Final Results

RNS Number : 9155Z
Robinson PLC
23 March 2012
 




23 March 2012

 

 

 

 

Robinson plc

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011

 

Robinson plc ("Robinson"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2011.

 

Highlights:

·          Profit before tax* rose 23% to £2.7m (2010: £2.2m)

·          Revenue* increased by 10% to £21.5m (2010: £19.5m)

·          Spiral wound paperboard tube business sold to Sonoco on1 July 2011 for £3.1m generating a gain on disposal of £1.0m

·          Dividends for the year increased by 15%

 

 

* continuing operations

 

Commenting on the results, Chairman, Richard Clothier said:

 

"We are pleased to report further growth in revenues and profits from continuing operations in 2011. The sale during the year of the spiral wound paperboard tube business to Sonoco UK Ltd enables the group to focus on the businesses in the group that offer earnings growth. Despite unhelpful economic conditions, we expect new business gains to support further growth in 2012."

 

 

About Robinson

Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz (Poland), Robinson currently employs around 225 people. It was formerly a family business, with its origins dating back some 173 years. Today the group's main activity is the manufacture and sale of injection moulded plastic packaging. Robinson operates primarily within the food, drink, confectionery, toiletry and cosmetic sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestle, Kraft, United Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon, Heinz, Boots and Dr Oetker. The Group also has a substantial property portfolio with development potential.

 

 

For further information, please contact:

 

Adam Formela, Chief Executive, Robinson plc

01246 389287

Guy Robinson, Finance Director, Robinson plc

www.robinsonpackaging.com

 

 

Katy Mitchell, WH Ireland

0161 832 2174

 

 

 

Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England)       AIM code "RBN"



CHAIRMAN'S REPORT

 

The results for 2011 show another substantial improvement and, apart from the drop in revenue resulting from our exit from underperforming businesses, the outcome is the best that Robinson has achieved for many years and certainly since it was admitted to AIM in 2004. This arises from two satisfactory developments in the Group. The performance of the plastics packaging business has improved for the second year in succession and the Company has completed a profitable disposal of the long underperforming spiral wound paperboard tube business both in Canada and the UK. The operating results exclude the effect of the disposed businesses which is shown as a separate line at the foot of the Group Income Statement. All of the continuing businesses achieved improved profits in the year.

 

Revenue and Profits

Group revenue increased by 10% of which half was the result of price increases to cover higher raw material costs and the remainder was a product of increased sales volumes. The higher volumes and stable operating costs improved operating profit by 22% to £2.1m and profit before tax for the continuing business increased to £2.7m (2010 £2.2m), with a £0.1m increase in notional finance income in respect of the pension fund surplus. Exceptional gains of £1.4m from business disposals boosted the profit after tax for the year to £3.3m (2010 £1.2m).

 

Cash and Finances

Cash flow benefited from the proceeds from the sale of the Chesterfield spiral wound paperboard tube business to Sonoco for £3.1m. This was offset by capital expenditure on new plant and machinery of £1.1m and also an investment in the Glasgow plastic in mould label specialist Scotplast Ltd, which was reported at the half year. Overall borrowings were reduced by £2.8m to £0.6m at the year end.

 

Dividends

Fully diluted earnings per share from continuing operations have risen by 14% and shareholders' funds strengthened by £2.0m. The Board proposes a final dividend of 2p per share to be paid on 1 June 2012 to shareholders on the register at the close of business on 18 May 2012. This brings the total dividend declared in respect of 2011 to 3.75p per share - an increase of 15% over the previous year.

 

Surplus Properties

The Group continues to hold several surplus properties that have the potential to realise value on disposal once property market conditions improve. These now include the Portland facility in Chesterfield, which is subject to a 15 year lease to Sonoco, who have a two year rent free period during which they can exercise an option to buy the property. The directors believe the market value of these surplus properties is in excess of their carrying value in these financial statements.

 

Outlook

Management is committed to maintaining the hard won improvements in efficiency in the plastics business and also to building the top line where we see potential for organic growth particularly in Central Europe and in our rigid paperbox business. So far this year market conditions have remained stable for most of our customers. We remain conscious of the possible effects of adverse economic trends on consumer demand, but due to the Group's exposure to the usually resilient food, drink and toiletry sectors we do not expect revenues to be greatly affected. Our progress so far in 2012 is in line with the Board's expectations.

