RNS Number:0885Q
Robinson PLC
14 March 2008
14 March 2008
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007
Robinson plc ("Robinson" or "the Group"; stock code: RBN), the custom
manufacturer of plastic and paperboard packaging based in Chesterfield,
announces its results for the year ended 31 December 2007.
Highlights:
* Revenue in the year reduced by 12% to �25.5m (2006: �29.0m).
* The loss of the gravy granule can business at the end of 2006 accounted
for the majority of the reduction in revenue (�3.1m).
* The Group's operating profit before exceptional items and depreciation
was �1.6m (2006: �0.9m), as margins improved, despite the lower revenues.
* Exceptional costs relating mainly to the restructuring of our UK Plastic
packaging operations amounted to �1.3m.
* There was an exceptional profit on the sale of surplus properties of
�1.1m.
* The net borrowings of the Group decreased from �6.6m to �3.3m during the
year, including proceeds of �1.6m from the sale of surplus properties.
* The Group's pension fund remains in a healthy position and the notional
interest credit in the income statement (required by the financial reporting
standards) was �1.3m (2006: �1.1m).
* The profit before tax was �0.3m (2006: loss �1.2m).
* The Board will be recommending an unchanged final dividend for the year
of 1.75p per share (2006 final: 1.75p).
Commenting on the results, Chairman, Richard Clothier stated:
"Robinson has responded to a challenging year in 2007 with some significant
restructuring of the business and its management. We are pleased to report
improved margins and a return to profits with an expectation of further progress
in 2008."
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 around 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 injection moulded
plastic packaging and rigid paper 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 Procter & Gamble, Nestle, Cadbury, Kraft, Unilever, Masterfoods,
Premier, Avon, Northern Foods and Chivas. The Company also has a substantial
property portfolio with significant development potential. Adam Formela was
appointed Chief Executive in February 2007 taking over from Jon Marx who retired
from the business at the end of 2007.
For further information, please contact:
Adam Formela, Chief Executive, Robinson plc 01246 220022
Guy Robinson, Finance Director, Robinson plc 01246 220022
www.r1son.co.uk
Richard Tulloch, Arbuthnot Securities 020 7012 2000
Libby Moss/Louise Davis, Bankside Consultants 020 7367 8888
CHAIRMAN'S REPORT
After successive years of rising input costs in a highly competitive market, we
are pleased to report a recovery in our margins and despite a 12% reduction in
revenue the operating performance has significantly improved. This has been
achieved through increasing selling prices and by cost reduction initiatives. UK
manufacturers continue to face stiff competition from foreign imports and
polymer costs and energy costs are higher in the UK than in most Central
European countries. We continue to see our customers relocating manufacturing to
Central Europe to take advantage of lower costs and this will continue to have a
beneficial impact on our Polish manufacturing plant. Conversely, filling the
void left by this migration at our UK plants has been challenging and we fell
short of our target to maintain the status quo in 2007.
Revenue
Total revenue in 2007 was �3.5m lower than in the previous year. The reduction
was mainly attributable to the loss of the gravy granule can business at
Robinson Paperboard UK, which accounted for �3.1m of revenue in 2006. Revenue
benefited from the full year effect of the May 2006 Stanton Hill acquisition and
our newly established Polish manufacturing business saw revenue nearly double to
�1.6m. Revenue at our Kirkby plant was insufficient to replace the business
transferred to Poland and we also lost some contracts including the Pringles
overcap business to a single source supply agreement in Europe.
Profitability
The profit before tax of �0.3m (2006: loss �1.2m), includes �1.3m exceptional
reorganisation costs offset by a �1.1m profit on sale of surplus properties. It
also includes a notional interest credit in respect of the surplus in the
Pension Fund of �1.3m (2006: �1.1m).
Increases in input costs, particularly polymer and energy costs were passed on
to our customers, with the result that the gross margin recovered from 9.0% in
2006 to 12.0% in 2007. Operating costs (fixed overheads) reduced by 6% and as a
result the operating loss was reduced despite the reduction in revenue.
Cash & Finances
Our bank borrowings decreased from �6.6m to �3.3m during the year. The
underlying operations were cash positive, working capital was substantially
reduced and the proceeds from the sale of surplus property brought in �1.6m. We
invested �0.8m on the acquisition of fixed assets compared to a depreciation
charge of �2m. The main investments were in expanding the plastics plant in
Poland.
