TIDMRBN
RNS Number : 4936Y
Robinson PLC
22 August 2018
Robinson plc
("Robinson", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2018
CHAIRMAN'S STATEMENT
Trading Results
I am pleased to report that revenues in the first half year were
15% higher than the same period last year, benefiting from a 9%
increase in underlying volumes. This volume increase has come from
improved trading with existing customers and some commencement of
new business arising from our recent investment in a strengthened
commercial team in both Poland and the UK.
Gross profit in the period was 18.6% (2017: 19.4%), due to
anticipated increases in fixed production costs, depreciation and
variable production costs not yet passed through in sales
prices.
Operating profits before amortisation have improved by 28%
versus the same period last year, and profit before tax increased
to GBP0.1m (2017: GBPnil).
Cash
Net borrowings at the end of the period were GBP6.5m (2017 year
end: GBP6.5m) after spending GBP2.1m on capital investments in
plant and equipment - mainly associated with new business. A final
dividend, with respect to 2017, of 3p per share was paid to
shareholders on 1 June 2018 (2017: 3p).
Property
The sale of surplus properties in Chesterfield has not
progressed materially in the six-month period due to the
uncertainties in the retail sector and over-supply of housing land.
Current market conditions in this sector of the market are now
relatively unattractive which is likely to result in any
realisations being beyond the next 12 months.
Outlook and Dividend
The revenue line is now showing signs of some momentum, arising
from our previous investments in people. We anticipate this
momentum continuing with growth in new business expected in the
second half. It is anticipated that this growth will leverage our
completed fixed cost investments in the second half but more
significantly beneficially impact in 2019. Investments in plant and
equipment, partially to facilitate those new projects, will
accelerate in the second half with a further c.GBP3m of spend
expected and a consequent impact on net borrowings. The recent
growth in operating costs (predominantly investment in people
capability) has been concluded, so further revenue growth should
improve profitability ratios moving forward. Management remains
focused on specific actions to recover gross margins to ensure
further profit improvement.
After careful consideration, the Board has decided to hold the
interim dividend at 2.5p (2017: 2.5p) to be paid on 1 October 2018
to shareholders on the register at 31 August 2018 (record date).
The ordinary shares ex-dividend date is 30 August 2018.
Alan Raleigh
Chairman
21 August 2018
For further information, please contact:
Robinson plc www.robinsonpackaging.com
Guy Robinson, Finance Director Tel: 01246 389283
finnCap Limited
Ed Frisby / Giles Rolls Tel: 020 7220 0500
Note for Editors:
Headquartered in Chesterfield, with manufacturing facilities in
Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire), Warsaw and Lodz
(Poland), Robinson currently employs around 310 people. It was
formerly a family business, with its origins dating back 179 years.
Today the Group's main activity is the manufacture and sale of
injection and blow moulded plastic packaging. Robinson operates
primarily within the food, household, drink, confectionery,
cosmetic and toiletry sectors, providing niche or custom
manufacture to major players in the fast moving consumer goods
market, such as McBride, Proctor & Gamble, Reckitt Benckiser,
SC Johnson, and Unilever. 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
to 30.06.18 to 30.06.17 31.12.17
GBP'000 GBP'000 GBP'000
Revenue 15,622 13,586 29,813
Cost of sales (12,719) (10,950) (24,035)
------------- ------------- ----------
Gross profit 2,903 2,636 5,778
Operating costs (2,371) (2,221) (4,457)
Operating profit before exceptional
items and amortisation of intangible
asset 532 415 1,321
Exceptional items 0 0 65
Amortisation of intangible asset (392) (392) (783)
Operating profit after exceptional
items 140 23 603
Finance income - interest receivable 1 0 1
Finance costs - bank interest payable (55) (51) (104)
Finance income in respect of pension
fund 0 30 130
------------- ------------- ----------
Profit before taxation 86 2 630
Taxation (139) (176) (317)
(Loss)/profit for the period (53) (174) 313
============= ============= ==========
Earnings per ordinary share (EPS) p p p
Basic earnings per share (0.3) (1.1) 1.9
Diluted earnings per share (0.3) (1.1) 1.9
Statement of comprehensive income GBP'000 GBP'000 GBP'000
------------- ------------- ----------
(Loss)/profit for the period (53) (174) 313
------------- ------------- ----------
Items that will not be reclassified
subsequently to profit or loss:
Re-measurement of net defined benefit
liability 96 0 61
Deferred tax relating to items
not reclassified (6) 0 (11)
------------- ------------- ----------
90 0 50
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations (517) 592 818
------------- ------------- ----------
Other comprehensive expense for
the period (427) 592 868
------------- ------------- ----------
Total comprehensive income for
the period (480) 418 1,181
============= ============= ==========
Robinson plc
Group Statement of Financial Position
