TIDMRBN
RNS Number : 6272I
Robinson PLC
27 March 2015
27 March 2015
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014
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
2014.
Highlights:
-- Madrox acquired on 25 June for GBP13m contributing GBP5.1m to
revenues and GBP1.0m to pre-exceptional operating profits in the
second half
-- Revenue increased by 20% to GBP28.1m (2013; GBP23.3m)
o the increase is attributable to the acquisition of Madrox
o underlying sales volumes in the pre-existing business remained
at last year's level
-- Costs relating to the Madrox acquisition:
o one off costs of GBP0.4m shown as exceptional
o GBP0.4m ongoing amortisation of customer relationships
-- Pre-exceptional operating profit excluding customer
relationship amortisation up 25% to GBP2.9m
-- Net borrowings increased by GBP9.4m to stand at GBP4.1m at the year end
-- The Board is recommending an increased final dividend for the
year of 2.75p per share (2013: 2.5p), raising the total dividend
declared in respect of 2014 by 11% to 5p
Commenting on the results, Chairman, Richard Clothier said:
"I am pleased to report that the Madrox business has performed
ahead of expectations since its acquisition in June 2014 reflecting
our strategy of growth central Europe. Management is committed to
new business development and, with the full year contribution from
Madrox, further growth in revenues and earnings is expected."
About Robinson
Headquartered in Chesterfield, with manufacturing facilities in
Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz and
Warsaw (Poland), Robinson currently employs around 310 people. It
was formerly a family business, with its origins dating back some
176 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, McBride, SC Johnson, Sonoco, Bakkavor, Two Sisters
and British Pepper and Spice. 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
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
CHAIRMAN'S STATEMENT
The highlight for the Group in 2014 was the acquisition of
Madrox in Poland. This business fits our stated strategy of growth
in the developing central European region and, since the
acquisition, we are pleased to report that the business has
performed ahead of expectations. Our remaining businesses have
shown no net change year on year with stable volumes and material
prices.
Madrox
Madrox is based near Warsaw, Poland 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
acquisition was completed on 25 June 2014 and is fully in line with
our strategy to expand in Central Europe through selective
acquisition of local plastic packaging manufacturers who supply the
strong brand owners and leading private labels in our sectors .It
increases our relevance to existing customers and will allow us to
take a more prominent position in the growing plastic packaging
markets in this region.
The total consideration, which includes an earnout element
payable in 2016, is estimated at GBP13.2m. The level of the earnout
is dependent upon performance of the Madrox business prior to the
payment of the earnout. The initial cash element of GBP10.5m has
been funded from cash reserves and property backed bank debt. In
the second half of 2014, Madrox contributed GBP5.1m to revenues and
GBP1.0m to pre-exceptional operating profits.
Revenue and profits
Revenues were GBP28.1m for the year, which represents a 20%
increase on last year. All of the increase is attributable to the
acquisition of Madrox. Underlying sales volumes in the pre-existing
businesses remained at last year's level. This masks a degree of
business churn which has been driven by weakening consumer demand
for some premium products, however we are encouraged by the new
business secured in 2014 which has offset the losses. The gross
profit increased from 22.2% to 22.8% through lower resin prices and
the acquisition. Madrox added to the operating costs whilst rental
income was reduced (GBP0.2m) following the sale of Portland in
mid-2013. The operating profit before exceptional items increased
from GBP2.3m to 2.5m. Costs relating to the Madrox acquisition
included exceptional one off costs of GBP0.4m and GBP0.4m ongoing
amortisation of customer relationships - in 2013 there was an
exceptional gain on the sale of Portland Works of GBP1.1m. The
profit before tax was GBP2.4m (2013: GBP3.7m).
