RNS Number:3221A
Robinson PLC
24 March 2006
FOR IMMEDIATE RELEASE 24 March 2006
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
Robinson plc ("Robinson" or "the Group"; 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 2005.
Highlights:
*Sales grew by 3% to #26.65m (2004: #25.95m)
*Operating profit improved to #0.52m (2004: #0.03m)
*Significant investment in fixed assets, including the #1.71m purchase of
a manufacturing facility in Poland
*The Group's pension fund remains in surplus and has benefited from
exposure to the equity markets during the year
*The adoption of new accounting standards has resulted in adjustments to
prior year figures of which the largest impact is the inclusion in the
balance sheet of the pension fund surplus
*The Board will be recommending a final dividend for the year of 1.75p per
share (2004 final: 1p). This would represent an 8% increase in the total
dividend payout in comparison to last year (2005: 3.25p; 2004: 3.00p)
Commenting on the results, Chairman, Richard Clothier stated:
"In competitive markets with escalating resin and energy prices, it is highly
creditable that the Group maintained its gross margins year-on-year. The
establishment of our Polish manufacturing facility, key to Robinson's
longer-term growth prospects, is progressing on schedule and will begin to
contribute in the coming year. Elsewhere, we are continuing to invest in plant
and machinery and to encourage innovation to ensure that the Group maintains its
competitive edge. Overall, we expect to make further progress in 2006."
About Robinson
Based in Chesterfield, and with additional manufacturing facilities in
Kirkby-in-Ashfield, Nottinghamshire, in Toronto, Canada, and in Lodz, Poland,
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
Sue Scott/Michael Padley, Bankside Consultants 020 7367 8888
CHAIRMAN'S STATEMENT
Sales
Total sales of #26.65m were 3% higher than in the previous year (2004: #25.95m).
The growth was attributable to the performance of the plastics business which
offset a decline in sales within the UK paperboard business.
Paperboard revenues fell due to lower sales to the Toiletries & Cosmetics sector
in the UK whilst the North American business benefited for a second year growth
in packaging for tooth whitening strips. This business has now been lost to a
cheaper packaging format. The launch of our innovative paperboard COOL-AIR
tube during the year has generated promising sales in the drinks sector.
Profitability
Our gross margin remained at 15.5% reflecting improved productivity at all
operations and our ability to largely pass on the significant increases in
plastic polymer prices and energy costs.
The operating profit before exceptional items improved modestly to #0.53m (2004:
#0.46m). Exceptional items included the #0.27m costs of setting up the Polish
manufacturing facility which was offset by a #0.30m reversal of impairment of
value of a surplus paperboard line that was subsequently sold. The operating
profit after exceptional items was #0.52m (2004: #0.03m)
Interest payable in 2005 was #0.04m (2004: #0.15m interest receivable),
reflecting increased investment in fixed assets (including Poland) in the
period.
Other financial income in respect of the Pension Fund (FRS17) produced a gain of
#0.87 million compared with #1.04m in 2004; the reduction was due to lower
projected returns on assets and higher interest on scheme liabilities.
The profit before taxation was #1.35m (2004: #1.45m).
Cash & Finances
Our balance sheet remains robust with year end net debt of #2.35m (2004: net
cash - #1.82m) substantially covered by surplus property values. Capital
expenditure of #4.12m was well above the annual depreciation figure of #1.70m,
as we continued to invest in new plant and equipment. The main investments were
in the new plastics plant in Poland (#1.71m) and a new paperboard box line in
Chesterfield. We also paid #0.82m into an escrow account in respect of company
pension contributions, of which #0.62m was provided at the end of 2004. Working
capital levels increased partly as a result of the higher input prices and
partly because debtors were low the previous year. The net cash inflow from
operations during the year amounted to #0.40m.
Dividends
The Board will be recommending a final dividend for the year of 1.75p per share
(2004 final: 1p) which will be paid on 9 June 2006 to shareholders on the
register at the close of business on 12 May 2006.
Pension Fund
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 the rationalisation
of the workforce, the fund is very mature. The latest actuarial valuation at 5
April 2005 indicated a surplus of 8%. We have adopted the new accounting
standard (FRS17). The fund has assets with a market value of #52m and
liabilities of #45m giving a surplus after tax of #5m at the end of 2005. The
present value of scheme liabilities has increased by a further #4m during the
year, much of which is due to the increased mortality rates used.
Property
We continue to seek planning permission for residential redevelopment on the
previous Robinson Healthcare site at Walton. We are in discussion with
prospective purchasers for the sale of this site and the Wheatbridge site and
hope to conclude the sales during 2006.
