Interim Results

RNS Number : 6960J
Robinson PLC
21 August 2019
 

 

21 August 2019

Robinson plc                                                          

 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019

 

CHAIRMAN'S STATEMENT

 

Trading Results

Revenues in the first half of 2019 are 9% higher than the same period last year, with an underlying volume increase of 8%. As we indicated in May, volumes in Q2 were lower, most notably as customers unwound Brexit contingency inventory that had been created in Q1.

 

Gross margin in the period slightly improved to 20% (2018: 19%), mainly as a result of pricing movements whilst operating costs were 9% higher, largely due to recruitment and training.

 

Operating profits before amortisation have improved by 48% to £0.8m versus the same period last year and profit before tax increased to £0.3m (2018: £0.1m).

 

Net debt

Net borrowings at the end of the period were £9.1m (December 2018: £8.8m) after investment of £1.0m in plant and equipment and increased inventory of £0.5m to provide Brexit contingency cover. A final dividend, with respect to 2018, of 3p per share was paid to shareholders on 3 June 2019 (2018: 3p).

 

Outlook and Dividend

Having undertaken a thorough review of customer demand, despite the ongoing Brexit uncertainty, we continue to target circa 10% annual revenue growth and target for future years progress towards a pre-exceptional return on sales in the range of 6-8%.

 

The Board is pleased to announce an interim dividend of 2.5p (2018: 2.5p) to be paid on 1 October 2019 to shareholders on the register at 30 August 2019 (record date). The ordinary shares ex-dividend date is 29 August 2019.

 

Alan Raleigh

Chairman

20 August 2019

 

 

For further information, please contact:

 

Robinson plc

 www.robinsonpackaging.com

Guy Robinson, Finance Director

Tel: 01246 389283



finnCap Limited


Ed Frisby / Giles Rolls, corporate finance

Tim Redfern / Tim Harper, ECM

Tel: 020 7220 0500

 

Note for Editors:

 

Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire), Warsaw and Lodz (Poland), Robinson currently employs around 325 people. It was formerly a family business, with its origins dating back 180 years. Today the Group's main activity is the manufacture and sale of injection and blow moulded plastic packaging. Robinson operates primarily within the food, household, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as McBride, Proctor & Gamble, Reckitt Benckiser, SC Johnson, and Unilever. The Group also has a substantial property portfolio with development potential.

 

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



 

Income statement and statement of comprehensive income











Income statement

£'000

Six months
to 30.06.19

Six months
to 30.06.18

Year to
31.12.18






Revenue


17,085

15,622

32,802

Cost of sales


(13,721)

(12,719)

(26,918)

Gross profit


3,364

2,903

5,884

Operating costs


(2,576)

(2,371)

(4,370)

Operating profit before exceptional items and amortisation of intangible asset


788

532

1,514

Exceptional items


-

-

110

Amortisation of intangible assets


(375)

(392)

(783)

Operating profit after exceptional items


413

140

841

Finance income - interest receivable


-

1

-

Finance costs - bank interest payable


(104)

(55)

(156)

Finance income in respect of pension fund


-

-

-

Profit before taxation


309

86

685

Taxation


(86)

(139)

10

Profit/(loss) for the period


223

(53)

695






Earnings per ordinary share (EPS)


p

p

p

Basic earnings per share


1.3

(0.3)

4.2

Diluted earnings per share


1.3

(0.3)

4.2






Statement of comprehensive income

£'000

Six months
to 30.06.19

Six months
to 30.06.18

Year to
31.12.18






Profit/(loss) after tax for the period


223

(53)

695

Items that will not be reclassified subsequently to the Income Statement:





Re-measurement of net defined benefit liability


98

96

193

Deferred tax relating to items not reclassified


(19)

(6)

-



79

90

193

Items that may be reclassified subsequently to the Income Statement:





Exchange differences on retranslation of foreign currency goodwill and intangibles


428

-

-

Exchange differences on translation of foreign operations


117

(517)

(138)



545

(517)

(138)

Other comprehensive income/(expense) for the period


624

(427)

55

Total comprehensive income/(expense) for the period

847

(480)

750

 



 

