RNS Number:2122K
Robinson PLC
29 March 2005
FOR IMMEDIATE RELEASE 29 March 2005
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2004
Robinson plc ("Robinson" or "the Company"; stock code: RBN), the custom
manufacturer of paperboard and plastic packaging based in Chesterfield, has
announced its audited results for the year ended 31 December 2004.
Highlights:
* These are Robinson's first full-year results since its introduction to
AIM on 6th April 2004.
* Sales grew by 5% year-on-year to #25.9 million.
* Gross margins improved from 13.2% to 15.5%, reflecting a focus on
quality and service. The Company was able to largely pass on significant
increases in plastic polymer prices.
* Operating profit improved to #111,000 from a loss of #1.5 million in
2003. This includes the costs of the introduction to AIM and an abortive
acquisition, together totaling #430,000.
* The balance sheet remains strong with no debt and free cash at the year
end 2004 of #1.8 million.
* The Board is recommending a final dividend of 1p per share (2003: nil).
Together with the interim dividend, this takes the total for the year to
3p, a 50% increase in comparison to 2003.
Commenting on the results, Chairman, Richard Clothier stated:
"These encouraging results reflect our strategy to develop the business firstly
through organic growth. Our focus on product development and innovation will, we
believe, lead to further new business opportunities and we expect to make more
progress towards achieving satisfactory levels of profitability in 2005."
About Robinson
Based in Chesterfield, and with additional manufacturing facilities in
Kirkby-in-Ashfield, Nottinghamshire, and in Toronto, Canada, Robinson currently
employs over 400 people. It was formerly a family business, with its origins
dating back some 165 years. Today the Company's main activities are in the
manufacture and sale of rigid paper packaging and injection moulded plastic
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 Nestle, Lever Faberge
and Whyte & Mackay. The Company also has a substantial property portfolio with
significant development potential.
For further information, please contact:
Jon Marx, Chief Executive, Robinson plc 01246 220022
Guy Robinson, Finance Director, Robinson plc 01246 220022
www.r1son.co.uk
Barry Saint, Arbuthnot Securities 020 7012 2000
Sue Scott/Michael Padley, Bankside Consultants 020 7444 4140
CHAIRMAN'S STATEMENT
I am pleased to report that profit before tax improved to #493,000 from a loss
in the previous year and our group achieved record sales of #25.9 million, 5%
higher than in 2003. During the year the group became a plc, listed on the
Alternative Investment Market and returned about #9 million to shareholders by
way of a share buyback.
The paperboard businesses were responsible for the growth and the UK saw its
first increase in sales since moving to the new factory in 1999. This was
achieved despite a deliberate withdrawal from smaller customers that reduced
overall sales by #900,000. Factors contributing to this improved performance
included price increases, reduced overheads and the gaining of two new
significant accounts. The North American paperboard packaging business, located
in Toronto, gained a significant new US customer during the year and other
accounts were generally strong despite the weak US dollar.
PROFITABILITY
Gross margin improved from 13.2% to 15.5% reflecting improved productivity,
benefits from cutting the tail of less profitable business and our ability to
largely pass on the significant increases in plastic polymer prices.
Operating profits recovered to #111,000 from the previous year's losses of
#1,552,000. This result was achieved after allowing for exceptional costs of
#236,000 for the introduction to AIM and costs of #194,000 after an aborted
acquisition. In addition, we made a profit on the disposal of surplus land of
#236,000 (2003: #1,154,000). Excluding exceptional items, operating profits
amounted to #541,000 (2003: #411,000 loss)
Interest income reduced from #297,000 to #146,000 due to the reduction in
surplus cash following the repurchase of 40% of the Company's share capital on
28 April 2004.
The profit before taxation of #493,000 improved from a loss of #101,000 in 2003.
With the proposed increase in dividend offset by the share repurchase, the cost
of dividends reduced slightly to #418,000.
CASH & FINANCIAL POSITION
Our balance sheet remains strong with no debt and free cash at the year end of
#1,815,000. Capital expenditure for the year increased to #1,596,000 (2003:
#1,140,000) as we continued to invest in new plant and equipment. The net cash
inflow from operations during the year amounted to #1,503,000 with the
repurchase of shares costing #8,997,000, leaving a net cash outflow for the year
of #7,494,000.
