Preliminary Results

RNS Number : 6272I
Robinson PLC
27 March 2015
 

27 March 2015

Robinson plc

 

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014

 

Robinson plc ("Robinson"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2014.

 

Highlights:

·   Madrox acquired on 25 June for £13m contributing £5.1m to revenues and £1.0m to pre-exceptional operating profits in the second half

·   Revenue increased by 20% to £28.1m (2013; £23.3m)

the increase is attributable to the acquisition of Madrox

underlying sales volumes in the pre-existing business remained at last year's level

·   Costs relating to the Madrox acquisition:

one off costs of £0.4m shown as exceptional

£0.4m ongoing amortisation of customer relationships

·   Pre-exceptional operating profit excluding customer relationship amortisation up 25% to £2.9m

·   Net borrowings increased by £9.4m to stand at £4.1m at the year end

·   The Board is recommending an increased final dividend for the year of 2.75p per share (2013: 2.5p), raising the total dividend declared in respect of 2014 by 11% to 5p

Commenting on the results, Chairman, Richard Clothier said:

 

"I am pleased to report that the Madrox business has performed ahead of expectations since its acquisition in June 2014 reflecting our strategy of growth central Europe. Management is committed to new business development and, with the full year contribution from Madrox, further growth in revenues and earnings is expected."

 

About Robinson

Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz and Warsaw (Poland), Robinson currently employs around 310 people. It was formerly a family business, with its origins dating back some 176 years. Today the Group's main activity is the manufacture and sale of injection moulded plastic 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, McBride, SC Johnson, Sonoco, Bakkavor, Two Sisters and British Pepper and Spice. The Group also has a substantial property portfolio with development potential.

 

For further information, please contact:

 

Guy Robinson, Finance Director, Robinson plc

01246 389283


www.robinsonpackaging.com

Katy Mitchell, WH Ireland

0161 832 2174

 

 

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



CHAIRMAN'S STATEMENT

 

The highlight for the Group in 2014 was the acquisition of Madrox in Poland. This business fits our stated strategy of growth in the developing central European region and, since the acquisition, we are pleased to report that the business has performed ahead of expectations. Our remaining businesses have shown no net change year on year with stable volumes and material prices.

Madrox

Madrox is based near Warsaw, Poland and is a supplier of blow, stretch-blow and injection moulded plastic packaging primarily to major brands and private label businesses operating in the household, toiletries and cosmetics sectors in Central Europe. The acquisition was completed on 25 June 2014 and is fully in line with our strategy to expand in Central Europe through selective acquisition of local plastic packaging manufacturers who supply the strong brand owners and leading private labels in our sectors .It increases our relevance to existing customers and will allow us to take a more prominent position in the growing plastic packaging markets in this region.

The total consideration, which includes an earnout element payable in 2016, is estimated at £13.2m. The level of the earnout is dependent upon performance of the Madrox business prior to the payment of the earnout. The initial cash element of £10.5m has been funded from cash reserves and property backed bank debt. In the second half of 2014, Madrox contributed £5.1m to revenues and £1.0m to pre-exceptional operating profits.

Revenue and profits

Revenues were £28.1m for the year, which represents a 20% increase on last year. All of the increase is attributable to the acquisition of Madrox. Underlying sales volumes in the pre-existing businesses remained at last year's level. This masks a degree of business churn which has been driven by weakening consumer demand for some premium products, however we are encouraged by the new business secured in 2014 which has offset the losses. The gross profit increased from 22.2% to 22.8% through lower resin prices and the acquisition. Madrox added to the operating costs whilst rental income was reduced (£0.2m) following the sale of Portland in mid-2013. The operating profit before exceptional items increased from £2.3m to 2.5m. Costs relating to the Madrox acquisition included exceptional one off costs of £0.4m and £0.4m ongoing amortisation of customer relationships - in 2013 there was an exceptional gain on the sale of Portland Works of £1.1m. The profit before tax was £2.4m (2013: £3.7m).

