Share Name Share Symbol Market Type Share ISIN Share Description
Robinson Plc LSE:RBN London Ordinary Share GB00B00K4418 ORD 0.5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 78.50p 77.00p 80.00p 78.50p 78.50p 78.50p 0 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Industrials 32.8 0.7 4.2 18.7 13

Robinson PLC Final Results

22/03/2019 7:00am

UK Regulatory (RNS & others)


Robinson (LSE:RBN)
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1 Year : From Oct 2018 to Oct 2019

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TIDMRBN

RNS Number : 6520T

Robinson PLC

22 March 2019

22 March 2019

Robinson plc

FINAL RESULTS FOR THE YEARED 31 DECEMBER 2018

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 2018.

Highlights:

   --     Revenue increased by 10% to GBP32.8m (2017: GBP29.8m) 
   --     Gross margin reduced from 19% to 18%. Operating costs reduced by 2% 

-- Operating profit before exceptional items and amortisation of intangible assets increased to GBP1.5m (2017: GBP1.3m)

   --     Net borrowings increased to GBP8.8m (2017: GBP6.5m) 
   --     Capital expenditure was GBP4.4m (2017: GBP3.2m) 

-- The Board recommends a final dividend for the year of 3.0p per share (2017: 3.0p) - the total dividend per share declared in respect of 2018 is 5.5p (2017: 5.5p)

Commenting on the results, Chairman, Alan Raleigh said:

"I am pleased to report improved revenues and profits for 2018. This was achieved through greater focus on improved service to our customers, controlling material costs and managing overheads.

We also agreed to a change in leadership to drive this even harder in 2019 and to engage more effectively in shaping the plastics sustainability agenda through our contribution to the circular economy.

Consequently, we feel the business is in a much stronger position to face the challenges in front of us and we expect to achieve double-digit sales growth again in 2019. We also expect a marked step-up in profitability, ahead of market expectations, arising from our "Strategy into Action" program which will drive faster, better execution of our plans. Central Europe will continue to play an important role in driving profitable growth.

Underpinning this progress is a strong commitment to the highest standards of corporate governance, including strengthening the Board through the appointment of Sara Halton as a new independent non-executive Director."

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 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" 

CHAIRMAN'S REPORT

This is my first Chairman's report since I was appointed Chairman after the AGM in May 2018. I heard a loud and clear message that shareholders want improved performance and clear plans to address margin erosion, sustainability and future cash generation.

With this in mind, the Board has spent considerable time reviewing the strategy and operating plans of the business, with a particular emphasis on customer relationship management, input material costs, operating costs and sustainability. We have also reviewed our key capabilities, including innovation, technology and people.

As a result of this review, we have concluded that our core strategy of partnering with winning customers in attractive markets and geographies remains correct. However, the execution of our strategy needs to be sharpened and our key capabilities can be improved to provide further competitive advantage.

It was agreed that changes were necessary to ensure the Group's future development and success. At the end of November, the Chief Executive resigned, and Martin McGee was appointed as an interim CEO to lead a "Strategy into Action" agenda that will deliver improved shareholder value.

This plan, which is already underway, will take time to fully implement but we expect progress during 2019.

Governance

During the year a great deal of emphasis has been placed on corporate governance. The Board has adopted the Quoted Companies Alliance Corporate Governance Code. The roles, relationships and responsibilities of the Board and its committees have been reviewed and updated to ensure we have a team working openly and effectively to deliver the agreed strategy and operational improvements.

Additionally, as a result of the Board changes following the AGM and implementation of the new governance code, a new independent non-executive director was required. After an extensive search process, I am delighted that Sara Halton agreed to join the Board from 1 January 2019.

Sustainability

In a world where consumers are correctly challenging the impact of plastic waste on the environment, we must play our part to ensure the lowest possible impact from the design, manufacture and use of the plastic products we produce.

To achieve this, we participate in an emerging plastics circular economy. We are committed to using the lowest quantity of total plastic and highest-level of post-consumer recycled plastics in our bespoke products without compromising either aesthetics or functional properties. We will ensure that in future all our products are recyclable and can be responsibly collected, cleaned and then supplied again in a form we can reuse.

