TIDMRBN
RNS Number : 5569P
Robinson PLC
20 August 2014
Robinson plc
("Robinson" or the "Company)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
HIGHLIGHTS
-- Madrox acquisition completed on 25 June 2014
-- Revenues flat after a positive first quarter
-- Lower property rental income of GBP0.2m following sale of the Portland property in 2013
-- Exceptional cost of GBP0.4m relating to acquisition of Madrox
(2013: gain of GBP1.1m on sale of property)
-- Underlying operating profit of the trading businesses flat
and reported profit before tax GBP0.3m (2013: GBP2.2m)
-- Interim dividend increased by 12% to 2.25p (2013: 2.0p)
CHAIRMAN'S STATEMENT
Revenues & Profits
In a period when we have seen both grocery and major brand sales
come under pressure from discounters, I am pleased to report that,
despite a weak second quarter, our turnover in the first six months
of 2014 has remained at last year's level. Gross margins have
slipped slightly mainly as a result of cost increases that could
not be passed on to our customers. Operating costs have risen by
GBP0.2m primarily as a consequence of non-repeating credits that
benefited the prior year. Property rental income is GBP0.2m lower
than the same period last year, following the sale of the Portland
property to Sonoco. The underlying operating profit
pre-exceptional, non-repeating items and the Portland factory
rental income is broadly comparable with the previous year.
Madrox Acquisition
The acquisition of Madrox, completed on 25th June, has not
affected the first half revenues although it has added to the
costs. The addition is fully in line with our strategy to expand in
Central Europe partly through selective acquisition of local
plastic packaging manufacturers who supply the strong brand owners
and leading private labels in our sectors. It will allow us to take
a more prominent position in the growing plastic packaging markets
in this region.
Madrox is based in Warsaw and is a supplier of blow,
stretch-blow and injection moulded plastic packaging primarily to
major brands and private label businesses operating in the
household, toiletries and cosmetics sectors in Central Europe. The
audited Madrox accounts for the year ended 31 December 2013
reported sales of GBP9.8m and a profit before tax of GBP2.2m. The
unaudited accounts for the 6 months ended 30 June 2014 show sales
of GBP5.0m and a profit before tax of GBP1.1m.
Cash & Finances
We have funded the initial GBP10.9m cash element for the
acquisition of Madrox (with costs) from the GBP5.4m cash reserves
held at the end of 2013, GBP3.5m of property backed Polish Zloty
loans with the balance taken from our existing UK bank facilities.
A final dividend of 2.5p was paid to shareholders on 1 June 2014
(2013: 2.25p). Total borrowings at the end of the period were
GBP4.9m.
Outlook and Dividend
We reported sales in the first quarter were 8% higher, so sales
in the second quarter have reversed that to leave us level with the
previous year at the half year stage. Trends as we begin the second
half indicate some improvement and, if sustained, we expect to show
growth in sales in the underlying business by the end of this year.
The Madrox addition will make a significant step change in the
scale of the Group. The Board has therefore approved an increased
interim dividend of 2.25p (2013: 2.0p) to be paid on 1 October 2014
to shareholders on the register at 29 August 2014.
