TIDMRBN
RNS Number : 3775W
Robinson PLC
18 August 2020
Robinson plc
Half-year Report
Interim Results for the six months ended 30 June 2020
Robinson plc ("Robinson" or the "Group" stock code: RBN), the
custom manufacturer of plastic and paperboard packaging based in
Chesterfield, announces its interim results for the six months
ended 30 June 2020.
Financial highlights
-- Revenue up 5% to GBP17.9m (2019: GBP17.1m)
-- Gross margin increased to 23.6% from 19.7% in 2019
-- Operating profit before amortisation of intangible assets up 100% to GBP1.6m (2019: GBP0.8m)
-- Profit before tax of GBP1.1m (2019: GBP0.3m)
-- Second interim dividend of 2.0p per share announced
-- Net debt of GBP5.6m (31/12/2019: GBP6.9m), after capital expenditure of GBP2.1m
Operational highlights
-- All sites have continued to trade safely throughout the period
-- Successfully installed 6 new production lines in the UK to
increase the efficiency and capacity of the operation
-- Refurbishment of a manufacturing building in
Kirkby-in-Ashfield to support future growth ambitions
Alan Raleigh, Chairman, commented:
" We are very happy with this continued progress in the first
half, despite the challenging conditions arising from the Covid-19
pandemic. The main market sectors for which we supply packaging
have shown resilience throughout the pandemic, with notable
increases in demand for our products used in liquid hand soap,
sanitiser and household cleaning.
All our sites have continued to trade throughout the period,
operating in line with local hygiene and social distancing
requirements to ensure the safety and wellbeing of our colleagues.
The majority of our sales and administration activities are being
very effectively carried out by staff working from home.
Despite the uncertain economic environment, we expect to report
mid to high single digit revenue growth in the full year, whilst
continuing to drive further efficiencies across all aspects of our
operations in order to compete and win in the market.
We are committed to investing in new production equipment and
additional capabilities to grow the business in the second half of
2020, including developing our go-to-market approach and
reinforcing our sustainability proposition. As a result, operating
costs will be significantly higher than the same period in 2019.
Notwithstanding this increase and subject to any disruption to
trading that may arise from the ongoing pandemic, we expect full
year earnings to be slightly higher than last year and remain
committed to ongoing delivery of our target of 6-8% return on
sales*."
* operating profit margin before exceptional items and
amortisation of intangible assets
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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), Chesterfield,
Warsaw and Lodz (Poland), Robinson currently employs around 320
people. It was formerly a family business, with its origins dating
back over 181 years. Today the Group's main activity is the
manufacture and sale of injection and blow moulded plastic
packaging as well as rigid paperboard premium gift packaging.
Robinson operates primarily within the food, household, drink,
confectionery, cosmetic and toiletry sectors, providing niche or
custom manufacture to major brands in the fast-moving consumer
goods market, such as Unilever, Proctor & Gamble, Reckitt
Benckiser, SC Johnson, and McBride. 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 Statement
Dear Shareholders
I am pleased to report a 5% increase in revenues for the first
half of 2020, compared to the prior year comparative, with growth
in all divisions. We are very happy with this continued progress in
the first half, despite the challenging conditions arising from the
Covid-19 pandemic. The main market sectors for which we supply
packaging have shown resilience throughout the pandemic, with
notable increases in demand for our products used in liquid hand
soap, sanitiser and household cleaning.
Gross margins, at 23.6% (2019: 19.7%), have continued the
positive trend experienced in the second half of 2019 due to
further reductions in resin prices and increased efficiency in
operations. Operating costs were 2% higher than the previous
year.
Operating profit before amortisation of intangible assets has
doubled to GBP1.6m versus the same period last year and profit
before tax increased to GBP1.1m (2019: GBP0.3m).
People
All our sites have continued to trade throughout the period,
operating in line with local hygiene and social distancing
requirements to ensure the safety and wellbeing of our colleagues.
