TIDMRBN
RNS Number : 7207C
Robinson PLC
20 March 2014
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013
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
2013.
Highlights:
-- The reported profit before tax was GBP3.7m (2012: GBP2.8m)
after an exceptional gain of GBP1.1m was made on the sale of
Portland.
-- Revenue increased by 10% to GBP23.3 m (2012: GBP21.2m) and underlying volumes increased by 8%.
-- Gross margins reduced as a result of higher plastic resin costs
-- Sales overheads rose by GBP0.2m following investment in additional personnel
-- Rental incomes reduced by GBP0.2m after the sale of Portland
-- The notional financial income in respect of the pension fund reduced by GBP0.2m
-- Cash less loan balances increased by GBP3.9m
-- Net assets increased by GBP2.5m to GBP25.1m
-- The Board is recommending an increased final dividend for the
year of 2.5p per share (2012: 2.25p), raising the total dividend
declared in respect of 2013 by 12.5% to 4.5p
Commenting on the results, Chairman, Richard Clothier said:
"Despite subdued market conditions, I am very pleased to report
the new business growth that is reflected in increased revenues.
The sale of the Portland factory in Chesterfield to Sonoco results
in reduced rental income but leaves the Group with cash to fund the
growth by acquisition which we have announced since the year end.
Growth in revenues is continuing in 2014 to date. In February the
agreement to acquire the Polish packaging manufacturer, Madrox,
near Warsaw, was announced. If completed as expected, this
acquisition will add significantly to Robinson's revenues and, once
the integration costs are covered, Madrox is expected to
substantially improve the Group's earnings and cash flow. The
capabilities and new customers that the company brings to Robinson
will add to the prospects for further sales growth beyond
2014."
About Robinson
Headquartered in Chesterfield, with manufacturing facilities in
Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz
(Poland), Robinson currently employs around 235 people. It was
formerly a family business, with its origins dating back some 175
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, 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, Two Sisters, Masterfoods,
Bakkavor, Avon and Dr Oetker. The Group also has a substantial
property portfolio with development potential.
For further information, please contact:
Guy Robinson, Finance Director, Robinson
plc 01246 389283
www.robinsonpackaging.com
Katy Mitchell, WH Ireland 0161 832 2174
CHAIRMAN'S STATEMENT
Market conditions remain rather subdued, particularly for many
of our customers' branded products, so I am very pleased to report
the new business growth that is reflected in increased revenues.
The sale of the Portland factory in Chesterfield to Sonoco results
in reduced rental income but leaves the Group with cash to fund the
growth by acquisition which we have announced since the year
end.
Revenue and profits
Group revenues increased by 10% to GBP23.3m in the year. This
was affected by plastic resin prices being higher by an average of
6% which were largely passed on to our customers resulting in
higher reported revenues. We estimate that volumes were 8% higher
in the year, which was mainly attributable to the full year impact
of new business gained in 2012 that did not come on stream until
the latter part of that year. Rising input prices, compared with
reducing prices in 2012, contributed to the gross profit reverting
from 24% back to 22% where it was in 2011. Operating costs rose as
we invested in additional sales personnel (GBP0.2m) whilst rental
income was reduced (GBP0.2m) following the sale of Portland so
profit before exceptional items fell slightly. The GBP1.1m
exceptional gain arising from the sale of Portland increased the
profit before tax to GBP3.7m (2012: GBP2.8m).
Surplus properties
Sonoco exercised its option to buy the Portland property in
Chesterfield for GBP4.2m during the year. As a result, future
rental incomes will reduce by GBP0.4m per annum, effective from
August 2013.
Pension fund
The Group's pension fund surplus reduced by 2% to GBP7.5m during
the year. The total assets in the fund reduced by 1% to GBP56.1m
with 87% of investments in gilts, bonds or cash. In addition,
GBP2.4m sits in an escrow account between the Company and the fund.
The Company and trustees anticipate that market conditions may
enable a buy out of the liabilities of the fund to be achieved
without cost to the Company within the next 5 years. Consequently,
the surplus attributable to the Group has been restricted.