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
Robinson plc
Group Income Statement
Six months Six months Year to
to 30.06.14 to 30.06.13 31.12.13
Notes GBP'000 GBP'000 GBP'000
------------- ------------- ----------
Revenue 10,888 10,886 23,329
Cost of sales (8,812) (8,671) (18,148)
------------- ------------- ----------
Gross profit 2,076 2,215 5,181
Operating costs (1,581) (1,185) (2,859)
Exceptional (costs)/gain (364) 1,054 1,054
------------- ------------- ----------
Operating profit 131 2,084 3,376
Finance income - interest receivable 14 2 11
Finance costs - bank interest
payable (1) (1) (1)
Finance income in respect of
pension fund 165 124 307
------------- ------------- ----------
Profit before taxation 309 2,209 3,693
Taxation 2 (76) (310) (599)
Profit for the period 233 1,899 3,094
------------- ------------- ----------
Earnings per ordinary share (EPS) 4 pence pence pence
EPS from continuing operations
excluding exceptional items 3.6 5.2 12.6
EPS from continuing operations 1.4 11.7 19.2
Diluted EPS 4
EPS from continuing operations
excluding exceptional items 3.5 5.0 12.2
EPS from continuing operations 1.4 11.3 18.5
Statement of comprehensive income GBP'000 GBP'000 GBP'000
------------- ------------- ----------
Profit for the period 233 1,899 3,094
------------- ------------- ----------
Items that will not be reclassified
subsequently to profit or loss:
Remeasurement of net defined
benefit liability - - (308)
Deferred tax relating to items
not reclassified (12) - 152
------------- ------------- ----------
(12) - (156)
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations (74) (58) 3
------------- ------------- ----------
Other comprehensive expense for
the period (86) (58) (153)
------------- ------------- ----------
Total comprehensive income for
the period 147 1,841 2,941
------------- ------------- ----------
Robinson plc
Group Statement of Financial Position
30.06.14 30.06.13 31.12.13
GBP'000 GBP'000 GBP'000
--------- --------- ---------
Non-current assets
Property, plant and equipment 15,946 8,913 10,802
Intangible assets 5,681 - -
Deferred tax assets 127 111 160
Pension asset 4,053 4,224 4,053
25,807 13,248 15,015
--------- --------- ---------
Current assets
Inventories 2,716 1,958 2,150
Trade and other receivables 7,732 9,802 6,565
Cash - 1,055 5,375
10,448 12,815 14,090
--------- --------- ---------
Non-current assets held
for sale 1,250 2,782 1,250
Total assets 37,505 28,845 30,355
--------- --------- ---------
Current liabilities
Trade and other payables (4,372) (3,821) (4,527)
Corporation tax payable (181) (211) (130)
Loan Borrowings (487) - -
Overdraft (2,995) - -
(8,035) (4,032) (4,657)
--------- --------- ---------
Non-current liabilities
Loan Borrowings (1,454) - -
Deferred tax liabilities (442) (545) (407)
Deferred consideration (2,520) - -
Provisions (187) (187) (187)
(4,603) (732) (594)
--------- --------- ---------
Total liabilities (12,638) (4,764) (5,251)
--------- --------- ---------
Net assets 24,867 24,081 25,104
--------- --------- ---------
Equity
Share capital 82 80 82
Share premium 610 526 610
Capital redemption reserve 216 216 216
Translation reserve 225 240 299
Revaluation reserve 4,416 4,371 4,416
Retained earnings 19,318 18,648 19,481
Equity attributable to shareholders 24,867 24,081 25,104
--------- --------- ---------
Robinson plc
Group Statement of Cash Flows
Six months Six months Year
to 30.06.14 to 30.06.13 to 31.12.13
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------- ------------- -------------
Cash flows from operating activities
Profit for the period 233 1,899 3,094
Adjustments for:
Depreciation of property, plant
and equipment 470 476 969
Profit on disposal of other plant
and equipment (8) (5) (20)
Profit on sale of non-current asset - - (1,054)
Other finance income in respect
of pension fund (165) (128) (307)
Finance costs 1 1 1
Finance income (14) - (11)
Taxation charged 76 310 599
Non-cash items:
Pension current service cost 96 128 170
Cost of share options 25 24 43
------------- ------------- -------------
Operating cash flows before movements
in working capital 714 2,705 3,484
Decrease/(increase) in inventories 90 (350) (542)
Decrease/(increase) in trade and
other receivables 950 (882) (641)
Decrease in trade and other payables (1,062) (587) (25)
------------- ------------- -------------
Cash generated by operations 692 886 2,276
Tax paid (228) (367) (769)
Interest received/ (paid) 13 (2) (3)
------------- ------------- -------------
Net cash generated from operating
activities 477 517 1,504