Dividends
The Board considers that despite the poor earnings of the past two years, the
cash position and outlook for 2008 supports a final dividend of 1.75p per share
(2006 final: 1.75p) which will be paid on 6 June 2008 to shareholders on the
register at the close of business on 9 May 2008.
Pensions
Our pension fund remains in a healthy position. The latest actuarial valuation
at 5 April 2005 indicated a surplus of 8%. The latest annual valuation at the
end of 2007 indicates the fund has assets with a market value of �53m and
liabilities of �42m giving a surplus of �11m in the fund (2006: �11m). During
the year the proportion of assets invested in equities was reduced from 72% to
54%. At the end of 2007, the Group had paid over contributions amounting to
�1.2m into an escrow account which may be paid to the pension fund, returned to
the Group or remain in situ depending on the outcome of the actuarial valuation
of the fund due in April 2008.
Property
The planning application for residential development of Walton Works (7.6 acres)
was refused in October 2007 and it is planned to re-submit a revised application
in due course. This re-submission has been delayed by the discovery of adverse
conditions in the listed building which the planning authority and English
Heritage now want investigated further. We expect these investigations to be
complete in the next few months and hope to be in a position to complete the
sale of this site later in 2008.
Group Development and Outlook
There has been significant change in management during 2007. In February Adam
Formela joined as Chief Executive replacing Jon Marx who retired as a director
in December. I would like to thank Jon for his considerable contribution to the
re-shaping of the Group.
The senior management responsible for the divisions have been substantially
changed. The Board is very much focused on improving the quality and scale of
the business and selective acquisitions at the right price will be part of this
process. Product development and innovation remains a priority.
The outlook for 2008 remains difficult with further increases in input costs.
Much is being done to offset these effects and build on the Group's strengths.
We expect to see continued emphasis in the market to reduce packaging waste and
are working with a number of customers to achieve their objectives through
lightweighting, recyclability and innovative design. Progress to date in 2008 is
in line with the Board's expectations.
Richard Clothier
Chairman
14 March 2008
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
Unaudited * Unaudited
2007 2006
�'000 �'000
--------------------------------------------------------------------------------
Revenue 25,505 28,978
Cost of sales (22,457) (26,371)
--------------------------------------------------------------------------------
Gross profit 3,048 2,607
Operating costs before exceptional items (3,415) (3,620)
--------------------------------------------------------------------------------
Operating loss before exceptional items (367) (1,013)
Exceptional items (197) (969)
--------------------------------------------------------------------------------
Operating loss after exceptional items (564) (1,982)
Finance costs (371) (340)
Finance income in respect of pension fund 1,280 1,120
--------------------------------------------------------------------------------
Profit/(loss) before taxation 345 (1,202)
Taxation (149) 240
--------------------------------------------------------------------------------
Profit/(loss) after taxation 196 (962)
================================================================================
Profit/(loss) per ordinary share (basic and diluted) 1.2p (6.0p)
--------------------------------------------------------------------------------
All amounts relate to continuing operations
STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE YEAR ENDED 31 DECEMBER 2007
Actuarial (loss)/gain on retirement benefit obligations (1,373) 75
Taxation relating to actuarial gain/(loss) 537 (22)
--------------------------------------------------------------------------------
Net (expense)/income recognised directly in equity (836) 53
Profit/(loss) for the period 196 (962)
--------------------------------------------------------------------------------
Total recognised expense for the period (640) (909)
================================================================================
* Our auditors, Grant Thornton UK LLP, have agreed to this preliminary
announcement, although they have not yet finally approved and signed off the
financial statements for the year ended 31 December 2007. The 2006 numbers have
been restated under IFRS.
