TIDMRBN
RNS Number : 9155Z
Robinson PLC
23 March 2012
23 March 2012
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
Robinson plc ("Robinson"; stock code: RBN), the custom
manufacturer of plastic and paperboard packaging based in
Chesterfield, announces its results for the year ended 31 December
2011.
Highlights:
-- Profit before tax* rose 23% to GBP2.7m (2010: GBP2.2m)
-- Revenue* increased by 10% to GBP21.5m (2010: GBP19.5m)
-- Spiral wound paperboard tube business sold to Sonoco on1 July
2011 for GBP3.1m generating a gain on disposal of GBP1.0m
-- Dividends for the year increased by 15%
* continuing operations
Commenting on the results, Chairman, Richard Clothier said:
"We are pleased to report further growth in revenues and profits
from continuing operations in 2011. The sale during the year of the
spiral wound paperboard tube business to Sonoco UK Ltd enables the
group to focus on the businesses in the group that offer earnings
growth. Despite unhelpful economic conditions, we expect new
business gains to support further growth in 2012."
About Robinson
Headquartered in Chesterfield, with manufacturing facilities in
Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz
(Poland), Robinson currently employs around 225 people. It was
formerly a family business, with its origins dating back some 173
years. Today the group's main activity is the manufacture and sale
of injection moulded plastic packaging. Robinson operates primarily
within the food, drink, confectionery, toiletry and cosmetic
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, Heinz, Boots and Dr Oetker.
The Group also has a substantial property portfolio with
development potential.
For further information, please contact:
Adam Formela, Chief Executive, Robinson
plc 01246 389287
Guy Robinson, Finance Director, Robinson www.robinsonpackaging.com
plc
Katy Mitchell, WH Ireland 0161 832 2174
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
CHAIRMAN'S REPORT
The results for 2011 show another substantial improvement and,
apart from the drop in revenue resulting from our exit from
underperforming businesses, the outcome is the best that Robinson
has achieved for many years and certainly since it was admitted to
AIM in 2004. This arises from two satisfactory developments in the
Group. The performance of the plastics packaging business has
improved for the second year in succession and the Company has
completed a profitable disposal of the long underperforming spiral
wound paperboard tube business both in Canada and the UK. The
operating results exclude the effect of the disposed businesses
which is shown as a separate line at the foot of the Group Income
Statement. All of the continuing businesses achieved improved
profits in the year.
Revenue and Profits
Group revenue increased by 10% of which half was the result of
price increases to cover higher raw material costs and the
remainder was a product of increased sales volumes. The higher
volumes and stable operating costs improved operating profit by 22%
to GBP2.1m and profit before tax for the continuing business
increased to GBP2.7m (2010 GBP2.2m), with a GBP0.1m increase in
notional finance income in respect of the pension fund surplus.
Exceptional gains of GBP1.4m from business disposals boosted the
profit after tax for the year to GBP3.3m (2010 GBP1.2m).
Cash and Finances
Cash flow benefited from the proceeds from the sale of the
Chesterfield spiral wound paperboard tube business to Sonoco for
GBP3.1m. This was offset by capital expenditure on new plant and
machinery of GBP1.1m and also an investment in the Glasgow plastic
in mould label specialist Scotplast Ltd, which was reported at the
half year. Overall borrowings were reduced by GBP2.8m to GBP0.6m at
the year end.
Dividends
Fully diluted earnings per share from continuing operations have
risen by 14% and shareholders' funds strengthened by GBP2.0m. The
Board proposes a final dividend of 2p per share to be paid on 1
June 2012 to shareholders on the register at the close of business
on 18 May 2012. This brings the total dividend declared in respect
of 2011 to 3.75p per share - an increase of 15% over the previous
year.
Surplus Properties
The Group continues to hold several surplus properties that have
the potential to realise value on disposal once property market
conditions improve. These now include the Portland facility in
Chesterfield, which is subject to a 15 year lease to Sonoco, who
have a two year rent free period during which they can exercise an
option to buy the property. The directors believe the market value
of these surplus properties is in excess of their carrying value in
these financial statements.
Outlook
Management is committed to maintaining the hard won improvements
in efficiency in the plastics business and also to building the top
line where we see potential for organic growth particularly in
Central Europe and in our rigid paperbox business. So far this year
market conditions have remained stable for most of our customers.
We remain conscious of the possible effects of adverse economic
trends on 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 2012 is in
line with the Board's expectations.
