TIDMRBN
RNS Number : 8908M
Robinson PLC
24 August 2011
Robinson plc
("Robinson" or the "Company")
Interim Results for the six months ended 30 June 2011.
Notification of Dividend
CHAIRMAN'S STATEMENT
Following the closure of the paperboard business in Toronto
reported earlier in the year, further developments have been
completed, since the end of the period under review, which alter
the shape of the Group. The sale of the business in Chesterfield
and the investment in Scotplast Ltd, the plastic tub manufacturer
in Glasgow, completes the exit from spirally wound paperboard and
strengthens the plastic packaging operation. The Group retains a
specialist paperboard box-making capability.
The spiral winding paperboard business in Chesterfield was sold
to Sonoco (UK) Ltd on the 1st July 2011. Family shareholders will
know that this was the heritage business of Robinson, having been
acquired originally by John Robinson in 1839. However, despite
representing 24% of Group revenues in 2010, it has not contributed
to profits in the past 5 years, since it lost a long standing major
contract.
As announced on 4 July 2011, the consideration for the disposal
was GBP2.6m in cash subject to adjustment in respect of working
capital levels following production of completion accounts. These
monies have been used by Robinson to reduce current bank debt. In
addition, Sonoco have taken a 15 year lease over the site and
factory buildings at Goyt Side Road for which (following a two year
rent free period) it will pay rental fees of GBP0.45m per annum.
Sonoco also have an option to purchase the property within the next
two years at a fixed price. The transaction provides continued
employment for the employees of the Chesterfield factory and
provides Sonoco with additional production capability and capacity.
Sonoco is a significant customer of Robinson plc for plastic
packaging and we hope to build on that relationship.
As the disposal was substantially progressed at the end of the
period under review, the net result of the disposed business has
been included in this period's group income statement as
"discontinued operations" which includes, in prior years, the
results of the North American paperboard business which was closed
in 2010.
Continuing Operations
Excluding the paperboard operations defined above, revenues for
the first six months increased 6% and the profit before tax rose by
3%. All of the continuing businesses showed growth in revenues in
the first half compared with last year. The 6% overall increase was
primarily attributable to increased input costs passed on, as
plastic resin prices reached another all-time high in June 2011 -
being 14% higher than a year ago. Margins have remained static as a
consequence and the Group profit before tax for the period was
GBP1.0m (Jun-10: GBP0.9m).
The pension fund remains in surplus and initial indications from
the triennial actuarial valuation at 5 April 2011 show a 117%
surplus, compared with 110% three years ago.
Despite working capital being GBP0.4m higher than a year ago,
net borrowings have been reduced by GBP3.1m, which includes GBP2.3m
paid to date by Sonoco. Capital spending has been at a modest level
so far this year.
Scotplast
As announced on 12 July 2011, Robinson completed an agreement
with the directors and owners of Scotplast Ltd to acquire 35% of
its issued share capital for GBP0.25m. The agreement also provides
an opportunity for Robinson plc to acquire the remaining issued
share capital in 2013 for a price based on performance of the
Scotplast business from the previous two years of trading.
Scotplast specialises in producing plastic in-mould labelled ice
cream containers for commercial and retail markets. Its audited
turnover for the year ended 30 September 2010 was GBP4.1m, profit
before tax for the same period was GBP0.1m and the total value of
its assets was GBP3.8m on that date. Robinson has granted Scotplast
a secured credit facility, repayable on 30 June 2014, of up to
GBP0.3m bearing interest on commercial terms.
Outlook and Dividend
The directors believe market conditions for the rest of this
year will remain subdued. Plastic resin prices have started to
reduce from their recent peak but remain volatile. The directors
are nevertheless optimistic that the Group will show further
progress by the end of the year. As a result, a 17% higher interim
dividend of 1.75p (Oct-10: 1.5p) has been approved to be paid on 3
October 2011 to shareholders on the register at 2 September
2011.