30.06.18 30.06.17 31.12.17
GBP'000 GBP'000 GBP'000
--------- --------- ---------
Non-current assets
Goodwill 1,115 1,041 1,115
Other intangible assets 4,698 5,481 5,089
Property, plant and equipment 17,598 15,490 17,011
Deferred tax asset 184 119 95
23,595 22,131 23,310
--------- --------- ---------
Current assets
Inventories 3,019 2,887 2,838
Trade and other receivables 9,280 8,628 9,905
Cash 676 649 283
12,975 12,164 13,026
--------- --------- ---------
Total assets 36,570 34,295 36,336
--------- --------- ---------
Current liabilities
Trade and other payables (6,349) (4,551) (5,568)
Corporation tax payable (246) (169) (250)
Bank overdrafts (7,059) (5,334) (6,441)
Bank loans 0 (475) (221)
Obligations under finance lease
contracts (64) (42) (44)
(13,718) (10,571) (12,524)
--------- --------- ---------
Non-current liabilities
Obligations under finance lease
contracts (74) (78) (87)
Deferred tax liabilities (494) (680) (488)
Provisions (181) (185) (181)
(749) (943) (756)
--------- --------- ---------
Total liabilities (14,467) (11,514) (13,280)
--------- --------- ---------
Net assets 22,103 22,781 23,056
========= ========= =========
Equity
Share capital 83 83 83
Share premium 732 732 732
Capital redemption reserve 216 216 216
Translation reserve 447 738 964
Revaluation reserve 4,315 4,324 4,321
Retained earnings 16,310 16,687 16,740
Equity attributable to shareholders 22,103 22,781 23,056
========= ========= =========
Robinson plc
Group Statement of Cash Flows
Six months Six months Year
to 30.06.18 to 30.06.17 to
31.12.17
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
(Loss)/profit for the period (53) (174) 313
Adjustments for:
Depreciation of property, plant and
equipment 850 687 1,492
Profit on disposal of other plant and
equipment 0 (71) (85)
Impairment/Amortisation of goodwill
and customer relationships 392 465 783
Decrease in provisions 0 0 (4)
Other finance income in respect of
pension fund 0 (30) (130)
Finance costs 55 51 104
Finance income (1) 0 (1)
Taxation charged 139 176 317
Other non-cash items:
Pension current service cost and expenses 98 108 191
Charge for share options 5 11 16
------------- ------------- ----------
Operating cash flows before movements
in working capital 1,485 1,223 2,996
Increase in inventories (238) (339) (263)
Decrease/(increase) in trade and other
receivables 436 500 (875)
Increase/(decrease) in trade and other
payables 1,158 (166) 411
------------- ------------- ----------
Cash generated by operations 2,841 1,218 2,269
Corporation tax paid (228) (241) (405)
Interest paid (55) (40) (104)
------------- ------------- ----------
Net cash generated by operating activities 2,558 937 1,760
------------- ------------- ----------
Cash flows from investing activities
Interest received 1 0 1
Acquisition of plant and equipment (2,055) (914) (2,614)
Proceeds on disposal of property, plant
and equipment 0 121 151
------------- ------------- ----------
Net cash used in investing activities (2,054) (793) (2,462)
------------- ------------- ----------
Cash flows from financing activities
Loans repaid (211) (259) (531)
Shares issued 0 123 123
Finance lease payments (20) (28)
Dividends paid (485) (485) (901)
------------- ------------- ----------
Net cash used in financing activities (716) (621) (1,337)
------------- ------------- ----------
Net decrease in cash and cash equivalents (212) (478) (2,039)
Cash and cash equivalents at 1 January (6,158) (4,206) (4,206)
Effect of foreign exchange rate changes (13) 0 87
Cash and cash equivalents at end of
period (6,383) (4,684) (6,158)
============= ============= ==========
Cash 676 649 283
Bank overdraft (7,059) (5,333) (6,441)
------------- ------------- ----------
Cash and cash equivalents at end of
period (6,383) (4,684) (6,158)
============= ============= ==========
Robinson plc
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2018 was
approved by the directors on 21 August 2018. 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 2017, which have been prepared in
accordance with applicable IFRSs. The information for the year
ended 31 December 2017 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 2018 has been
calculated based on the estimated effective tax rate on profits
before tax for the year to 31 December 2018.
3. Dividends
Six months Six months Year to
to 30.06.18 to 30.06.17 31.12.17
Ordinary dividend paid: GBP'000 GBP'000 GBP'000
------------- ------------- ----------
Final 485 485 485
Interim 0 0 416
485 485 901
============= ============= ==========
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 GBP53,000 divided by the weighted
average number of shares in issue, net of treasury shares, of
16,613,389. 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. Standards effective from 1 January 2018
Robinson plc has adopted IFRS 15 using the cumulative effect
method. Under this method, the comparative information is not
restated. The introduction of IFRS 15 has not resulted in a
material impact on profit or loss or on retained earnings in the
current period. The adoption of IFRS 9 has had no impact on the
classification and measurement of the Group's financial assets or
financial liabilities.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR PGUMCRUPRGBG
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