Richard Clothier
Chairman
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2011 2010
GBP'000 GBP'000
---------------------------------------------------- ---------------- ----------------
Continuing operations
Revenue 21,516 19,507
Cost of sales (16,748) (15,081)
---------------------------------------------------- ---------------- ----------------
Gross profit 4,768 4,426
Operating costs (2,637) (2,675)
Share of results of associate - -
---------------------------------------------------- ---------------- ----------------
Operating profit 2,131 1,751
Finance income - interest receivable 53 24
Finance costs - bank interest payable (62) -
Finance income in respect of pension
fund 550 474
---------------------------------------------------- ---------------- ----------------
Profit before taxation 2,672 2,249
Taxation (779) (627)
---------------------------------------------------- ---------------- ----------------
Profit after tax from continuing operations 1,893 1,622
Discontinued operations - profit/(loss)
for the year 1,398 (468)
---------------------------------------------------- ---------------- ----------------
Profit for the year 3,291 1,154
==================================================== ================ ================
Basic earnings per
share
Profit per ordinary share from continuing
operations 11.9p 10.2p
Profit/(loss) per ordinary share from discontinued
operations 8.7p ( 2.9p )
Profit per ordinary share from continuing
and discontinued operations 20.6p 7.2p
Diluted earnings
per share
Profit per ordinary share from continuing
operations 11.6p 4.6p
Profit/(loss) per ordinary share from discontinued
operations 8.7p ( 1.9p )
Profit per ordinary share from continuing
and discontinued operations 20.3p 7.2p
---------------------------------------------------- ---------------- ----------------
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2011 2010
GBP'000 GBP'000
--------------------------------------------- -------- ----------------------
Profit for the year 3,291 1,154
--------------------------------------------- -------- ----------------------
Other comprehensive
income
Actuarial (loss)/gain on retirement
benefit obligations (705) 513
Release of currency translation reserve
on closure of subsidiary - (311)
Currency translation
loss (499) (56)
--------------------------------------------- -------- ----------------------
(1,204) 146
Taxation relating to actuarial (loss)/gain 407 (143)
--------------------------------------------- -------- ----------------------
Other comprehensive (expense)/income
for the year (797) 3
Total comprehensive income for the year
attributable to the Company's shareholders 2,494 1,157
============================================= ======== ======================
Statement of financial position
AS AT 31 DECEMBER
Group
2011 2010
GBP'000 GBP'000
------------------------------------- -------- ---------
Non-current assets
Property, plant and equipment 8,763 12,394
Interests in associate 250 -
Loan to associate 200 -
Deferred tax asset 221 288
Pension asset 7,292 7,696
------------------------------------- -------- ---------
16,726 20,378
------------------------------------- -------- ---------
Current assets
Inventories 1,379 1,982
Trade and other receivables 6,555 6,447
Cash 333 347
------------------------------------- -------- ---------
8,267 8,776
------------------------------------- -------- ---------
Non-current assets held for sale 4,998 2,782
------------------------------------- -------- ---------
Total assets 29,991 31,936
------------------------------------- -------- ---------
Current liabilities
Trade and other payables (3,940) (4,605)
Corporation tax payable (391) (542)
Borrowings (605) (2,872)
------------------------------------- -------- ---------
(4,936) (8,019)
------------------------------------- -------- ---------
Non-current liabilities
Borrowings (307) (876)
Deferred tax liabilities (1,372) (1,701)
Provisions (189) (191)
------------------------------------- -------- ---------
(1,868) (2,768)
------------------------------------- -------- ---------
Total liabilities (6,804) (10,787)
------------------------------------- -------- ---------
Net assets 23,187 21,149
===================================== ======== =========
Equity
Share capital 80 80
Share premium 419 419
Capital redemption reserve 216 216
Translation reserve 81 580
Revaluation reserve 4,567 4,420
Retained earnings 17,824 15,434
------------------------------------- -------- ---------
Equity attributable to shareholders 23,187 21,149
===================================== ======== =========
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
2010 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 to
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
--------------- --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Profit for the
year 3,291 3,291
Other
comprehensive
income (499) (298) (797)
Transfer to
revaluation
reserves as a
result
of property
transactions 141 (141) -
Tax on
revaluation 6 - 6
--------------- --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Total
comprehensive
income for
the year - - - (499) 147 2,852 2,500
--------------- --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Credit in
respect
of share
based
payments 50 50
Dividends paid (512) (512)
--------------- --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Transactions
with
owners (462) (462)
--------------- --------------- ------------ ----------------- ------------ ------------ --------- ------------------
At 31 December
2011 80 419 216 81 4,567 17,824 23,187
=============== =============== ============ ================= ============ ============ ========= ==================
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group
