TIDMRBN
RNS Number : 0729Q
Robinson PLC
03 April 2009
+---------------------------------------+---------------------------------------+
| | 3 April 2009 |
+---------------------------------------+---------------------------------------+
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
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 2008.
Highlights:
*
*
*
*
* The operating result before exceptional items increased by GBP0.9m to GBP0.6m.The profit before tax increased by GBP1m to GBP1.3m, whilst revenues increased by 1% to GBP25.8m (2007: GBP25.5m).The net borrowings of the Group increased from GBP3.3m to GBP3.7m during the year. Capital expenditure was GBP1.0m and working capital increased by GBP1.0m.The Group's pension fund remains in surplus.The Board will be recommending an unchanged final dividend for the year of 1.75p per share (2007 final: 1.75p).
Commenting on the results, Chairman, Richard Clothier said:
"We are pleased to report improved profits despite the difficult market
conditions. Higher input costs have been passed on and margins have benefited
from the rationalisation of overheads in 2007. Our primary sectors, food, drink
and toiletries have not yet experienced a significant downturn in activity but
our continued growth in 2009 will depend on whether the recession does begin to
affect our customers."
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 when market conditions
improve.
For further information, please contact:
+------------------------------------------------+----------------------------+
| Adam Formela, Chief Executive, Robinson plc | 01246 220022 |
+------------------------------------------------+----------------------------+
| Guy Robinson, Finance Director, Robinson plc | 01246 220022 |
+------------------------------------------------+----------------------------+
| | www.robinsonpackaging.com |
+------------------------------------------------+----------------------------+
| Nick Tulloch, Arbuthnot Securities | 020 7012 2000 |
+------------------------------------------------+----------------------------+
| | |
+------------------------------------------------+----------------------------+
CHAIRMAN'S REPORT
I am pleased to report a further improvement in profit, particularly since this
arises from operations rather than property transactions and pension fund
valuations. This has been achieved through cost reduction initiatives, new
contracts and increased selling prices. Polymer prices and energy costs have
been higher in the UK than in most Central European countries and UK
manufacturers continue to face stiff competition from imports. Our customers
have continued to relocate manufacturing to Central Europe to take advantage of
lower costs and while this has a beneficial impact on our Polish business,
filling the void left at our UK plants has remained a challenge.
Revenue
Total revenue in 2008 was GBP0.3m higher than in the previous year. This was
driven by higher selling prices, recouping increased input costs and also by
favourable exchange rates. Overseas operations increased revenues by 89% to
GBP6m. Part of this increase was attributable to the continued migration of
business from the UK to Central Europe and as a result UK revenues decreased by
11%. Underlying overall volumes fell by 4%, mainly as a result of the loss of
some low margin business at the end of 2007.
Profitability
The profit before tax was GBP1.3m (2007: GBP0.3m) and the operating profit
improved by GBP1.1m. Margins benefited from the rationalisation of UK production
costs at the end of 2007. Furthermore increases in input costs, particularly
polymer and energy costs, were successfully passed on to customers. The
resultant gross margin recovered from 12% in 2007 to 16% in 2008.
Cash & Finances
Working capital increased by GBP1.0m after a significant reduction the previous
year. The increase primarily related to higher sales leading up to the year end
and slower debt collection, driven in part by the economic climate. The
acquisition of fixed assets amounted to GBP1.0m compared to a depreciation
charge of GBP1.6m. As a result bank borrowings increased from GBP3.3m to GBP3.7m
during the year, including a new five year term loan of GBP1.7m.
Dividends
The Board is recommending an unchanged final dividend of 1.75p per share (2007
final: 1.75p) to be paid on 4 June 2009 to shareholders on the register at the
close of business on 22 May 2009.
Pensions
The latest annual valuation of the pension fund at the end of 2008 assessed the
liabilities at GBP37m and assets with a market value of GBP46m leaving a surplus
of GBP9m (2007: GBP11m). During the year the proportion of assets invested in
cash, gilts and bonds was increased from 40% to 79%. This change was completed
in November.
Property
The proposed sale of the surplus land at Walton Works for residential
development has become unlikely in the short term following the collapse of the
housing market in the UK. It remains our objective to dispose of this and other
sites to optimise shareholder value as and when market conditions recover.
