RNS Number:2775C
Robinson PLC
25 August 2004
Robinson plc ("Robinson" or "the Company")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2004
Robinson plc, the custom manufacturer of paperboard and plastic packaging,
announces its unaudited interim results for the six months ended 30 June 2004.
Highlights:
*These are Robinson's maiden results since its introduction to AIM on 6th
April 2004.
*Consolidated sales were 2% down in comparison to 1H 2003, due to a degree
of de-stocking by customers of the plastics division and a strategic focus
on more profitable customers in the paperboard division.
*Gross margins widened from 9.8% in the prior-year period to 12.1% due to
greater manufacturing efficiencies.
*Profit before taxation of #162,000 (1H 2003: #1,025,000), after AIM
introduction and tender costs of #236,000. The comparative figure included
#1,154,000 of gains on property disposals versus #236,000 in the current
period.
*Despite the return of #9 million to shareholders in May, the balance
sheet remains strong, with no long-term debt and cash at bank and in hand of
#0.8million at 30 June 2004.
*Dividend maintained at 1p per share.
Commenting on the results, Chairman, Richard Clothier stated:
"The benefits of the rationalisation of the business in recent years, and a
renewed focus on product innovation, are beginning to bear fruit. The growth in
operating margins achieved in the first half is an encouraging result of
management's commitment to improved efficiency. The second half is normally one
of seasonally stronger demand from our customers and therefore we are confident
of further progress in the remainder of 2004."
About Robinson:
Based in Chesterfield, and with additional manufacturing facilities in
Kirkby-in-Ashfield, Nottinghamshire, and in Toronto, Canada, Robinson currently
employs over 400 people. It was formerly a family business, with its origins
dating back some 165 years. Today the Company's main activities are in the
manufacture and sale of rigid paper packaging and injection moulded plastic
packaging. Robinson operates primarily within the food, drink, confectionery,
cosmetic and toiletry sectors, providing niche or custom manufacture to major
players in the fast moving consumer goods market, such as Nestle, Lever Faberge
and Whyte & Mackay. The Company also has a substantial property portfolio with
significant development potential.
For further information, please contact:
Robinson plc, Jon Marx, Chief Executive 01246 220 022
Robinson plc, Guy Robinson, Finance Director 01246 220 022
www.r1son.co.uk
Arbuthnot, Richard Welton 0121 632 2100
Bankside Consultants, Sue Scott/Michael Padley 0207 444 4140
CHAIRMAN'S STATEMENT
I am pleased to record that the company's introduction to AIM in April was
carried out successfully and in the process #9 million was returned to
shareholders by way of the tender offer in May. This is therefore our first
report to shareholders as a listed company and the highlights are as follows:
*Profit before taxation of #162,000 after AIM introduction and tender
costs of #236,000
*Sales down 2%
*Gross profit up 21%
*Profit on sale of surplus property #236,000
*Dividend maintained at 1p per share
The operating profit, before exceptional items, was #29,000 compared to a loss
the previous year of #198,000. Overall sales were down 2% on 2003 which was
mainly attributable to lower sales in Robinson Plastic Packaging, where a number
of customers reduced call-off in the first half. Gross profits recovered
strongly with our Paperboard business (both UK and North America) showing
significant improvements. Overheads, before the exceptional AIM introduction and
tender costs, were at a similar level. We made an exceptional profit on the sale
of surplus land in Kirkby-in-Ashfield of #236,000. This land was acquired many
years ago for expansion of Robinson Plastic Packaging but was no longer required
following the purchase of the factory next door to the existing plant.
Interest received was at a similar level to the previous year at #133,000 but
this was mainly attributable to the surplus cash that has now been returned to
shareholders. As a result, cash reserves fell by #9 million and shareholders'
funds were similarly reduced. The other significant cash item was an increase in
stocks by 22%, as we built finished goods levels ahead of anticipated higher
sales levels in the third quarter.