The majority of our sales and administration activities are being
very effectively carried out by staff working from home.
A small number of UK staff, principally those most vulnerable
and some in our Paperbox division, were furloughed through the
Coronavirus Job Retention Scheme. Considering the better than
expected trading performance, we do not intend to make any further
claims under the scheme and in the second half of the year we will
repay sums already received.
On behalf of the Board, I would like to express again my thanks
to all our staff for their continued dedication during these
challenging times.
Property
Negotiations are progressing for disposal of parts of the
surplus property in Chesterfield. Subject to the necessary planning
approvals, we would expect sales to be achieved in the latter part
of 2021 or early 2022. The intention of the Group remains, over
time, to realise the maximum value from the disposal of surplus
properties and to reinvest the proceeds in developing our packaging
business.
Net debt and capital expenditure
Improved profitability and working capital management has
resulted in net borrowings reducing to GBP5.6m (31/12/2019:
GBP6.9m), albeit with the benefit of government support schemes,
and dividend and senior management bonus deferrals, which have now
been re-instated. With available credit facilities of GBP13.5m and
no formal covenants, the Group considers it has sufficient headroom
for the foreseeable future.
The Group continues to invest in property, plant and equipment
to improve efficiency and support our future growth ambitions.
Expenditure of GBP2.1m in the first six months of the year included
refurbishment of a manufacturing building in Kirkby-in-Ashfield,
and the installation of 6 new production lines to improve
efficiency and expand capacity. We expect to invest a larger amount
in the second half of the year.
Dividend
A first interim dividend of 3.5p (2019: 2.5p) per share was paid
to shareholders on 30 July 2020. The Board is pleased to announce a
second interim dividend of 2.0p (2019: nil) per share to be paid on
1 October 2020 to shareholders on the register at 4 September 2020
(record date). The ordinary shares ex-dividend date is 3 September
2020.
Subject to any negative impact on trading in the second half of
the year, the intention of the Board is to pay a total dividend of
8.5p (2019: 2.5p) per share for the year ended 31 December
2020.
Outlook
Despite the uncertain economic environment, we expect to report
mid to high single digit revenue growth in the full year, whilst
continuing to drive further efficiencies across all aspects of our
operations in order to compete and win.
We are committed to investing in new production equipment and
additional capabilities to grow the business in the second half of
2020, including developing our go-to-market approach and
reinforcing our sustainability proposition. As a result, operating
costs will be significantly higher than the same period in 2019.
Notwithstanding this increase and subject to any disruption to
trading that may arise from the ongoing pandemic, we expect full
year earnings to be slightly higher than last year and remain
committed to ongoing delivery of our target of 6-8% return on
sales*.
* operating profit margin before exceptional items and
amortisation of intangible assets
Alan Raleigh
Chairman
17 August 2020
Condensed consolidated income statement and statement of comprehensive
income
Six months Six months Year to
Condensed consolidated income statement GBP'000 to 30.06.20 to 30.06.19 31.12.19
Revenue 17,860 17,085 35,085
Cost of sales (13,648) (13,721) (27,593)
-------------------------------------------------------- ------------- ------------- ----------
Gross profit 4,212 3,364 7,492
Operating costs (2,633) (2,576) (4,971)
-------------------------------------------------------- ------------- ------------- ----------
Operating profit before amortisation
of intangible assets 1,579 788 2,521
Amortisation of intangible assets (400) (375) (810)
-------------------------------------------------------- ------------- ------------- ----------
Operating profit 1,179 413 1,711
Finance costs (63) (104) (205)
Profit before taxation 1,116 309 1,506
Taxation (263) (86) (296)
-------------------------------------------------------- ------------- ------------- ----------
Profit for the period 853 223 1,210
-------------------------------------------------------- ------------- ------------- ----------
