RNS Number:5629T
Robinson PLC
23 March 2007
FOR IMMEDIATE RELEASE 23 March 2007
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006
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 2006.
Highlights:
* 2006 has been a year of significant structural reorganisation of the
business
* The loss before tax was #1.2m (2005: profit #1.3m)
* The acquisition of the Stanton Hill business from VR Plastics in 2006
increased total sales to #28.8m (2005: #26.6m). However, sales in the
paperboard business declined from the previous year
* Exceptional operating costs of #1.4m were incurred due to the
acquisition of Stanton Hill, the establishment of the Polish manufacturing
facility and redundancy and reorganisation costs
* Net borrowings increased by #4.2m to #6.6m during the year, mainly as a
result of the acquisition of Stanton Hill
* Agreements, subject inter alia to planning consents, to sell surplus
properties are expected to permit a reduction in borrowings in 2007
* The Board will be recommending a final dividend for the year of 1.75p per
share (2005 final: 1.75p)
Commenting on the results, Chairman, Richard Clothier, stated:
"Robinson has responded quickly to adverse market trends and substantial changes
in policy by some major customers. The prompt reorganisation undertaken in 2006
by Jon Marx will allow his successor Adam Formela to concentrate on driving the
business forward."
About Robinson
Based in Chesterfield with additional manufacturing facilities in
Kirkby-in-Ashfield and Stanton Hill, 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 Northern Foods, Premier International Foods, Unilever,
Masterfoods, RHM, Cadbury, Kraft, United Biscuits, Nestle, and Pernod Ricard.
The Company also has a substantial property portfolio with significant
development potential. Adam Formela was appointed Chief Executive in February
2007.
For further information, please contact:
Robinson plc 01246 220022
Adam Formela, Chief Executive www.r1son.co.uk
Guy Robinson, Finance Director
Bankside Consultants
Sue Scott/Daniela Hale 020 7367 8888
CHAIRMAN'S STATEMENT
Sales
Total sales were #2.2m higher than in the previous year. The growth was
attributable to the acquisition of the plastics business at Stanton Hill in May
2006 (which contributed sales of #4.2m in 2006) which offset a decline in sales
within the paperboard business. The sales from our newly established Polish
plastic manufacturing business amounted to #0.9m and sales growth at our Kirkby
plant was sufficient to replace the business transferred to Poland.
Paperboard revenues declined due to contract losses in the Drinks, Toiletries
and Food sectors in the UK whilst the North American business suffered from the
loss of the packaging contract for tooth whitening strips. Most notable was the
loss in the UK of the Goldenfry gravy granules tube contract worth #3m per
annum, that we announced in November 2006.
Trading Results
There were very significant increases in input costs, with plastic polymer
prices rising by 15% and energy costs by 50%, and the lag in passing these
through to our customers resulted in the gross margin falling from 16% to 9%.
Our commitment to recover margins has contributed to some loss of business.
Overheads were at a similar level to the previous year, although steps were
taken at the end of the year to reduce future costs in line with the anticipated
loss of business. The operating loss before exceptional items was #0.9m (2005:
profit #0.5m).
Exceptional operating costs of #1.4m incurred in 2006 included:
* Redundancy costs of #0.5m and #0.3m of accelerated depreciation of fixed
assets, mainly as a response to the loss of Goldenfry's business in
Paperboard
* The costs of setting up the Polish manufacturing facility, which were
largely incurred in the first half of the year, amounting to #0.3m
* #0.1m associated with the acquisition of Stanton Hill, including
goodwill written off
* #0.1m of tooling costs relating to a project that has not lived up to
expectations
The operating loss after exceptional items was #2.3m (2005: profit #0.5m).
There was a profit on disposal of land and buildings which related in the main
to the sale of two residential properties amounting to #0.3m.
Interest payable was #0.3m (2005: #0.04m), reflecting the investment in Stanton
Hill and fixed assets (including Poland) in the period, coupled with the trading
loss. Other financial income in respect of the Pension Fund (FRS17) produced a
credit of #1.1m compared with #0.9m in 2005: the increase was due to higher
returns on assets and lower scheme liabilities.
