Half Yearly Report

RNS Number : 5811K

Robinson PLC

22 August 2012

 



Robinson plc

("Robinson" or the "Company)

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

CHAIRMAN'S STATEMENT                  

Trading conditions have weakened during the first half and in  the second quarter revenues have dropped slightly below the previous year.  Margins, however, have been maintained and, with tight cost control, profit before exceptional costs have improved. The Directors have decided to write off our investment in the ice cream container manufacturer, Scotplast, after it had failed to achieve its business plans.

Revenues & Profits

Revenues during the first half were marginally down compared with the same period last year. Our customers have seen demand for their premium branded products come under pressure in the current market conditions and have reacted by reducing stock holdings, particularly in the last few months. However, new business won which is scheduled to come on stream during the second half of the year is expected to offset this shortfall.

The gross profit is £0.1m higher than the previous year as we have passed on the raw material price rises sustained during the first half. Increasing efficiency is a constant priority for the company and overheads have been reduced by £0.1m. With the Group's cash position broadly neutral and the continued notional benefit arising from the pension fund surplus, the profit before tax was £0.6m (after taking into account the Scotplast impairment) compared with £1.0m the previous half year.

Scotplast

During the first quarter of 2012, Scotplast, the company in which we acquired a 35% stake in 2011, has struggled with reduced revenues and margins have been squeezed by higher raw material prices. On 5 April 2012, we increased our shareholding to 49% by injecting £0.1m into the business in an attempt to help the business through a difficult cash flow situation. Since then the performance of the business has materially deteriorated, not helped by the worsening commercial environment and poor summer weather. The Directors have decided to fully write off our investment in this business. This amounts to £0.5m and is shown as an exceptional impairment in the Group Income Statement.

Cash & Finances

The Group's net cash and borrowings position stands at £0.4m. This has improved by £1.6m during the past 12 months mainly as a result of the trading profits and proceeds received from the sale of the spiral wound paperboard business in 2011. A final dividend of 2p was paid on 1 June 2012 (2011: 1.75p).

Outlook and Dividend

Market conditions for the rest of this year are expected to remain subdued. Plastic resin prices have recently reduced significantly from their recent peak and, although this benefit will be passed on to customers, we expect to maintain our margins. The directors are nevertheless optimistic that the Group will show further progress in the profitability of the underlying continuing businesses by the end of the year. As a result, an unchanged interim dividend of 1.75p (Oct-11: 1.75p) has been approved to be paid on 1 October 2012 to shareholders on the register at 31 August 2012.

For more information please contact:

Robinson plc
Guy Robinson, Finance Director	Tel: [phone]
	www.robinsonpackaging.com
WH Ireland
Katy Mitchell	Tel: [phone]

 Group Income Statement

			Six months to 30.06.12		Six months to 30.06.11		Year to 31.12.11
	Notes		£'000		£'000		£'000
Revenue			9,517		9,565		21,516
Cost of sales			(7,595)		(7,744)		(16,748)
Gross profit			1,922		1,821		4,768
Operating costs			(982)		(1,121)		(2,637)
Exceptional impairment of investment in associate			(525)		-		-
Operating profit			415		700		2,131
Finance income - interest receivable			-		51		53
Finance income - bank interest payable			(4)		(47)		(62)
Finance income in respect of pension fund			237		274		550
Profit before taxation			648		978		2,672
Taxation	2		(275)		(301)		(779)
Profit after taxation from continuing operations			373		677		1,893
Discontinued operations - gain for the period			-		796		1,398
Profit for the period			373		1,473		3,291
Earnings per ordinary share (EPS)	4
EPS from continuing operations excluding exceptional items			7.4p		6.1p		11.9p
EPS from continuing operations			2.3p		4.2p		11.9p
EPS from continuing and discontinued operations			2.3p		9.2p		20.6p
Diluted EPS	4
EPS from continuing operations excluding exceptional items			5.5p		4.2p		11.6p
EPS from continuing operations			2.3p		4.2p		11.6p
EPS from continuing and discontinued operations			2.3p		9.1p		20.3p
Statement of comprehensive income			£'000		£'000		£'000
Profit for the period			373		1,473		3,291
Other comprehensive income
Actuarial loss on retirement benefit obligations			(90)		(130)		(705)
Currency translation gain/(loss)			3		179		(499)
			(87)		49		(1,204)
Taxation relating to actuarial loss			30		34		407
Other comprehensive (expense)/income for the period			(57)		83		(797)
Total comprehensive income for the period			316		1,556		2,494