Earnings per ordinary share (EPS) p p p
Basic earnings per share 5.1 1.3 7.3
Diluted earnings per share 5.1 1.3 7.3
Condensed consolidated statement Six months Six months Year to
of comprehensive income GBP'000 to 30.06.20 to 30.06.19 31.12.19
Profit after tax for the period 853 223 1,210
-------------------------------------------------------- ------------- ------------- ----------
Items that will not be reclassified
subsequently to the Income Statement:
Re-measurement of net defined benefit
liability 79 98 145
Deferred tax relating to items not
reclassified (15) (19) (28)
-------------------------------------------------------- ------------- ------------- ----------
64 79 117
Items that may be reclassified subsequently
to the Income Statement:
Exchange differences on retranslation
of foreign currency goodwill and
intangibles 116 428 148
Exchange differences on retranslation
of foreign currency deferred tax
balances (16) - (23)
Exchange differences on translation
of foreign operations 339 117 (579)
-------------------------------------------------------- ------------- ------------- ----------
439 545 (454)
------------------------------------------------------- ------------- ------------- ----------
Other comprehensive income/(expense)
for the period 503 624 (337)
-------------------------------------------------------- ------------- ------------- ----------
Total comprehensive income/(expense)
for the period 1,356 847 873
-------------------------------------------------------- ------------- ------------- ----------
Condensed consolidated statement of financial position
GBP'000 30.06.20 30.06.19 31.12.19
Non-current assets
Goodwill 1,175 1,215 1,144
Other intangible assets 3,301 4,261 3,616
Property, plant and equipment 19,893 19,222 18,338
Deferred tax asset 1,001 895 937
25,370 25,593 24,035
----------------------------------------------- --------- --------- ---------
Current assets
Inventories 3,287 3,485 2,765
Trade and other receivables 9,454 9,720 9,646
Cash at bank and on hand 2,093 1,490 1,403
14,834 14,695 13,814
----------------------------------------------- --------- --------- ---------
Total assets 40,204 40,288 37,849
------------------------------------------------ --------- --------- ---------
Current liabilities
Trade and other payables 6,794 5,090 5,063
Borrowings 5,539 5,982 3,710
Current tax liabilities 78 122 255
12,411 11,194 9,028
----------------------------------------------- --------- --------- ---------
Non-current liabilities
Borrowings 2,110 4,617 4,639
Deferred tax liabilities 1,232 1,008 1,090
Provisions 169 174 169
3,511 5,799 5,898
----------------------------------------------- --------- --------- ---------
Total liabilities 15,922 16,993 14,926
------------------------------------------------ --------- --------- ---------
Net assets 24,282 23,295 22,923
------------------------------------------------ --------- --------- ---------
Equity
Share capital 83 83 83
Share premium 732 732 732
Capital redemption reserve 216 216 216
Translation reserve 811 1,371 372
Revaluation reserve 4,145 4,122 4,134
Retained earnings 18,295 16,771 17,386
Equity attributable to shareholders 24,282 23,295 22,923
------------------------------------------------ --------- --------- ---------
Condensed consolidated statement of changes in equity
Capital
Share Share redemption Translation Revaluation Retained
GBP'000 capital premium reserve reserve reserve earnings Total
At 31 December 2018 83 732 216 826 4,126 16,945 22,928
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Profit for the period 223 223
Other comprehensive income 545 79 624
Total comprehensive income
for the period - - - 545 - 302 847
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Dividends paid (485) (485)
Credit in respect of share
based payments 5 5
Transactions with owners - - - - - (480) (480)
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Transfer from revaluation
reserve as a result
of property transactions (4) 4 -
At 30 June 2019 83 732 216 1,371 4,122 16,771 23,295
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Profit for the period 987 987
Other comprehensive
income/(expense) (999) 38 (961)
Total comprehensive income
for the period - - - (999) - 1,025 26
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Dividends paid (405) (405)
Credit in respect of share
based payments 7 7
Transactions with owners - - - - - (398) (398)
