TIDMRBN
RNS Number : 4962A
Robinson PLC
21 March 2013
21 March 2013
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012
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
2012.
Highlights:
-- Profit before tax was GBP2.8m (2011: GBP2.7m).
-- Revenue decreased by 2% to GBP21.2m (2011: GBP21.5m) but underlying volumes increased by 2%.
-- Gross margin improved as a result of lower plastic resin costs and improved mix of business.
-- Cash inflow for the year was GBP1.7m leaving net cash and borrowings of GBP1.4m.
-- The surplus in the Group's pension fund increased by 1% to GBP7.7m.
-- A GBP3.4m restriction in the pension fund surplus has been reflected in the Group's assets.
-- The Board is recommending an increased final dividend for the
year of 2.25p per share (2011:2p) raising the total dividend
declared in respect of 2012 by 7% to 4p.
-- Diluted earnings per share increased by 9%.
Commenting on the results, Chairman, Richard Clothier said:
"It is pleasing to report continued improvement in profits
despite a subdued market environment. Sales volumes increased by 2%
year on year but, despite this, revenue declined by 2% due to our
contractual arrangements with customers to pass on raw material
price reductions. The full year effect of the new business gained
during 2012 should ensure revenue growth in 2013."
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 165
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, cosmetic and
homecare 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 STATEMENT
In what has been a rather dull market I am pleased to report
continued improvement in profits. We did secure some important new
business earlier in the year that has taken longer than originally
anticipated to get into full production but has helped the new year
to get off to a good start.
Revenue and profits
Group revenue reduced by 2% in the year but this was affected by
plastic resin prices being lower by an average of 9%. As these were
passed back to our customers, reported revenues reduced but we
estimate that volumes were actually 2% higher in the year. Lower
input prices and an improved mix of business contributed to the
gross profit improving to 24%. Operating costs were contained and,
with the help of a full year's notional rent from Sonoco in respect
of the Portland property, profit before tax rose slightly to
GBP2.8m (2011: GBP2.7m).
Surplus properties
The Group's surplus properties include the Portland factory in
Chesterfield which is subject to a 15 year lease to Sonoco, who has
a two year rent free period during which it can exercise an option
to buy the property. Sonoco has indicated that it is considering
exercising that option which expires during 2013. If it does
exercise its option then this is likely to result in an exceptional
gain and cash inflow and the annual rental income will reduce by
GBP0.4m. The remaining surplus properties have the potential to
realise value on disposal once property market conditions
improve.
Pension fund
The Group's pension fund surplus increased by 1% to GBP7.7m
despite the reported increase in liabilities driven by fixed
interest yields. The Company and trustees anticipate that market
conditions will enable a buy out of the liabilities of the fund to
be achieved without cost to the Company within the next 6 years. As
a consequence of the anticipated buyout the pension asset shown on
the balance sheet has been restricted and reduced by GBP3.4m. This
does not affect the underlying value of the pension fund.
Cash, finances and dividend
The net cash inflow for the year was GBP1.7m after capital
expenditure of GBP0.9m. Net cash less bank borrowing amounted to
GBP1.4m at the end of the year. Shareholders' funds reduced by
GBP0.6m as profits for the year of GBP2.1m were offset by the
reduction in the pension fund surplus, however, with diluted
earnings per share up by 9% the Board proposes a final dividend of
2.25p per share to be paid on 1 June 2013 to shareholders on the
register at the close of business on 17 May 2013. This brings the
total dividend declared in respect of 2012 to 4p per share - an
increase of 7% over the previous year.
Outlook
The full year effect of the new business gained during 2012
should ensure revenue growth in 2013, however, in an effort to grow
the business further additions to the management team will increase
costs which will temporarily limit the full effect of this growth
in earnings. Volatility in plastic resin prices can affect margins
in the short term and management are anticipating some pressure on
selling prices in the current market that may, to some extent,
counter the impact of higher volumes. Nevertheless, progress so far
in 2013 is positive and in line with our expectations.
Richard Clothier
Chairman
21 March 2013
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2012 2011
GBP'000 GBP'000
--------------------------------------------- ---------------- ----------------
Continuing operations
Revenue 21,171 21,516
Cost of sales (16,141) (16,748)
--------------------------------------------- ---------------- ----------------
Gross profit 5,030 4,768
Operating costs (2,604) (2,637)
Operating profit before exceptional
items 2,426 2,131
Exceptional items (83) -
Operating profit after exceptional
items 2,343 2,131
Finance income - interest receivable 10 53
Finance costs - bank interest payable (9) (62)
Finance income in respect of pension
fund 474 550
--------------------------------------------- ---------------- ----------------
Profit before taxation 2,818 2,672
Taxation (723) (779)
--------------------------------------------- ---------------- ----------------
Profit after tax from continuing operations 2,095 1,893
Discontinued operations - profit for
the year - 1,398
--------------------------------------------- ---------------- ----------------
Profit for the year 2,095 3,291
============================================= ================ ================
Basic earnings per
share
Profit per ordinary share from continuing
operations 13.1p 11.9p
Profit per ordinary share from discontinued
operations 0.0p 8.8p
Profit per ordinary share from continuing
and discontinued operations 13.1p 20.6p
Diluted earnings
per share
Profit per ordinary share from continuing
operations 12.6p 11.6p
Profit per ordinary share from discontinued
operations 0.0p 8.7p
Profit per ordinary share from continuing
and discontinued operations 12.6p 20.3p
--------------------------------------------- ---------------- ----------------
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2012 2011
GBP'000 GBP'000
-------------------------------------------------------------------------------------------- ------------ --------
Profit for the year 2,095 3,291
-------------------------------------------------------------------------------------------- ------------ --------
Other comprehensive income
Actuarial loss on retirement benefit obligations (3,355) (705)
Currency translation gain/(loss) 215 (499)
-------------------------------------------------------------------------------------------- ------------ --------