Richard Clothier 23 August 2011
Chairman Robinson plc
For more information please contact:
Robinson plc
Guy Robinson, Finance Director Tel: 01246 505196
www.robinsonpackaging.com
WH Ireland
Katy Mitchell Tel: 0161 832 2174
Robinson plc
Group Income Statement
Six months Six months Year to
to 30.06.11 to 30.06.10 31.12.10
Notes GBP'000 GBP'000 GBP'000
------------- ------------- ----------
Revenue 9,565 9,022 19,527
Cost of sales (7,744) (7,187) (15,188)
------------- ------------- ----------
Gross profit 1,821 1,835 4,339
Operating costs (1,121) (1,136) (2,596)
------------- ------------- ----------
Operating profit 700 699 1,743
Finance income 4 14 23
Finance income in respect
of pension fund 274 236 474
------------- ------------- ----------
Profit before taxation 978 949 2,240
Taxation 2 (301) (227) (621)
------------- ------------- ----------
Profit after taxation from
continuing operations 677 722 1,619
Discontinued operations -
gain/(loss) for the
period 3 796 (618) (465)
------------- ------------- ----------
Profit for the period 1,473 104 1,154
------------- ------------- ----------
Earnings per share 5
Earnings per ordinary share
(basic and diluted) from
continuing operations 4.2p 4.5p 10.2p
---------------------------- ------ ------------- ------------- ----------
Earnings per ordinary share
(basic and diluted) from ( 3.9p ( 2.9p
discontinued operations 5.0p ) )
---------------------------- ------ ------------- ------------- ----------
Earnings per ordinary share
(basic and diluted) from
continuing and discontinued
operations 9.2p 0.6p 7.3p
---------------------------- ------ ------------- ------------- ----------
Statement of comprehensive Six months Six months Year to
income to 30.06.11 to 30.06.10 31.12.10
GBP'000 GBP'000 GBP'000
------------- ------------- ----------
Profit for the period 1,473 104 1,154
------------- ------------- ----------
Other comprehensive income
Actuarial (loss)/gain on
retirement benefit
obligations (130) (100) 513
Release of currency translation
reserve on closure of subsidiary - - (311)
Currency translation
gain/(loss) 179 (302) (56)
------------- ------------- ----------
49 (402) 146
Taxation relating to
actuarial (loss)/gain 34 28 (143)
------------- ------------- ----------
Other comprehensive
income/(expense) for the
period 83 (374) 3
------------- ------------- ----------
Total comprehensive income for the
period 1,556 (270) 1,157
------------- ------------- ----------
Robinson plc
Group Balance Sheet
30.06.11 30.06.10 31.12.10
GBP'000 GBP'000 GBP'000
--------- --------- ---------
Non-current assets
Property, plant and equipment 11,398 12,406 12,394
Deferred tax assets 249 342 288
Pension asset 7,696 6,996 7,696
19,343 19,744 20,378
--------- --------- ---------
Current assets
Inventories 1,449 2,018 1,982
Trade and other receivables 6,238 5,779 6,447
Cash 1,204 158 347
8,891 7,955 8,776
--------- --------- ---------
Non-current assets held for
sale 2,782 2,782 2,782
Total assets 31,016 30,481 31,936
--------- --------- ---------
Current liabilities
Trade and other payables (3,663) (4,182) (4,605)
Corporation tax payable (681) (204) (542)
Borrowings (1,709) (3,321) (2,872)
(6,053) (7,707) (8,019)
--------- --------- ---------
Non-current liabilities
Borrowings (667) (1,084) (876)
Deferred tax liabilities (1,541) (1,574) (1,701)
Provisions (191) (194) (191)
(2,399) (2,852) (2,768)
--------- --------- ---------
Total liabilities (8,452) (10,559) (10,787)
--------- --------- ---------
Net assets 22,564 19,922 21,149
--------- --------- ---------
Equity
Share capital 80 80 80
Share premium 419 419 419
Capital redemption reserve 216 216 216
Translation reserve 759 643 580
Revaluation reserve 4,420 4,461 4,420
Retained earnings 16,670 14,103 15,434
--------- --------- ---------
Equity attributable to shareholders 22,564 19,922 21,149
--------- --------- ---------
Robinson plc
Group cash flow statement
Six months Six months Year
to 30.06.11 to 30.06.10 to 31.12.10
GBP'000 GBP'000 GBP'000
--------------------------------- ------------- ------------- -------------
Cash flows from operating
activities
Profit for the period 1,473 104 1,154
Adjustments for:
Depreciation of property, plant
and equipment 604 673 1,379
(Profit)/loss on disposal of
other plant and equipment (72) (3) 1
Gain on disposal or closure of
discontinued operations (1,041) - (165)
Decrease in provisions - - (3)
Other finance income in respect
of pension fund (274) (236) (474)
Finance income (4) 52 66
Taxation charged 211 103 474
Non-cash items:
Pension current service cost 144 136 285
Cost of share options 12 16 30
--------------------------------- ------------- ------------- -------------
Operating cash flows before
movements in working capital 1,053 845 2,747
Increase in inventories (262) (483) (497)
Increase in trade and other
receivables (501) (116) (1,222)
Increase/(decrease) in trade and
other payables 209 (1,256) (348)
--------------------------------- ------------- ------------- -------------
Cash generated/(used in) by
operations 499 (1,010) 680
UK corporation
tax(paid)/received (51) 12 (114)
Interest received/(paid) 3 (50) (67)
--------------------------------- ------------- ------------- -------------
