Interim Results

RNS Number : 6710B

Robinson PLC

20 August 2008

 



Robinson plc

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2008

Robinson plc ('Robinson' or 'the Group'; AIM: RBN), the custom manufacturer of plastic and paperboard packaging, announces its unaudited interim results for the six months ended 30 June 2008. 

Key features:

• Paperboard revenues improved by £1m with both North America and UK gaining new business whilst Plastics revenues declined by £2m as expected 

• Transfer of plastics division activities to Poland continues successfully

• Margins improved by 1.8% of revenues as a result of reduced manufacturing expenses, exiting low margin business and successfully passing on increased costs

• Improved underlying profit after tax of £20,000 (2007: profit £940,000, which included £1,091,000 exceptional gains)

• Interim dividend maintained at 1.5 pence per share

Commenting on the results, Chairman, Richard Clothier said:

'Although this is a modest improvement in profits, the £1m increase in revenues in Paperboard and higher margins are encouraging for the Group. As usual, stronger revenues are expected in the second half, but margins will remain under pressure due to increasing input costs. Despite this, we expect further improvements in profits.'

About Robinson

Based in Chesterfield, with additional manufacturing facilities in Kirkby-in-Ashfield and Stanton Hill (Nottinghamshire) in Toronto (Canada) and in Lodz (Poland), Robinson currently employs around 400 people. It was formerly a family business, with its origins dating back some 165 years. Today the Group's main activities are in the manufacture and sale of injection moulded plastic and rigid paperboard packaging. Robinson operates primarily within the food, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestlé, Cadbury, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon and Chivas. The Group also has a substantial property portfolio with significant development potential.

For further information, please contact:

Adam Formela, Chief Executive, Robinson plc	01246 220022
Guy Robinson, Finance Director, Robinson plc	01246 220022
	www.r1son.co.uk
Richard Tulloch, Arbuthnot Securities Limited	020 7012 2000
Michael Padley/Libby Moss, Lothbury Financial	020 7011 9411

  CHAIRMAN'S STATEMENT

Six months ended 30 June 2008

I am pleased to report a continued improvement in the underlying trading performance in the first six months of 2008. Despite an expected reduction in revenues and substantial input price increases, margins have improved by 1.8%. The underlying profit after tax of £20,000 showed a modest improvement (2007: profit £940,000, which included £1,091,000 exceptional gains).

The decline in revenues was in our plastics business and was due mainly to withdrawing from low margin activities in the UK and reduced demand arising from customers' delayed transfer of production to the Group's Polish factory.  The 1.8% improvement in our margins was due to successfully passing on the increased costs, improved sales mix and reduced manufacturing expenses.

Plastics

Revenues in the division decreased by nearly £2m in comparison with the first half of last year. However, revenues in Poland doubled as further business was transferred from the UK. Aside from this, revenue reductions in the UK mainly related to low margin contracts, which came to an end in 2007.

Plastic resin prices have increased by 12% in the first half compared with the average 2007 price. It is anticipated that these will increase further during the second half of the year. Electricity costs in the UK have increased by over 50% from April 2008 and are at a significant premium to those in Continental Europe. In addition to our efforts to improve efficiency, it remains an important task to continue to pass the impact of these increases onto our customers.

Paperboard

Revenue in our Paperboard businesses showed a £1m improvement on the same period last year. Both our North American and UK based operations have gained new business.

Property

The proposed sale of the Walton Works site for residential development in Chesterfield has stalled following the collapse in house building programmes in the UK. Since market conditions appear unlikely to improve in the near future it is intended to maximise income and minimise the ongoing costs of ownership of surplus properties. The objective remains to dispose of these sites in due course to optimise shareholder value.

Dividend

The Board has approved an unchanged interim dividend of 1.5 pence per share. The dividend is payable on 1 October 2008 to shareholders registered on 29 August 2008.

Outlook

The seasonality of our market normally results in stronger revenues in the second half of the year and we anticipate this will be the case in 2008. However, the increasing input costs will continue to place pressure on margins. The Group's establishment in Poland continues to provide the scope for profitable growth. Overall, we expect continued improvement in the profitability of the business.

Richard Clothier		20 August 2008
Chairman		Robinson plc

  Robinson plc

Group Income Statement

For the six months ended 30 June 2008

			Unaudited six months to 30.06.08		Unaudited six months to 30.06.07		Audited year to 31.12.07
	Notes		£'000		£'000		£'000
Revenue			11,303		12,131		25,505
Cost of sales			(9,809)		(10,759)		(22,457)
Gross profit			1,494		1,372		3,048
Operating costs			(1,691)		(1,799)		(3,415)
Operating loss before exceptional items			(197)		(427)		(367)
Exceptional items	2		-		1,091		(197)
Operating (loss)/profit after exceptional items			(197)		664		(564)
Finance costs			(144)		(211)		(371)
Finance income in respect of pension fund			468		636		1,280
Profit before taxation			127		1,089		345
Taxation	3		(107)		(149)		(149)
Profit after taxation			20		940		196
Earnings per ordinary share (basic and diluted)	5		0.1p		5.9p		1.2p
Group statement of recognised income and expense
Actuarial loss on retirement benefit obligations			(103)		(1,259)		(1,373)
Currency translation differences			-		80		537
Net expense recognised directly in equity			(103)		(1,179)		(836)
Profit for the period			20		940		196
Total recognised expense for the period			(83)		(239)		(640)

