RNS Number : 6710B
Robinson PLC
20 August 2008
Robinson plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008
Robinson plc ("Robinson" or "the Group"; AIM: RBN), the custom manufacturer of plastic and paperboard packaging, announces its unaudited
interim results for the six months ended 30 June 2008.
Key features:
* Paperboard revenues improved by �1m with both North America and UK gaining new business whilst Plastics revenues declined by �2m
as expected
* Transfer of plastics division activities to Poland continues successfully
* Margins improved by 1.8% of revenues as a result of reduced manufacturing expenses, exiting low margin business and successfully
passing on increased costs
* Improved underlying profit after tax of �20,000 (2007: profit �940,000, which included �1,091,000 exceptional gains)
* Interim dividend maintained at 1.5 pence per share
Commenting on the results, Chairman, Richard Clothier said:
"Although this is a modest improvement in profits, the �1m increase in revenues in Paperboard and higher margins are encouraging for the
Group. As usual, stronger revenues are expected in the second half, but margins will remain under pressure due to increasing input costs.
Despite this, we expect further improvements in profits."
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 Group's main activities are in the manufacture and sale of injection moulded plastic and rigid paperboard
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 Proctor & Gamble, Nestl Cadbury, Northern Foods, Masterfoods,
Bakkavor, Unilever, Avon and Chivas. The Group also has a substantial property portfolio with significant development potential.
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 Limited 020 7012 2000
Michael Padley/Libby Moss, Lothbury Financial 020 7011 9411
CHAIRMAN'S STATEMENT
Six months ended 30 June 2008
I am pleased to report a continued improvement in the underlying trading performance in the first six months of 2008. Despite an
expected reduction in revenues and substantial input price increases, margins have improved by 1.8%. The underlying profit after tax of
�20,000 showed a modest improvement (2007: profit �940,000, which included �1,091,000 exceptional gains).
The decline in revenues was in our plastics business and was due mainly to withdrawing from low margin activities in the UK and reduced
demand arising from customers' delayed transfer of production to the Group's Polish factory. The 1.8% improvement in our margins was due to
successfully passing on the increased costs, improved sales mix and reduced manufacturing expenses.
Plastics
Revenues in the division decreased by nearly �2m in comparison with the first half of last year. However, revenues in Poland doubled as
further business was transferred from the UK. Aside from this, revenue reductions in the UK mainly related to low margin contracts, which
came to an end in 2007.
Plastic resin prices have increased by 12% in the first half compared with the average 2007 price. It is anticipated that these will
increase further during the second half of the year. Electricity costs in the UK have increased by over 50% from April 2008 and are at a
significant premium to those in Continental Europe. In addition to our efforts to improve efficiency, it remains an important task to
continue to pass the impact of these increases onto our customers.
Paperboard
Revenue in our Paperboard businesses showed a �1m improvement on the same period last year. Both our North American and UK based
operations have gained new business.
Property
The proposed sale of the Walton Works site for residential development in Chesterfield has stalled following the collapse in house
building programmes in the UK. Since market conditions appear unlikely to improve in the near future it is intended to maximise income and
minimise the ongoing costs of ownership of surplus properties. The objective remains to dispose of these sites in due course to optimise
shareholder value.
Dividend
The Board has approved an unchanged interim dividend of 1.5 pence per share. The dividend is payable on 1 October 2008 to shareholders
registered on 29 August 2008.
Outlook
The seasonality of our market normally results in stronger revenues in the second half of the year and we anticipate this will be the
case in 2008. However, the increasing input costs will continue to place pressure on margins. The Group's establishment in Poland continues
to provide the scope for profitable growth. Overall, we expect continued improvement in the profitability of the business.