 

 

Richard Clothier

Chairman

 



Group income statement

FOR THE YEAR ENDED 31 DECEMBER

 








2011


2010








£'000


£'000











Continuing operations










Revenue





 


21,516


19,507

Cost of sales







(16,748)


(15,081)

Gross profit







4,768


4,426

Operating costs





(2,637)


(2,675)

Share of results of associate





-


-

Operating profit




2,131


1,751

Finance income - interest receivable





53


24

Finance costs - bank interest payable





(62)


-

Finance income in respect of pension fund




550


474

Profit before taxation







2,672


2,249

Taxation







(779)


(627)

Profit after tax from continuing operations




1,893


1,622

Discontinued operations - profit/(loss) for the year




1,398


(468)

Profit for the year




3,291


1,154











Basic earnings per share










Profit per ordinary share from continuing operations 

11.9p


           10.2p

Profit/(loss) per ordinary share from discontinued operations 

8.7p


( 2.9p )

Profit per ordinary share from continuing and discontinued operations 


    

7.2p

Diluted earnings per share










Profit per ordinary share from continuing operations 

11.6p


           4.6p

Profit/(loss) per ordinary share from discontinued operations 

8.7p


( 1.9p )

Profit per ordinary share from continuing and discontinued operations 

           20.3p


         

 7.2p

 

Statement of comprehensive income               

FOR THE YEAR ENDED 31 DECEMBER

 








2011


2010








£'000


£'000

Profit for the year







3,291


1,154

Other comprehensive income










Actuarial (loss)/gain on retirement benefit  obligations






(705)


513

Release of currency translation reserve on closure of subsidiary



-


                 (311)

Currency translation loss







(499)


(56)







(1,204)


146

Taxation relating to actuarial (loss)/gain






407


(143)

Other comprehensive (expense)/income for the year





(797)


3

Total comprehensive income for the year attributable to the Company's shareholders




2,494


1,157

 



Statement of financial position

 AS AT 31 DECEMBER

 



Group



2011


2010



£'000


£'000

Non-current assets





Property, plant and equipment


8,763


12,394

Interests in associate


250


-

Loan to associate


200


-

Deferred tax asset


221


288

Pension asset


7,292


7,696



16,726


20,378

Current assets





Inventories


1,379


1,982

Trade and other receivables


6,555


6,447

Cash


333


347



8,267


8,776

Non-current assets held for sale


4,998


2,782

Total assets


29,991


31,936

 

 





Current liabilities





Trade and other payables


(3,940)


(4,605)

Corporation tax payable


(391)


(542)

Borrowings


(605)


(2,872)



(4,936)


(8,019)

Non-current liabilities





Borrowings


(307)


(876)

Deferred tax liabilities


(1,372)


(1,701)

Provisions


(189)


(191)



(1,868)


(2,768)

Total liabilities


(6,804)


(10,787)






Net assets


23,187


21,149






Equity





Share capital


80


80

Share premium


419


419

Capital redemption reserve


216


216

Translation reserve


81


580

Revaluation reserve


4,567


4,420

Retained earnings


17,824


15,434

Equity attributable to shareholders


23,187


21,149



 

Statement of changes in equity

 

FOR THE YEAR ENDED 31 DECEMBER

 

Share

Share

Capital

Translation

Revaluation


Retained

Total

capital

premium

redemption

reserve

reserve


earnings




account

reserve









£'000


£'000


£'000


£'000


£'000


£'000

£'000

Group













At 1 January 2010

80


419


216


947


4,461


14,295

20,418

Profit for the year











1,154

1,154

Other comprehensive income







(367)




370

3

Transfer to revaluation reserves as a result of property transactions









 

(41)


 

41

                 -

Total comprehensive income for the year

              -


           -


                -


(367)


(41)


1,565

1,157

Credit in respect of share based payments











30

30

Dividends paid











(456)

(456)

Transactions with owners











(426)

(426)

At 31 December 2010

80


419


216


580


4,420


15,434

21,149

Profit for the year











3,291

3,291

Other comprehensive income







(499)




(298)

(797)

Transfer to revaluation reserves as a result of property transactions









 

141


 

(141)

                 -

Tax on revaluation









6


-

6

Total comprehensive income for the year

              -


           -


                -


(499)


147


2,852

2,500

Credit in respect of share based payments











50

50

Dividends paid











(512)

(512)

Transactions with owners











(462)

(462)

At 31 December 2011

80


419


216


81


4,567


17,824

23,187



 

Statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER

 



       Group



2011


2010

 



£'000


£'000

 

Cash flows from operating activities





 