Pension fund
The Group's pension fund triennial valuation was performed as at
5 April 2014 and this showed a surplus of 6% on an ongoing
valuation basis
Cash, finances and dividend
Net borrowings amounted to GBP4.1m at the end of the year. The
net cash outflow for the year was GBP8.7m including GBP10.8m paid
in respect of the acquisition of Madrox. Shareholders' funds rose
by 2% to GBP25.6m but were impacted by a GBP0.5m foreign exchange
revaluation adjustment arising from the impact of the strong GBP
against our Polish assets. The Board proposes a final dividend of
2.75p per share to be paid on 8 June 2015 to shareholders on the
register at the close of business on 15 May 2015. This brings the
total dividend declared in respect of 2014 to 5.0p per share - an
increase of 11% over the previous year.
Outlook
The current assessment for 2015 suggests a challenging outlook
with little help from the market and volatility in foreign exchange
and resin prices. However, management is committed to new business
development and, with the full year contribution from Madrox,
further growth in revenues and earnings is expected.
Richard Clothier
Chairman
27 March 2015
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2014 2013
GBP'000 GBP'000
------------------------------------- --- --------- ---------
Continuing operations
Revenue 28,071 23,329
Cost of sales (21,669) (18,148)
----------------------------------------------- --------- ---------
Gross profit 6,402 5,181
Operating costs (3,490) (2,859)
Amortisation of intangible (392) -
asset
--------------------------------------- --- --------- ---------
Operating profit before exceptional
items 2,520 2,322
Exceptional items (364) 1,054
----------------------------------------------- --------- ---------
Operating profit after exceptional
items 2,156 3,376
Finance income - interest
receivable 27 11
Finance costs - bank interest
payable (106) (1)
Finance income in respect
of pension fund 342 307
-------------------------------------------- --------- ---------
Profit before taxation 2,419 3,693
Taxation (418) (599)
----------------------------------------------- --------- ---------
Profit for year attributable to
the owners of the Company 2,001 3,094
=============================================== ========= =========
Basic earnings
per share
EPS from continuing operations 12.2p 19.2p
EPS from continuing operations
excluding exceptional items 14.4p 12.6p
Diluted earnings
per share
EPS from continuing operations 11.7p 18.5p
EPS from continuing operations
excluding exceptional items 13.9p 12.2p
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
2014 2013
GBP'000 GBP'000
--------------------------------------------- -------- --------
Profit for the
year 2,001 3,094
--------------------------------------------------- -------- --------
Items that will not be reclassified
subsequently to profit or loss:
Remeasurement of net defined benefit
liability (402) (308)
Deferred tax relating to items not
reclassified 122 152
--------------------------------------------------- -------- --------
(280) (156)
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
of foreign operations (544) 3
------------------------------------------------ -------- --------
Other comprehensive expense for
the year (824) (153)
Total comprehensive income for the
year attributable to the owners
of the Company 1,177 2,941
=================================================== ======== ========
Statement of financial position
AS AT 31 DECEMBER
Group
2014 2013
GBP'000 GBP'000
------------------------------------- --------- --------
Non-current assets
Goodwill 1,413 -
Other intangible assets 7,438 -
Property, plant and equipment 14,761 10,802
Deferred tax asset 132 160
Pension asset 3,825 4,053
-------------------------------------- --------- --------
27,569 15,015
------------------------------------- --------- --------
Current assets
Inventories 2,635 2,150
Trade and other receivables 8,919 6,565
Cash 710 5,375
-------------------------------------- --------- --------
12,264 14,090
------------------------------------- --------- --------
Non-current assets held
for sale - 1,250
-------------------------------------- --------- --------
Total assets 39,833 30,355
-------------------------------------- --------- --------
Current liabilities
Trade and other payables (4,919) (4,527)
Corporation tax payable (44) (130)
Borrowings (2,856) -
------------------------------------- --------- --------
(7,819) (4,657)
------------------------------------- --------- --------
Non-current liabilities
Borrowings (2,002) -
Other payables (2,520) -
Deferred tax liabilities (1,728) (407)
Provisions (184) (187)
-------------------------------------- --------- --------
(6,434) (711)
------------------------------------- --------- --------
Total liabilities (14,253) (5,251)
-------------------------------------- --------- --------
Net assets 25,580 25,104
