Robinson Share Discussion Threads

[bookbroker] 26/6/2017 14:11

They will not be doing that, if anything they will strengthen their existing business through investment, and hand back some cash to shareholders, an acquisition in the kind of markets they are in would make no sense, there is already pressure within the sector concerning costs!

[rhomboid] 26/6/2017 13:42

I've sold out my tiny residual position this morning as I'm concerned about the business frittering any property cash on another acquisition & I really can't feel enough confidence in them to get value. I'll keep watching but it'll be a surprise to me if I buy back in🙂

[meijiman] 12/5/2017 14:52

Marvelous-I'm going to buy one share to go to next years AGM.

[battlebus2] 12/5/2017 14:49

Thanks for the feedback, i'll probably go next year just for the buffet and free bar....

[cockerhoop] 12/5/2017 14:26

If you insist :-)

I attended the RBN Agm yesterday at Chesterfield FC for the 1st time. I was initially rather surprised by the turnout as the function suite overlooking the pitch was pretty full (perhaps 30-35 attendees) but on the closer inspection it appeared that it was an annual Robinson family gathering. I estimate there were 3-4 other long term non family shareholders.

I arrived 15 minutes early and I was very impressed that even before the formal business both Richard Clothier and Adam Formela came to introduce themselves and have a chat with me.

Formal business was actually carried out after the Q&A and informal presentations but all votes were carried unanimously.

The full board were present with additionally Steve Harley the new UK Commercial Director (Dec 16) and Maruis (late 15) who is heading up the Polish operation after the Madrox owners had departed the scene.

During the presentations the board were very frank that recent performance had been disappointing and attributed this to the loss of a major Polish contract (Lodz site) in 2015 and a major UK one in 2016 along with an insufficient pipeline to replenish the revenue hole. Lodz was particularly singled out for having a weak management in 2015. This has been addressed by the recruitment of Maruis who in turn has built a new team at both Polish sites. The board were also very frustrated that the pipeline was taking far too long to convert with a Cadbury pot used as an example, business was won 12 months ago but 2 packaging revisions and 3 artwork changes have meant that it’s only just entered production. It was reiterated that the progress made wouldn’t be visible with the H1 results but in H2 and more significantly in 2018. Richard Clothier even commented that it was a ‘jam tomorrow story’. We also were presented with some examples of new products from across the group.

The board were asked whether they considered Madrox a good buy and they were adamant that it was with both Non Execs joining to extol how important it was to the future of the business with multi nationals wanting multi-national suppliers ideally followed by regional (where RBN see themselves) over purely national suppliers. Scale in Poland should also insulate RBN post Brexit. I’m still disappointed how the Madrox acquisition was presented. It was described as a £9.2m rev, £2m pbt business which was unrealistic as management costs have had to be added and total Polish revenue was only £11.2m in 2016 with op profit £1.1m yet it’s still earned it’s maximum contingent consideration of £4.3m. That said the board are very positive towards Madrox over the next 12-18 months.
They are looking to the UK to implement efficiencies and will be also investing heavily in plant this year. £4m cap ex was mentioned for 2017. The sector balance in the UK is currently 70% food, 30% toiletries compared to 30% food, 70% toiletries in Poland – they are looking to move to 50/50 in both regions by cross utilizing the skill set in each region. Talk of introducing Madrox blow moulded technology to the UK.
Property news was fairly subdued, the Boythorpe purely residential site may be sold in months but I felt from Guy’s answer that builder’s maybe playing hardball on price and the company wouldn’t sell unless they got a decent result. Regarding the Walton Works site they are hoping to secure an anchor retail tenant to ensure feasibility of the mixed use development but not close yet. Still haven’t received absolute planning clearance as discussions with Historic England ongoing regarding vaulted ceilings in the Gr2 listed Victorian mill.
We then broke for the best buffet lunch I’ve had in my Agm experience, the bar was opened and I was able to chat at length with both Steve Harley the new commercial director who came across really well and also with Adam Formela who was very generous with his time.
I said my goodbyes and left feeling more positive than I had on arrival, whilst the Robinson gathering were still enjoying the hospitality. It still has the feeling of a family company.