Robinson Plastic Packaging sales reduced by 11% in the first half, having risen
by 21% in the same period last year. This was due to a number of our customers
reducing their stock levels and the absence of a repeat order from Proctor &
Gamble for their promotional Pringles pop boxes. Higher resin costs and pressure
on selling prices, have also led to a squeeze on margins in this division. On a
positive note, manufacturing efficiencies are improving.
Robinson Paperboard Packaging (UK) had an improved first half despite sales
being down 4%. Most of the sales reduction was a result of our decision last
year to drop some smaller customers that accounted for little of the overall
sales and gross profit but added much to the business complexity. These changes
contributed to a near doubling of gross profits for this business which, when
coupled to a reduction in overheads, has more than halved the losses seen in the
previous year.
Robinson Paperboard Packaging (North America) saw a major recovery in sales
which have been 68% higher than 2003. The growth has come primarily from the
launch of a new North American toiletries product and from Parlux, a USA
customer, whose sales have expanded markedly.
The Company has been investigating a potential acquisition of a plastic
injection moulding business located in Europe. After due diligence, we were
unable to justify the cost of the acquisition and have recently withdrawn from
further talks. The costs associated with this exercise amounted to approximately
#200,000 and will be written off in the second half of the year.
Despite this, we expect the second half of the year to see its usual seasonal
improvement. Indeed, the Paperboard businesses have much improved order books
compared with the same time last year. On the property front we continue to seek
planning approvals to develop and sell our two main surplus sites in
Chesterfield, however, we do not expect further sales this year.
The Board has approved an interim dividend of 1p per share payable on 4 October
2004 to shareholders registered on 3 September 2004 - the ex-dividend date is 1
September 2004. This is at the same level as last year after taking into account
the 200 for 1 share split.
Richard Clothier
Chairman
25 August 2004
Robinson plc
Robinson plc
Group profit and loss account
for the six months to 30 June 2004
Unaudited Unaudited Audited
six months six months year
to to to
30.06.04 30.06.03 31.12.03
Note #'000 #'000 #'000
Turnover 11,068 11,256 24,669
Cost of sales (9,730) (10,151) (21,410)
------- ------- -------
Gross Profit 1,338 1,105 3,259
------- ------- -------
Overheads excluding exceptional items (1,309) (1,303) (3,670)
Exceptional items 2 (236) (69) (1,141)
Overheads (1,545) (1,372) (4,811)
------- ------- -------
Operating loss (207) (267) (1,552)
Profit on disposal of land and buildings 236 1,154 1,154
------- ------- -------
Profit/(loss)on ordinary activities 29 887 (398)
before interest
Interest received 133 138 297
------- ------- -------
Profit/(loss)on ordinary activities before 162 1,025 (101)
taxation
Taxation 3 30 136 618
------- ------- -------
Profit on ordinary activities after 192 1,161 517
taxation
Dividends - - (457)
------- ------- -------
Retained profit 192 1,161 60
------- ------- -------
Earnings per ordinary share 4 0.84p 4.39p 1.95p
------- ------- -------
Robinson plc
Group balance sheet
at 30 June 2004
Unaudited Unaudited Audited
six months six months year
to to to
30.06.04 30.06.03 31.12.03
Note #'000 #'000 #'000
Tangible fixed assets 15,092 16,791 15,771
------- ------- -------
Current assets
Stocks 2,551 2,084 1,604
Debtors 5,439 5,061 5,708
Cash at bank and in hand 811 9,769 9,309
------- ------- -------
8,801 16,914 16,621
Creditors:amounts falling due (5,858) (6,116) (5,635)
within one year
------- ------- -------
Net current assets 2,943 10,798 10,986
------- ------- -------
Total assets less current liabilities 18,035 27,589 26,757
Provisions for liabilities and charges (714) (695) (631)
------- ------- -------
Net assets 17,321 26,894 26,126
------- ------- -------
Capital and reserves
Called up share capital 5 80 132 132
Share premium account 398 398 398
Capital redemption reserve 216 164 164
Revaluation reserve 5,539 5,310 5,539
Profit and loss account 11,088 20,890 19,893
------- ------- -------
Equity shareholders'fund 17,321 26,894 26,126
