Last checked at 20 Jan 2009 09:51
20 January 2009
FOR IMMEDIATE RELEASE
Robinson plc
TRADING STATEMENT
Robinson plc ("Robinson" or "the Group"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging, today issues the following trading statement, prior to the announcement of its preliminary results for the year ended 31 December 2008, which are scheduled to be released on 3 April 2009.
Revenues for the Group overall were maintained in 2008 at £25.5m, with revenue from overseas operations increasing by 82% to £6m and now representing 23% of the Group's total revenue. This is a result of customers continued migration of business to Central Europe to the benefit of the Group's facility in Lodz, Poland. As a result of this migration, the UK operations revenues reduced by 11% in 2008. Overall though, revenues have benefited from favourable exchange rate movements and increased raw material costs which were successfully passed on to customers.
In 2008 the underlying volumes fell by approximately 4% on 2007, mainly due to the annualised impact of two contracts lost in the latter part of 2007. These contracts were however at low margins and following the actions taken to reduce capacity and reduce cost in 2007, we expect the full year result for 2008 to show a further improvement in profitability over the previous year.
During the past three months significant reductions in input prices have occurred. This continued trend will help to further improve profitability to acceptable levels going forward, although for the majority of our plastics business the benefit will be contractually passed on to customers. The year is starting with evidence of growth in both sales and margins, but at this early stage much depends on how the consumer goods markets develop during the year.
As a result of the weak UK property market, which we expect to continue for the foreseeable future, the sale of the surplus properties is likely to be postponed until more favourable conditions return.
The Group's website has also been updated and its new address is now www.robinsonpackaging.com. All information required pursuant to AIM Rule 26 (company information disclosure) can be found at this address.
For further information, please contact:
| Robinson plc | |
| Guy Robinson, Finance Director | Tel: 01246 505 196 |
| www.robinsonpackaging.co.uk | |
| Arbuthnot Securities | |
| Richard Tulloch | Tel: 020 7012 2000 |