Statement of financial position









Statement of financial position

£'000

30.06.19

30.06.18

31.12.18






Non-current assets





Goodwill


1,215

1,115

1,115

Other intangible assets


4,261

4,698

4,306

Property, plant and equipment


19,222

17,598

19,039

Deferred tax asset


895

184

868



25,593

23,595

25,328

Current assets





Inventories


3,485

3,019

2,972

Trade and other receivables


9,720

9,280

10,699

Cash


1,490

676

1,358



14,695

12,975

15,029

Total assets


40,288

36,570

40,357

Current liabilities





Trade and other payables


(5,090)

(6,349)

(5,897)

Corporation tax payable


(122)

(246)

(99)

Bank overdrafts


(5,551)

(7,059)

(6,178)

Obligations under finance lease contracts


(431)

(64)

(276)



(11,194)

(13,718)

(12,450)

Non-current liabilities





Bank and other loans


(2,700)

-

(2,700)

Obligations under finance lease contracts


(1,917)

(74)

(1,049)

Deferred tax liabilities


(1,008)

(494)

(1,056)

Provisions


(174)

(181)

(174)



(5,799)

(749)

(4,979)

Total liabilities


(16,993)

(14,467)

(17,429)

Net assets


23,295

22,103

22,928






Equity





Share capital


83

83

83

Share premium


732

732

732

Capital redemption reserve


216

216

216

Translation reserve


1,371

447

826

Revaluation reserve


4,122

4,315

4,126

Retained earnings


16,771

16,310

16,945

Equity attributable to shareholders


23,295

22,103

22,928

 



 

Statement of cash flows















Statement of cash flows

£'000

Six months
to 30.06.19

Six months
to 30.06.18

Year to
31.12.18






Cash flows from operating activities





 Profit/(loss) for the period


223

(53)

695

 Adjustments for:





 Depreciation of property, plant and equipment


915

850

1,795

 Impairment of property, plant and equipment


-

-

189

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


(16)

-

209

 Amortisation of intangible assets


375

392

783

 Decrease in provisions


-

-

(7)

 Finance income


-

(1)

-

 Finance costs


104

55

156

 Taxation charged


86

139

(10)

 Other non-cash items:





   Pension current service cost and expenses


98

98

193

   Charge for share options


5

5

12

Operating cash flows before movements in working capital


1,790

1,485

4,015

 Increase in inventories


(513)

(238)

(151)

 Decrease/(increase) in trade and other receivables


979

436

(853)

 (Decrease)/increase in trade and other payables


(818)

1,158

329

Cash generated by operations


1,438

2,841

3,340

 Corporation tax paid


(95)

(228)

(294)

 Interest paid


(104)

(55)

(150)

Net cash generated by operating activities


1,239

2,558

2,896






Cash flows from investing activities





 Interest received


-

1

-

 Acquisition of plant and equipment


(1,041)

(2,055)

(4,355)

 Proceeds on disposal of property, plant and equipment


21

-

15

Net cash used in investing activities


(1,020)

(2,054)

(4,340)






Cash flows from financing activities





 Loans repaid


-

(211)

(221)

 Loans drawndown


-

-

2,700

 Finance leases drawndown


1,279

-

1,300

 Finance lease payments


(256)

(20)

(106)

 Dividends paid


(485)

(485)

(890)

Net cash used in financing activities


538

(716)

2,783






Net increase/(decrease) in cash and cash equivalents


756

(212)

1,339

 Cash and cash equivalents at 1 January


(4,820)

(6,158)

(6,158)

 Effect of foreign exchange rate changes


3

(13)

(1)

Cash and cash equivalents at end of period


(4,061)

(6,383)

(4,820)






Cash


1,490

676

1,358

Overdraft


(5,551)

(7,059)

(6,178)

Cash and cash equivalents at end of period


(4,061)

(6,383)

(4,820)

 

 



 

 

1.   Basis of preparation

The interim report for the six month period to 30 June 2019 was approved by the directors on 20 August 2019. 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 2018, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2018 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 2019 has been calculated based on the estimated effective tax rate on profits before tax for the year to 31 December 2019.

3.   Dividends

 



£'000

Six months
to 30.06.19

Six months
to 30.06.18

Year to
31.12.18

Ordinary dividend paid:

2017 final of 3.0p per share


-

485

485


2018 interim of 2.5p per share


-

-

405


2018 final of 3.0p per share


485

-

-




485

485

890

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 £223,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,613,389 (basic) and 16,754,935 (diluted).

 

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.   Standards effective from 1 January 2019

Robinson plc has adopted IFRS 16 and this introduction has not resulted in a material impact on the statement of financial position or on profit or loss or on retained earnings in the current period.

 

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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