TIDMRBN
RNS Number : 5991D
Robinson PLC
25 March 2011
25 March 2011
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010
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
2010.
Highlights:
-- Profit before tax* GBP1.7m (2009: GBP1.0m)
-- Revenue* increased by 13% to GBP24.8m (2009: GBP21.9m)
-- Loss making North American business closed in December 2010
at minimal cost to the Group
-- Dividends for the year increased by 18%
* continuing operations
Commenting on the results, Chairman, Richard Clothier said:
"We are pleased to report growth in 2010 and also that the
current year has started better than last year, in line with
management expectations. With the closure of the North American
business, we are able to concentrate our efforts in Europe and we
are confident that, unless market conditions deteriorate
significantly, we will be able to make further progress in
2011."
About Robinson
Based in Chesterfield, with additional manufacturing facilities
in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz
(Poland). Robinson currently employs around 300 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, Nestle, Kraft, United
Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon,
Boots and Dr Oetker. The Group also has a substantial property
portfolio with significant development potential.
For further information, please contact:
Adam Formela, Chief Executive, Robinson
plc 01246 505196
-------------------------------------------- --------------------------
Guy Robinson, Finance Director, Robinson
plc www.robinsonpackaging.com
-------------------------------------------- --------------------------
Nick Tulloch, Arbuthnot Securities Limited 020 7012 2000
-------------------------------------------- --------------------------
Paul Gillam, Arbuthnot Securities Limited
-------------------------------------------- --------------------------
CHAIRMAN'S REPORT
Following a strong recovery in 2009, it is pleasing to report
further progress in 2010 with profits higher than Robinson has
achieved for many years. The operating results exclude our North
American paperboard business which was closed in December 2010
following losses driven largely by the relative strength of the
Canadian dollar and weak US demand. The net loss from trading and
closure of this business is included as a separate line at the foot
of the Group Income Statement.
Revenue
Group revenue increased by 13% on the previous year of which
almost half was the result of volume increases and the remainder a
reflection of price increases to cover raw material costs. Resin
prices have increased to all-time highs but these have largely been
passed on to our customers. Central European revenues increased by
16%, however, margins suffered from the impact of higher input
prices for a period before these were passed on to our
customers.
Profitability
Profit before tax* was GBP1.7m (2009: GBP1.0m). This result was
influenced mainly by the following factors:
-- gross margin* improved from 19% to 20% of revenues. This is
attributable to better customer mix and lower direct costs (notably
labour and electricity) offset by increasing raw material
prices;
-- overhead costs remained flat as revenues recovered; and
-- notional finance income in respect of the pension fund
increased by GBP0.1m.
* Continuing operations
Cash & Finances
Capital expenditure on new plant and machinery of GBP0.5m (2009:
GBP0.8m) was low in relation to the depreciation charge of GBP1.4m
(2009: GBP1.5m). Year-end working capital levels were significantly
higher than a year earlier as a result of higher sales in the
run-up to Christmas, increased use of early payment discounts from
suppliers and the early timing of the year end. Despite the GBP2.1m
increase in working capital, net borrowings increased by only
GBP0.5m to GBP3.7m and remain well within our agreed
facilities.
Dividends
The Board proposes an unchanged final dividend of 1.75p per
share to be paid on 6 June 2011 to shareholders on the register at
the close of business on 20 May 2011. This brings the total
dividend declared in respect of 2010 to 3.25p per share - an
increase of 18% over the previous year and a recovery to the 2008
level.
Outlook
So far this year market conditions have remained stable for most
of our customers. We remain conscious of the possible effects of
economic trends and Government policy on our costs and consumer
demand, but due to the Group's exposure to the usually resilient
food, drink and toiletry sectors we do not expect revenues to be
greatly affected. Our progress so far in 2011 is in line with the
Board's expectations.