------------- ------------- -------------
Cash flows from investing activities
Interest received 14 - 11
Proceeds of disposal of non-current
assets - - 4,250
Acquisition of subsidiary (10,346) - -
Acquisition of plant and equipment (70) (565) (1,402)
Disposal of other plant and equipment 9 28 45
------------- ------------- -------------
Net cash (used in)/generated from
investing activities (10,393) (537) 2,904
------------- ------------- -------------
Cash flows from financing activities
Loans paid - (307) (307)
Proceeds on issue of shares - - 193
New Bank Loans raised 1,941 - -
Dividends paid (395) (361) (662)
------------- ------------- -------------
Net cash generated from/(used in)
financing activities 1,546 (668) (776)
------------- ------------- -------------
Net (decrease)/increase in cash and
cash equivalents (8,370) (688) 3,632
Cash and cash equivalents at 1 January 5,375 1,743 1,743
------------- ------------- -------------
Cash and cash equivalents at end
of period (2,995) 1,055 5,375
------------- ------------- -------------
Cash - 1,055 5,375
Overdraft (2,995) - -
-------------
Cash and cash equivalents at end
of period (2,995) 1,055 5,375
------------- ------------- -------------
Robinson plc
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2014 was
approved by the directors on 19 August 2014. The interim financial
information is not audited.
The interim financial statements have been prepared in
accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRSs). These should
be read in conjunction with the Group's annual financial statements
for the year ended 31 December 2013, which have been prepared in
accordance with applicable IFRSs. The information for the year
ended 31 December 2013 does not constitute statutory accounts as
defined in section 434 of the Companies Act 2006. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditors reported on those accounts:
their report was unqualified, did not draw attention to any matters
by way of emphasis and did not contain a statement under sections
498 (2) or (3) respectively of the Companies Act 2006.
2. Taxation
The taxation charge for the six months to 30 June 2014 has been
calculated on the basis of the estimated effective tax rate on
profits before tax for the year to 31 December 2014.
3. Dividends
Six months Six Year
to 30.06.14 months to 31.12.13
to 30.06.13
Ordinary: GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Final 395 361 349
Interim - - 313
395 361 662
============= ============= =============
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 GBP233,000 divided by the weighted
average number of shares in issue, net of treasury shares of
16,394,304: for diluted earnings per share 17,048,518.The
calculation of basic and diluted earnings per ordinary share for
continuing operations excluding exceptional items is based on a
profit of GBP597,000 being the profit after taxation of GBP233,000
plus the exceptional item of GBP364,000.
5. Madrox Acquisition
On 25 June 2014 the Group acquired effective control of 100% of
the share capital of MADROX Spó ka Jawna, a Polish based
manufacturer of plastic packaging. This transaction has been
accounted for using the acquisition method of accounting. The book
and fair value of the net assets of the acquired business were as
follows:
Net assets at date Book Value Fair Value Total
of acquisition adjustments Fair Value
GBP'000 GBP'000 GBP'000
Intangible assets - 5,681 5,681
Property, plant & equipment 2,881 2,669 5,550
Inventories 656 656
Trade & other receivables 2,117 2,117
Trade & other payables -1,139 -1,139
Cash & bank balances 121 121
------------
4,636 8,350 12,986
----------- ------------- ------------
The adjustment to intangible assets represents customer contacts
acquired and will be amortised over the life of the relationships.
The adjustment to property, plant and equipment represents the
difference between book value and estimated market value of the
assets. The consideration paid in cash on 25 June 2014 was GBP10.5m
and a further GBP2.5m accrued as the estimated value of the earnout
payment due in 2016. The level of the earnout is dependent upon
performance of the Madrox business prior to the payment of the
earnout. In addition, acquisition costs of GBP0.4m have been
expensed and reported as exceptional costs.
6. 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.
7. 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.
...ends
.
This information is provided by RNS
The company news service from the London Stock Exchange
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