Preliminary Results - Year ended 31 December 2010

RNS Number : 5991D
Robinson PLC
25 March 2011
 



25 March 2011

 

Robinson plc

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010

 

Robinson plc ("Robinson" or "the Group"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2010.

 

Highlights:

·          Profit before tax* £1.7m (2009: £1.0m)

·          Revenue* increased by 13% to £24.8m (2009: £21.9m)

·          Loss making North American business closed in December 2010 at minimal cost to the Group

·          Dividends for the year increased by 18%

 

* continuing operations

 

Commenting on the results, Chairman, Richard Clothier said:

 

"We are pleased to report growth in 2010 and also that the current year has started better than last year, in line with management expectations.  With the closure of the North American business, we are able to concentrate our efforts in Europe and we are confident that, unless market conditions deteriorate significantly, we will be able to make further progress in 2011."

 

 

 

About Robinson

Based in Chesterfield, with additional manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz (Poland). Robinson currently employs around 300 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, Kraft, United Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon, Boots and Dr Oetker. The Group also has a substantial property portfolio with significant development potential.

 

 

 

For further information, please contact:

 

Adam Formela, Chief Executive, Robinson plc

01246 505196

www.robinsonpackaging.com

 

020 7012 2000

 

 

 



CHAIRMAN'S REPORT

 

Following a strong recovery in 2009, it is pleasing to report further progress in 2010 with profits higher than Robinson has achieved for many years.  The operating results exclude our North American paperboard business which was closed in December 2010 following losses driven largely by the relative strength of the Canadian dollar and weak US demand. The net loss from trading and closure of this business is included as a separate line at the foot of the Group Income Statement.

                                                                                        

Revenue

Group revenue increased by 13% on the previous year of which almost half was the result of volume increases and the remainder a reflection of price increases to cover raw material costs.  Resin prices have increased to all-time highs but these have largely been passed on to our customers. Central European revenues increased by 16%, however, margins suffered from the impact of higher input prices for a period before these were passed on to our customers.

 

Profitability

Profit before tax* was £1.7m (2009: £1.0m). This result was influenced mainly by the following factors:

·    gross margin* improved from 19% to 20% of revenues.  This is attributable to better customer mix and lower direct costs (notably labour and electricity) offset by increasing raw material prices;

·    overhead costs remained flat as revenues recovered; and

·    notional finance income in respect of the pension fund increased by £0.1m.

 

* Continuing operations

 

Cash & Finances

Capital expenditure on new plant and machinery of £0.5m (2009: £0.8m) was low in relation to the depreciation charge of £1.4m (2009: £1.5m). Year-end working capital levels were significantly higher than a year earlier as a result of higher sales in the run-up to Christmas, increased use of early payment discounts from suppliers and the early timing of the year end. Despite the £2.1m increase in working capital, net borrowings increased by only £0.5m to £3.7m and remain well within our agreed facilities.

 

Dividends

The Board proposes an unchanged final dividend of 1.75p per share to be paid on 6 June 2011 to shareholders on the register at the close of business on 20 May 2011. This brings the total dividend declared in respect of 2010 to 3.25p per share - an increase of 18% over the previous year and a recovery to the 2008 level.

 

Outlook

So far this year market conditions have remained stable for most of our customers. We remain conscious of the possible effects of economic trends and Government policy on our costs and 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 2011 is in line with the Board's expectations.

 

 

Richard Clothier

Chairman

24 March 2011



Group income statement

FOR THE YEAR ENDED 31 DECEMBER

 

 

2010

 

2009

 

£'000

£'000

 

Revenue

24,830

 

21,948

(excluding the discontinued operation in North America)

 

 

 

Cost of sales

(19,833)

(17,770)

Gross profit

4,997

 

4,178

Operating costs before exceptional items

(3,692)

(3,608)

Operating profit before exceptional items

1,305

 

570

Exceptional items

-

66

Operating profit after exceptional items

1,305

 

636

Finance costs - bank interest payable

(66)

 

(52)

Finance income in respect of pension fund

474

374

Profit before taxation

1,713

 

958

Taxation

(473)

(229)

Profit for the year from continuing operations

1,240

729

Discontinued operations - loss for the year

(86)

 

(305)

Profit for the year

1,154

424

 

Earnings per share

Profit per ordinary share (basic and diluted) from continuing operations

7.8p

           4.6p

Loss per ordinary share (basic and diluted) from discontinued operations 

( 0.6p )

( 1.9p )

Profit per ordinary share (basic and diluted) from continuing and discontinued operations 

           7.2p

         

 2.7p

 

Statement of comprehensive income               

FOR THE YEAR ENDED 31 DECEMBER

 


2010

2009

£'000

£'000

Profit for the year

1,154

424

Other comprehensive income

Actuarial gain on retirement benefit  obligations

513

69

Release of currency translation reserve on closure of subsidiary

(311)

                 -

Currency translation loss

(56)

(182)

146

(113)

Taxation relating to actuarial gain

(143)

(20)

Other comprehensive income for the year

3

(133)

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

1,157

291



Statement of financial position

 AS AT 31 DECEMBER

 

 

Group

 

2010

 

2009

 

£'000

£'000

 

Non-current assets

 

 

 

 

Property, plant and equipment

12,394

 