The property acquired in Poland extends to 2.3 hectares with factory/warehouse
space of 10,000 m2 and office space of 2,000 m2. Approximately 50% of this space
is currently let out to external tenants, yielding an income of around #0.1m per
annum. The property is held on a long lease (87 years) and cost #1.3m. We will
spend a further #0.5m in renovating the property to bring it up to modern food
packaging standards. Located in Lodz, in the centre of Poland, the property is
close to the proposed new North-South/East-West motorway intersection. As we
expand our business in Poland, it is our intention to further renovate the
property and displace the external tenants.
Acquisitions
We continue to seek acquisitions of packaging businesses at the right price that
we feel have appropriate synergies and long term prospects for inclusion within
the Group.
Outlook
Our aim remains to develop the business both through organic growth and
acquisition. Our focus on product development and innovation remains a priority.
Raw material costs remain at very high levels and have eased only slightly going
in to 2006. Energy prices are still increasing at rates much higher than the
general inflation level and we expect electricity costs to rise further in 2006.
Sales are currently tracking in line with expectations. It is anticipated that
the business in Poland will make a modest contribution in the current financial
year and, overall, we expect to make further progress in 2006.
Richard Clothier 24 March 2006
Chairman
Robinson plc
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2005
Notes 2005 2004
(restated)
#'000 #'000
Turnover 26,648 25,949
Cost of sales (22,512) (21,919)
------ ------
Gross Profit 4,136 4,030
Overheads, excluding exceptional items (3,608) (3,571)
Exceptional items (9) (430)
------- -------
Total Overheads (3,617) (4,001)
Operating Profit 519 29
Profit on disposal of land and buildings - 236
--- ---
Profit on ordinary activities before interest 519 265
Interest (payable)/received (40) 146
Other finance income in respect of Pension Fund 870 1,040
----- -----
Profit on ordinary activities before taxation 1,349 1,451
Taxation 2 (320) (532)
----- -----
Profit on ordinary activities after taxation 1,029 919
===== =====
Earnings per ordinary 0.5p share
Basic and diluted (p) 4 6.5 5.3
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 2005
Notes 2005 2004
(restated)
#'000 #'000
Profit for the financial year 1,029 919
Actuarial gain/(loss) in respect of the Pension Fund
net 297 (1,623)
of deferred tax
Currency translation differences on foreign currency
net investments 82 (25)
----- ----
Total gains/(losses) recognised since last annual 1,408 (729)
report ====
Prior year adjustments 5 4,219
Total gains and losses since the last financial -----
statements 5,627
=====
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2005
Notes 2005 2004
(restated)
#'000 #'000
Fixed assets
Tangible fixed assets 17,440 15,001
------ ------
17,440 15,001
Current assets
Stocks 1,997 1,640
Debtors 7,246 5,437
Current asset investments - 1,002
Cash 28 813
----- -----
9,271 8,892
Creditors: amounts falling due within one year (8,588) (5,412)
------ -----
Net current assets 683 3,480
Total assets less current liabilities 18,123 18,481
Provisions for liabilities (607) (614)
------ ------
Net assets excluding pension asset 17,516 17,867
Pension asset (net of deferred tax) 4,705 3,318
------ ------
Net assets including pension asset 22,221 21,185
====== ======
Capital and reserves
Called up share capital 80 80
Share premium account 398 398
Capital redemption reserve 216 216
Revaluation reserve 5,136 5,138
Profit and loss account 16,391 15,353
------ ------
Equity Shareholders' Funds 6 22,221 21,185
====== ======
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2005
Notes 2005 2004
(restated)
#'000 #'000
Cash inflow from operating activities
Operating profit 519 29
Depreciation charges and write-down of fixed assets 1,705 1,795
Reversal of impairment of fixed assets (296) -
(Profit)/loss on sale of other tangible fixed assets (5) 100
Increase in stocks (357) (36)
(Increase)/decrease in debtors (1,732) 448
Increase/(decrease) in creditors 928 (190)
Decrease in provisions (7) (40)
Non-cash items:
- Increase in net pension asset charged to operating profit 400 400
- Cost of share options 65 23
- Transfer to pension escrow account (822) -
--- -----
Net cash inflow from operating activities 398 2,529
=== =====
Returns on investments and servicing of finance
Interest received 24 194
Interest paid (62) (5)
Net cash (outflow)/inflow from returns on investments and --- ---
servicing of finance (38) 189
=== ===
Taxation
UK corporation tax (paid)/received (229) 3
Capital expenditure and financial investment
Acquisition of tangible fixed assets (4,119) (1,596)
Sale of surplus properties - 686
Sales of other tangible fixed assets 315 60
------ ------
Net cash outflow from capital expenditure and financial
investment (3,804) (850)
Equity dividends paid (488) (368)
Net cash (outflow)/inflow before use of liquid resources and
financing (4,161) 1,503
Management of liquid resources
Decrease in short-term cash deposits with UK banks 1,002 7,580
------ -----
Net cash inflow from management of liquid resources 1,002 7,580
Financing
Repurchase of share capital - (8,997)
------ ------
Net cash outflow from financing - (8,997)
(Decrease)/increase in cash 7 (3,159) 86
====== ====
Analysis of changes in cash during the year
Balance at 31 December (2,346) 813
Balance at 1 January 813 727
------ ----
Net cash (outflow)/inflow (3,159) 86
======= ====
Notes to the financial statements
1. Basis of preparation
The accounts have been prepared under the historic cost convention as modified
by the revaluation of freehold land and buildings.