Group Development and Outlook
In this rather mature industry change for the better has been hard won. However,
the signs of progress are accumulating and we are hopeful that our customers and
markets will remain relatively unaffected by the current economic conditions.
This of course will depend somewhat on the length and depth of the general
recession. The Board is very much focused on improving the quality and scale of
the business and carefully chosen acquisitions at the right price will be part
of this process. Strengthening of senior management in 2008 included the
appointment of a new general manager for the UK Paperboard operation and product
development and innovation remains a priority.
Progress so far in 2009 is in line with the Board's expectations.
Richard Clothier
Chairman
2 April 2009
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| | | | | | | | 2008 | | 2007 |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| | | | | | | | GBP'000 | | GBP'000 |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Revenue | | | | | | | 25,838 | | 25,505 |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Cost of | | | | | | | (21,762) | | (22,457) |
| sales | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Gross | | | | | | | 4,076 | | 3,048 |
| profit | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Operating costs before | | | | | (3,511) | | (3,415) |
| exceptional items | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+------------+
| Operating profit/(loss) before | | | | 565 | | (367) |
| exceptional items | | | | | | |
+----------------------------------------------+----------+----------+----------+----------+----------+------------+
| Exceptional | | | | | | | 15 | | (197) |
| items | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Operating profit/(loss) after exceptional | | | | 580 | | (564) |
| items | | | | | | |
+----------------------------------------------+----------+----------+----------+----------+----------+------------+
| Finance | | | | | | | (280) | | (371) |
| costs | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Finance income in respect of | | | | | 1,047 | | 1,280 |
| pension fund | | | | | | | |
+-----------------------------------+----------+----------+----------+----------+----------+----------+------------+
| Profit | | | | | | | 1,347 | | 345 |
| before | | | | | | | | | |
| taxation | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Taxation | | | | | | | (438) | | (149) |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Profit | | | | | | | 909 | | 196 |
| after | | | | | | | | | |
| taxation | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| | | | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
| Profit per ordinary share | | | | | 5.7p | | 1.2p |
| (basic and diluted) | | | | | | | |
+-------------+----------+----------+----------+----------+----------+----------+----------+----------+------------+
All amounts relate to continuing operations
STATEMENT OF RECOGNISED INCOME AND EXPENSE
FOR THE YEAR ENDED 31 DECEMBER
+-------------------------+-----+--+--+--+--+----------+--+-------------+
| Actuarial loss on | | | | | | (1,239) | | (1,373) |
| retirement benefit | | | | | | | | |
| obligations | | | | | | | | |
+-------------------------+-----+--+--+--+--+----------+--+-------------+
| Taxation relating to | | | | | | 347 | | 537 |
| actuarial loss | | | | | | | | |
+-------------------------+-----+--+--+--+--+----------+--+-------------+
| Currency translation | | | | | | 437 | | 510 |
| gain | | | | | | | | |
+-------------------------+-----+--+--+--+--+----------+--+-------------+
| Net expense recognised | | | | | | (455) | | (326) |
| directly in equity | | | | | | | | |
+-------------------------+-----+--+--+--+--+----------+--+-------------+
| Profit for the period | | | | | | 909 | | 196 |
+-------------------------+-----+--+--+--+--+----------+--+-------------+
| Total recognised | | | | | 454 | | (130) |
| income/(expense) for the | | | | | | | |
| period | | | | | | | |
+-------------------------------+--+--+--+--+----------+--+-------------+
| | | | | | | | | |
+-------------------------+-----+--+--+--+--+----------+--+-------------+
GROUP BALANCE SHEET
AS AT 31 DECEMBER
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | 2008 | | 2007 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | GBP'000 | | GBP'000 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Non-current assets | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Property, plant and | | | | | | 14,110 | | 14,350 |
| equipment | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Deferred tax asset | | | | | | 197 | | 365 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Pension asset | | | | | | 6,808 | | 7,281 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | 21,115 | | 21,996 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Current assets | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Inventories | | | | | | 1,740 | | 1,680 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Trade and other | | | | | | 7,013 | | 4,928 |
| receivables | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Cash | | | | | | 475 | | 301 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | 9,228 | | 6,909 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Non-current assets held | | | | | | 2,954 | | 2,954 |
| for sale | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Total assets | | | | | | 33,297 | | 31,859 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Current liabilities | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Trade and other payables | | | | | | (7,023) | | (5,914) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Borrowings | | | | | | (2,882) | | (3,620) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | (9,905) | | (9,534) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Non-current liabilities | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Borrowings | | | | | | (1,312) | | - |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Deferred tax liabilities | | | | | | (1,403) | | (1,664) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Provisions for liabilities | | | | | | (199) | | (203) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | (2,914) | | (1,867) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Total liabilities | | | | | | (12,819) | | (11,401) |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Net assets | | | | | | 20,478 | | 20,458 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Equity | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Ordinary shares | | | | | | 80 | | 80 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Share premium | | | | | | 419 | | 419 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Capital redemption reserve | | | | | | 216 | | 216 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Translation reserve | | | | | | 1,129 | | 692 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Revaluation reserve | | | | | | 4,361 | | 4,525 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Retained earnings | | | | | | 14,273 | | 14,526 |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| Equity attributable to | | | | | | 20,478 | | 20,458 |