 Group Balance Sheet

			30.06.12		30.06.11		31.12.11
			£'000		£'000		£'000
Non-current assets
Property, plant and equipment			8,847		11,398		8,763
Interests in associate			-		-		250
Loan to associate			-		-		200
Deferred tax assets			173		249		221
Pension asset			7,292		7,696		7,292
			16,312		19,343		16,726
Current assets
Inventories			1,590		1,449		1,379
Trade and other receivables			5,884		6,238		6,555
Cash			902		1,204		333
			8,376		8,891		8,267
Non-current assets held for sale			4,998		2,782		4,998
Total assets			29,686		31,016		29,991
Current liabilities
Trade and other payables			(4,140)		(3,663)		(3,940)
Corporation tax payable			(220)		(681)		(391)
Borrowings			(335)		(1,709)		(605)
			(4,695)		(6,053)		(4,936)
Non-current liabilities
Borrowings			(140)		(667)		(307)
Deferred tax liabilities			(1,417)		(1,541)		(1,372)
Provisions			(189)		(191)		(189)
			(1,746)		(2,399)		(1,868)
Total liabilities			(6,441)		(8,452)		(6,804)
Net assets			23,245		22,564		23,187
Equity
Share capital			80		80		80
Share premium			419		419		419
Capital redemption reserve			216		216		216
Translation reserve			84		759		81
Revaluation reserve			4,568		4,420		4,567
Retained earnings			17,878		16,670		17,824
Equity attributable to shareholders			23,245		22,564		23,187

 Group cash flow statement

			Six months to 30.06.12		Six months to 30.06.11		Year to 31.12.11
			£'000		£'000		£'000
Cash flows from operating activities
Profit for the period			373		1,473		3,291
Adjustments for:
Impairment of investment in associates			550		-		-
Depreciation of property, plant and equipment			431		604		1,061
Profit on disposal of other plant and equipment			-		(72)		(86)
Gain on disposal or closure of discontinued operations			-		(1,041)		(1,891)
Decrease in provisions			-		-		(2)
Other finance income in respect of pension fund			(237)		(274)		(550)
Finance income			4		(4)		62
Taxation charged			275		211		779
Non-cash items:
Pension current service cost			116		144		249
Cost of share options			30		12		50
Operating cash flows before movements in working capital			1,542		1,053		2,963
Increase in inventories			(211)		(262)		(216)
Decrease/(Increase) in trade and other receivables			664		(501)		(1,222)
Increase in trade and other payables			200		209		265
Cash generated by operations			2,195		499		1,790
UK corporation tax paid			(291)		(51)		(779)
Interest (paid)/received			(5)		3		(69)
Net cash generated from operating activities			1,899		451		942
Cash flows from investing activities
Disposal or closure of discontinued operations			-		2,340		3,729
Investment in an associate			(100)		-		(450)
Acquisition of property, plant and equipment			(505)		(459)		(1,059)
Disposal of other plant and equipment			-		158		172
Net cash (used in)/generated from investing activities			(605)		2,039		2,392
Cash flows from financing activities
Loans paid			(167)		(206)		(647)
Dividends paid			(288)		(260)		(512)
Net cash used in financing activities			(455)		(466)		(1,159)
Net increase in cash and cash equivalents			839		2,024		2,175
Cash and cash equivalents at 1 January			63		(2,112)		(2,112)
Cash and cash equivalents at end of period			902		(88)		63
Cash			902		1,205		333
Overdraft			-		(1,293)		(270)
Cash and cash equivalents at end of period			902		(88)		63

                                                                   Notes to the Interim Report

1.   Basis of preparation

The interim report for the six month period to 30 June 2012 was approved by the directors on 22 August 2012. The interim financial information is not audited.

The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention except that they have been modified to include the valuation of certain financial assets and liabilities. The interim financial statements do not constitute statutory financial statements in accordance with section 435 of the Companies Act 2006. The full year figures are derived from the statutory accounts on which the auditors gave an unmodified report. The Group's statutory financial statements prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union have been filed with the Registrar of Companies.

2.   Taxation

The taxation charge for the six months to 30 June 2012 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2012.

3.   Dividends

	Six months to 30.06.12		Six months to 30.06.11		Year to 31.12.11
Ordinary:	£'000		£'000		£'000
Final	288		260		255
Interim	-		-		257
	288		260		512

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 after taxation of £373,000 divided by the weighted average number of shares in issue, net of treasury shares of 15,943,501: for diluted earnings per share 16,331,830.

5.   Going concern

The directors have considered the cash flow forecasts for the Group and the availability of facilities. As at the date of this report, 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.

6.   Interim report

Copies of the interim report are available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK or from its website at www.robinsonpackaging.com.

 

END

 

 

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