Half Yearly Report

RNS Number : 3584H
Robinson PLC
17 August 2016
 

Robinson plc

 

("Robinson", the "Company" or the "Group")

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

 

CHAIRMAN'S STATEMENT

 

Trading and Cash

Revenues in the first half were 6% below the same period in 2015 with 2% of the reduction due to lower resin prices which were passed on to customers. The lower volumes were primarily in the UK and widespread amongst our customers where it was largely due to reduced call off rather than business losses, with also one customer taking an element of their packaging production in house.  Demand in the retail markets, particularly for premium branded goods, continues to be subdued but new business gains have started to come on stream during the period albeit somewhat slower than we had expected.

 

Reported profits are higher than the previous first half and this is due to exceptional charges last year, relating to the acquisition. The operating profit in this half of £0.2m compares with an underlying £0.8m in 2015 before exceptional items. This underlying reduction in profits was predominantly due to lower revenues, mix and resin price and has resulted in gross margins falling from 21.9% to 19.6%. Operating costs also increased, mainly in Poland, where new management and sales staff have joined the Company to deliver future growth.

 

Following the £4.3m payment of the final earn-out for the acquisition of Madrox in Poland in May, the cash outflow was £3.8m leaving net borrowings at £4.6m at the end of the period. The underlying cash generated by the Group was positive at £0.5m after spending £0.7m on new plant and machinery.

 

A final dividend, with respect to 2015, of 3p was paid to shareholders on 1 June 2016 (2015: 2.75p).

 

 

Outlook and Dividend

In the short term, the weaker pound has pushed up resin prices in the UK (as these are Euro based) but, on the other hand, it increases the sterling value of our Polish profits and net assets.  Planning applications have been submitted for the properties that we are seeking to divest, namely to develop the Boythorpe and Walton Works sites in Chesterfield, and are expected to be determined in the next 2-3 months.

 

We have been engaged in a considerable effort to strengthen our commercial capabilities including the addition of new sales and management personnel.  This investment continues and is adding to the cost structure.  However, the objective of course, is to build our business and, although we expect the soft market conditions to continue, new business should progressively fill that gap in the second half. This and further new business, already signed up but not yet in production, will, in the following year, help us to return to our organic growth targets.

 

The Board has approved an interim dividend of 2.5p (2015: 2.5p) to be paid on 3 October 2016 to shareholders on the register at 26 August 2016. The ordinary shares ex-dividend date is 25 August 2016.

 

For more information, please contact:

 

 

Robinson plc

 

Guy Robinson, Finance Director

Tel: 01246 389283

 

www.robinsonpackaging.com

FinnCap

 

Ed Frisby / Giles Rolls - corporate finance

Tel: 020 7220 0500

Stephen Norcross / Alice Lane - corporate broking

 

 

 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations

 

 

Robinson plc

 

Group Income Statement

 

 

 

 

Six months to 30.06.16

 

Six months to 30.06.15

 

Year to 31.12.15

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

Revenue

 

12,762

 

13,637

 

29,138

Cost of sales

 

-10,258

 

-10,651

 

-22,143

Gross profit

 

2,504

 

2,986

 

6,995

Operating costs

 

-1,880

 

-1,751

 

-3,805

Amortisation of intangible asset

 

-392

 

-392

 

-783

Exceptional costs

 

0

 

-948

 

-1,694

Operating profit/(loss)

 

232

 

-105

 

713

Finance income - interest receivable

 

-6

 

5

 

12

Finance costs - bank interest payable

 

-38

 

-63

 

-104

Finance income in respect of pension fund

 

96

 

82

 

153

Profit/(loss) before taxation

 

284

 

-81

 

774

Taxation

 

-122

 

-240

 

-679

Profit/(loss) for the period

 

162

 

-321

 

95

 

 

 

 

 

 

 

Earnings per ordinary share (EPS)

 

p

 

p

 

p

EPS from continuing operations excluding exceptional items

 

1.0

 

3.8

 

10.9

EPS from continuing operations

 

1.0

 

-2.0

 

0.6

 

 

 

 

 

 

 

Diluted EPS

 

 

 

 

 

 

EPS from continuing operations excluding exceptional items

 

1.0

 

3.8

 

10.5

EPS from continuing operations

 

1.0

 

-2.0

 

0.6

 

 

 

 

 

 

 

Statement of comprehensive income

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

Profit/(loss) for the period

 

162

 

-321

 

95

Items that will not be reclassified subsequently to profit or loss:

 

 

 

 

 

 

Re-measurement of net defined benefit liability

 

0

 

0

 

-33

Deferred tax relating to items not reclassified

 

0

 

0

 

85

 

 

0

 

0

 

52

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

340

 

-358

 

-375

Other comprehensive expense for the period

 

340

 

-358

 

-323

Total comprehensive income for the period

 

502

 

-679

 

-228

 

 

Robinson plc

 

Group Statement of Financial Position

 

 

 

30.06.16

 

30.06.15

 

31.12.15

 

£'000

 

£'000

 

£'000

Non-current assets

 

 

 

 

 

Goodwill

1,190

 

1,339

 

1,264

Other Intangible Assets

6,263

 

7,047

 

6,655

Property, plant and equipment

14,437

 