DIVIDEND
The Board is recommending a final dividend of 1p per share (2003: nil). Together
with the interim dividend, this takes the total for the year to 3p (2003: 2p
equivalent). This continues the policy outlined in the listing particulars. It
is our intention in the future to pay two dividends per annum - the interim in
October and the final in June.
PENSIONS
Our pension fund remains in a healthy position. We closed the final salary
(defined benefit) section to new entrants in 1997 and since then have been
operating a money purchase (defined contribution) scheme. With the sales of
businesses that have taken place over the past 15 years and rationalisation of
workforce, the fund is very mature. We have not adopted the new proposed
accounting standard (FRS17) ahead of its scheduled implementation date as we
feel the accounts will be distorted and the underlying business performance
thereby masked. Instead we have opted for full disclosure of the fund's
performance and financial position by way of a note to the accounts. This shows
the fund has assets with a market value of #46 million and liabilities of #41.2
million, giving a surplus of #4.8 million at the end of 2004. The present value
of scheme liabilities has increased by #4.2m during the year, much of which is
due to the actuary's assumptions of longevity.
PROPERTY PORTFOLIO
During the year we sold some surplus land at Kirkby-in-Ashfield (UK) for
#686,000, yielding a profit over the book value of #236,000. We continue to seek
planning permission for the development of the old Robinson Healthcare site at
Walton, but the draft Chesterfield town plan, issued in March 2005, has
indicated that residential developments on this site will, except in exceptional
circumstances, be considered only after 2011.
ACQUISITIONS
We investigated the possible acquisition of a plastic injection moulding company
in Denmark during the year. However, following due diligence, we were unable to
agree terms with the vendor and negotiations were terminated. We continue to
seek acquisitions of packaging businesses with appropriate synergies and long
term prospects for inclusion within the Group.
OUTLOOK
We continue to seek to develop the business both through organic growth and
acquisition. Our focus on product development and innovation, together with
better understanding of our customers' needs, remains a priority and will, we
believe, lead to further sales opportunities. Following the move by some of our
customers to Poland, we currently are investigating the possibilities of a
startup there. Raw material costs continue to rise in the face of worldwide
demand and energy prices are increasing at rates much higher than the general
inflation level. Nevertheless, sales are currently slightly ahead of the same
period last year and overall, we expect another step in 2005 towards achieving
satisfactory levels of profitability in our packaging businesses.
Richard Clothier 29 March 2005
Chairman
Robinson plc
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2004
Notes 2004 2003
#'000 #'000
Turnover 25,949 24,669
Cost of sales (21,919) (21,410)
------- ------
Gross Profit 4,030 3,259
------- ------
Overheads, excluding exceptional items (3,489) (3,670)
Exceptional items (430) (1,141)
------- -------
Total Overheads (3,919) (4,811)
------- -------
Operating Profit/(Loss) 111 (1,552)
Profit on disposal of land and buildings 236 1,154
----- ------
Profit/(Loss) on ordinary activities before interest 347 (398)
Interest received 146 297
----- ------
Profit/(Loss) on ordinary activities before taxation 493 (101)
Taxation 2 (238) 618
----- -----
Profit on ordinary activities after taxation 255 517
Dividends 3 (418) (457)
------ -----
Retained (loss)/profit for the year (163) 60
====== =====
Earnings per ordinary 1p share
Basic and diluted (p) 4 1.32 1.95
All amounts relate to continuing operations
The accounting policies and notes form an integral part of the financial
statements
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003
#'000 #'000
Profit for the financial year 255 517
Unrealised deficit on revaluation of properties - (9)
Currency translation differences on foreign currency net
investments (25) (55)
---- ----
Total gains recognised since last annual report 230 453
==== ====
GROUP BALANCE SHEET
AS AT 31 DECEMBER
Notes 2004 2003
#'000 #'000
Fixed assets
Tangible fixed assets 15,001 15,771
Investments - -
------ ------
15,001 15,771
Current assets
Stocks 1,640 1,604
Debtors 5,437 5,708
Current asset investments 1,002 8,582
Cash 813 727
----- ------
8,892 16,621
Creditors: amounts falling due within one year (5,690) (5,635)
------ ------
Net current assets 3,202 10,986
------ ------
Total assets less current liabilities 18,203 26,757