Profit for the year


3,291


1,154

 

 Adjustments for:





 

 Depreciation of property, plant and equipment


1,061


1,379

 

 (Profit)/loss on disposal of other plant and equipment


(86)


1

 

 Profit on sale or closure of discontinued operations


(1,891)


(165)

 

 Decrease in provisions


(2)


(3)

 

 Other finance income in respect of pension fund


(550)


(474)

 

 Finance costs


62


66

 

 Taxation charged


779


474

 

 Other non-cash items:





 

        Pension current service cost


249


285

 

        Charge for share based payments


50


30

 

Operating cash flows before movements in working capital


2,963


2,747

 

 Increase in inventories


(216)


(497)

 

 Increase in trade and other receivables


(1,222)


(1,222)

 

 Increase/(decrease) in trade and other payables


265


(348)

 

Cash generated by operations


1,790


680

 

 UK corporation tax paid


(779)


(114)

 

 Interest paid


(69)


(67)

 

Net cash generated from operating activities


942


499

 






 

Cash flows from investing activities





 

 Sale of discontinued operations


3,729


(66)

 

 Investment in an associate


(450)


-

 

 Acquisition of plant and equipment


(1,059)


(542)

 

 Proceeds on disposal of other plant and equipment


172


17

 

Net cash generated from/(used in) from investing activities


2,392


(591)

 






 

Cash flows from financing activities





 

Loans repaid


(647)


(409)

 

Dividends paid


(512)


(456)

 

Net cash used in financing activities


(1,159)


(865)

 






 

Net increase/(decrease) in cash and cash equivalents


2,175


(957)

 

Cash and cash equivalents at 1 January


(2,112)


(1,155)

 

Cash and cash equivalents at 31 December


63


(2,112)

 






 

Cash


333


347

 

Overdraft


(270)


(2,459)

 

Cash and cash equivalents at 31 December


63


(2,112)

 



Notes to the financial statements

 

1.   Basis of preparation

Whilst this financial information has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The consolidated and Company financial statements have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union. All standards and interpretations that have been issued and are effective at 31 December 2011 have been applied in the financial statements. The financial statements have been prepared under the historical cost convention. No accounting standards coming into effect in 2011 have had any effect on the financial statements.

 

IAS 1 Presentation of Financial Statements (Revised 2007) requires presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances.  Management considers that this is not necessary this year because the 2010 balance sheet is the same as that previously published.

 

In determining whether the Group's 2011 financial statements can be prepared on a going concern basis, the Directors considered all factors likely to affect its future development, performance and its financial position, including cash flows, liquidity position and borrowing facilities and the risks and uncertainties relating to its business activities. As at the date of this report, the directors have a reasonable expectation that the Company and Group have adequate resources to continue in business for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

 

2.   Closure of subsidiary

On 1 July 2011 the spiral wound paperboard tube business of Robinson Paperboard Packaging Limited was sold to Sonoco Ltd. The results of the discontinued operation, which have been included in the Group income statement, along with further gains relating to the closure of Robinson Paperboard Packaging (North America) Ltd, are shown below. The comparative figures also include the trading results and gain on closure of Robinson Paperboard Packaging (North America) Ltd.


2011


2010


£'000


£'000

Revenue

2,881


6,928

Expenses

(3,212)


(7,714)

Loss before tax

(331)


(786)

Attributable tax expense

80


153


(251)


(633)

Gain on disposal of discontinued operations - spiral wound paperboard tube business

 

1,023


 

-

Gain on closure of discontinued operations

626


165

Net loss attributable to discontinued operations

1,398


(468)

The net assets of the spiral wound tube business of Robinson Paperboard Packaging Limited at the date of sale were:









2011









£'000

Property, plant & equipment








923

Inventories








819

Trade receivables








1,019

Trade payables








(873)

Other payables








(50)









1,838

Sale costs








212

Gain on disposal








1,023

Total consideration








3,073

 

3.   Publication of non-statutory financial statements

The financial information set out above does not constitute the company's statutory financial statements for the years ended 31 December 2011 or 2010, but is derived from those accounts. Statutory financial statements for 2010 have been delivered to the Registrar of Companies and those for 2011 will be delivered following the company's annual general meeting planned for 3 May 2012.  Copies will also be available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK and on the Group's website at www.robinsonpackaging.com.The auditor has reported on those financial statements; their reports were unqualified and did not contain statements under the Companies Act 2006, section 498 (2) or (3).

 


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