TIDMRBN
RNS Number : 4878S
Robinson PLC
18 March 2016
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015
Robinson plc ("Robinson" or the "Group" stock code: RBN), the
custom manufacturer of plastic and paperboard packaging based in
Chesterfield, announces its results for the year ended 31 December
2015.
Highlights:
-- Revenue increased by 4% to GBP29.1 m (2014: GBP28.1m)
o GBP2.4m reduction in underlying revenue due to foreign
exchange movements and reduction in resin prices
-- Madrox performance exceeded expectations adding GBP2.2m to pre tax profits
-- Exceptional cost of GBP1.7m for enhanced Madrox earn out
-- Net borrowings reduced by GBP3.0m to stand at GBP1.1m at the year end
-- The Board is recommending an increased final dividend for the
year of 3.00p per share (2014: 2.75p), raising the total dividend
declared in respect of 2015 by 10% to 5.5p
Commenting on the results, Chairman, Richard Clothier said:
"I am pleased to report that the Madrox business has performed
ahead of expectations during the year resulting in an enhanced earn
out. Management is committed to both organic growth in sales and
operational efficiency and through these we expect to deliver
further growth in revenue and earnings."
About Robinson
Headquartered in Chesterfield, with manufacturing facilities in
Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz and
Warsaw (Poland), Robinson currently employs around 300 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, British Pepper
and Spice, Heinz, Two Sisters, Nestle, Avon, Reckitt Benckiser,
Kraft, Quaker oats, Mars, Dr Oetker, Fiddes Payne, Tomil, Kosmet
and Gold Drop. The Group also has a substantial property portfolio
with development potential.
For further information, please contact:
Robinson plc www.robinsonpackaging.com
Guy Robinson, Finance Director Tel: 01246 389283
finnCap Limited
Ed Frisby / Giles Rolls, corporate Tel: 020 7220 0500
finance
Stephen Norcross / Alice Lane, corporate
broking
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
CHAIRMAN'S STATEMENT
The results for 2015 include the first full year since the
business of Madrox in Poland was acquired in July 2014. This
business has performed ahead of expectations adding GBP8.9m to
revenues and GBP2.2m to pre-amortisation and pre-exceptional
operating profits. This very satisfactory result of our latest
acquisition has been offset by the loss of an important customer at
Lodz and the effect of reduced resin prices and exchange rate
movements.
Revenues
Revenues were GBP29.1m for the year, which represents a 3.8%
increase on last year. The full year effect of the acquisition of
Madrox added 18% to full year sales volumes whilst underlying sales
volumes in the pre-existing businesses reduced by 6%. Two factors
have significantly reduced reported revenues. Firstly, lower resin
prices, which are passed on to customers, have resulted in lower
product prices and, secondly, the weaker Polish zloty in relation
to the pound has reduced the value of our Polish earnings when
converted to sterling. The combined effect of these two is to
reduce reported revenues by GBP2.4m. The lower volumes in the
existing businesses are mainly attributable to the previously
reported lost contracts in our Lodz business in Poland which have
now been replaced with new contracts, but these did not come on
stream until towards the end of 2015.
Profits
The gross profit increased from 22.8% to 24.0% through lower
resin prices and higher margins in the acquired Madrox business.
The acquisition added to the operating costs which increased from
GBP3.5m to GBP3.8m. The operating profit before amortisation and
exceptional items, with the addition of the full year effect of
Madrox, partly offset by the lost sales at Lodz, increased from
GBP2.9m to GBP3.2m. The charge relating to ongoing amortization of
the value attributed to acquired customer relationships amounted to
GBP0.8m bringing the operating profit before exceptional items to
GBP2.4m.
As a result of the improved results of the business in 2015, the
earn-out element in the acquisition of Madrox has increased by an
estimated GBP1.7m and this has been treated as an exceptional cost
in the 2015 financial statements. This final element is due to be
paid in April 2016 and brings the total estimated earn-out to
GBP4.2m which would bring the total consideration to GBP14.7m. The
profit before tax was GBP0.8m (2014: GBP2.4m).
Operations
The expansion of our Polish business has allowed us to
significantly strengthen our management team and they will be
seeking to use the additional blow moulding capability to develop
sales in the region. In the UK the focus is on improving
operational efficiency in the plastics factories and growing the
paper box business out of Chesterfield which, after a slow start,
is now contributing to Group profits.
Cash, finances and dividend
Because a major part of the fall in profit before tax was caused
by non-cash items, the net cash generated from operating activities
actually increased to GBP4.9m (2014 GBP2.5m). After payment of the
dividend of GBP0.8m and the translation adjustment to foreign asset
values, shareholders' funds reduced by GBP1.1m to GBP24.6m but net
borrowings were reduced to GBP1.1m at the end of the year (2014:
GBP4.1m). Taking these factors into account along with our view of
the outlook, the Board proposes a final dividend of 3.0p per share
to be paid on 1 June 2016 to shareholders on the register at the
close of business on 13 May 2016. This brings the total dividend
declared in respect of 2015 to 5.5p per share - an increase of 10%
over the previous year.
Outlook
As we reported in our year-end update, the general economic
conditions suggest a challenging year ahead with particular
pressure on the major brands and the UK grocery sector. However, we
have new business coming on stream and management is committed to
both organic growth in sales and operational efficiency and through
these we expect to deliver further growth in revenue and
earnings.