We may be a small part of this at the moment, but we are growing and take our responsibilities seriously. We have an important role to play in the development of a fully functioning plastics circular economy. In partnership with our suppliers, industry partners and customers we commit to taking practical, measurable steps which we will report transparently as we progress on this journey.

Revenues, gross margins and operating costs

It is pleasing to report that revenues increased by 10% to GBP32.8m in 2018. Underlying volumes were 7% higher.

We have passed on some, but not all, input price increases to customers in a very challenging retail environment. This has led to a reduction in gross margin from 19% to 18% in the year.

In 2018 operating costs reduced by 2% and, whilst we expect to make further investments in personnel to strengthen the business, we recognise that the shape of the profit and loss account needs to be addressed as a key part of delivering adequate returns for our shareholders. Growing revenues whilst maintaining efficient levels of operating costs is part of the planned solution.

Profits

With tighter control of operating costs compensating for the slight gross margin erosion, operating profit has improved in 2018 by 15% to GBP1.5m whilst EBITDA rose 19% to GBP3.4m. Basic earnings per share have risen from 1.9p to 4.2p.

Capital investment, financing, dividend and pension

There was an increase in net borrowings of GBP2.3m in the year as we invested GBP4.4m (2017: GBP3.2m) in new plant and equipment and maintained the dividend at GBP0.9m (2017: GBP0.9m). Of this capital investment, GBP3.1m in 2018 related to new business growth and we will continue to invest during 2019 to upgrade current capabilities and accelerate new business growth. Net borrowings ended the year at GBP8.8m (2017: GBP6.5m), safely within our GBP13m of facilities and shareholders' funds reduced slightly from GBP23.1m to GBP22.9m.

The Board proposes an unchanged final dividend of 3.0p per share to be paid on 3 June 2019 to shareholders on the register at the close of business on 17 May 2019. The ordinary shares become ex-dividend on 16 May 2019. This brings the total dividend declared in respect of 2018 to 5.5p per share (2017: 5.5p). The IAS19 valuation at the yearend of our pension fund reported a surplus of GBP6.5m (2017: GBP8.5m). This surplus is deemed to be irrecoverable and not included in the Company's assets.

Property

The current market for both retail and, locally, residential developments remains challenging, but we continue to explore all opportunities to find suitable schemes for our surplus sites at Walton Works and Boythorpe Works in Chesterfield. We remain confident that buyers will be found but do not expect significant income from the sale of these sites in 2019.

Outlook

Our pipeline of future business is now much stronger and more advanced than in previous years. This, together with even stronger customer partnerships, gives us confidence that we will see double-digit sales growth again in 2019. We also expect a marked step-up in profitability, ahead of market expectations, arising from our "Strategy into Action" program which will drive faster, better execution of our plans. Central Europe will continue to play an important role in driving profitable growth.

Alan Raleigh

Chairman

21 March 2019

Group income statement

FOR THE YEARED 31 DECEMBER

 
                                                          2018            2017 
                                                       GBP'000         GBP'000 
---------------------------------------        ---------------  -------------- 
 
 
 Revenue                                                32,802          29,813 
 Cost of sales                                        (26,918)        (24,035) 
---------------------------------------------  ---------------  -------------- 
 Gross profit                                            5,884           5,778 
 Operating costs                                       (4,370)         (4,457) 
-----------------------------------------      ---------------  -------------- 
 Operating profit before exceptional 
  items and amortisation of intangible 
  assets                                                 1,514           1,321 
 Exceptional items                                         110              65 
 Amortisation of intangible 
  assets                                                 (783)           (783) 
---------------------------------------------  ---------------  -------------- 
 Operating profit after exceptional 
  items                                                    841             603 
 Finance income - interest 
  receivable                                                 -               1 
 Finance costs - bank interest 
  payable                                                (156)           (104) 
 Finance income in respect of pension 
  fund                                                       -             130 
------------------------------------------     ---------------  -------------- 
 Profit before taxation                                    685             630 
 Taxation                                                   10           (317) 
---------------------------------------------  ---------------  -------------- 
 Profit attributable to the owners of 
  the Company                                              695             313 
------------------------------------------     ---------------  -------------- 
 
