TIDMRBN
RNS Number : 3168I
Robinson PLC
01 April 2020
Robinson plc
FINAL RESULTS FOR THE YEARED 31 DECEMBER 2019
Robinson plc ("Robinson" or the "Group" stock code: RBN), the
custom manufacturer of rigid plastic and paperboard packaging based
in Chesterfield, announces its audited results for the year ended
31 December 2019.
Highlights:
-- Revenue increased by 7% to GBP35.1m (2018: GBP32.8m)
-- Gross margin increased from 18% to 21%. Operating costs increased by 14%
-- Operating profit before exceptional items and amortisation of
intangible assets increased to GBP2.5m (2018: GBP1.5m)
-- Net debt decreased to GBP6.9m (2018: GBP8.8m)
-- Capital expenditure was GBP1.7m (2018: GBP4.4m)
Commenting on the results, Chairman, Alan Raleigh said:
"We have made important steps forward across all aspects of our
business in 2019. Our results confirm that our actions to improve
competitiveness are bearing fruit in a challenging and uncertain
market.
We are of course assessing the rapidly evolving coronavirus
pandemic and the impact this could have on our people, our
customers and our business. Our business is predominantly in the
food, personal care and household sectors, with more than 70% of
our turnover arising from financially strong multi-national or
local players, so we believe we are likely to be less affected by
the pandemic than others. We have also stress-tested the resilience
of our business to potential cash flow interruptions and believe we
have sufficient financial headroom. However, in these current
extremely uncertain circumstances, we believe it is prudent to
maximise the cash retained in the business, so we have decided not
to declare a final dividend in respect of 2019. When there is
greater clarity on the impact of coronavirus on market conditions
and our currently projected financial strength, it is the Board's
ambition to resume dividend payments."
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
Tim Redfern / Tim Harper, ECM
Note for Editors:
Headquartered in Chesterfield, with manufacturing facilities in
Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire), Warsaw and Lodz
(Poland), Robinson currently employs around 320 people. It was
formerly a family business, with its origins dating back 180 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"
CHAIRMAN'S REPORT
Revenues, Gross Margin, EBITDA and Operating Profit
We are pleased to announce further strong growth and an
increased market share, with revenue rising by 7% to GBP35.1
million in 2019. Volume growth was 8%.
Gross Margin has increased from 18% to 21% of revenue.
Despite an increase of 14% in operating costs, as we make
further investments in competitive capabilities, we have also made
good progress on EBITDA, which increased to GBP4.5 million in 2019,
an increase of 31%.
Operating Profit has doubled to GBP1.7 million.
Basic earnings per share have risen from 4.2p to 7.3p.
People
Helene Roberts joined as our new CEO in November 2019. Helene
brings a wealth of packaging industry experience and valuable
expertise in sustainability, which will be instrumental in shaping
the future strategy for Robinson within a plastics circular
economy. Helene's profile can be found on page 15 of our annual
report.
I would particularly like to thank Martin McGee, our interim
Chief Executive, who served for much of the year and who has
energetically led the progress we have made in 2019. We wish Martin
every success in the future.
We have also made significant progress in developing the skills
and capabilities of our employees across the business in 2019.
Investments have been made in health and safety, quality,
manufacturing management and business processes to improve our
competitiveness and to serve our customers better.
Property
Progress has been made towards selling some of the surplus
property in Chesterfield and we hope that, subject to receiving the
necessary planning approvals, sales will be achieved in 2021.
Outlook
Although we are pleased with progress in 2019, the Board
recognises we must now move from having a business that has the
capabilities to compete to an organisation that can consistently
win in the marketplace.
Many challenges and uncertainties exist in the current packaging
landscape and we will no doubt face some unexpected headwinds from
time to time in the future. However, with uncertainty comes
opportunity and we are determined to take advantage of potential
dislocations in the market, including playing a leading role in the
sustainable packaging and circular economy agenda and leveraging
our reputation as a purpose-led, responsible partner to our
customers.
Subject to any negative impact from the Covid-19 coronavirus
pandemic, we expect continued above market revenue growth whilst
continuing to deliver industry competitive EBITDA and progressing
Operating Profit towards a 6-8% range.
Covid-19 coronavirus
The reported spread of the Covid-19 coronavirus in recent weeks
has created substantial market uncertainty. At present we have seen
an upturn in demand for some of the products we manufacture,
including hand wash containers and other personal care, household
and food packaging. To the extent this is driven by stocking (as
opposed to usage), this may reverse over time.
The largest threats to our business are still to materialise and
difficult to predict in this fast-changing environment, but we can
envisage that the possibility of staff shortages or lockdowns may
restrict our ability to manufacture products in our plants in the
UK and Poland.