14,151

 

14,152

Deferred tax assets

133

 

132

 

133

Pension asset

3,747

 

3,825

 

3,747

 

25,770

 

26,494

 

25,951

Current assets

 

 

 

 

 

Inventories

2,363

 

2,568

 

2,072

Trade and other receivables

7,249

 

7,240

 

8,882

Cash

1,069

 

1,672

 

4,688

 

10,681

 

11,480

 

15,642

 

 

 

 

 

 

Total assets

36,451

 

37,974

 

41,593

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Trade and other payables

-4,239

 

-7,663

 

-9,365

Corporation tax payable

-275

 

-21

 

-150

Borrowings

-4,899

 

-2,485

 

-4,641

Other payables

0

 

0

 

0

 

-9,413

 

-10,169

 

-14,156

Non-current liabilities

 

 

 

 

 

Borrowings

-772

 

-1,489

 

-1,132

Other Payables

-62

 

0

 

-62

Deferred tax liabilities

-1,429

 

-1,654

 

-1,503

Provisions

-183

 

-184

 

-183

 

-2,446

 

-3,327

 

-2,880

Total liabilities

-11,859

 

-13,496

 

-17,036

 

 

 

 

 

 

Net assets

24,592

 

24,478

 

24,557

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

Share capital

82

 

82

 

82

Share premium

610

 

610

 

610

Capital redemption reserve

216

 

216

 

216

Translation reserve

-263

 

-603

 

-620

Revaluation reserve

4,484

 

4,463

 

4,510

Retained earnings

19,463

 

19,710

 

19,759

Equity attributable to shareholders

24,592

 

24,478

 

24,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Robinson plc

 

Group Statement of Cash Flows

 

 

 

Six months to 30.06.16

 

Six months to 30.06.15

 

Year to 31.12.15

 

£'000

 

£'000

 

£'000

Cash flows from operating activities

 

 

 

 

 

Profit/(loss) for the period

162

 

-321

 

95

 Adjustments for:

 

 

 

 

 

 Depreciation of property, plant and equipment

747

 

673

 

1,423

 Profit on disposal of other plant and equipment

-55

 

-5

 

-16

 Amortisation of goodwill and customer relationships

466

 

465

 

932

 Decrease in provisions

0

 

0

 

-1

 Other finance income in respect of pension fund

-96

 

-82

 

-153

 Finance costs

38

 

63

 

104

 Finance income

-6

 

-5

 

-12

 Taxation charged

122

 

240

 

679

 Non-cash items:

 

 

 

 

 

   Pension current service cost

96

 

82

 

200

   Cost of share options

19

 

19

 

38

Operating cash flows before movements in working capital

1,493

 

1,129

 

3,289

(Increase)/decrease in inventories

-291

 

67

 

563

 Decrease in trade and other receivables

1,633

 

1,679

 

37

(Decrease)/increase in trade and other payables

-5,012

 

199

 

1,873

Cash (used in)/generated by operations

-2,177

 

3,074

 

5,762

 Corporation tax paid

-71

 

-337

 

-714

 Interest paid

-44

 

-58

 

-104

Net cash (used in)/generated from operating activities

-2,292

 

2,679

 

4,944

Cash flows from investing activities

 

 

 

 

 

 Interest received

5

 

5

 

12

 Acquisition of plant and equipment

-783

 

-482

 

-1,072

 Disposal of other plant and equipment

105

 

30

 

16

Net cash used in investing activities

-673

 

-447

 

-1,044

Cash flows from financing activities

 

 

 

 

 

 Loans paid

-401

 

-513

 

-908

 Dividends paid

-477

 

-439

 

-837

Net cash used in financing activities

-878

 

-952

 

-1,745

Net (Decrease)/increase in cash and cash equivalents

-3,843

 

1,280

 

2,155

Cash and cash equivalents at 1 January

825

 

-1,330

 

-1,330

Cash and cash equivalents at end of period

-3,018

 

-50

 

825

 

 

 

 

 

 

Cash

1,069

 

1,673

 

4,688

Overdraft

-4,087

 

-1,723

 

-3,863

Cash and cash equivalents at end of period

-3,018

 

-50

 

825

 

 

 

Robinson plc

 

Notes to the Interim Report

 

1.   Basis of preparation

The interim report for the six month period to 30 June 2016 was approved by the directors on 16 August 2016. The interim financial information is not audited.

 

The interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs). These should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2015 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under sections 498 (2) or (3) respectively of the Companies Act 2006.

 

2.   Taxation

The taxation charge for the six months to 30 June 2016 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2016.

 

3.   Dividends

 

Six months  to 30.06.16

 

Six months  to 30.06.15

 

Year to  31.12.15

Ordinary:

£'000  

 

£'000  

 

£'000  

     Final

477 

 

439

 

439

     Interim

0

 

0

 

398

 

477

 

439

 

837

 

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 £162,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,394,304: for diluted earnings per share 16,977,012.

 

5.   Exceptional items

The exceptional item of £1,694,000 in 2015 represented the expected extra consideration for the acquisition of Madrox Spolka Jawna ("Madrox") recognised in that year. The final payment to the vendors of £4.3m was paid in May 2016.

 

6.   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.

 

7.   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.

 

 

 


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