TIDMRBN
RNS Number : 7139O
Robinson PLC
23 August 2017
Robinson plc
("Robinson", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2017
CHAIRMAN'S STATEMENT
Trading and Cash
Revenue of GBP13.5m was 6% higher than the same period in the
previous year, lifted by favourable exchange rates and higher resin
prices passed on to customers. Allowing for these effects, sales
volume in the first half was very similar to 2016. Increased costs,
including some resin costs not yet passed on to customers, have
reduced gross margins and operating expenses have been increased
primarily by our action to strengthen the sales team. The resulting
profit before tax was GBP0.3m lower than the same period last year
at just above break-even for the first six months (2016: GBP0.3m).
In addition to the largely temporary effect of resin prices, the
lower margins are also as a result of sales mix factors such as
consumers trading down from premium branded products in some
sectors. As we have reported previously, new business gains have
been secured but have taken longer to bring to fruition.
With the amortisation of intangible assets and depreciation
together amounting to GBP1.1m, the cash generated from operating
activities of GBP0.9m was sufficient to cover the final dividend
for 2016 and the loan repayments but not all the net capital
reinvestment. The latter, at GBP0.8m, is mainly equipment
associated with new business yet to come on stream. Net debt
therefore increased by GBP0.3m to end the period at GBP5.2m. A
final dividend, with respect to 2016, of 3p was paid to
shareholders on 1 June 2017 (2016: 3p).
Property
The sale of surplus properties in Chesterfield is progressing
and developments for the Walton Mill and Boythorpe Works sites are
being discussed with prospective tenants and buyers. This process
is likely to take several more months but we do expect some
realisations in 2018.
Outlook and Dividend
We do expect to see sufficient new business coming through in
the second half to achieve growth in revenue for the year as a
whole and we expect to continue to build the pipeline for further
growth in 2018. Re-organisation of manufacturing to achieve
efficiencies and investments in capital equipment to improve
capacity and capability are being carried out to support this
growth and help to recover margins.
The Board has approved an interim dividend of 2.5p (2016: 2.5p)
to be paid on 2 October 2017 to shareholders on the register at 1
September 2017. The ordinary shares ex-dividend date is 31 August
2017.
For more information, please contact:
Robinson plc
Guy Robinson, Finance Director Tel: 01246 389283
www.robinsonpackaging.com
FinnCap
Ed Frisby / Giles Rolls Tel: 020 7220 0500
- corporate finance
Stephen Norcross / Sultan
Awan - corporate broking
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
178 years. Today the Group's main activity is the manufacture and
sale of rigid plastic packaging. Robinson operates primarily within
the food & drink, toiletries & cosmetics and household
sectors, providing niche or custom manufacture to major players in
the fast moving consumer goods market. The Group also has a
substantial property portfolio with development potential.
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Robinson plc
Group Income Statement
Six months Six months Year
to 30.06.17 to 30.06.16 to 31.12.16
GBP'000 GBP'000 GBP'000
Revenue 13,586 12,762 27,459
Cost of sales (10,950) (9,716) (21,201)
------------- ------------- -------------
Gross profit 2,636 2,775 6,258
Operating costs (2,221) (2,151) (4,120)
Amortisation of intangible
asset (392) (392) (783)
Exceptional costs 0 0 190
------------- ------------- -------------
Operating profit 23 232 1,545
Finance costs - bank interest
payable (51) (44) (116)
Finance income in respect
of pension fund 30 96 189
------------- ------------- -------------
Profit before taxation 2 284 1,618
Taxation (176) (122) (390)
(Loss)/profit for the period (174) 162 1,228
============= ============= =============
Earnings per ordinary share p p p
(EPS)
Basic (loss)/earnings per
share (1.1) 1.0 7.5
Diluted (loss)/earnings
per share (1.1) 1.0 7.3
Statement of comprehensive GBP'000 GBP'000 GBP'000
income
------------- ------------- -------------
(Loss)/profit for the period (174) 162 1,228
------------- ------------- -------------
Items that will not be
reclassified subsequently
to profit or loss:
Re-measurement of net defined
benefit liability 0 0 (3,774)
Deferred tax relating to
items not reclassified 0 0 683
------------- ------------- -------------
0 0 (3,091)
Items that may be reclassified
subsequently to profit
or loss:
Exchange differences on
translation of foreign
operations 592 340 766
------------- ------------- -------------
Other comprehensive expense
for the period 592 340 (2,325)
------------- ------------- -------------
Total comprehensive income
for the period 418 502 (1,097)
============= ============= =============
Robinson plc
Group Statement of Financial Position
30.06.17 30.06.16 31.12.16