Richard Clothier
Chairman
24 March 2011
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2010 2009
GBP'000 GBP'000
------------------------------------------------ --------- ---------
Revenue 24,830 21,948
(excluding the discontinued operation in
North America)
Cost of sales (19,833) (17,770)
------------------------------------------------ --------- ---------
Gross profit 4,997 4,178
Operating costs before exceptional items (3,692) (3,608)
------------------------------------------------ --------- ---------
Operating profit before exceptional items 1,305 570
Exceptional items - 66
------------------------------------------------ --------- ---------
Operating profit after exceptional items 1,305 636
Finance costs - bank interest payable (66) (52)
Finance income in respect of pension fund 474 374
------------------------------------------------ --------- ---------
Profit before taxation 1,713 958
Taxation (473) (229)
------------------------------------------------ --------- ---------
Profit for the year from continuing operations 1,240 729
Discontinued operations - loss for the year (86) (305)
Profit for the year 1,154 424
================================================ ========= =========
Earnings per share
Profit per ordinary share (basic and diluted)
from continuing operations 7.8p 4.6p
------------------------------------------------ --------- ---------
Loss per ordinary share (basic and diluted) ( 0.6p
from discontinued operations ) ( 1.9p )
------------------------------------------------ --------- ---------
Profit per ordinary share (basic and diluted) 7.2p 2.7p
from continuing and discontinued operations
------------------------------------------------ --------- ---------
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2010 2009
------------------------------------------------------
GBP'000 GBP'000
------------------------------------------------------ -------- --------
Profit for the year 1,154 424
------------------------------------------------------ -------- --------
Other comprehensive income
Actuarial gain on retirement benefit obligations 513 69
Release of currency translation reserve on
closure of subsidiary (311) -
Currency translation loss (56) (182)
------------------------------------------------------ -------- --------
146 (113)
Taxation relating to actuarial gain (143) (20)
------------------------------------------------------ -------- --------
Other comprehensive income for the year 3 (133)
Total comprehensive income for the year attributable
to the parent's shareholders 1,157 291
====================================================== ======== ========
Statement of financial position
AS AT 31 DECEMBER
Group
2010 2009
GBP'000 GBP'000
------------------------------------- --------- ---------
Non-current assets
Property, plant and equipment 12,394 13,237
Deferred tax asset 288 344
Pension asset 7,696 6,996
------------------------------------- --------- ---------
20,378 20,577
------------------------------------- --------- ---------
Current assets
Inventories 1,982 1,535
Trade and other receivables 6,447 5,708
Cash 347 334
------------------------------------- --------- ---------
8,776 7,577
------------------------------------- --------- ---------
Non-current assets held for sale 2,782 2,782
------------------------------------- --------- ---------
Total assets 31,936 30,936
------------------------------------- --------- ---------
Current liabilities
Trade and other payables (4,605) (5,341)
Corporation tax payable (542) (218)
Borrowings (2,872) (1,897)
------------------------------------- --------- ---------
(8,019) (7,456)
------------------------------------- --------- ---------
Non-current liabilities
Borrowings (876) (1,290)
Deferred tax liabilities (1,701) (1,578)
Provisions (191) (194)
------------------------------------- --------- ---------
(2,768) (3,062)
------------------------------------- --------- ---------
Total liabilities (10,787) (10,518)
------------------------------------- --------- ---------
Net assets 21,149 20,418
===================================== ========= =========
Equity
Share capital 80 80
Share premium 419 419
Capital redemption reserve 216 216
Translation reserve 580 947
Revaluation reserve 4,420 4,461
Retained earnings 15,434 14,295
------------------------------------- --------- ---------
Equity attributable to shareholders 21,149 20,418
===================================== ========= =========
Statement of changes in equity
FOR THE YEAR ENDED 31 DECEMBER
Share Share Capital Translation Revaluation Retained Total
capital premium redemption reserve reserve earnings
account reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Group
At 1 January
2009 80 419 216 1,129 4,361 14,273 20,478
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Profit for the
year 424 424
Other
comprehensive
income (182) 49 (133)
Transfer from
revaluation
reserves as
a result of
property
transactions 99 (99) -
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Total
comprehensive
income for
the year - - - (182) 99 374 291
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Tax on
revaluation 1 - 1
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Credit in
respect of
share based
payments 32 32
Dividends paid (384) (384)
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Transactions
with owners (352) (352)
--------------- -------- -------- ----------- ------------ ------------ --------- --------
At 31 December
2009 80 419 216 947 4,461 14,295 20,418
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Profit for the