Cash, finances and dividend
Net cash amounted to GBP5.4m at the end of the year. The net
cash inflow for the year was GBP3.6m comprising increased proceeds
from disposals of GBP4.0m plus GBP1.6m from operations, less
capital expenditure of GBP1.4m and dividends paid of GBP0.7m.
Shareholders' funds increased by 11%. The Board proposes a final
dividend of 2.5p per share to be paid on 2 June 2014 to
shareholders on the register at the close of business on 16 May
2014. This brings the total dividend declared in respect of 2013 to
4.5p per share - an increase of 12.5% over the previous year.
Outlook
Having worked hard in recent years on improving the
profitability of the business, more emphasis is being given to
improving the top line. Growth in revenues is continuing in 2014 to
date and in February the agreement to acquire the Polish packaging
manufacturer, Madrox, near Warsaw, was announced. If completed as
expected, this acquisition will add significantly to Robinson's
revenues and, once the integration costs are covered, Madrox is
expected to substantially improve the Group's earnings and cash
flow. The capabilities and new customers that the company brings to
Robinson will add to the prospects for further sales growth beyond
2014.
Richard Clothier
Chairman
20 March 2014
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2013 2012
GBP'000 GBP'000
-------------------------- ------------ ------ ----- --------- ---------
Continuing operations
Revenue 23,329 21,171
Cost of sales (18,148) (16,141)
------------------------------------------------------------------- --------- ---------
Gross profit 5,181 5,030
Operating costs (2,859) (2,604)
------------------------------------- ------------- ----------- --------- ---------
Operating profit before exceptional
items 2,322 2,426
Exceptional items 1,054 (83)
------------------------------------------------------------------- --------- ---------
Operating profit after exceptional
items 3,376 2,343
Finance income - interest receivable 11 10
Finance costs - bank interest payable (1) (9)
Finance income in respect of pension
fund 307 474
---------------------------------------------------- ----------- --------- ---------
Profit before taxation 3,693 2,818
Taxation (599) (723)
------------------------------------------------------------------- --------- ---------
Profit for year attributable to the owners
of the Company 3,094 2,095
=================================================================== ========= =========
Basic earnings per share
EPS from continuing operations 19.2p 13.1p
EPS from continuing operations excluding
exceptional items 12.6p 13.6p
Diluted earnings per
share
EPS from continuing operations 18.5p 12.6p
EPS from continuing operations excluding
exceptional items 12.2p 13.1p
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2013 2012
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Profit for the year 3,094 2,095
-------------------------------------------------- -------- --------
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of net defined benefit liability (308) (3,355)
Deferred tax relating to items not reclassified 152 922
-------------------------------------------------- -------- --------
(156) (2,433)
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
of foreign operations 3 215
-------------------------------------------------- -------- --------
Other comprehensive expense for the year (153) (2,218)
Total comprehensive income/(expense) for the
year attributable to the owners of the Company 2,941 (123)
================================================== ======== ========
Statement of financial position
AS AT 31 DECEMBER
Group
2013 2012
GBP'000 GBP'000
------------------------------------- ------------ --------
Non-current assets
Property, plant and equipment 10,802 8,857
Deferred tax asset 160 158
Pension asset 4,053 4,224
------------------------------------- ------------ --------
15,015 13,239
------------------------------------- ------------ --------
Current assets
Inventories 2,150 1,608
Trade and other receivables 6,565 6,704
Corporation tax receivable - 165
Cash 5,375 1,743
------------------------------------- ------------ --------
14,090 10,220
------------------------------------- ------------ --------
Non-current assets held for sale 1,250 4,998
------------------------------------- ------------ --------
Total assets 30,355 28,457
------------------------------------- ------------ --------
Current liabilities
Trade and other payables (4,527) (4,355)
Corporation tax payable (130) (502)
Borrowings - (307)
------------------------------------- ------------ --------
(4,657) (5,164)
------------------------------------- ------------ --------
Non-current liabilities
Deferred tax liabilities (407) (524)
Provisions (187) (187)
------------------------------------- ------------ --------
(594) (711)
------------------------------------- ------------ --------
Total liabilities (5,251) (5,875)
------------------------------------- ------------ --------
Net assets 25,104 22,582
===================================== ============ ========
Equity
Share capital 82 80
