TIDMRBN
RNS Number : 5811K
Robinson PLC
22 August 2012
Robinson plc
("Robinson" or the "Company)
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2012
CHAIRMAN'S STATEMENT
Trading conditions have weakened during the first half and in
the second quarter revenues have dropped slightly below the
previous year. Margins, however, have been maintained and, with
tight cost control, profit before exceptional costs have improved.
The Directors have decided to write off our investment in the ice
cream container manufacturer, Scotplast, after it had failed to
achieve its business plans.
Revenues & Profits
Revenues during the first half were marginally down compared
with the same period last year. Our customers have seen demand for
their premium branded products come under pressure in the current
market conditions and have reacted by reducing stock holdings,
particularly in the last few months. However, new business won
which is scheduled to come on stream during the second half of the
year is expected to offset this shortfall.
The gross profit is GBP0.1m higher than the previous year as we
have passed on the raw material price rises sustained during the
first half. Increasing efficiency is a constant priority for the
company and overheads have been reduced by GBP0.1m. With the
Group's cash position broadly neutral and the continued notional
benefit arising from the pension fund surplus, the profit before
tax was GBP0.6m (after taking into account the Scotplast
impairment) compared with GBP1.0m the previous half year.
Scotplast
During the first quarter of 2012, Scotplast, the company in
which we acquired a 35% stake in 2011, has struggled with reduced
revenues and margins have been squeezed by higher raw material
prices. On 5 April 2012, we increased our shareholding to 49% by
injecting GBP0.1m into the business in an attempt to help the
business through a difficult cash flow situation. Since then the
performance of the business has materially deteriorated, not helped
by the worsening commercial environment and poor summer weather.
The Directors have decided to fully write off our investment in
this business. This amounts to GBP0.5m and is shown as an
exceptional impairment in the Group Income Statement.
Cash & Finances
The Group's net cash and borrowings position stands at GBP0.4m.
This has improved by GBP1.6m during the past 12 months mainly as a
result of the trading profits and proceeds received from the sale
of the spiral wound paperboard business in 2011. A final dividend
of 2p was paid on 1 June 2012 (2011: 1.75p).
Outlook and Dividend
Market conditions for the rest of this year are expected to
remain subdued. Plastic resin prices have recently reduced
significantly from their recent peak and, although this benefit
will be passed on to customers, we expect to maintain our margins.
The directors are nevertheless optimistic that the Group will show
further progress in the profitability of the underlying continuing
businesses by the end of the year. As a result, an unchanged
interim dividend of 1.75p (Oct-11: 1.75p) has been approved to be
paid on 1 October 2012 to shareholders on the register at 31 August
2012.
For more information please contact:
Robinson plc
Guy Robinson, Finance Director Tel: 01246 389283
www.robinsonpackaging.com
WH Ireland
Katy Mitchell Tel: 0161 832 2174
Group Income Statement
Six months Six months Year
to 30.06.12 to 30.06.11 to 31.12.11
Notes GBP'000 GBP'000 GBP'000
-------------------- -------------------- ---------------
Revenue 9,517 9,565 21,516
Cost of sales (7,595) (7,744) (16,748)
-------------------- -------------------- ---------------
Gross profit 1,922 1,821 4,768
Operating costs (982) (1,121) (2,637)
Exceptional impairment of investment (525) - -
in associate
-------------------- -------------------- ---------------
Operating profit 415 700 2,131
Finance income - interest receivable - 51 53
Finance income - bank interest payable (4) (47) (62)
Finance income in respect of pension
fund 237 274 550
-------------------- -------------------- ---------------
Profit before taxation 648 978 2,672
Taxation 2 (275) (301) (779)
Profit after taxation from continuing
operations 373 677 1,893
Discontinued operations - gain for
the period - 796 1,398
Profit for the period 373 1,473 3,291
-------------------- -------------------- ---------------
Earnings per ordinary share (EPS) 4
EPS from continuing operations excluding
exceptional items 7.4p 6.1p 11.9p
EPS from continuing operations 2.3p 4.2p 11.9p
EPS from continuing and discontinued
operations 2.3p 9.2p 20.6p
Diluted EPS 4
EPS from continuing operations excluding
exceptional items 5.5p 4.2p 11.6p
EPS from continuing operations 2.3p 4.2p 11.6p
EPS from continuing and discontinued
operations 2.3p 9.1p 20.3p
Statement of comprehensive income GBP'000 GBP'000 GBP'000
-------------------- -------------------- ---------------
Profit for the period 373 1,473 3,291
-------------------- -------------------- ---------------
Other comprehensive income
Actuarial loss on retirement benefit
obligations (90) (130) (705)
Currency translation gain/(loss) 3 179 (499)
-------------------- -------------------- ---------------
(87) 49 (1,204)
Taxation relating to actuarial loss 30 34 407
-------------------- -------------------- ---------------
Other comprehensive (expense)/income
for the period (57) 83 (797)
-------------------- -------------------- ---------------
Total comprehensive income for the
period 316 1,556 2,494
-------------------- -------------------- ---------------
Group Balance Sheet
30.06.12 30.06.11 31.12.11
GBP'000 GBP'000 GBP'000
----------------- --------------- ---------
Non-current assets
Property, plant and equipment 8,847 11,398 8,763
Interests in associate - - 250
Loan to associate - - 200