year 1,154 1,154
Other
comprehensive
income (367) 370 3
Transfer from
revaluation
reserves as
a result of
property
transactions (41) 41 -
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Total
comprehensive
income for
the year - - - (367) (41) 1,565 1,157
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Credit in
respect of
share based
payments 30 30
Dividends paid (456) (456)
--------------- -------- -------- ----------- ------------ ------------ --------- --------
Transactions
with owners (426) (426)
--------------- -------- -------- ----------- ------------ ------------ --------- --------
At 31 December
2010 80 419 216 580 4,420 15,434 21,149
=============== ======== ======== =========== ============ ============ ========= ========
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group
2010 2009
GBP'000 GBP'000
-------------------------------------------------- -------- ---------
Cash flows from operating activities
Profit for the year 1,154 424
Adjustments for:
Depreciation of property, plant and equipment 1,379 1,477
Profit on disposal of land and buildings - (44)
Profit on disposal of non-current assets
held for sale - (176)
Loss on disposal of other plant and equipment 1 -
Profit on closure of discontinued operations (165) -
Decrease in provisions (3) (5)
Other finance income in respect of Pension
Fund (474) (374)
Finance costs 66 92
Taxation charged 474 230
Other non-cash items:
Pension current service cost 285 255
Charge for share options 30 32
-------------------------------------------------- -------- ---------
Operating cash flows before movements in
working capital 2,747 1,911
(Increase)/decrease in inventories (497) 205
(Increase)/decrease in trade and other
receivables (1,222) 1,323
Decrease in trade and other payables (348) (1,476)
-------------------------------------------------- -------- ---------
Cash generated by operations 680 1,963
UK corporation tax (paid) (114) (143)
Interest paid (67) (158)
-------------------------------------------------- --------
Net cash generated from operating activities 499 1,662
================================================== ======== =========
Cash flows from investing activities
Sale of surplus properties - 67
Closure of discontinued operations (66) -
Sale of non-current assets - 348
Acquisition of property, plant & equipment (542) (841)
Sale of other plant and equipment 17 14
Net cash used in from investing activities (591) (412)
================================================== ======== =========
Cash flows from financing activities
Loans received - 415
Loans repaid (409) (336)
Dividends paid (456) (384)
-------------------------------------------------- -------- ---------
Net cash used in from financing activities (865) (305)
================================================== ======== =========
Net (decrease)/increase in cash and cash
equivalents (957) 945
Cash and cash equivalents at 1 January (1,155) (2,100)
-------------------------------------------------- -------- ---------
Cash and cash equivalents at 31 December (2,112) (1,155)
================================================== ======== =========
Cash 347 334
Overdraft (2,459) (1,489)
-------------------------------------------------- -------- ---------
Cash and cash equivalents at 31 December (2,112) (1,155)
================================================== ======== =========
Notes to the financial statements
1. Basis of preparation
The consolidated and Company 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 are effective at 31 December 2010 have
been applied in the financial statements. The financial statements
have been prepared under the historical cost convention. No
accounting standards coming into effect in 2010 have had any effect
on the financial statements.
IAS 1 Presentation of Financial Statements (Revised 2007)
requires presentation of a comparative balance sheet as at the
beginning of the first comparative period, in some circumstances.
Management considers that this is not necessary this year because
the 2008 balance sheet is the same as that previously
published.
2. Closure of subsidiary
On 20 December 2010 Robinson Paperboard Packaging (North
America) Ltd was closed. The results of the discontinued operation,
which have been included in the Group income statement, were as
follows:
2010 2009
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Revenue 1,605 1,477
Expenses (1,855) (1,781)
-------------------------------------------------- -------- --------
Loss before tax (250) (304)
Attributable tax expense (1) (1)
-------------------------------------------------- -------- --------
(251) (305)
Gain on closure of discontinued operations 165 -
--------------------------------------------------
Net loss attributable to discontinued operations (86) (305)
================================================== ======== ========
The gain on closure was derived as follows:
Gain on translation reclassified 311
Loss on net assets (132)
Closure costs (14)
Gain on closure 165
================================== ======
3. Publication of non-statutory financial statements
The statutory financial statements for the year ended 31
December 2010 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 5 May 2011. 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
The auditor has reported on those financial statements; their
reports were unqualified and did not contain statements under the
Companies Act 2006, section 498 (2) or (3).
...ends ...
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