Share premium 610 419
Capital redemption reserve 216 216
Translation reserve 299 296
Revaluation reserve 4,416 4,580
Retained earnings 19,481 16,991
------------------------------------- ------------ --------
Equity attributable to shareholders 25,104 22,582
===================================== ============ ========
Statement of changes in equity
FOR THE YEAR ENDED 31 DECEMBER
Group 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
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
At 1 January 2012 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)
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
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
Profit for the year 3,094 3,094
Other comprehensive
income/(expense) 3 (153) (150)
Transfer to revaluation
reserves as a result
of property transactions (168) 168 -
Tax on revaluation 4 4
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
Total comprehensive
income for the year 3 (164) 3,109 2,948
Credit in respect of share
based payments 43 43
Issue of ordinary shares
under employee share
option scheme 2 191 193
Dividends paid (662) (662)
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
Transactions with owners 2 191 (619) (426)
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
At 31 December 2013 82 610 216 299 4,416 19,481 25,104
=========================== ======== ======== =========== ============ ============ ========= ========
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group
2013 2012
GBP'000 GBP'000
---------------------------------------------- ------------- ------------
Cash flows from operating activities
Profit for the year 3,094 2,095
Adjustments for:
Depreciation of property, plant and
equipment 969 892
Profit on disposal of other plant
and equipment (20) (148)
Profit on sale of non-current asset (1,054) -
Decrease in provisions - (2)
Other finance income in respect of
Pension Fund (307) (474)
Finance costs 1 9
Finance income (11) -
Taxation charged 599 723
Other non-cash items:
Pension current service cost and expenses 170 188
Charge for share options 43 63
---------------------------------------------- ------------- ------------
Operating cash flows before movements
in working capital 3,484 3,346
Increase in inventories (542) (229)
(Increase)/decrease in trade and other
receivables (641) 341
(Decrease)/increase in trade and other
payables (25) 417
---------------------------------------------- ------------- ------------
Cash generated by operations 2,276 3,875
UK corporation tax paid (769) (643)
Interest paid (3) (11)
---------------------------------------------- ------------- ------------
Net cash generated from operating activities 1,504 3,221
---------------------------------------------- ------------- ------------
Cash flows from investing activities
Interest received 11 -
Acquisition of plant & equipment (1,402) (902)
Proceeds on disposal of plant & equipment 45 254
Proceeds on disposal of non-current 4,250 -
assets
---------------------------------------------- ------------- ------------
Net cash generated from/(used in) investing
activities 2,904 (648)
---------------------------------------------- ------------- ------------
Cash flows from financing activities
Loans repaid (307) (335)
Proceeds on issue of shares 193 -
Dividends paid (662) (558)
---------------------------------------------- ------------- ------------
Net cash used in financing activities (776) (893)
---------------------------------------------- ------------- ------------
Net increase in cash and cash equivalents 3,632 1,680
Cash and cash equivalents at 1 January 1,743 63
---------------------------------------------- ------------- ------------
Cash and cash equivalents at 31 December 5,375 1,743
============================================== ============= ============
Cash 5,375 1,743
---------------------------------------------- ------------- ------------
Cash and cash equivalents at 31 December 5,375 1,743
============================================== ============= ============
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 2013 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 2013 have
had any effect on the financial statements, with the exception of
IAS 19 (revised) whereby finance costs on the defined benefit
scheme have been calculated and disclosed on a net basis.
In determining whether the Group's 2013 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 2012 or 2013, but is derived from those financial
statements. The statutory financial statements for the year ended
31 December 2012 have been delivered to the Registrar of Companies
and those for 2013 are expected to be posted to shareholders on 7
April 2014 and will be delivered to the Registrar of Companies
after they have been laid before the Company at the Annual General
Meeting planned for 1 May 2014. 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 7 April 2014. 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 ...
This information is provided by RNS
The company news service from the London Stock Exchange
END
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