Richard Clothier
Chairman
17 March 2016
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
2015 2014
GBP'000 GBP'000
-------------------------------------------- ---- --------- ---------
Continuing operations
Revenue 29,138 28,071
Cost of sales (22,143) (21,669)
------------------------------------------------------- --------- ---------
Gross profit 6,995 6,402
Operating costs (3,805) (3,490)
Amortisation of intangible
asset (783) (392)
---------------------------------------------- ---- --------- ---------
Operating profit before exceptional
items 2,407 2,520
Exceptional items (1,694) (364)
------------------------------------------------------- --------- ---------
Operating profit after exceptional
items 713 2,156
Finance income - interest receivable 12 27
Finance costs - bank interest payable (104) (106)
Finance income in respect of pension
fund 153 342
---------------------------------------------------- --------- ---------
Profit before taxation 774 2,419
Taxation (679) (418)
------------------------------------------------------- --------- ---------
Profit for year attributable to the owners
of the Company 95 2,001
======================================================= ========= =========
Basic earnings per share
EPS from continuing operations 0.6p 12.2p
EPS from continuing operations excluding
exceptional items 10.9p 14.4p
Diluted earnings per
share
EPS from continuing operations 0.6p 11.7p
EPS from continuing operations excluding
exceptional items 10.5p 13.9p
Statement of comprehensive income
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FOR THE YEAR ENDED 31 DECEMBER
2015 2014
GBP'000 GBP'000
-------------------------------------------------- -------- --------
Profit for the year 95 2,001
-------------------------------------------------------- -------- --------
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of net defined benefit liability (33) (402)
Deferred tax relating to items not reclassified 85 122
-------------------------------------------------------- -------- --------
52 (280)
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
of foreign operations (375) (544)
----------------------------------------------------- -------- --------
Other comprehensive expense for the year (323) (824)
Total comprehensive (expense)/ income for the
year attributable to the owners of the Company (228) 1,177
======================================================== ======== ========
Statement of financial position
AS AT 31 DECEMBER
Group
2015 2014
GBP'000 GBP'000
------------------------------------- --------- ---------
Non-current assets
Goodwill 1,264 1,413
Other intangible assets 6,655 7,438
Property, plant and equipment 14,152 14,761
Deferred tax asset 133 132
Pension asset 3,747 3,825
-------------------------------------- --------- ---------
25,951 27,569
------------------------------------- --------- ---------
Current assets
Inventories 2,072 2,635
Trade and other receivables 8,882 8,919
Corporation tax receivable 3 -
Cash 4,688 710
-------------------------------------- --------- ---------
15,645 12,264
------------------------------------- --------- ---------
Total assets 41,596 39,833
-------------------------------------- --------- ---------
Current liabilities
Trade and other payables (9,365) (4,919)
Corporation tax payable (153) (44)
Borrowings (4,641) (2,856)
-------------------------------------- --------- ---------
(14,159) (7,819)
------------------------------------- --------- ---------
Non-current liabilities
Borrowings (1,132) (2,002)
Other payables (62) (2,520)
Deferred tax liabilities (1,503) (1,728)
Provisions (183) (184)
-------------------------------------- --------- ---------
(2,880) (6,434)
------------------------------------- --------- ---------
Total liabilities (17,039) (14,253)
-------------------------------------- --------- ---------
Net assets 24,557 25,580
====================================== ========= =========
Equity
Share capital 82 82
Share premium 610 610
Capital redemption reserve 216 216
Translation reserve (620) (245)
Revaluation reserve 4,510 4,463
Retained earnings 19,759 20,454
-------------------------------------- --------- ---------
Equity attributable to shareholders 24,557 25,580
====================================== ========= =========
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 2014 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
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
Profit for the year 95 95
Other comprehensive
income/(expense) (375) 52 (323)
Transfer to revaluation
reserves as a result
of property transactions 43 (43) -
Tax on revaluation 4 4
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
Total comprehensive
income for the year (375) 47 104 (224)
Credit in respect of share
based payments 38 38
Dividends paid (837) (837)
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
Transactions with owners (799) (799)
--------------------------- -------- -------- ----------- ------------ ------------ --------- --------
At 31 December 2015 82 610 216 (620) 4,510 19,759 24,557
=========================== ======== ======== =========== ============ ============ ========= ========
Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Group
2015 2014
GBP'000 GBP'000
---------------------------------------------- -------- -------------
Cash flows from operating activities
Profit for the year 95 2,001
Adjustments for:
Depreciation of property, plant and
equipment 1,423 1,176
Profit on disposal of other plant
and equipment (16) (7)
Amortisation of goodwill and customer
relationships 932 466
Decrease in provisions (1) (3)
Other finance income in respect of
Pension Fund (153) (342)
Finance costs 104 106
Finance income (12) (27)
Taxation charged 679 418
Other non-cash items:
Pension current service cost and expenses 200 184
Charge for share options 38 42
----------------------------------------------- -------- -------------
Operating cash flows before movements
in working capital 3,289 4,014
Decrease in inventories 563 133
Decrease/(increase) in trade and other
receivables 37 (238)
Increase/(decrease) in trade and other
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