TIDMRBN
RNS Number : 3584H
Robinson PLC
17 August 2016
Robinson plc
("Robinson", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2016
CHAIRMAN'S STATEMENT
Trading and Cash
Revenues in the first half were 6% below the same period in 2015
with 2% of the reduction due to lower resin prices which were
passed on to customers. The lower volumes were primarily in the UK
and widespread amongst our customers where it was largely due to
reduced call off rather than business losses, with also one
customer taking an element of their packaging production in house.
Demand in the retail markets, particularly for premium branded
goods, continues to be subdued but new business gains have started
to come on stream during the period albeit somewhat slower than we
had expected.
Reported profits are higher than the previous first half and
this is due to exceptional charges last year, relating to the
acquisition. The operating profit in this half of GBP0.2m compares
with an underlying GBP0.8m in 2015 before exceptional items. This
underlying reduction in profits was predominantly due to lower
revenues, mix and resin price and has resulted in gross margins
falling from 21.9% to 19.6%. Operating costs also increased, mainly
in Poland, where new management and sales staff have joined the
Company to deliver future growth.
Following the GBP4.3m payment of the final earn-out for the
acquisition of Madrox in Poland in May, the cash outflow was
GBP3.8m leaving net borrowings at GBP4.6m at the end of the period.
The underlying cash generated by the Group was positive at GBP0.5m
after spending GBP0.7m on new plant and machinery.
A final dividend, with respect to 2015, of 3p was paid to
shareholders on 1 June 2016 (2015: 2.75p).
Outlook and Dividend
In the short term, the weaker pound has pushed up resin prices
in the UK (as these are Euro based) but, on the other hand, it
increases the sterling value of our Polish profits and net assets.
Planning applications have been submitted for the properties that
we are seeking to divest, namely to develop the Boythorpe and
Walton Works sites in Chesterfield, and are expected to be
determined in the next 2-3 months.
We have been engaged in a considerable effort to strengthen our
commercial capabilities including the addition of new sales and
management personnel. This investment continues and is adding to
the cost structure. However, the objective of course, is to build
our business and, although we expect the soft market conditions to
continue, new business should progressively fill that gap in the
second half. This and further new business, already signed up but
not yet in production, will, in the following year, help us to
return to our organic growth targets.
The Board has approved an interim dividend of 2.5p (2015: 2.5p)
to be paid on 3 October 2016 to shareholders on the register at 26
August 2016. The ordinary shares ex-dividend date is 25 August
2016.
For more information, please contact:
Robinson plc
Guy Robinson, Finance Tel: 01246 389283
Director
www.robinsonpackaging.com
FinnCap
Ed Frisby / Giles Rolls Tel: 020 7220 0500
- corporate finance
Stephen Norcross / Alice
Lane - corporate broking
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations
Robinson plc
Group Income Statement
Six months Six months Year
to 30.06.16 to 30.06.15 to 31.12.15
GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Revenue 12,762 13,637 29,138
Cost of sales -10,258 -10,651 -22,143
------------- ------------- -------------
Gross profit 2,504 2,986 6,995
Operating costs -1,880 -1,751 -3,805
Amortisation of intangible
asset -392 -392 -783
Exceptional costs 0 -948 -1,694
------------- ------------- -------------
Operating profit/(loss) 232 -105 713
Finance income - interest
receivable -6 5 12
Finance costs - bank
interest payable -38 -63 -104
Finance income in respect
of pension fund 96 82 153
------------- ------------- -------------
Profit/(loss) before
taxation 284 -81 774
Taxation -122 -240 -679
Profit/(loss) for the
period 162 -321 95
------------- ------------- -------------
Earnings per ordinary p p p
share (EPS)
EPS from continuing operations
excluding exceptional
items 1.0 3.8 10.9
EPS from continuing operations 1.0 -2.0 0.6
Diluted EPS
EPS from continuing operations
excluding exceptional
items 1.0 3.8 10.5
EPS from continuing operations 1.0 -2.0 0.6
Statement of comprehensive GBP'000 GBP'000 GBP'000
income
------------- ------------- -------------
Profit/(loss) for the
period 162 -321 95
------------- ------------- -------------
Items that will not be
reclassified subsequently
to profit or loss:
Re-measurement of net
defined benefit liability 0 0 -33
Deferred tax relating
to items not reclassified 0 0 85
------------- ------------- -------------
0 0 52
Items that may be reclassified
subsequently to profit
or loss:
Exchange differences
on translation of foreign
operations 340 -358 -375
------------- ------------- -------------
Other comprehensive expense
for the period 340 -358 -323
------------- ------------- -------------
Total comprehensive income
for the period 502 -679 -228
------------- ------------- -------------
Robinson plc
Group Statement of Financial Position
30.06.16 30.06.15 31.12.15
GBP'000 GBP'000 GBP'000
--------- --------- ---------
Non-current assets
Goodwill 1,190 1,339 1,264
Other Intangible Assets 6,263 7,047 6,655