Richard Clothier 20 August 2008
Chairman Robinson plc
Robinson plc
Group Income Statement
For the six months ended 30 June 2008
Unaudited six months Unaudited six months Audited year to
to 30.06.08 to 30.06.07 31.12.07
Notes �'000 �'000 �'000
Revenue 11,303 12,131 25,505
Cost of sales (9,809) (10,759) (22,457)
Gross profit 1,494 1,372 3,048
Operating costs (1,691) (1,799) (3,415)
Operating loss before (197) (427) (367)
exceptional items
Exceptional items 2 - 1,091 (197)
Operating (loss)/profit after (197) 664 (564)
exceptional items
Finance costs (144) (211) (371)
Finance income in respect of 468 636 1,280
pension fund
Profit before taxation 127 1,089 345
Taxation 3 (107) (149) (149)
Profit after taxation 20 940 196
Earnings per ordinary share 5 0.1p 5.9p 1.2p
(basic and diluted)
Group statement of recognised income and
expense
Actuarial loss on retirement benefit (103) (1,259) (1,373)
obligations
Currency translation - 80 537
differences
Net expense recognised directly in equity (103) (1,179) (836)
Profit for the period 20 940 196
Total recognised expense for the period (83) (239) (640)
Robinson plc
Group Balance Sheet
at 30 June 2008
Unaudited six months Unaudited six months to Audited year to 31.12.07
to 30.06.08 30.06.07
�'000 �'000 �'000
Non-current assets
Property, plant and equipment 14,341 15,425 14,350
Deferred taxation 365 236 365
Pension asset 7,281 6,334 7,281
21,987 21,995 21,996
Current assets
Inventories 2,108 2,341 1,680
Trade and other receivables 5,779 5,207 4,928
Cash and cash equivalents 391 290 301
8,278 7,838 6,909
Non-current assets held for 2,954 2,954 2,954
sale
Total assets 33,219 32,787 31,859
Current liabilities
Trade and other payables (5,826) (5,923) (5,914)
Bank overdraft (4,788) (4,617) (3,620)
(10,614) (10,540) (9,534)
Non-current liabilities
Provisions for deferred (1,793) (1,568) (1,664)
taxation
Provisions for liabilities (203) (204) (203)
(1,996) (1,772) (1,867)
Total liabilities (12,610) (12,312) (11,401)
Net assets 20,609 20,475 20,458
Capital and reserves
Ordinary shares 80 80 80
Share premium 419 402 419
Other reserves 5,988 4,868 5,433
Profit and loss account 14,122 15,125 14,526
Shareholders' funds 20,609 20,475 20,458
Robinson plc
Group cash flow statement
For the six months ended 30 June 2008
Unaudited six months Unaudited six months Audited year to
to 30.06.08 to 30.06.07 31.12.07
�'000 �'000 �'000
Cash flows from operating
activities
Profit after taxation 20 940 196
Adjustments for:
Depreciation charges and 868 1,027 1,983
write-down of fixed assets
Impairment of plant and - - 796
equipment
Profit on disposal of land - (12) (12)
and buildings
Profit on disposal of - (1,139) (1,139)
non-current assets held for
sale
(Profit)/loss on disposal of (2) - 188
other plant and equipment
Decrease in provisions - (4) (5)
Other finance income in (468) (636) (1,280)
respect of Pension Fund
Finance costs 144 211 371
Taxation charged 107 149 149
Non-cash items:
Increase in net pension 124 139 262
asset charged to operating
profit
Cost of share options 24 46 47
Operating cash flows before 817 721 1,556
movements in working capital
(Increase)/decrease in (428) (310) 351
inventories
(Increase)/decrease in trade (657) 1,757 2,022
and other receivables
(Decrease) in trade and other (88) (796) (866)
payables
Cash generated by operations (356) 1,372 3,063
UK corporation tax received 3 132 97
Interest paid (144) (211) (295)
Net cash generated from (497) 1,293 2,865
operating activities
Cash flows from investing
activities
Sale of surplus properties - 12 12
Sale of non-current assets - 1,589 1,589
Acquisition of property, (345) (452) (826)
plant & equipment
Disposal of other tangible 8 40 42
plant & equipment
Net cash (used in)/ generated (337) 1,189 817
from investing activities
Cash flows from financing
activities
Issue of share capital - - 17
Dividends paid (244) (244) (453)
Net cash used in financing (244) (244) (436)
activities
Net (decrease)/increase in (1,078) 2,238 3,246
cash and bank overdrafts
Cash and bank overdrafts at 1 (3,319) (6,565) (6,565)
January
Cash and bank overdrafts at (4,397) (4,327) (3,319)
end of period
Cash 391 290 301
Overdraft (4,788) (4,617) (3,620)
Cash and bank overdrafts at (4,397) (4,327) (3,319)
end of period
Robinson plc Notes to the Interim
Report
1. Basis of preparation
The interim report, for a six month period, which was approved by the directors on 20 August 2008, does not comprise full accounts
within the meaning of the Companies Act 1985. The interim financial information is not audited.
The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost
convention except that they have been modified to include the valuation of certain financial assets and liabilities. The interim financial
statements do not constitute statutory financial statements in accordance with section 435 of the Companies Act 2006. The full year figures
are derived from the statutory accounts on which the auditors gave an unmodified report. The Group's statutory financial statements prepared
under International Financial Reporting Standards (IFRS) have been filed with the Registrar of Companies. Certain comparative figures in the
balance sheet and cash flow statement have been restated to reflect the adoption of IFRS.
2. Exceptional items
Unaudited Unaudited Audited year to
six months six months 31.12.07
to to
30.06.08 30.06.07
�'000 �'000 �'000
Profit on disposal of non-current assets held for - 1,139 1,139
sale
Profit on disposal of land and buildings - 12 12
Redundancy - (60) (263)
Impairment of plant and equipment - - (796)
Loss on disposal of plant and equipment - - (188)
Re-organisation costs - - (101)
- 1,091 (197)
3. Taxation
The taxation charge for the six months to 30 June 2008 has been calculated on the basis of the estimated effective tax rate on profits
before tax for the year to 31 December 2008.
4. Dividends
Unaudited Unaudited Audited
six months six months year to
to to 31.12.07
30.06.08 30.06.07
Ordinary: �'000 �'000 �'000
Final 244 244 244
Interim - - 209
244 244 453
5. Earnings per share
The calculation of earnings per ordinary share is based on the profit on ordinary activities after taxation (�20,000) divided by the
weighted average number of shares in issue (15,943,501).
6. Interim Report
Further copies of the interim report are available from Robinson plc's Registered Office: Portland, Goyt Side Road, Chesterfield, S40
2PH or from its website at www.r1son.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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