====================================== ========= ========
Equity
Share capital 82 82
Share premium 610 610
Capital redemption reserve 216 216
Translation reserve (245) 299
Revaluation reserve 4,463 4,416
Retained earnings 20,454 19,481
-------------------------------------- --------- --------
Equity attributable to shareholders 25,580 25,104
====================================== ========= ========
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 2013 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
--------------------------- -------- -------- ----------- ------------ ------------ --------- -----------
Profit for the
year 2,001 2,001
Other comprehensive
expense (544) (266) (810)
Transfer to revaluation
reserves as a result
of property transactions 49 (49) -
Tax on revaluation (2) (2)
--------------------------- -------- -------- ----------- ------------ ------------ --------- -----------
Total comprehensive
income for the
year (544) 47 1,686 1,189
Credit in respect
of share based payments 42 42
Dividends paid (755) (755)
--------------------------- -------- -------- ----------- ------------ ------------ --------- -----------
Transactions with
owners (713) (713)
--------------------------- -------- -------- ----------- ------------ ------------ --------- -----------
At 31 December
2014 82 610 216 245 4,463 20,454 25,580
=========================== ======== ======== =========== ============ ============ ========= ===========
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group
2014 2013
GBP'000 GBP'000
-------------------------------------- --------- --------------
Cash flows from operating
activities
Profit for the year 2,001 3,094
Adjustments for:
Depreciation of property,
plant and equipment 1,176 969
Profit on disposal of other
plant and equipment (7) (20)
Profit on sale of non-current
asset - (1,054)
Amortisation of goodwill 466 -
and customer relationships
Decrease in provisions (3) -
Other finance income in respect
of Pension Fund (342) (307)
Finance costs 106 1
Finance income (27) (11)
Taxation charged 418 599
Other non-cash items:
Pension current service cost
and expenses 184 170
Charge for share options 42 43
--------------------------------------- --------- --------------
Operating cash flows before
movements in working capital 4,014 3,484
Increase in inventories (485) (542)
Increase in trade and other
receivables (2,354) (641)
Increase/(decrease) in trade
and other payables 2,840 (25)
--------------------------------------- --------- --------------
Cash generated by operations 4,015 2,276
Corporation tax paid (632) (769)
Interest paid (101) (3)
--------------------------------------- --------- --------------
Net cash generated from operating
activities 3,282 1,504
--------------------------------------- --------- --------------
Cash flows from investing
activities
Interest received 26 11
Acquisition of plant & equipment (993) (1,402)
Proceeds on disposal of plant
& equipment 41 45
Proceeds on disposal of non-current
assets - 4,250
Acquisition of subsidiary (10,346) -
-------------------------------------- --------- --------------
Net cash (used in)/generated
from investing activities (11,272) 2,904
--------------------------------------- --------- --------------
Cash flows from financing
activities
Loans received/(repaid) 2,040 (307)
Proceeds on issue of shares - 193
Dividends paid (755) (662)
--------------------------------------- --------- --------------
Net cash generated from/(used
in) financing activities 1,285 (776)
--------------------------------------- --------- --------------
Net (decrease)/increase in
cash and cash equivalents (6,705) 3,632
Cash and cash equivalents
at 1 January 5,375 1,743
--------------------------------------- --------- --------------
Cash and cash equivalents
at 31 December (1,330) 5,375
======================================= ========= ==============
Cash 710 5,375
Overdraft (2,040) -
-------------------------------------- --------- --------------
Cash and cash equivalents
at 31 December (1,330) 5,375
======================================= ========= ==============
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 2014 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 2014 have
had any effect on the financial statements.
In determining whether the Group's 2014 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 2013 or 2014, but is derived from those financial
statements. The statutory financial statements for the year ended
31 December 2013 have been delivered to the Registrar of Companies
and those for 2014 are expected to be posted to shareholders on 20
April 2015 and will be delivered to the Registrar of Companies
after they have been laid before the Company at the Annual General
Meeting planned for 14 May 2015. 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 20 April 2015. 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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