GBP'000 GBP'000 GBP'000
--------- --------- ---------
Non-current assets
Goodwill 1,041 1,190 1,115
Other Intangible Assets 5,481 6,263 5,872
Property, plant and equipment 15,490 14,437 14,834
Deferred tax assets 119 133 188
Pension asset 0 3,747 0
22,131 25,770 22,009
--------- --------- ---------
Current assets
Inventories 2,887 2,363 2,471
Trade and other receivables 8,628 7,249 8,722
Cash 649 1,069 881
12,164 10,681 12,074
--------- --------- ---------
Total assets 34,295 36,451 34,083
--------- --------- ---------
Current liabilities
Trade and other payables (4,593) (4,239) (4,518)
Corporation tax payable (169) (275) (234)
Borrowings (5,809) (4,899) (5,570)
(10,571) (9,413) (10,322)
--------- --------- ---------
Non-current liabilities
Borrowings 0 (772) (201)
Other Payables (78) (62) (78)
Deferred tax liabilities (680) (1,429) (660)
Provisions (185) (183) (185)
(943) (2,446) (1,124)
--------- --------- ---------
Total liabilities (11,514) (11,859) (11,446)
--------- --------- ---------
Net assets 22,781 24,592 22,637
========= ========= =========
Equity
Share capital 83 82 82
Share premium 732 610 610
Capital redemption reserve 216 216 216
Translation reserve 738 (263) 146
Revaluation reserve 4,324 4,484 4,402
Retained earnings 16,687 19,463 17,181
Equity attributable to shareholders 22,781 24,592 22,637
========= ========= =========
Robinson plc
Group Statement of Cash Flows
Six months Six Year
to 30.06.17 months to 31.12.16
to 30.06.16
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/profit for the period (174) 161 1,228
Adjustments for:
Depreciation of property, plant
and equipment 687 747 1,385
Profit on disposal of other
plant and equipment (71) (55) (189)
Amortisation of goodwill and
customer relationships 465 466 932
Increase in provisions 0 0 2
Other finance income in respect
of pension fund (30) (96) (189)
Finance costs 51 38 122
Finance income 0 (6) (6)
Taxation charged 176 122 390
Non-cash items:
Pension current service cost 108 96 162
Cost of share options 11 19 39
------------- ------------- -------------
Operating cash flows before
movements in working capital 1,223 1,493 3,876
(Increase) in inventories (339) (291) (399)
Decrease in trade and other
receivables 500 1,633 222
(Decrease) in trade and other
payables (166) (747) (499)
------------- ------------- -------------
Cash generated by operations 1,218 2,088 3,200
Corporation tax paid (241) (71) (446)
Interest paid (40) (44) (122)
------------- ------------- -------------
Net cash generated from operating
activities 937 1,973 2,632
------------- ------------- -------------
Cash flows from investing activities
Interest received 0 5 6
Deferred consideration paid
on acquisition 0 (4,265) (4,265)
Acquisition of plant and equipment (914) (783) (1,782)
Disposal of other plant and
equipment 121 105 481
------------- ------------- -------------
Net cash used in investing activities (793) (4,938) (5,560)
------------- ------------- -------------
Cash flows from financing activities
Loans paid (259) (401) (1,226)
Proceeds from exercise of share
options 123 0 0
Dividends paid (485) (477) (877)
------------- ------------- -------------
Net cash used in financing activities (621) (878) (2,103)
------------- ------------- -------------
Net decrease in cash and cash
equivalents (478) (3,843) (5,031)
Cash and cash equivalents at
1 January (4,206) 825 825
------------- ------------- -------------
Cash and cash equivalents at
end of period (4,684) (3,018) (4,206)
============= ============= =============
Cash 649 1,069 881
Overdraft (5,333) (4,087) (5,087)
------------- ------------- -------------
Cash and cash equivalents at
end of period (4,684) (3,018) (4,206)
============= ============= =============
Robinson plc
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2017 was
approved by the directors on 22 August 2017. 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 2016, which have been prepared in
accordance with applicable IFRSs. The information for the year
ended 31 December 2016 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 2017 has been
calculated based on the estimated effective tax rate on profits
before tax for the year to 31 December 2017.
3. Dividends
Six months Six months Year
to 30.06.17 to 30.06.16 to 31.12.16
Ordinary: GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Final 485 477 479
Interim - - 398
485 477 877
============= ============= =============
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 loss after taxation of GBP174,000 divided by the weighted
average number of shares in issue, net of treasury shares, of
16,508,083. There was no difference in the weighted average number
of shares used for the calculation of basic and diluted loss per
share as the effect of potentially dilutive shares outstanding was
anti-dilutive.
5. 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.
6. 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 FMGZRNZFGNZM
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