We have undertaken a stress test of our business and concluded
that although there are some risks to our business from smaller
customers, who fail to survive the pandemic (both in terms of
future revenues and potential asset/debt write-offs), our financial
position remains strong. Of course, it is difficult to predict the
impact of these or the longer-term impact on supply chains or
property values due to the significant uncertainties that
remain.
We currently have no known positive cases within our workforce
at any of our plants and are taking the appropriate measures to
protect the business and its stakeholders.
In the circumstances as a precautionary measure, we have decided
to move the proposed AGM date back to 30 June 2020 and not declare
a final dividend in respect of 2019.
Alan Raleigh
Chairman
31 March 2020
Group income statement
FOR THE YEARED 31 DECEMBER
GBP'000 2019 2018
Revenue 35,085 32,802
Cost of sales (27,593) (26,918)
----------------------------------------------------------------------- --------- ---------
Gross profit 7,492 5,884
Operating costs (4,971) (4,370)
----------------------------------------------------------------------- --------- ---------
Operating profit before exceptional items and amortisation
of intangible asset 2,521 1,514
Exceptional items - 110
Amortisation of intangible assets (810) (783)
----------------------------------------------------------------------- --------- ---------
Operating profit after exceptional items and amortisation
of intangible asset 1,711 841
Finance costs (205) (156)
Profit before taxation 1,506 685
Taxation (296) 10
----------------------------------------------------------------------- --------- ---------
Profit for the period 1,210 695
----------------------------------------------------------------------- --------- ---------
Earnings per ordinary share (EPS) p p
Basic earnings per share 7.3 4.2
Diluted earnings per share 7.3 4.1
----------------------------------------------------------------------- --------- ---------
All results are from continuing operations.
Group statement of comprehensive income
FOR THE YEARED 31 DECEMBER
Group statement of comprehensive income GBP'000 2019 2018
Profit for the period 1,210 695
---------------------------------------------------------------------- ------ ------
Items that will not be reclassified subsequently to
the Income Statement:
Re-measurement of net defined benefit liability 145 193
Deferred tax relating to items not reclassified (28) -
----------------------------------------------------------- --------- ------ ------
117 193
Items that may be reclassified subsequently to the
Income Statement:
Exchange differences on retranslation of foreign currency 148 -
goodwill and intangibles
Exchange differences on retranslation of foreign currency (23) -
deferred tax balances
Exchange differences on translation of foreign operations (579) (138)
---------------------------------------------------------------------- ------ ------
(454) (138)
--------------------------------------------------------------------- ------ ------
Other comprehensive (expense)/income for the period (337) 55
---------------------------------------------------------------------- ------ ------
Total comprehensive income for the period 873 750
---------------------------------------------------------------------- ------ ------
Group statement of financial position
AS AT 31 DECEMBER
Group Group
GBP'000 2019 2018
Non-current assets
Goodwill 1,144 1,115
Other intangible assets 3,616 4,306
Property, plant and equipment 18,338 19,039
Deferred tax assets 937 868
24,035 25,328
----------------------------------------------- ------- -------
Current assets
Inventories 2,765 2,972
Trade and other receivables 9,646 10,699
Cash at bank and on hand 1,403 1,358
13,814 15,029
----------------------------------------------- ------- -------
Total assets 37,849 40,357
------------------------------------------------ ------- -------
Current liabilities
Trade and other payables 5,063 5,897
Borrowings 3,710 6,454
Current tax liabilities 255 99
9,028 12,450
----------------------------------------------- ------- -------
Non-current liabilities
Borrowings 4,639 3,749
Deferred tax liabilities 1,090 1,056
Provisions 169 174
5,898 4,979
----------------------------------------------- ------- -------
Total liabilities 14,926 17,429
------------------------------------------------ ------- -------
Net assets 22,923 22,928
------------------------------------------------ ------- -------
Equity
Share capital 83 83
Share premium 732 732
Capital redemption reserve 216 216
Translation reserve 372 826
Revaluation reserve 4,134 4,126
Retained earnings 17,386 16,945
Equity attributable to shareholders 22,923 22,928
------------------------------------------------ ------- -------
Group statement of changes in equity
FOR THE YEARED 31 DECEMBER
Capital
Share Share redemption Translation Revaluation Retained
GBP'000 capital premium reserve reserve reserve earnings Total
Group
At 1 January 2018 83 732 216 964 4,321 16,740 23,056
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Profit for the year 695 695
Other comprehensive
income/(expense) (138) 193 55
Transfer from revaluation
reserve as a result
of property transactions (195) 195 -
Credit in respect of
share based payments 12 12
Total comprehensive
income for the year - - - (138) (195) 1,095 762
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Dividends paid (890) (890)
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Transactions with owners - - - - - (890) (890)
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
At 31 December 2018 83 732 216 826 4,126 16,945 22,928
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Profit for the year 1,210 1,210
Other comprehensive
income/(expense) (454) 117 (337)
Transfer from revaluation