  Robinson plc

Group Balance Sheet

at 30 June 2008

			Unaudited six months to 30.06.08		Unaudited six months to 30.06.07		Audited year to 31.12.07
			£'000		£'000		£'000
Non-current assets
Property, plant and equipment			14,341		15,425		14,350
Deferred taxation			365		236		365
Pension asset			7,281		6,334		7,281
			21,987		21,995		21,996
Current assets
Inventories			2,108		2,341		1,680
Trade and other receivables			5,779		5,207		4,928
Cash and cash equivalents			391		290		301
			8,278		7,838		6,909
Non-current assets held for sale			2,954		2,954		2,954
Total assets			33,219		32,787		31,859
Current liabilities
Trade and other payables			(5,826)		(5,923)		(5,914)
Bank overdraft			(4,788)		(4,617)		(3,620)
			(10,614)		(10,540)		(9,534)
Non-current liabilities
Provisions for deferred taxation			(1,793)		(1,568)		(1,664)
Provisions for liabilities			(203)		(204)		(203)
			(1,996)		(1,772)		(1,867)
Total liabilities			(12,610)		(12,312)		(11,401)
Net assets			20,609		20,475		20,458
Capital and reserves
Ordinary shares			80		80		80
Share premium			419		402		419
Other reserves			5,988		4,868		5,433
Profit and loss account			14,122		15,125		14,526
Shareholders' funds			20,609		20,475		20,458

  Robinson plc

Group cash flow statement

For the six months ended 30 June 2008

	Unaudited six months to 30.06.08		Unaudited six months to 30.06.07		Audited year to 31.12.07
	£'000		£'000		£'000
Cash flows from operating activities
Profit after taxation	20		940		196
Adjustments for:
Depreciation charges and write-down of fixed assets	868		1,027		1,983
Impairment of plant and equipment	-		-		796
Profit on disposal of land and buildings	-		(12)		(12)
Profit on disposal of non-current assets held for sale	-		(1,139)		(1,139)
(Profit)/loss on disposal of other plant and equipment	(2)		-		188
Decrease in provisions	-		(4)		(5)
Other finance income in respect of Pension Fund	(468)		(636)		(1,280)
Finance costs	144		211		371
Taxation charged	107		149		149
Non-cash items:
Increase in net pension asset charged to operating profit	124		139		262
Cost of share options	24		46		47
Operating cash flows before movements in working capital	817		721		1,556
(Increase)/decrease in inventories	(428)		(310)		351
(Increase)/decrease in trade and other receivables	(657)		1,757		2,022
(Decrease) in trade and other payables	(88)		(796)		(866)
Cash generated by operations	(356)		1,372		3,063
UK corporation tax received	3		132		97
Interest paid	(144)		(211)		(295)
Net cash generated from operating activities	(497)		1,293		2,865
Cash flows from investing activities
Sale of surplus properties	-		12		12
Sale of non-current assets	-		1,589		1,589
Acquisition of property, plant & equipment	(345)		(452)		(826)
Disposal of other tangible plant & equipment	8		40		42
Net cash (used in)/ generated from investing activities	(337)		1,189		817
Cash flows from financing activities
Issue of share capital	-		-		17
Dividends paid	(244)		(244)		(453)
Net cash used in financing activities	(244)		(244)		(436)
Net (decrease)/increase in cash and bank overdrafts	(1,078)		2,238		3,246
Cash and bank overdrafts at 1 January	(3,319)		(6,565)		(6,565)
Cash and bank overdrafts at end of period	(4,397)		(4,327)		(3,319)
Cash	391		290		301
Overdraft	(4,788)		(4,617)		(3,620)
Cash and bank overdrafts at end of period	(4,397)		(4,327)		(3,319)

   Robinson plc                                                                                                  Notes to the Interim Report

1.	Basis of preparation

The interim report, for a six month period, which was approved by the directors on 20 August 2008, does not comprise full accounts within the meaning of the Companies Act 1985. 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) have been filed with the Registrar of Companies. Certain comparative figures in the balance sheet and cash flow statement have been restated to reflect the adoption of IFRS.

2.	Exceptional items
			Unaudited six months to 30.06.08		Unaudited six months to 30.06.07		Audited year to 31.12.07
			£'000		£'000		£'000
Profit on disposal of non-current assets held for sale			-		1,139		1,139
Profit on disposal of land and buildings			-		12		12
Redundancy			-		(60)		(263)
Impairment of plant and equipment			-		-		(796)
Loss on disposal of plant and equipment			-		-		(188)
Re-organisation costs			-		-		(101)
			-		1,091		(197)

3.

Taxation

The taxation charge for the six months to 30 June 2008 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2008. 

4.		Dividends
			Unaudited six months to 30.06.08		Unaudited six months to 30.06.07		Audited year to 31.12.07
Ordinary:			£'000		£'000		£'000
Final			244		244		244
Interim			-		-		209
			244		244		453

5.	Earnings per share

The calculation of earnings per ordinary share is based on the profit on ordinary activities after taxation (£20,000) divided by the weighted average number of shares in issue (15,943,501).

6.	Interim Report

Further copies of the interim report are available from Robinson plc's Registered Office: Portland, Goyt Side Road, Chesterfield, S40 2PH or from its website at www.r1son.co.uk.

 

END

 

 

IR MGGMRVLFGRZM