Net cash generated from/(used
in) operating activities 451 (1,048) 499
--------------------------------- ------------- ------------- -------------
Cash flows from investing
activities
Disposal or closure of
discontinued operations 2,340 - (66)
Acquisition of property, plant
and equipment (459) (117) (542)
Disposal of other plant and
equipment 158 17 17
--------------------------------- ------------- ------------- -------------
Net cash generated from/(used
in) investing activities 2,039 (100) (591)
--------------------------------- ------------- ------------- -------------
Cash flows from financing
activities
Loans paid (206) (203) (409)
Dividends paid (260) (246) (456)
--------------------------------- ------------- ------------- -------------
Net cash used in financing
activities (466) (449) (865)
--------------------------------- ------------- ------------- -------------
Net increase/(decrease) in cash
and cash equivalents 2,024 (1,597) (957)
Cash and cash equivalents at 1
January (2,112) (1,155) (1,155)
--------------------------------- ------------- ------------- -------------
Cash and cash equivalents at end
of period (88) (2,752) (2,112)
--------------------------------- ------------- ------------- -------------
Cash 1,205 158 347
Overdraft (1,293) (2,910) (2,459)
--------------------------------- ------------- ------------- -------------
Cash and cash equivalents at end
of period (88) (2,752) (2,112)
--------------------------------- ------------- ------------- -------------
Robinson plc Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2011 was
approved by the directors on 23 August 2011. 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) as adopted by
the European Union have been filed with the Registrar of
Companies.
2. Taxation
The taxation charge for the six months to 30 June 2011 has been
calculated on the basis of the estimated effective tax rate on
profits before tax for the year to 31 December 2011.
3. Discontinued operations
On 1 July 2011 the business of designing, manufacturing and
selling spirally wound paperboard containers based in Chesterfield
was sold to Sonoco Limited. This sale has been included in the
financial statements for the half year as the sale had been agreed
and substantially completed in the half year. In the previous
period Robinson Paperboard Packaging (North America) Ltd was
closed. All comparatives in the income statement have been restated
to disclose these operations as discontinued. The results of the
discontinued operations were as follows:
Six months Six months Year
to 30.06.11 to 30.06.10 to 31.12.10
GBP'000 GBP'000 GBP'000
--------------------------------- ------------- ------------- -------------
Revenue 2,882 2,497 6,908
Expenses (3,217) (3,254) (7,685)
--------------------------------- ------------- ------------- -------------
Loss before tax (335) (757) (777)
Attributable tax credit 64 139 147
--------------------------------- ------------- ------------- -------------
(271) (618) (630)
Gain on disposal or closure of
discontinued operations 1,041 - 165
Attributable tax expense 26 - -
---------------------------------
Net gain/(loss) attributable to
discontinued operations 796 (618) (465)
================================= ============= ============= =============
The net assets of the Chesterfield paperboard business at the
date of closure were:
GBP'000
----------------------------------------------------- --------
Property, plant and equipment 887
Inventories 795
Trade receivables 1,204
Trade payables (1,032)
Other payables (118)
----------------------------------------------------- --------
1,736
Gain on disposal 1,041
Total consideration 2,777
===================================================== ========
Satisfied by:
Cash and cash equivalents 2,340
Deferred consideration, including estimated working
capital adjustment 437
-----------------------------------------------------
2,777
===================================================== ========
Gain on net assets 1,116
Closure costs (75)
Gain on closure 1,041
===================================================== ========
4. Dividends
Six months Six months Year
to 30.06.11 to 30.06.10 to 31.12.10
Ordinary: GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Final 260 246 246
Interim - - 210
260 246 456
============= ============= =============
5. Earnings per share
The calculation of basic and diluted earnings per ordinary share
for continuing operations shown on the income statement is based on
the profit after taxation (GBP677,000) divided by the weighted
average number of shares in issue (15,943,501). The share options
are not dilutive as the average market price is not sufficiently
higher than the exercise price. The calculation in respect of
discontinued operations is based on the profit of GBP796,000. The
calculation in respect of continuing and discontinued operations is
based on the profit for the period of GBP1,473,000.
6. Interim Report
Copies of the interim report are available from Robinson plc's
registered office: Portland, Goyt Side Road, Chesterfield, S40 2PH,
UK or from its website at www.robinsonpackaging.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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