------- ------- -------
Robinson plc
Group cash flow statement
for the six months ended 30 June 2004
Unaudited Unaudited Audited
six months six months year
to to to
30.06.04 30.06.03 31.12.03
#'000 #'000 #'000
Cash inflow from operating activities
Operating (loss) (207) (267) (1,552)
Depreciation charges and write-down of 913 1,026 2,710
fixed assets
Loss/(profit) on sale of other tangible 4 (1) (15)
fixed assets
(Increase)/decrease in stocks (947) (465) 15
Decrease/(increase) in debtors 86 368 (66)
Increase/(decrease) in creditors 498 146 (610)
Increase/(decrease) in provisions 171 (172) 84
------- ------- -------
Net cash inflow from operating activities 518 635 566
------- ------- -------
Returns on investments and servicing of finance
Interest received 177 171 314
Interest paid - (22) (23)
------- ------- -------
Net cash inflow from returns on investments 177 149 291
and servicing of finance
------- ------- -------
Taxation
UK corporation tax refunded/(paid) 35 (468) (469)
------- ------- -------
Capital expenditure and financial investment
Acquisition of tangible fixed assets (705) (787) (1,140)
Sale of non-operational properties 686 1,870 1,870
Sales of other tangible fixed assets 17 1 50
------- ------- -------
Net cash inflow from capital expenditure (2) 1,084 780
and financial investment
------- ------- -------
Equity dividends paid (229) (230) (458)
------- ------- -------
Net cash inflow before use of liquid
resources and financing 499 1,170 710
------- ------- -------
Management of liquid resources
Decrease/(increase) in short term cash 8,081 (1,972) (1,058)
deposits with UK banks
------- ------- -------
Net cash outflow from management of 8,081 (1,972) (1,058)
liquid resources
------- ------- -------
Financing
Repurchase of share capital (8,997) - -
------- ------- -------
Net cash outflow from financing (8,997) - -
------- ------- -------
Decrease in cash (417) (802) (348)
------- ------- -------
Analysis of changes in cash during the year
Balance at 30 June 2004 310 273 727
Balance at 31 December 2003 727 1,075 1,075
------- ------- -------
Net cash outflow (417) (802) (348)
------- ------- -------
Notes to the financial statements
1. Basis of preparation
The interim report, for a 26 week period, which was approved by the board of
directors on 24 August 2004, does not comprise full accounts within the meaning
of the Companies Act 1985. The interim financial information is not audited. It
has been prepared on a consistent basis using the same accounting policies set
out in the audited accounts for the year to 31 December 2003.
Comparative figures for the year ended 31 December 2003 have been extracted from
the statutory accounts which have been filed with the Registrar of Companies and
on which the auditors gave an unqualified report.
2. Exceptional items
Unaudited Unaudited Audited
six months six months year
to to to
30.06.04 30.06.03 31.12.03
#'000 #'000 #'000
AIM introduction costs (236) - -
Relocation, re-organisation and redundancy - (69) (149)
Accelerated write-down of fixed assets - - (506)
Building demolition costs - - (323)
Reduction in value of properties - - (163)
------- ------- -------
(236) (69) (1,141)
------- ------- -------
3. Taxation
The taxation credit for the six months to 30 June 2004 has been calculated on
the basis of the estimated effective tax rate on profits before exceptional
items for the year to 31 December 2004.
4. Earnings per share
The calculation of earnings per ordinary share is based on profit on ordinary
activities after taxation (#192,000) divided by the weighted average number of
shares in issue (22,978,345). The number of shares in issue has been adjusted
for all periods for the 200 for 1 share division that took place on 4 March
2004.
5. Share capital
On 4th March 2004 the share capital was divided by splitting each #1 ordinary
share into 200 0.5p ordinary shares. On 28 April the Company repurchased
10,531,899 ordinary 0.5p shares at 85p per share. 1,768,722 shares, at a value
of #1,503,000, are held in treasury.
6. Interim Report
The Interim Report will be posted to shareholders shortly and further copies are
available from Robinson plc's Registered Office: Bradbury House, Goytside Road,
Chesterfield, S40 2PH.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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