 Basic earnings per share                                 4.2p            1.9p 
 Diluted earnings per share                               4.2p            1.9p 
 

Statement of comprehensive income

FOR THE YEARED 31 DECEMBER

 
                                                                2018      2017 
                                                             GBP'000   GBP'000 
---------------------------------------------        ---------------  -------- 
 Profit for the year                                             695       313 
---------------------------------------------------  ---------------  -------- 
 Items that will not be reclassified 
  subsequently to profit or loss: 
 Remeasurement of net defined 
  benefit liability                                              193        61 
 Deferred tax relating to 
  items not reclassified                                           -      (11) 
---------------------------------------------------  ---------------  -------- 
                                                                 193        50 
      ---------------------------------------------  ---------------  -------- 
 Items that may be reclassified subsequently 
  to profit or loss: 
 Exchange differences on translation 
  of foreign operations                                        (138)       818 
----------------------------------------------       ---------------  -------- 
 Other comprehensive income 
  for the year                                                    55       868 
 Total comprehensive income for the year 
  attributable to the owners of the Company                      750     1,181 
------------------------------------------------     ---------------  -------- 
 

Statement of financial position

AS AT 31 DECEMBER

 
                                                          Group 
                                                      2018                  2017 
                                                   GBP'000               GBP'000 
-----------------------------------   --------------------  -------------------- 
 Non-current assets 
 Goodwill                                            1,115                 1,115 
 Other intangible assets                             4,306                 5,089 
 Property, plant and equipment                      19,039                17,011 
 Investments in subsidiaries                             -                     - 
 Deferred tax asset                                    868                    95 
------------------------------------  --------------------  -------------------- 
                                                    25,328                23,310 
 -----------------------------------  --------------------  -------------------- 
 Current assets 
 Inventories                                         2,972                 2,838 
 Trade and other receivables                        10,699                 9,905 
 Deferred tax asset                                      -                     - 
 Cash                                                1,358                   283 
------------------------------------  --------------------  -------------------- 
                                                    15,029                13,026 
 -----------------------------------  --------------------  -------------------- 
 Total assets                                       40,357                36,336 
------------------------------------  --------------------  -------------------- 
  Current liabilities 
 Trade and other payables                          (5,897)               (5,568) 
 Corporation tax payable                              (99)                 (250) 
 Bank overdrafts                                   (6,178)               (6,441) 
 Bank and other loans                                    -                 (221) 
 Obligations under finance 
  lease contracts                                    (276)                  (44) 
------------------------------------  --------------------  -------------------- 
                                                  (12,450)              (12,524) 
 -----------------------------------  --------------------  -------------------- 
 Non-current liabilities 
 Bank and other loans                              (2,700)                     - 
 Obligations under finance 
  lease contracts                                  (1,049)                  (87) 
 Deferred tax liabilities                          (1,056)                 (488) 
 Amounts due to group undertakings                       -                     - 
 Provisions                                          (174)                 (181) 
------------------------------------  --------------------  -------------------- 
                                                   (4,979)                 (756) 
 -----------------------------------  --------------------  -------------------- 
 Total liabilities                                (17,429)              (13,280) 
------------------------------------  --------------------  -------------------- 
 Net assets                                         22,928                23,056 
------------------------------------  --------------------  -------------------- 
 Equity 
 Share capital                                          83                    83 
 Share premium                                         732                   732 
 Capital redemption reserve                            216                   216 
 Translation reserve                                   826                   964 
 Revaluation reserve                                 4,126                 4,321 
 Retained earnings                                  16,945                16,740 
------------------------------------  --------------------  -------------------- 
 Equity attributable to 
  shareholders                                      22,928                23,056 
------------------------------------  --------------------  -------------------- 
 