| shareholders | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
| | | | | | | | | |
+----------------------------+----+-------+--+-------+--+----------+----+------------+
GROUP CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | 2008 | | 2007 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | GBP'000 | | GBP'000 |
| | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash flows from operating activities | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Profit after taxation | | | | | | 909 | | 196 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Adjustments for: | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Depreciation of property, plant and | | | | | | 1,649 | | 1,983 |
| equipment | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Impairment of plant and equipment | | | | | | - | | 796 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Profit on disposal of land and buildings | | | | | | (15) | | (12) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Profit on disposal of non-current assets | | | | | | - | | (1,139) |
| held for sale | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Loss/(profit) on disposal of other plant | | | | | | (18) | | 188 |
| and equipment | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Decrease in provisions | | | | | | (4) | | (5) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Other finance income in respect of | | | | | | (1,047) | | (1,280) |
| Pension Fund | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Finance costs | | | | | | 280 | | 371 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Finance income | | | | | | - | | - |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Taxation charged | | | | | | 438 | | 149 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Other non-cash items: | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Pension current service cost | | | | | | 281 | | 262 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cost of share options | | | | | | 3 | | 47 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Operating cash flows before movements in | | | | | | 2,476 | | 1,556 |
| working capital | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| (Increase)/decrease in inventories | | | | | | (60) | | 351 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| (Increase)/decrease in trade and other | | | | | | (2,150) | | 2,022 |
| receivables | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Increase/(decrease) in trade and other | | | | | | 968 | | (866) |
| payables | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash generated by operations | | | | | | 1,234 | | 3,063 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| UK corporation tax received | | | | | | - | | 97 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| UK corporation tax paid | | | | | | (69) | | - |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Interest paid | | | | | | (238) | | (295) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Interest received | | | | | | - | | - |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Net cash generated from operating | | | | | | 927 | | 2,865 |
| activities | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash flows from investing activities | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Sale of surplus properties | | | | | | 15 | | 12 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Sale of non-current assets | | | | | | - | | 1,589 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Acquisition of property, plant & | | | | | | (964) | | (826) |
| equipment | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Sale of other plant and equipment | | | | | | 75 | | 42 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Net cash (used in)/generated from | | | | | | (874) | | 817 |
| investing activities | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash flows from financing activities | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Issue of share capital | | | | | | - | | 17 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Loans received | | | | | | 1,675 | | - |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Loans repaid | | | | | | (56) | | - |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Dividends paid | | | | | | (453) | | (453) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Net cash generated from/(used in) | | | | | | 1,166 | | (436) |
| financing activities | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Net decrease in cash and bank overdrafts | | | | | | 1,219 | | 3,246 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash and bank overdrafts at 1 January | | | | | | (3,319) | | (6,565) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash and bank overdrafts at 31 December | | | | | | (2,100) | | (3,319) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash | | | | | | 475 | | 301 |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Overdraft | | | | | | (2,575) | | (3,620) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| Cash and bank overdrafts at 31 December | | | | | | (2,100) | | (3,319) |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
| | | | | | | | | |
+-------------------------------------------+--+-------+--+--+--+---------+---+----------+
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, except that they have been
modified to include the valuation of certain financial assets and liabilities.
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 2008 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 7 May 2009. 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.robinsonpackaging.com
...ends ...
This information is provided by RNS
The company news service from the London Stock Exchange
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