Pension fund

The Group's pension fund triennial valuation was performed as at 5 April 2014 and this showed a surplus of 6% on an ongoing valuation basis

Cash, finances and dividend

Net borrowings amounted to £4.1m at the end of the year. The net cash outflow for the year was £8.7m including £10.8m paid in respect of the acquisition of Madrox. Shareholders' funds rose by 2% to £25.6m but were impacted by a £0.5m foreign exchange revaluation adjustment arising from the impact of the strong GBP against our Polish assets. The Board proposes a final dividend of 2.75p per share to be paid on 8 June 2015 to shareholders on the register at the close of business on 15 May 2015. This brings the total dividend declared in respect of 2014 to 5.0p per share - an increase of 11% over the previous year.

Outlook

The current assessment for 2015 suggests a challenging outlook with little help from the market and volatility in foreign exchange and resin prices. However, management is committed to new business development and, with the full year contribution from Madrox, further growth in revenues and earnings is expected.

 

Richard Clothier

Chairman

27 March 2015



Group income statement

FOR THE YEAR ENDED 31 DECEMBER

 








2014


2013








£'000

£'000











Continuing operations










Revenue




28,071


23,329

Cost of sales







(21,669)


(18,148)

Gross profit







6,402


5,181

Operating costs







(3,490)


(2,859)

Amortisation of intangible asset





(392)


-

Operating profit before exceptional items




2,520


2,322

Exceptional items







(364)


1,054

Operating profit after exceptional items




2,156


3,376

Finance income - interest receivable




27


11

Finance costs - bank interest payable




(106)


(1)

Finance income in respect of pension fund




342


307

Profit before taxation







2,419


3,693

Taxation







(418)


(599)

Profit for year attributable to the owners of the Company

2,001


3,094











Basic earnings per share










EPS from continuing operations




12.2p


 19.2p

EPS from continuing operations excluding exceptional items


14.4p


 12.6p











Diluted earnings per share










EPS from continuing operations




11.7p


 18.5p

EPS from continuing operations excluding exceptional items


13.9p


 12.2p

 

 

Statement of comprehensive income

FOR THE YEAR ENDED 31 DECEMBER

 








2014


2013








£'000


£'000

Profit for the year







2,001


3,094

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




Remeasurement of net defined benefit liability

(402)


(308)

Deferred tax relating to items not reclassified

122


152








(280)


(156)

Items that may be reclassified subsequently to profit or loss:




Exchange differences on translation of foreign operations




(544)


3

Other comprehensive expense for the year

(824)


(153)

Total comprehensive income for the year attributable to the owners of the Company

1,177


2,941

 



Statement of financial position

 AS AT 31 DECEMBER

 



Group



2014


2013




£'000


£'000


Non-current assets






Goodwill


1,413


-


Other intangible assets


7,438


-


Property, plant and equipment


14,761


10,802


Deferred tax asset


132


160


Pension asset


3,825


4,053




27,569


15,015


Current assets






Inventories


2,635


2,150


Trade and other receivables


8,919


6,565


Cash


710


5,375




12,264


14,090


Non-current assets held for sale


-


1,250


Total assets


39,833


30,355


 

 






Current liabilities






Trade and other payables


(4,919)


(4,527)


Corporation tax payable


(44)


(130)


Borrowings


(2,856)             


-




(7,819)


(4,657)


Non-current liabilities






Borrowings


(2,002)


-


Other payables


(2,520)


-


Deferred tax liabilities


(1,728)


(407)


Provisions


(184)


(187)




(6,434)


(711)


Total liabilities


(14,253)


(5,251)








Net assets


25,580


25,104








Equity






Share capital


82


82


Share premium


610


610


Capital redemption reserve


216


216


Translation reserve


(245)


299


Revaluation reserve


4,463


4,416


Retained earnings


20,454


19,481


Equity attributable to shareholders


25,580


25,104




 

Statement of changes in equity

 

FOR THE YEAR ENDED 31 DECEMBER

 

Group

Share

Share

Capital

Translation

Revaluation

Retained

Total


capital

premium

redemption

reserve

reserve

earnings




account

reserve






£'000

£'000

£'000

£'000

£'000

£'000

£'000









At 1 January 2013

80

419

216

296

4,580

16,991

22,582

Profit for the year






3,094

3,094

Other comprehensive income/(expense)