Deferred tax assets 173 249 221
Pension asset 7,292 7,696 7,292
16,312 19,343 16,726
----------------- --------------- ---------
Current assets
Inventories 1,590 1,449 1,379
Trade and other receivables 5,884 6,238 6,555
Cash 902 1,204 333
8,376 8,891 8,267
----------------- --------------- ---------
Non-current assets held for
sale 4,998 2,782 4,998
Total assets 29,686 31,016 29,991
----------------- --------------- ---------
Current liabilities
Trade and other payables (4,140) (3,663) (3,940)
Corporation tax payable (220) (681) (391)
Borrowings (335) (1,709) (605)
(4,695) (6,053) (4,936)
----------------- --------------- ---------
Non-current liabilities
Borrowings (140) (667) (307)
Deferred tax liabilities (1,417) (1,541) (1,372)
Provisions (189) (191) (189)
(1,746) (2,399) (1,868)
----------------- --------------- ---------
Total liabilities (6,441) (8,452) (6,804)
----------------- --------------- ---------
Net assets 23,245 22,564 23,187
----------------- --------------- ---------
Equity
Share capital 80 80 80
Share premium 419 419 419
Capital redemption reserve 216 216 216
Translation reserve 84 759 81
Revaluation reserve 4,568 4,420 4,567
Retained earnings 17,878 16,670 17,824
Equity attributable to shareholders 23,245 22,564 23,187
----------------- --------------- ---------
Group cash flow statement
Six months Six months Year
to 30.06.12 to 30.06.11 to 31.12.11
GBP'000 GBP'000 GBP'000
---------------------------------------------- ----------------- --------------- --------------
Cash flows from operating activities
Profit for the period 373 1,473 3,291
Adjustments for:
Impairment of investment in associates 550 - -
Depreciation of property, plant
and equipment 431 604 1,061
Profit on disposal of other plant
and equipment - (72) (86)
Gain on disposal or closure of discontinued
operations - (1,041) (1,891)
Decrease in provisions - - (2)
Other finance income in respect
of pension fund (237) (274) (550)
Finance income 4 (4) 62
Taxation charged 275 211 779
Non-cash items:
Pension current service cost 116 144 249
Cost of share options 30 12 50
---------------------------------------------- ----------------- --------------- --------------
Operating cash flows before movements
in working capital 1,542 1,053 2,963
Increase in inventories (211) (262) (216)
Decrease/(Increase) in trade and
other receivables 664 (501) (1,222)
Increase in trade and other payables 200 209 265
---------------------------------------------- ----------------- --------------- --------------
Cash generated by operations 2,195 499 1,790
UK corporation tax paid (291) (51) (779)
Interest (paid)/received (5) 3 (69)
---------------------------------------------- ----------------- --------------- --------------
Net cash generated from operating
activities 1,899 451 942
---------------------------------------------- ----------------- --------------- --------------
Cash flows from investing activities
Disposal or closure of discontinued
operations - 2,340 3,729
Investment in an associate (100) - (450)
Acquisition of property, plant and
equipment (505) (459) (1,059)
Disposal of other plant and equipment - 158 172
---------------------------------------------- ----------------- --------------- --------------
Net cash (used in)/generated from
investing activities (605) 2,039 2,392
---------------------------------------------- ----------------- --------------- --------------
Cash flows from financing activities
Loans paid (167) (206) (647)
Dividends paid (288) (260) (512)
---------------------------------------------- ----------------- --------------- --------------
Net cash used in financing activities (455) (466) (1,159)
---------------------------------------------- ----------------- --------------- --------------
Net increase in cash and cash equivalents 839 2,024 2,175
Cash and cash equivalents at 1 January 63 (2,112) (2,112)
---------------------------------------------- ----------------- --------------- --------------
Cash and cash equivalents at end
of period 902 (88) 63
---------------------------------------------- ----------------- --------------- --------------
Cash 902 1,205 333
Overdraft - (1,293) (270)
---------------------------------------------- ----------------- --------------- --------------
Cash and cash equivalents at end
of period 902 (88) 63
---------------------------------------------- ----------------- --------------- --------------
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2012 was
approved by the directors on 22 August 2012. 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 2012 has been
calculated on the basis of the estimated effective tax rate on
profits before tax for the year to 31 December 2012.
3. Dividends
Six months Six months Year
to 30.06.12 to 30.06.11 to 31.12.11
Ordinary: GBP'000 GBP'000 GBP'000
--------------- -------------- -------------
Final 288 260 255
Interim - - 257
288 260 512
=============== ============== =============
4. 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 of GBP373,000 divided by the weighted
average number of shares in issue, net of treasury shares of
15,943,501: for diluted earnings per share 16,331,830.
5. Going concern
The directors have considered the cash flow forecasts for the
Group and the availability of facilities. As at the date of this
report, the directors have a reasonable expectation that the Group
has adequate resources to continue in business for the foreseeable
future. Thus they continue to adopt the going concern basis of
accounting.
6. Interim report
Copies of the interim report are available from Robinson plc's
registered office: Field House, Wheatbridge, Chesterfield, S40 2AB,
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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