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Transfer from revaluation
reserve as a result
of property transactions 12 (12) -
At 31 December 2019 83 732 216 372 4,134 17,386 22,923
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Profit for the period 853 853
Other comprehensive income 439 64 503
Total comprehensive income
for the period - - - 439 - 917 1,356
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Credit in respect of share
based payments 5 5
Transactions with owners - - - - - 5 5
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Transfer from revaluation
reserve as a result
of property transactions 13 (13) -
Tax on revaluation (2) (2)
At 30 June 2020 83 732 216 811 4,145 18,295 24,282
----------------------------- -------- --------- ------------ ------------ ------------------ --------- ----------------
Condensed consolidated cash flow statement
Six months Six months Year to
GBP'000 to 30.06.20 to 30.06.19 31.12.19
Cash flows from operating activities
Profit for the period 853 223 1,210
Adjustments for:
Depreciation of property, plant and
equipment 988 915 1,959
Impairment of property, plant and
equipment - - 43
Profit on disposal of other plant
and equipment (5) (16) (31)
Amortisation of intangible assets 400 375 810
Decrease in provisions - - (5)
Finance costs 63 104 205
Taxation charged 263 86 296
Other non-cash items:
Pension current service cost and
expenses 79 98 145
Charge for share options 5 5 12
Operating cash flows before movements in
working capital 2,646 1,790 4,644
(Increase)/decrease in inventories (488) (513) 144
Decrease in trade and other receivables 316 979 807
Increase in trade and other payables 1,601 (819) (744)
Cash generated by operations 4,075 1,437 4,851
Corporation tax paid (285) (95) (127)
Interest paid (63) (104) (205)
Net cash generated by operating activities 3,727 1,238 4,519
------------------------------------------------------- ------------- ------------- ----------
Cash flows from investing activities
Acquisition of plant and equipment (2,085) (1,041) (1,726)
Proceeds on disposal of property,
plant and equipment 18 21 62
------------- ----------
Net cash used in investing activities (2,067) (1,020) (1,664)
------------------------------------------------------- ------------- ------------- ----------
Cash flows from financing activities
Net proceeds from sale and leaseback
transactions 245 1,279 1,697
Finance lease capital repayments (302) (256) (506)
Dividends paid - (485) (890)
------------- ----------
Net cash used in financing activities (57) 538 301
------------------------------------------------------- ------------- ------------- ----------
Net increase/(decrease) in cash and
cash equivalents 1,603 756 3,156
Cash and cash equivalents at 1 January (1,678) (4,820) (4,820)
Effect of foreign exchange rate changes 29 3 (14)
Cash and cash equivalents at end of
period (46) (4,061) (1,678)
------------------------------------------------------- ------------- ------------- ----------
Cash 2,093 1,490 1,403
Overdraft (2,139) (5,551) (3,081)
------------- ------------- ----------
Cash and cash equivalents at end of
period (46) (4,061) (1,678)
------------------------------------------------------- ------------- ------------- ----------
Notes to the condensed consolidated financial statements
1. Basis of preparation
Robinson plc (the Company) is a public limited company
incorporated and domiciled in the United Kingdom and its ordinary
shares are admitted to trading on the AIM market of the London
Stock Exchange. For the year ended 31 December 2019, the Group
prepared consolidated financial statements under International
Financial Reporting Standards ('IFRS') as adopted by the European
Union (EU). These condensed consolidated interim financial
statements (the interim financial statements) have been prepared
under the historical cost convention adjusted for the revaluation
of certain properties. They are based on the recognition and
measurement principles of IFRS in issue as adopted by the European
Union (EU) which are effective from 1 January 2020.
Standards effective from 1 January 2020
None of the standards, interpretations and amendments effective
for the first time from 1 January 2020 have had a material effect
on the financial statements.
There are no standards that are not yet effective and that would
be expected to have a material impact on the Group in the current
or future reporting periods and on foreseeable future
transactions.