(3,140) (1,204)
Taxation relating to actuarial loss 922 407
-------------------------------------------------------------------------------------------- ------------ --------
Other comprehensive expense for the year (2,218) (797)
Total comprehensive (expense)/income for the year attributable to the company's
shareholders (123) 2,494
============================================================================================ ============ ========
Statement of financial position
AS AT 31 DECEMBER
Group
2012 2011
GBP'000 GBP'000
------------------------------------- -------- --------
Non-current assets
Property, plant and equipment 8,857 8,763
Interests in associate - 250
Loan to associate - 200
Deferred tax asset 158 221
Pension asset 4,224 7,292
------------------------------------- -------- --------
13,239 16,726
------------------------------------- -------- --------
Current assets
Inventories 1,608 1,379
Trade and other receivables 6,704 6,555
Corporation tax receivable 165 -
Cash 1,743 333
------------------------------------- -------- --------
10,220 8,267
------------------------------------- -------- --------
Non-current assets held for sale 4,998 4,998
------------------------------------- -------- --------
Total assets 28,457 29,991
------------------------------------- -------- --------
Current liabilities
Trade and other payables (4,355) (3,940)
Corporation tax payable (502) (391)
Borrowings (307) (605)
------------------------------------- -------- --------
(5,164) (4,936)
------------------------------------- -------- --------
Non-current liabilities
Borrowings - (307)
Deferred tax liabilities (524) (1,372)
Provisions (187) (189)
------------------------------------- -------- --------
(711) (1,868)
------------------------------------- -------- --------
Total liabilities (5,875) (6,804)
------------------------------------- -------- --------
Net assets 22,582 23,187
===================================== ======== ========
Equity
Share capital 80 80
Share premium 419 419
Capital redemption reserve 216 216
Translation reserve 296 81
Revaluation reserve 4,580 4,567
Retained earnings 16,991 17,824
------------------------------------- -------- --------
Equity attributable to shareholders 22,582 23,187
===================================== ======== ========
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 2011 80 419 216 580 4,420 15,434 21,149
------------------ --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Profit for the
year 3,291 3,291
Other
comprehensive
expense (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
------------------ --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Profit for the
year 2,095 2,095
Other
comprehensive
income/(expense) 215 (2,433) (2,218)
Transfer to -
revaluation -
reserves as a
result
of property
transactions
Tax on
revaluation 13 - 13
------------------ --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Total
comprehensive
income for the
year - - - 215 13 (338) (110)
------------------ --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Credit in respect
of share based
payments 63 63
Dividends paid (558) (558)
------------------ --------------- ------------ ----------------- ------------ ------------ --------- ------------------
Transactions with
owners (495) (495)
------------------ --------------- ------------ ----------------- ------------ ------------ --------- ------------------
At 31 December
2012 80 419 216 296 4,580 16,991 22,582
================== =============== ============ ================= ============ ============ ========= ==================
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group
2012 2011
GBP'000 GBP'000
------------------------------------------------ -------- --------
Cash flows from operating activities
Profit for the year 2,095 3,291
Adjustments for:
Depreciation of property, plant and equipment 892 1,061
Profit on disposal of other plant and
equipment (148) (86)
Profit on sale or closure of discontinued
operations - (1,891)
Decrease in provisions (2) (2)
Other finance income in respect of Pension
Fund (474) (550)
Finance costs 9 62
Taxation charged 723 779
Other non-cash items:
Pension current service cost 188 249
Charge for share options 63 50
------------------------------------------------ -------- --------
Operating cash flows before movements in
working capital 3,346 2,963
Increase in inventories (229) (216)
Decrease/(increase) in trade and other
receivables 341 (1,222)
Increase in trade and other payables 417 265
------------------------------------------------ -------- --------
Cash generated by operations 3,875 1,790
UK corporation tax paid (643) (779)
Interest paid (11) (69)
------------------------------------------------ --------
Net cash generated from operating activities 3,221 942
================================================ ======== ========
Cash flows from investing activities
Sale of discontinued operations - 3,729
Investment in an associate - (450)
Acquisition of plant & equipment (902) (1,059)
Proceeds on disposal of other plant and
equipment 254 172
Net cash (used in)/generated from investing
activities (648) 2,392
================================================ ======== ========
Cash flows from financing activities
Loans repaid (335) (647)
Dividends paid (558) (512)
------------------------------------------------ -------- --------
Net cash used in financing activities (893) (1,159)
================================================ ======== ========
Net increase in cash and cash equivalents 1,680 2,175
Cash and cash equivalents at 1 January 63 (2,112)
------------------------------------------------ -------- --------
Cash and cash equivalents at 31 December 1,743 63
================================================ ======== ========
Cash 1,743 333
Overdraft - (270)
------------------------------------------------ -------- --------
Cash and cash equivalents at 31 December 1,743 63
================================================ ======== ========
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 2012 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 2012 have
had any effect on the financial statements.
In determining whether the Group's 2012 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. Publication of 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 2012, but is derived from those financial
statements. The statutory financial statements for the year ended
31 December 2011 have been delivered to the Registrar of Companies
and those for 2012 are expected to be posted to shareholders on 8
April 2013 and will be delivered to the Registrar of Companies
after they have been laid before the Company at the Annual General
Meeting planned for 2 May 2013. Copies will also be available from
Robinson plc's registered office: Field House, Wheatbridge,
Chesterfield, S40 2AB and on the Group's website at
www.robinsonpackaging.com from 8 April 2013. 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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