3


(153)

(150)

Transfer to revaluation reserves as a result of property transactions





(168)

168

-

Tax on revaluation





4


4

Total comprehensive income for the year




3

(164)

3,109

2,948

Credit in respect of share based payments





43

43

Issue of ordinary shares under employee share option scheme

2

191




193

Dividends paid






(662)

(662)

Transactions with owners

2

191




(619)

(426)

At 31 December 2013

82

610

216

299

4,416

19,481

25,104

Profit for the year






2,001

2,001

Other comprehensive expense




(544)


(266)

(810)

Transfer to revaluation reserves as a result of property transactions





49

(49)

          -

Tax on revaluation





(2)


(2)

Total comprehensive income for the year




(544)

47

1,686

1,189

Credit in respect of share based payments





42

42

Dividends paid






(755)

(755)

Transactions with owners






(713)

(713)

At 31 December 2014

82

610

216

245

4,463

20,454

25,580











 

Statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER

 



Group



2014


2013




£'000


£'000


Cash flows from operating activities






Profit for the year


2,001


3,094


 Adjustments for:






 Depreciation of property, plant and equipment


1,176


969


 Profit on disposal of other plant and equipment


(7)


(20)


 Profit on sale of non-current asset


-


(1,054)


 Amortisation of goodwill and customer relationships


466


-


 Decrease in provisions


    (3) 


-


 Other finance income in respect of Pension Fund


(342)


(307)


 Finance costs


106


1


 Finance income


(27)


(11)


 Taxation charged


418


599


 Other non-cash items:






   Pension current service cost and expenses


184


170


   Charge for share options


42


43


Operating cash flows before movements in working capital


4,014


3,484


 Increase in inventories


(485)


(542)


 Increase in trade and other receivables


(2,354)


(641)


 Increase/(decrease) in trade and other payables


2,840


(25)


Cash generated by operations


4,015


2,276


 Corporation tax paid


(632)


(769)


 Interest paid


(101)


(3)


Net cash generated from operating activities


3,282


1,504








Cash flows from investing activities






 Interest received


26


           11


 Acquisition of plant & equipment


(993)


(1,402)


 Proceeds on disposal of plant & equipment


41


45


 Proceeds on disposal of non-current assets


-


4,250


 Acquisition of subsidiary


(10,346)


           -


Net cash (used in)/generated from investing activities


(11,272)


2,904








Cash flows from financing activities






Loans received/(repaid)


2,040


(307)


Proceeds on issue of shares


-


           193


Dividends paid


(755)


(662)


Net cash generated from/(used in) financing activities


1,285


(776)








Net (decrease)/increase in cash and cash equivalents


(6,705)


3,632


Cash and cash equivalents at 1 January


5,375


1,743


Cash and cash equivalents at 31 December


(1,330)


5,375








Cash


710


5,375


Overdraft


(2,040)


-


Cash and cash equivalents at 31 December


(1,330)


5,375




Notes to the financial statements

 

1.         Basis of preparation

Whilst this financial information has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. 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 2014 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 2014 have had any effect on the financial statements.

 

In determining whether the Group's 2014 financial statements can be prepared on a going concern basis, the Directors considered all factors likely to affect its future development, performance and its financial position, including cash flows, liquidity position and borrowing facilities and the risks and uncertainties relating to its business activities. As at the date of this report, the directors have a reasonable expectation that the Company and Group have adequate resources to continue in business for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

 

2.         Publication of statutory financial statements

The financial information set out above does not constitute the company's statutory financial statements for the years ended 31 December 2013 or 2014, but is derived from those financial statements. The statutory financial statements for the year ended 31 December 2013 have been delivered to the Registrar of Companies and those for 2014 are expected to be posted to shareholders on 20 April 2015 and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 14 May 2015. Copies will also be available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB and on the Group's website at www.robinsonpackaging.com from 20 April 2015. 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).

 


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