The Group's accounting policies have been applied on a consistent basis with the
exception of the following, where comparative figures have been restated
accordingly:
a. The requirements of FRS17 on retirement benefits have been adopted in
the primary statements
b. The cost of share options has been recognised in the profit and loss
account in accordance with FRS20
c. Dividends are now recognised when paid in accordance with FRS21
2. Taxation
2005 2004
(restated)
#'000 #'000
Current tax:
UK corporation tax @ 30% (2004: 30%) 122 178
Adjustments in respect of prior periods (77) 5
Overseas tax 6 8
---- ---
Total current tax 51 191
Deferred tax:
UK tax @ 30% 367 267
Adjustments in respect of prior periods (98) 74
--- ---
Total deferred tax 269 341
--- ---
320 532
3. Dividends
2005 2004
(restated)
#'000 #'000
Ordinary : second interim paid in respect of 2004 139 228
: final paid in respect of 2004 140 -
: interim paid 209 140
--- ---
488 368
=== ===
It will be proposed at the Annual General Meeting that a final dividend of 1.75p
per ordinary share be paid.
4. Earnings per Share
The calculation of basic and diluted earnings per ordinary share is based on
profit on ordinary activities after taxation (#1,003,000) divided by the
weighted average number of shares in issue (15,918,501).
5. Prior year adjustments
The Group has implemented FRS17, "Retirement Benefits", during the year. This
has resulted in a prior year adjustment of #4,595,000 in respect of periods
prior to 31 December 2003 to recognise the asset as required by this accounting
standard. As a result the previous balance recorded in creditors of #282,000
under SSAP24 has been written back. The total effect of these adjustments is an
increase of #4,877,000 in reserves brought forward at 1 January 2004.
The comparative figures for the year ended 31 December 2005 have been restated
to reflect changes in the provision required under FRS17, resulting in an
increase in profit of #553,000 for that period. In addition #1,623,000 of
actuarial losses have also been recognised through reserves.
The adoption of FRS21, "Post balance sheet events" has resulted in a prior year
adjustment for the company in respect of the treatment of dividends.
Shareholders' funds at 1 January 2004 have been increased by #228,000. For the
year ended 31 December 2004 the change in accounting policy has resulted in a
net increase in retained profit of #49,000. The balance sheet at 31 December
2004 has been restated to reflect the de-recognition of a liability for proposed
equity dividends of #279,000. For the year ended 31 December 2004, the change in
accounting policy has resulted in a net decrease in retained profit for the year
of #279,000.
The adoption of FRS20 has resulted in a prior year adjustment of #23,000 for the
company in respect of the cost of share options. The profit for the year has
been reduced but there has been a corresponding transfer to reserves with no net
effect on total revenue reserves.
5. Reconciliation of movements in shareholders' funds
2005 2004
#'000 #'000
(restated)
Group
Profit after taxation for the financial year 1,029 919
Dividends (488) (368)
----- ----
541 551
Actuarial gain 297 -
Exchange difference on translation 133 1
Recognition of share based payments 65 -
Purchase of own shares - (8,997)
----- ------
Net (reduction in)/addition to shareholders' funds 1,036 (8,445)
Shareholders' funds at 1 January (originally #16,967
before 21,185 29,630
adding prior year adjustments of #4,219,000)
------ ------
Shareholders' funds at 31 December 22,221 21,185
====== ======
6. Analysis of net funds/(debt)
At 1 Jan Cash At 31 Dec
2005 Flow 2005
#'000 #'000 #'000
Cash in hand and deposits repayable on demand 813 (785) 28
Bank overdraft - (2,374) (2,374)
----- ------ ------
Cash and cash equivalents 813 (3,159) (2,346)
Short term deposits with UK banks 1,002 (1,002) -
----- ------ ------
1,815 (4,161) (2,346)
7. 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 2005 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 2005 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 2005 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 4
May 2006. 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
END
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