reserve as a result
of property transactions 8 (8) -
Credit in respect of
share based payments 12 12
Total comprehensive
income for the year - - - (454) 8 1,331 885
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Dividends paid (890) (890)
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Transactions with owners - - - - - (890) (890)
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
At 31 December 2019 83 732 216 372 4,134 17,386 22,923
----------------------------- ------------ -------------- -------------------- ------------------- -------------------- --------- -------
Group cash flow statement
FOR THE YEARED 31 DECEMBER
Group Group
GBP'000 2019 2018
Cash flows from operating activities
Profit/(loss) for the period 1,210 695
Adjustments for:
Depreciation of property, plant and
equipment 1,959 1,795
Impairment of property, plant and equipment 43 189
(Profit)/loss on disposal of other plant
and equipment (31) 209
Impairment/amortisation of goodwill
and customer relationships 810 783
Decrease in provisions (5) (7)
Finance income - -
Finance costs 205 156
Taxation charged/(credited) 296 (10)
Other non-cash items:
Pension current service cost and expenses 145 193
Charge for share options 12 12
Operating cash flows before movements
in working capital 4,645 4,015
Decrease/(increase) in inventories 144 (151)
Increase/(decrease) in trade and other
receivables 807 (853)
(Decrease)/Increase in trade and other
payables (745) 329
Cash generated by operations 4,851 3,340
Corporation tax paid (127) (294)
Interest paid (205) (150)
Net cash generated by operating activities 4,519 2,896
--------------------------------------------------------- -------- --------
Cash flows from investing activities
Interest received - -
Acquisition of plant and equipment (1,726) (4,355)
Proceeds on disposal of property, plant
and equipment 62 15
-------- --------
Net cash used in investing activities (1,664) (4,340)
--------------------------------------------------------- -------- --------
Cash flows from financing activities
Loans repaid - (221)
Loans drawndown - 2,700
Loans granted to subsidiaries - -
Loans repaid by subsidiaries - -
Net proceeds from sale and leaseback
transactions 1,697 1,300
Capital element of lease payments (506) (106)
Dividends paid (890) (890)
-------- --------
Net cash used in financing activities 301 2,783
--------------------------------------------------------- -------- --------
Net increase in cash and cash equivalents 3,156 1,339
Cash and cash equivalents at 1 January (4,820) (6,158)
Effect of foreign exchange rate changes (14) (1)
Cash and cash equivalents at end of period (1,678) (4,820)
--------------------------------------------------------- -------- --------
Cash at bank and on hand 1,403 1,358
Bank overdrafts (3,081) (6,178)
-------- --------
Cash and cash equivalents at end of period (1,678) (4,820)
--------------------------------------------------------- -------- --------
Notes to the financial statements
1. Basis of preparation
Robinson prepares its financial statements on a historical cost
basis, unless accounting standards require an alternate measurement
basis. Where there are assets and liabilities calculated on a
different basis, this fact is disclosed either in the relevant
accounting policy or in the notes to the financial statements. The
financial statements comply with the Companies Act 2006 as
applicable to companies using International Financial Reporting
Standards ("IFRS"). The Group's financial statements are prepared
on a going concern basis. The financial information contained in
this announcement does not constitute statutory accounts as defined
in Section 434 of the Companies Act 2006. However, the financial
statements contained in this announcement are extracted from
audited statutory accounts for the financial year ended 31 December
2019 which will be delivered to the Registrar of Companies. Those
accounts have an unqualified audit opinion.
2. Accounting Standards
Robinson prepares its financial statements in accordance with
applicable IFRS, issued by the International Accounting Standards
Board ("IASB") as adopted by the EU, and interpretations issued by
the IFRS Interpretations Committee, and Companies Act 2006
applicable to companies reporting under IFRS. The Group's financial
statements are also consistent with IFRS as issued by the IASB as
they apply to accounting periods ended 31 December 2019.
3. Going Concern
The Directors have considered the factors relevant to support a
statement of going concern. In assessing whether the going concern
assumption is appropriate, the Board and audit committee considered
the Group cash flow forecasts under various scenarios, identifying
risks and mitigants and ensuring the Group has sufficient funding
to meet its current commitments as and when they fall due for a
period of at least 12 months from the date of signing these
financial statements. The Directors have a reasonable expectation
that the Group will continue in operational existence for this 12
month period and have therefore used the going concern basis in
preparing the financial statements.
4. Publication of statutory financial statements
The Company's financial statements are due to be made available
on the Company's website ( www.robinsonpackaging.com ) on 1 April
2020 and posted to shareholders by 8 June 2020. Copies will also be
available at the Company's registered office, Field House,
Wheatbridge, Chesterfield, S40 2AB. The Annual General Meeting is
due to be held at 11.30am on 30 June 2020 and a further
announcement will be made in due course when the Notice of Annual
General Meeting is posted to shareholders.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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
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