13,237

 

Deferred tax asset

288

 

344

 

Pension asset

7,696

6,996

 

20,378

20,577

 

Current assets

 

 

 

 

Inventories

1,982

 

1,535

 

Trade and other receivables

6,447

 

5,708

 

Cash

347

334

 

8,776

7,577

 

Non-current assets held for sale

2,782

2,782

 

Total assets

31,936

30,936

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

(4,605)

 

(5,341)

 

Corporation tax payable

(542)

 

(218)

 

Borrowings

(2,872)

(1,897)

 

(8,019)

(7,456)

 

Non-current liabilities

 

Borrowings

(876)

 

(1,290)

 

Deferred tax liabilities

(1,701)

 

(1,578)

 

Provisions

(191)

(194)

 

(2,768)

(3,062)

 

Total liabilities

(10,787)

(10,518)

 

 

 

Net assets

21,149

20,418

 

 

 

Equity

 

 

 

 

Share capital

80

 

80

 

Share premium

419

 

419

 

Capital redemption reserve

216

 

216

 

Translation reserve

580

 

947

 

Revaluation reserve

4,420

 

4,461

 

Retained earnings

15,434

14,295

 

Equity attributable to shareholders

21,149

20,418

 



 

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 2009

80

419

216

1,129

4,361

14,273

20,478

Profit for the year

424

424

Other comprehensive income

(182)

49

(133)

Transfer from revaluation reserves as

a result of property transactions

99

(99)

-

Total comprehensive income for the year

-

-

-

(182)

99

374

291

Tax on revaluation

1

 -

1

Credit in respect of share based payments

32

32

Dividends paid

(384)

(384)

Transactions with owners

(352)

(352)

At 31 December 2009

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 from 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



 

Statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER

 

 

       Group

 

2010

 

2009

 


£'000


£'000

 

Cash flows from operating activities

 

Profit for the year

1,154

 

424

 

 Adjustments for:

 

 

 

 

 Depreciation of property, plant and equipment

1,379

 

1,477

 

 Profit on disposal of land and buildings

           -

 

(44)

 

 Profit on disposal of non-current assets held for sale

           -

 

(176)

 

 Loss on disposal of other plant and equipment

1

 

-

 

 Profit on closure of discontinued operations

(165)

 

-

 

 Decrease in provisions

(3)

 

(5)

 

 Other finance income in respect of Pension Fund

(474)

 

(374)

 

 Finance costs

66

 

92

 

 Taxation charged

474

 

230

 

 Other non-cash items:

 

 

 

 

            Pension current service cost

285

 

255

 

            Charge for share options

30


32

 

Operating cash flows before movements in working capital

2,747

 

1,911

 

 (Increase)/decrease in inventories

(497)

 

205

 

 (Increase)/decrease in trade and other receivables

(1,222)

 

1,323

 

 Decrease in trade and other payables

(348)

 

(1,476)

 

Cash generated by operations

680

 

1,963

 

 UK corporation tax (paid)

(114)

 

(143)

 

Interest paid

(67)

 

(158)

 

Net cash generated from operating activities

499

1,662

 

 

 

 

 

 

 

Cash flows from investing activities

 

 Sale of surplus properties

           -

 

67

 

 Closure of discontinued operations

(66)

 

-

 

 Sale of non-current assets

           -

 

348

 

 Acquisition of property, plant & equipment

(542)

 

(841)

 

 Sale of other plant and equipment

17

 

14

 

Net cash used in from investing activities

(591)

(412)

 

 

 

Cash flows from financing activities

 

Loans received

           -

 

415

 

Loans repaid

(409)

 

(336)

 

Dividends paid

(456)

(384)

 

Net cash used in from financing activities

(865)

(305)

 

 

 

Net (decrease)/increase in cash and cash equivalents

(957)

 

945

 

Cash and cash equivalents at 1 January

(1,155)

(2,100)

 

Cash and cash equivalents at 31 December

(2,112)

(1,155)

 

 

 

Cash

347

 

334

 

Overdraft

(2,459)

(1,489)

 

Cash and cash equivalents at 31 December

(2,112)

(1,155)

 



Notes to the financial statements

 

 

1.   Basis of preparation

 

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 2010 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 2010 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 2008 balance sheet is the same as that previously published.

 

2.   Closure of subsidiary

On 20 December 2010 Robinson Paperboard Packaging (North America) Ltd was closed. The results of the discontinued operation, which have been included in the Group income statement, were as follows:


2010


2009

£'000

£'000


Revenue

1,605

1,477

Expenses

(1,855)

(1,781)

Loss before tax

(250)

(304)

Attributable tax expense

(1)

(1)

(251)

(305)

Gain on closure of discontinued operations

165

-

Net loss attributable to discontinued operations

(86)

(305)

The gain on closure was derived as follows:

Gain on translation reclassified

311

Loss on net assets

(132)

Closure costs

(14)

Gain on closure

165

 

3.   Publication of non-statutory financial statements

 

The statutory financial statements for the year ended 31 December 2010 are expected to be posted to shareholders in due course and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 5 May 2011. Copies will also be available from Robinson plc's registered office: Portland, Goytside Road, Chesterfield, S40 2PH 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).

 

 

...ends ...

 


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