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2007
Unaudited Unaudited
2007 2006
�'000 �'000
--------------------------------------------------------------------------------
Non-current assets
Property, plant and equipment 14,350 16,038
Deferred taxation 365 243
Pension asset 7,281 7,636
--------------------------------------------------------------------------------
21,996 23,917
--------------------------------------------------------------------------------
Current assets
Inventories 1,680 2,031
Trade and other receivables 4,928 6,950
Taxation recoverable - 126
Cash 301 196
--------------------------------------------------------------------------------
6,909 9,303
--------------------------------------------------------------------------------
Non-current assets held for sale 2,954 3,404
--------------------------------------------------------------------------------
Total assets 31,859 36,624
--------------------------------------------------------------------------------
Current liabilities
Trade and other payables (5,914) (6,719)
Bank overdraft (3,620) (6,761)
--------------------------------------------------------------------------------
(9,534) (13,480)
--------------------------------------------------------------------------------
Non-current liabilities
Provisions for deferred taxation (1,664) (1,959)
Provisions for liabilities (203) (208)
--------------------------------------------------------------------------------
(1,867) (2,167)
--------------------------------------------------------------------------------
Total liabilities (11,401) (15,647)
--------------------------------------------------------------------------------
Net assets 20,458 20,977
================================================================================
Equity
Ordinary shares 80 80
Share premium 419 402
Capital redemption reserve 216 216
Translation reserve 692 182
Revaluation reserve 4,525 4,972
Retained earnings 14,526 15,125
--------------------------------------------------------------------------------
Equity attributable to shareholders 20,458 20,977
================================================================================
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2007
Unaudited Unaudited
2007 2006
�'000 �'000
--------------------------------------------------------------------------------
Cash flows from operating activities
Profit/(loss) after taxation 196 (962)
Adjustments for:
Depreciation of property, plant and equipment 1,983 1,924
Impairment of plant and equipment 796 317
Profit on disposal of land and buildings (12) (252)
Profit on disposal of non-current assets held for sale (1,139) -
Loss/(profit) on sale of other plant and equipment 188 (19)
Impairment of acquired goodwill - 79
Decrease in provisions (5) (43)
Other finance income in respect of Pension Fund (1,280) (1,120)
Finance costs 371 340
Taxation charged/(credited) 149 (240)
Non-cash items:
Increase in net pension asset charged to operating
profit 262 281
Cost of share options 47 79
--------------------------------------------------------------------------------
Operating cash flows before movements in working capital 1,556 384
Decrease in inventories 351 173
Decrease in trade and other receivables 2,022 323
(Decrease)/increase in trade and other payables (866) 602
--------------------------------------------------------------------------------
Cash generated by operations 3,063 1,482
UK corporation tax received/(paid) 97 (211)
Interest paid (295) (322)
--------------------------------------------------------------------------------
Net cash generated from operating activities 2,865 949
================================================================================
Cash flows from investing activities
Sale of surplus properties 12 332
Sale of non-current assets 1,589 -
Acquisition of property, plant & equipment (826) (1,995)
Acquisition of business - (3,102)
Sale of other plant and equipment 42 46
--------------------------------------------------------------------------------
Net cash generated from/(used in) investing activities 817 (4,719)
================================================================================
Cash flows from financing activities
Issue of share capital 17 4
Dividends paid (453) (453)
--------------------------------------------------------------------------------
Net cash used in financing activities (436) (449)
================================================================================
Net decrease/(increase) in cash and bank overdrafts 3,246 (4,219)
Cash and bank overdrafts at 1 January (6,565) (2,346)
--------------------------------------------------------------------------------
Cash and bank overdraft at end of period (3,319) (6,565)
================================================================================
Cash 301 196
Overdraft (3,620) (6,761)
--------------------------------------------------------------------------------
Cash and bank overdraft at end of period (3,319) (6,565)
================================================================================
Notes to the financial statements
1. Basis of preparation
The consolidated financial statements have been prepared under International
Financial Reporting Standards (IFRS) as adopted by the European Union. All
standards and interpretations that have been issued and effective at the balance
sheet date have been applied in the accounts. The financial statements have been
prepared under the historical cost convention.
2. Publication of non-statutory financial statements
The financial information set out in this preliminary announcement does not
constitute statutory financial statements as defined in section 240 of the
Companies Act 1985.
The statutory financial statements for the year ended 31 December 2007 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 1 May 2008. The auditors have not yet
reported on the financial statements for the year ended 31 December 2007. Copies
will also be available from Robinson plc's registered office: Portland, Goytside
Road, Chesterfield, S40 2PH and on the Group's website at www.r1son.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
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