Accounting policies
The interim report is unaudited and has been prepared on the
basis of IFRS accounting policies. The accounting policies adopted
in the preparation of this unaudited interim financial report are
consistent with the most recent annual financial statements, being
those for the year ended 31 December 2019.
The financial information for the six months ended 30 June 2020
and 30 June 2019 has not been audited and does not constitute full
financial statements within the meaning of Section 434 of the
Companies Act 2006.
The financial information relating to the year ended 31 December
2019 does not constitute full financial statements within the
meaning of Section 434 of the Companies Act 2006. This information
is based on the Group's statutory accounts for that period. The
statutory accounts were prepared in accordance with International
Financial Reporting Standards ("IFRS") and received an unqualified
audit report and did not contain statements under Section 498(2) or
(3) of the Companies Act 2006. These financial statements have been
filed with the Registrar of Companies, a copy is available upon
request from the Company's registered office: Field House,
Wheatbridge, Chesterfield, S40 2AB, UK or from its website at
www.robinsonpackaging.com .
Going concern
The Directors have performed a robust assessment, including
review of the forecast for the 12 month period ending 31 December
2020 and longer term strategic forecasts and plans, including
consideration of the principal risks faced by the Group and the
Covid-19 related stress testing of the business, as detailed in the
2019 Annual Report (page 57). Following this review, 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 in
preparing the condensed consolidated financial statements.
2. Accounting estimates and judgements
The preparation of half year financial statements requires
management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses. Actual
results may differ from these estimates.
The significant judgements made by management in applying the
Group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated
financial statements as at and for the year ended 31 December
2019.
Notes to the condensed consolidated financial statements
(continued)
3. Risks and uncertainties
The principal risks and uncertainties which may have the largest
impact on performance in the second half of the year are the same
as disclosed in the 2019 Annual Report on pages 8-9. The principal
risks set out in the 2019 Annual Report were: Covid-19 coronavirus
pandemic; Customer relationships; Fluctuations in input prices;
Foreign currency risk; Unavailability of raw materials; Brexit and
People.
The Board considers that the principal risks and uncertainties
set out in the 2019 Annual Report have not changed and remain
relevant for the second half of the financial year.
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 for the period divided by the weighted average number of
shares in issue, net of treasury shares. The potentially dilutive
effect of further shares issued through share options is also
applied to the number of shares to calculate the diluted earnings
per share.
Six months Six months Year to
to 30.06.20 to 30.06.19 31.12.19
Profit for the period (GBP'000) 853,000 223,000 1,210,000
Weighted average number of ordinary
shares in issue 16,613,389 16,613,389 16,613,389
Effect of dilutive share option awards 59,799 58,213 61,159
Weighted average number of ordinary
shares for calculating diluted earnings
per share 16,673,188 16,671,602 16,674,548
Basic earnings per share (pence) 5.1 1.3 7.3
Diluted earnings per share (pence) 5.1 1.3 7.3
------------------------------------------ ------------- ------------- -----------
5. Dividends
Six months Six months Year to
GBP'000 to 30.06.20 to 30.06.19 31.12.19
Ordinary dividend 2018 final of 3.0p per
paid: share - 485 485
2019 interim of 2.5p
per share - - 405
- 485 890
--------------------------------------------------------------------- ------------- ----------
A first interim dividend of 3.5p (2019: 2.5p) per share was paid
to shareholders on 30 July 2020. A second interim dividend of 2p
(2019: nil) is proposed to be paid on 1 October 2020. Neither the
first nor second interim dividend have been included as a liability
in the financial statements.
6. Related parties
There have been no significant changes in the nature of related
party transactions in the period ended 30 June 2020 from that
disclosed in the 2019 Annual report.
7. Interim report
Electronic copies of this interim report will shortly be sent to
those shareholders who have requested such copies and this interim
report is also available from Robinson plc's 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
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END
IR ZZGMRNNMGGZM
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