The loss before taxation was #1.2m (2005: profit #1.3m).
Cash & Finances
Net bank borrowings increased by #4.2m to end the year at #6.6m. The acquisition
of the Stanton Hill plastics business totalled #3.1m, which included #1.4m in
respect of freehold land and buildings. Other capital expenditure was in line
with the annual depreciation figure and included investments in the new plastics
plant in Poland (#0.9m).
Dividends
The Board is recommending a final dividend of 1.75p per share (2005 final:
1.75p) to be paid on 8 June 2007 to shareholders on the register at the close of
business on 11 May 2007.
Pensions
Our pension fund remains in a healthy position. The latest actuarial valuation
at 5 April 2005 indicated a surplus of 8%. The FRS17 valuation indicates the
fund has assets with a market value of #56m and liabilities of #45m, giving a
surplus of #11m in the fund at the end of 2006. The market value of assets rose
by 7% in the year whilst liabilities remained static. At the end of the year,
the Group had paid over contributions amounting to #999,000 into an escrow
account which will either be paid to the pension fund or returned to the Group
depending on the outcome of the actuarial valuation of the fund due in April
2008.
Property
We are entering into agreements, completion of which is subject to obtaining the
necessary planning consents and certain other matters, to sell both the Walton
Works (7.6 acres) and the Wheatbridge (1.5 acres) sites. If the planning
applications are successful and proceed according to our expected timetable then
we should complete both contracts during 2007. The proceeds will be used to pay
down our borrowings.
Outlook
The loss of the Goldenfry paperboard business, which accounted for over 10% of
the Group turnover, is a significant loss. However, the action already taken to
reduce operating costs will do much to mitigate this. We continue to seek to
develop the business both through organic growth and acquisition. Adam Formela,
who was appointed Chief Executive in February, will bring a new perspective to
the management team and we expect to restore profitability in the coming year.
Richard Clothier 23 March 2007
Chairman
Robinson plc
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2006
Notes 2006 2005
#'000 #'000
Turnover 28,800 26,648
Cost of sales (26,084) (22,512)
------ ------
Gross Profit 2,716 4,136
------ ------
Net operating costs, excluding exceptional items (3,633) (3,608)
Exceptional items (1,356) (9)
------ ------
Net operating costs (4,989) (3,617)
------ ------
Operating (loss)/profit (2,273) 519
Profit on disposal of land and buildings 252 -
------ ------
(Loss)/profit on ordinary activities before (2,021) 519
interest
Interest (335) (40)
Other finance income in respect of pension fund 1,120 870
------ -----
(Loss)/profit on ordinary activities before (1,236) 1,349
taxation
Taxation 2 222 (320)
----- -----
(Loss)/profit on ordinary activities after taxation (1,014) 1,029
===== =====
(Loss)/profit per 0.5p share
Basic and diluted (p) 4 (6.4) 6.5
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 2006
2006 2005
#'000 #'000
(Loss)/profit for the financial year (1,014) 1,029
Actuarial gain in respect of the Pension Fund net of
deferred tax 53 297
Currency translation differences on foreign currency
net investments (111) 82
----- -----
Total (losses)/gains recognised since last annual (1,072) 1,408
report ===== =====
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2006
Notes 2006 2005
#'000 #'000
Fixed assets
Intangible assets - -
Tangible fixed assets 19,380 17,440
------ ------
19,380 17,440
Current assets
Stocks 2,031 1,997
Debtors 7,701 7,246
Cash 196 28
----- -----
9,928 9,271
Creditors: amounts falling due within one year (13,480) (8,588)
------- ------
Net current (liabilities)/assets (3,552) 683
Total assets less current liabilities 15,828 18,123
Provisions for liabilities (394) (607)
------ ------
Net assets excluding pension asset 15,434 17,516
Pension asset (net of deferred tax) 5,345 4,705
------ ------
Net assets including pension asset 20,779 22,221
====== ======
Capital and reserves
Called up share capital 80 80