Creditors: amounts falling due after more than one (622) (282)
year
Provisions for liabilities and charges (614) (349)
------ ------
Net assets 16,967 26,126
====== ======
Capital and reserves
Called up share capital 80 132
Share premium account 398 398
Capital redemption reserve 216 164
Revaluation reserve 5,138 5,539
Profit and loss account 11,135 19,893
------ ------
Equity Shareholders' Funds 5 16,967 26,126
====== ======
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
2004 2003
#'000 #'000
Cash inflow from operating activities
Operating profit/(loss) 111 (1,552)
Depreciation charges and write-down of fixed assets 1,795 2,710
Loss/(profit) on sale of other tangible fixed assets 100 (15)
(Increase)/decrease in stocks (36) 15
Decrease/(increase) in debtors 448 (66)
Increase/(decrease) in creditors 151 (610)
(Decrease)/increase in provisions (40) 84
----- ----
Net cash inflow from operating activities 2,529 566
----- ----
Returns on investments and servicing of finance
Interest received 194 314
Interest paid (5) (23)
Net cash inflow from returns on investments and servicing of --- ---
finance 189 291
--- ---
Taxation
UK corporation tax received/(paid) 3 (469)
--- ----
Capital expenditure and financial investment
Acquisition of tangible fixed assets (1,596) (1,140)
Sale of surplus properties 686 1,870
Sales of other tangible fixed assets 60 50
----- ------
Net cash (outflow)/inflow from capital expenditure (850) 780
and financial investment ----- ------
Equity dividends paid (368) (458)
----- ----
Net cash inflow before use of liquid resources and financing 1,503 710
----- ----
Management of liquid resources
Decrease/(increase) in short-term cash deposits with UK
banks 7,580 (1,058)
----- ------
Net cash inflow/(outflow) from management of liquid
resources 7,580 (1,058)
----- ------
Financing
Repurchase of share capital (8,997) -
------ ------
Net cash outflow from financing (8,997) -
------ ------
Increase/(decrease) in cash 86 (348)
====== ======
Analysis of changes in cash during the year
Balance at 31 December 2004 813 727
Balance at 31 December 2003 727 1,075
--- -----
Net cash inflow/outflow 86 (348)
=== =====
Notes to the financial statements
1. Basis of preparation
The preliminary announcement has been prepared in accordance with applicable
accounting standards and under the historical cost convention except that
certain freehold properties are shown at their revalued amounts.
The principal accounting polices of the group have remained unchanged from those
set out in the group's 2003 annual report and financial statements.
2. Tax on profit on ordinary activities
2004 2003
#'000 #'000
Current tax 191 5
Deferred tax 47 (623)
--- ----
238 (618)
=== ====
3. Dividends
2004 2003
#'000 #'000
Ordinary: first interim of 1p per share, paid 4 October 2004 139 229
: second interim of 1p per share, payable 6 April 2005 139 228
: final proposed of 1p per share, payable 3 June 2005 140 -
--- ---
418 457
=== ===
4. Earnings per Share
The calculation of basic and diluted earnings per ordinary share is based on
profit on ordinary activities after taxation (#255,000) divided by the weighted
average number of shares in issue excluding treasury shares (19,381,821). The
number of shares in issue has been adjusted for both periods for the 200 for 1
share division that took place on 4 March 2004.
5. Reconciliation of movements in shareholders' funds
2004 2003
Group #'000 #'000
Profit after taxation for the financial year 255 517
Dividends (418) (457)
---- ----
(163) 60
Purchase of own shares (8,997) -
Other recognised gains and losses 1 333
----- ----
Net(reduction in)/addition to shareholders' funds (9,159) 393
Shareholders' funds at 1 January 26,126 25,733
------ ------
Shareholders' funds at 31 December 16,967 26,126
====== ======
6. Publication of non-statutory accounts
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 240 of the Companies Act
1985.
The summarised balance sheet at 31 December 2004 and the summarised profit and
loss account, summarised cash flow statement and associated notes for the year
then ended have been extracted from the Group's 2004 statutory financial
statements upon which the auditors opinion is unqualified and does not include
any statement under Section 237 of the Companies Act 1985.
The accounts for the year ended 31 December 2004 are expected to be posted to
shareholders in due course and will be delivered to the Registrar of Companies
after they have been laid before the company at the annual general meeting on 5
May 2005. Copies will also be available from Robinson plc's Registered office:
Bradbury House, Goytside Road, Chesterfield, S40 2PH.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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