2011 2010
GBP'000 GBP'000
------------------------------------------------ -------- --------
Cash flows from operating activities
Profit for the year 3,291 1,154
Adjustments for:
Depreciation of property, plant and equipment 1,061 1,379
(Profit)/loss on disposal of other plant
and equipment (86) 1
Profit on sale or closure of discontinued
operations (1,891) (165)
Decrease in provisions (2) (3)
Other finance income in respect of pension
fund (550) (474)
Finance costs 62 66
Taxation charged 779 474
Other non-cash items:
Pension current service cost 249 285
Charge for share based payments 50 30
------------------------------------------------ -------- --------
Operating cash flows before movements in
working capital 2,963 2,747
Increase in inventories (216) (497)
Increase in trade and other receivables (1,222) (1,222)
Increase/(decrease) in trade and other
payables 265 (348)
------------------------------------------------ -------- --------
Cash generated by operations 1,790 680
UK corporation tax paid (779) (114)
Interest paid (69) (67)
------------------------------------------------ --------
Net cash generated from operating activities 942 499
================================================ ======== ========
Cash flows from investing activities
Sale of discontinued operations 3,729 (66)
Investment in an associate (450) -
Acquisition of plant and equipment (1,059) (542)
Proceeds on disposal of other plant and
equipment 172 17
Net cash generated from/(used in) from
investing activities 2,392 (591)
================================================ ======== ========
Cash flows from financing activities
Loans repaid (647) (409)
Dividends paid (512) (456)
------------------------------------------------ -------- --------
Net cash used in financing activities (1,159) (865)
================================================ ======== ========
Net increase/(decrease) in cash and cash
equivalents 2,175 (957)
Cash and cash equivalents at 1 January (2,112) (1,155)
------------------------------------------------ -------- --------
Cash and cash equivalents at 31 December 63 (2,112)
================================================ ======== ========
Cash 333 347
Overdraft (270) (2,459)
------------------------------------------------ -------- --------
Cash and cash equivalents at 31 December 63 (2,112)
================================================ ======== ========
Notes to the financial statements
1. Basis of preparation
Whilst this financial information has been prepared in
accordance with the recognition and measurement criteria of IFRS,
this announcement does not itself contain sufficient information to
comply with IFRS. 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 2011 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 2011 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 2010 balance sheet is the same as that previously
published.
In determining whether the Group's 2011 financial statements can
be prepared on a going concern basis, the Directors considered all
factors likely to affect its future development, performance and
its financial position, including cash flows, liquidity position
and borrowing facilities and the risks and uncertainties relating
to its business activities. As at the date of this report, the
directors have a reasonable expectation that the Company and Group
have adequate resources to continue in business for the foreseeable
future. Thus they continue to adopt the going concern basis of
accounting in preparing the annual financial statements.
2. Closure of subsidiary
On 1 July 2011 the spiral wound paperboard tube business of
Robinson Paperboard Packaging Limited was sold to Sonoco Ltd. The
results of the discontinued operation, which have been included in
the Group income statement, along with further gains relating to
the closure of Robinson Paperboard Packaging (North America) Ltd,
are shown below. The comparative figures also include the trading
results and gain on closure of Robinson Paperboard Packaging (North
America) Ltd.
2011 2010
GBP'000 GBP'000
Revenue 2,881 6,928
Expenses (3,212) (7,714)
-------------------------------------------------- -------- --------
Loss before tax (331) (786)
Attributable tax expense 80 153
-------------------------------------------------- -------- --------
(251) (633)
Gain on disposal of discontinued operations
- spiral wound paperboard tube business 1,023 -
Gain on closure of discontinued operations 626 165
--------------------------------------------------
Net loss attributable to discontinued operations 1,398 (468)
================================================== ======== ========
The net assets of the spiral wound tube business of Robinson
Paperboard Packaging Limited at the date of sale were:
2011
GBP'000
Property, plant & equipment 923
Inventories 819
Trade receivables 1,019
Trade payables (873)
Other payables (50)
----------------------------- --------
1,838
Sale costs 212
Gain on disposal 1,023
Total consideration 3,073
============================= ========
3. Publication of non-statutory financial statements
The financial information set out above does not constitute the
company's statutory financial statements for the years ended 31
December 2011 or 2010, but is derived from those accounts.
Statutory financial statements for 2010 have been delivered to the
Registrar of Companies and those for 2011 will be delivered
following the company's annual general meeting planned for 3 May
2012. Copies will also be available from Robinson plc's registered
office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK 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).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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