Property, plant and equipment 14,437 14,151 14,152
Deferred tax assets 133 132 133
Pension asset 3,747 3,825 3,747
25,770 26,494 25,951
--------- --------- ---------
Current assets
Inventories 2,363 2,568 2,072
Trade and other receivables 7,249 7,240 8,882
Cash 1,069 1,672 4,688
10,681 11,480 15,642
--------- --------- ---------
Total assets 36,451 37,974 41,593
--------- --------- ---------
Current liabilities
Trade and other payables -4,239 -7,663 -9,365
Corporation tax payable -275 -21 -150
Borrowings -4,899 -2,485 -4,641
Other payables 0 0 0
-9,413 -10,169 -14,156
--------- --------- ---------
Non-current liabilities
Borrowings -772 -1,489 -1,132
Other Payables -62 0 -62
Deferred tax liabilities -1,429 -1,654 -1,503
Provisions -183 -184 -183
-2,446 -3,327 -2,880
--------- --------- ---------
Total liabilities -11,859 -13,496 -17,036
--------- --------- ---------
Net assets 24,592 24,478 24,557
--------- --------- ---------
Equity
Share capital 82 82 82
Share premium 610 610 610
Capital redemption reserve 216 216 216
Translation reserve -263 -603 -620
Revaluation reserve 4,484 4,463 4,510
Retained earnings 19,463 19,710 19,759
Equity attributable to
shareholders 24,592 24,478 24,557
--------- --------- ---------
Robinson plc
Group Statement of Cash Flows
Six Six Year
months months to 31.12.15
to 30.06.16 to 30.06.15
GBP'000 GBP'000 GBP'000
------------------------------------------ ------------- ------------- -------------
Cash flows from operating activities
Profit/(loss) for the period 162 -321 95
Adjustments for:
Depreciation of property, plant
and equipment 747 673 1,423
Profit on disposal of other plant
and equipment -55 -5 -16
Amortisation of goodwill and
customer relationships 466 465 932
Decrease in provisions 0 0 -1
Other finance income in respect
of pension fund -96 -82 -153
Finance costs 38 63 104
Finance income -6 -5 -12
Taxation charged 122 240 679
Non-cash items:
Pension current service cost 96 82 200
Cost of share options 19 19 38
------------------------------------------ ------------- ------------- -------------
Operating cash flows before movements
in working capital 1,493 1,129 3,289
(Increase)/decrease in inventories -291 67 563
Decrease in trade and other receivables 1,633 1,679 37
(Decrease)/increase in trade and
other payables -5,012 199 1,873
------------------------------------------ ------------- ------------- -------------
Cash (used in)/generated by operations -2,177 3,074 5,762
Corporation tax paid -71 -337 -714
Interest paid -44 -58 -104
------------------------------------------ ------------- ------------- -------------
Net cash (used in)/generated from
operating activities -2,292 2,679 4,944
------------------------------------------ ------------- ------------- -------------
Cash flows from investing activities
Interest received 5 5 12
Acquisition of plant and equipment -783 -482 -1,072
Disposal of other plant and equipment 105 30 16
------------------------------------------ ------------- ------------- -------------
Net cash used in investing activities -673 -447 -1,044
------------------------------------------ ------------- ------------- -------------
Cash flows from financing activities
Loans paid -401 -513 -908
Dividends paid -477 -439 -837
------------------------------------------ ------------- ------------- -------------
Net cash used in financing activities -878 -952 -1,745
------------------------------------------ ------------- ------------- -------------
Net (Decrease)/increase in cash
and cash equivalents -3,843 1,280 2,155
Cash and cash equivalents at 1
January 825 -1,330 -1,330
------------------------------------------ ------------- ------------- -------------
Cash and cash equivalents at end
of period -3,018 -50 825
------------------------------------------ ------------- ------------- -------------
Cash 1,069 1,673 4,688
Overdraft -4,087 -1,723 -3,863
------------------------------------------ ------------- ------------- -------------
Cash and cash equivalents at end
of period -3,018 -50 825
------------------------------------------ ------------- ------------- -------------
Robinson plc
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2016 was
approved by the directors on 16 August 2016. 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 2015, which have been prepared in
accordance with applicable IFRSs. The information for the year
ended 31 December 2015 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 2016 has been
calculated on the basis of the estimated effective tax rate on
profits before tax for the year to 31 December 2016.
3. Dividends
Six months Six months Year
to 30.06.16 to 30.06.15 to 31.12.15
Ordinary: GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Final 477 439 439
Interim 0 0 398
477 439 837
============= ============= =============
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 GBP162,000 divided by the weighted
average number of shares in issue, net of treasury shares, of
16,394,304: for diluted earnings per share 16,977,012.
5. Exceptional items
The exceptional item of GBP1,694,000 in 2015 represented the
expected extra consideration for the acquisition of Madrox Spolka
Jawna ("Madrox") recognised in that year. The final payment to the
vendors of GBP4.3m was paid in May 2016.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR PFMFTMBMBBIF
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