[castleford tiger] 29/3/2017 18:41

not sure any trades from winterfloods gets reported. I have them so will add on weakness
tiger

[gswredland] 29/3/2017 17:13

Interesting. Thanks CWA

[cwa1] 29/3/2017 08:10

Morning All

FWIW, the 2500 first thing was mine-a tiny top up. That's all the MMs were prepared to sell and they immediately raised the ask after this minuscule purchase.

[hezza123] 29/3/2017 05:06

The 5K buy at 116.95 is mine. Has one of yours not been reported?

[castleford tiger] 28/3/2017 17:55

MANAGING to build my stake at last. A couple of 5k buys today

tiger

[charo] 24/3/2017 13:02

in contrast coral recognised problem dealt with it swiftly and now appears to be back on growth track.

[dozey3] 24/3/2017 13:00

I went into RBN to add to my IHT exempt holdings and in the hope that property assets were undervalued by the market. The jury is still out unless they've fallen asleep. Can't help feeling that with Brexit looming the Maddox acquisition may save the company, that is if they have half decent management there.

[bookbroker] 24/3/2017 09:44

Clothier is a friggin has-been, he is a dinosaur of the 80's corporate scene, it's time he stood down instead of sitting on the gravy train culture, the Robinson family must be walking blind, do they not care about their legacy, as for these planning applications, they should have been put in years ago, these plants have been idle for a considerable amount of time, I think this company is complacent, I wish I had not bothered to invest here. The only benefit of holding is the large holding by the family that gives the share some stability!

[steve3sandal] 24/3/2017 09:24

The objection by English Heritage in respect of the mill conversion meant the the council had to refer this area to the Secretary of State for Homes & Communities. He recently took an unspecified extension of time to consider the matter, initially to gathering all the information the dep required. This included more information from a English Heritage. It will be difficult to progress any discussions on the land whislt this appeal is outstanding. I am surprised this post balance sheet event wasn't disclosed. On second thoughts, no I am not. The idea that the windfall here is used to invest in the business under this management fill me with dread....of course I could sell. A key weakness here appears to me to be short production runs (contracts) which have required yet more specialist equipment to be purchased, which eats our cash flow and then gets written down. As regards the Pension write down, it seems odd to adjust down in Dec 16 when bond yields had gone up a little. Other variables of course. Of little import, we will never see it. I am tempted to attend the AGM though hold through nominee will probably present a challenge.

[bookbroker] 24/3/2017 08:32

Robinson family need to do something about this company, they sit on their backsides collecting their dividends, I would hope that these property assets are worth in excess of their current book value, and apart from paying down some debt they return the remaining cash to shareholders, off course they will benefit too, but whoever is running this company is showing a lack of imagination and dynamism! OK it is a small company but we have seen a decline in earnings in this country, margins skinny, and likely to remain so. Not sure why I put money to work here but was expecting news on the properties, three months ago nearly and the same literature released, listed building or not, they need to get going!

[rhomboid] 15/3/2017 11:52

Results are due on the 27th march, hopefully there'll be a planning consent by then and shortly thereafter a deal to monetise the site asap , I'll take a view on the ongoing business after that..

[cockerhoop] 15/3/2017 09:50

Maddox margins though are much better than others parts of the business so appears quality operator.

[cockerhoop] 15/3/2017 09:04

Maddox has been performing - hence the earn outs paid, it's the other parts of the business that have been disappointing.

Have you been following the planning application and approval of the brownfield sites?

[bookbroker] 15/3/2017 08:34

This company was on record as saying the Maddox acquisition would make a big difference to the scale of the company, I hope that the cost of the purchase will reflect those words in a positive manner, they were cash rich before the acquisition, have subsequently paid earn-outs and have left them with a net debt of £4.5mln, Clothier had better have made the right decision, that guy had a chequered track record at Dalgety, this co. Has valuable assets, it should have concentrated on maintaining them1