2.5p per share | - | - | 405 | ||
2018 final of 3.0p per share | 485 | - | - | ||
485 | 485 | 890 |
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 £223,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,613,389 (basic) and 16,754,935 (diluted).
5. 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.
6. Standards effective from 1 January 2019
Robinson plc has adopted IFRS 16 and this introduction has not resulted in a material impact on the statement of financial position or on profit or loss or on retained earnings in the current period.
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.