Statement of changes in equity

FOR THE YEARED 31 DECEMBER

 
                        Share         Share               Capital           Translation            Revaluation   Retained        Total 
                      capital       premium            redemption               reserve                reserve   earnings 
                                                          reserve 
                      GBP'000       GBP'000               GBP'000               GBP'000                GBP'000    GBP'000      GBP'000 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 Group 
 At 1 January 2017         82           610                   216                   146                  4,402     17,181       22,637 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 Profit for the 
  year                                                                                                                313          313 
 Other 
  comprehensive 
  income/(expense)                                                                  818                                50          868 
 Transfer from 
  revaluation 
  reserve as a 
  result of 
  property 
  transactions                                                                                            (81)         81            - 
 Credit in respect of share 
  based payments                                                                                                       16           16 
 Total 
  comprehensive 
  income 
  for the year              -             -                 -                       818                   (81)        460        1,197 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 Shares issued              1           122                                                                                        123 
 Dividends paid                                                                                                     (901)        (901) 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 Transactions with 
  owners                    1           122                     -                     -                      -      (901)        (778) 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 At 31 December 
  2017                     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 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 Shares issued                                                                                                                       - 
 Dividends paid                                                                                                     (890)        (890) 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 Transactions with 
  owners                    -             -                     -                     -                      -      (890)        (890) 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 At 31 December 
  2018                     83           732                   216                   826                  4,126     16,945       22,928 
------------------  ---------  ------------  --------------------  --------------------  ---------------------  ---------  ----------- 
 

Statement of cash flows

FOR THE YEARED 31 DECEMBER

 
                                                      Group 
                                                   2018         2017 
                                                GBP'000      GBP'000 
----------------------------------------   ------------  ----------- 
 Cash flows from operating activities 
 Profit/(loss) for the year                         695          313 
  Adjustments for: 
  Depreciation of property, plant 
   and equipment                                  1,795        1,492 
  Impairment of property, plant                     189            - 
   and equipment 
  Loss/(profit) on disposal of 
   other plant and equipment                        209         (85) 
  Impairment/amortisation of goodwill 
   and customer relationships                       783          783 
  Decrease in provisions                            (7)          (4) 
  Other finance income in respect 
   of Pension Fund                                    -        (130) 
  Finance costs                                     156          104 
  Finance income                                      -          (1) 
  Taxation (credited) / charged                    (10)          317 
  Other non-cash items: 
   Pension current service cost 
    and expenses                                    193          191 
   Charge for share options                          12           16 
-----------------------------------------  ------------  ----------- 
 Operating cash flows before movements 
  in working capital                              4,015        2,996 
 Increase in inventories                          (151)        (263) 
 (Increase)/decrease in trade 
  and other receivables                           (853)        (875) 
  Increase/(decrease) in trade 
   and other payables                               329          411 
-----------------------------------------  ------------  ----------- 
 Cash generated by/(used in) operations           3,340        2,269 
  Corporation tax paid                            (294)        (405) 
  Interest paid                                   (150)        (104) 
 Net cash generated by/(used in) 
  operating activities                            2,896        1,760 
-----------------------------------------  ------------  ----------- 
 
 Cash flows from investing activities 
  Interest received                                   -            1 
  Acquisition of plant and equipment            (4,355)      (2,614) 
  Proceeds on disposal of property, 
   plant and equipment                               15          151 
-----------------------------------------  ------------  ----------- 
 Net cash (used in)/generated 
  from investing activities                     (4,340)      (2,462) 
-----------------------------------------  ------------  ----------- 
 
 Cash flows from financing activities 
  Loans repaid                                    (221)        (531) 
  Loans drawndown                                 2,700            - 
  Shares issued                                       -          123 
  Finance leases drawndown                        1,300            - 
  Finance lease payments                          (106)         (28) 
  Dividends paid                                  (890)        (901) 
-----------------------------------------  ------------  ----------- 
 Net cash generated from/(used 
  in) financing activities                        2,783      (1,337) 
-----------------------------------------  ------------  ----------- 
 
 Net decrease in cash and cash 
  equivalents                                     1,339      (2,039) 
 Cash and cash equivalents at 
  1 January                                     (6,158)      (4,206) 
 Effect of foreign exchange rate 
  changes                                           (1)           87 
----------------------------------------- 
 Cash and cash equivalents at 
  31 December                                   (4,820)      (6,158) 
-----------------------------------------  ------------  ----------- 
 

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 2018 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 2018.

   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, including the Notice of Annual General Meeting, are due to be made available on the Company's website (www.robinsonpackaging.com) and posted to shareholders on 17 April 2019. 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 at Chesterfield Football Club on 9 May 2019.

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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