Share premium account 402 398
Capital redemption reserve 216 216
Revaluation reserve 4,880 5,136
Profit and loss account 15,201 16,391
------ ------
Shareholders' Funds 6 20,779 22,221
====== ======
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2006
Notes 2006 2005
#'000 #'000
Cash inflow from operating activities
Operating (loss)/profit (2,273) 519
Depreciation charges and write-down of fixed assets 2,161 1,705
Impairment/(reversal of impairment) of fixed assets 143 (296)
Profit on sale of other tangible fixed assets (19) (5)
(Decrease)/increase in stocks 173 (357)
(Decrease)/increase in debtors 213 (1,732)
Increase in creditors 620 928
Decrease in provisions (44) (7)
Non-cash items:
- Increase in net pension asset charged to operating
profit 440 4
- Goodwill written off 79 -
- Cost of share options 79 65
- Transfer to pension escrow account (159) (822)
----- ----
Net cash inflow from operating activities 1,413 398
===== ====
Returns on investments and servicing of finance
Interest received - 24
Interest paid (335) (62)
----- -----
Net cash outflow from returns on investments and
servicing of finance (335) (38)
===== =====
Taxation
UK corporation tax (paid)/received (129) (229)
==== ====
Capital expenditure and financial investment
Acquisition of business (3,102) -
Acquisition of tangible fixed assets (1,995) (4,119)
Sale of surplus properties 332 -
Sales of other tangible fixed assets 46 315
----- ------
Net cash outflow from capital expenditure and
financial investment (4,719) (3,804)
===== ======
Equity dividends paid (453) (488)
Net cash outflow before use of liquid resources and ----- ------
financing (4,223) (4,161)
Management of liquid resources
Decrease in short-term cash deposits with UK banks - 1,002
----- -----
Net cash inflow from management of liquid resources - 1,002
===== =====
Financing
Issue of share capital 4 -
---- -----
Net cash outflow from financing 4 -
----- ------
Decrease in cash 7 (4,219) (3,159)
===== ======
Analysis of changes in cash during the year
Balance at 31 December (6,565) (2,346)
Balance at 1 January (2,346) 813
------ ------
Net cash outflow (4,219) (3,159)
====== ======
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.
2. Taxation
2006 2005
#'000 #'000
Current tax:
UK corporation tax @ 30% (2005: 30%) - 122
Adjustments in respect of prior periods (38) (77)
Overseas tax 7 6
---- ---
Total current tax (31) 51
---- ---
Deferred tax:
UK tax @ 30% (191) 367
Adjustments in respect of prior periods - (98)
--- ---
Total deferred tax (191) 269
---- ---
(222) 320
==== ===
3. Dividends
2006 2005
#'000 #'000
Ordinary: final 244 140
: interim 209 209
: second interim - 139
--- ---
453 488
=== ===
A final dividend of 1.75p per ordinary share will be proposed at the Annual
General Meeting.
4. Earnings per Share
The calculation of basic and diluted earnings per ordinary share is based on
profit on ordinary activities after taxation (#1,014,000) divided by the
weighted average number of shares in issue (15,921,372).
5. Reconciliation of movements in shareholders' funds
2006 2005
#'000 #'000
Group
(Loss)/profit after taxation for the financial year (1,014) 1,029
Dividends (453) (488)
------- -----
(1,467) 541
Actuarial gain 53 297
Exchange difference on translation (111) 133
Recognition of share based payments 79 65
Share capital issued 4 -
----- -----
Net(reduction in)/addition to shareholders' funds (1,442) 1,036
Shareholders' funds at 1 January 22,221 21,185
------ ------
Shareholders' funds at 31 December 20,779 22,221
====== ======
6. Analysis of net debt
At 1 January Cash At 31 December
2006 Flow 2006
#'000 #'000 #'000
Cash in hand and deposits repayable on
demand 28 168 196
Bank overdraft (2,374) (4,387) (6,761)
----- ----- -----
Cash and cash equivalents (2,346) (4,219) (6,565)
===== ===== =====
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 2006 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 2006 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 2006 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
planned for 3 May 2007. 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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