REG - Robinson PLC - AGM Statement

RobinsonAnnouncement

26/05/2022 07:00

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RNS Number : 8437M  Robinson PLC  26 May 2022

Robinson
plc

 

26 May 2022

AGM TRADING STATEMENT

Robinson plc ("Robinson", the "Company" or the "Group"; stock code: RBN), the
custom manufacturer of plastic and paperboard packaging, is holding its Annual
General Meeting today at 11:30am in Chesterfield. The Chairman, Alan Raleigh,
will make the following statement:

 

Current trading

 

"Group sales in the first four months of the year are 22% ahead of the same
period in 2021, 6% higher excluding the impact of the Schela Plast business in
both periods. After adjusting for price changes and foreign exchange, sales
volumes in the underlying business are 14% lower than the same period in 2021.

 

As a consequence of the cost inflation experienced in the last 16 months, we
have agreed substantial sales price increases with our customers, however,
since the Russian invasion of Ukraine in February, we have seen further
increases in global oil and energy costs flow through to polymer resin and
other raw material prices and impact our costs.

 

Profits are ahead of the first four months in 2021, where in 2021 gross
margins were heavily affected by 60% increases in polymer resin prices which
hadn't yet been fully passed through to customers.

 

Property

 

As previously announced, the Group has completed on the sale of two properties
in the period. The first was a sale of surplus land and buildings in
Chesterfield on 31 March 2022, with consideration of £975,000. The second an
operational property in Sutton-in-Ashfield which completed on 27 April 2022,
for consideration of £2,475,000. The proceeds have been received and have
been used by the Company to reduce current bank debt. The Group will continue
to leaseback the operational property until the end of 2022 and during this
period, production will be relocated to existing Robinson premises in
Kirkby-in-Ashfield. It is expected that the relocation will require investment
of approximately £600,000.

 

Subject to the necessary planning approvals, we would expect further sales of
surplus property, in Chesterfield, to be achieved in the next 18 months. The
intention of the Group remains, over time, to realise the maximum value from
the disposal of surplus properties and to reinvest the proceeds in developing
our packaging business.

 

Net debt

 

Following the two property sales during the period, net debt has reduced to
£8.9m at 30 April 2022 (31 December 2021: £13.1m). Deferred consideration of
£2.3m is payable to the former owners of Schela Plast before the end of June
2022.

 

Outlook

 

The substantial uncertainty and volatility experienced in 2021 will continue
throughout 2022, with further inflation in input costs anticipated. On
average, the published inflation in our core geographic markets was 10% in
April, and this may impact consumer confidence and reduce customer demand for
some of our products. We are closely monitoring the situation, we will drive
profitability, conserve cash and respond as necessary across our geographical
locations.

 

Despite the ongoing uncertainty, profits in the 2022 financial year (excluding
the uplift from the profits on disposal of properties) are expected to be
inline with expectations, being comfortably ahead of 2021. We remain committed
in the medium-term to delivering above-market profitable growth and our target
of 6-8% adjusted operating margin(1)."

 

 

(1) operating profit margin before amortisation of intangible assets and
exceptional costs

 

 Robinson plc                                   www.robinsonpackaging.com (http://www.robinsonpackaging.com)
 Helene Roberts, CEO                            Tel: 01246 389280

 Mike Cusick, Finance Director

 finnCap Limited
 Ed Frisby / Seamus Fricker, Corporate Finance  Tel: 020 7220 0500

 Tim Redfern / Barney Hayward, ECM

 

About Robinson:

 

Being a purpose-led business, Robinson specialises in custom packaging with
technical and value-added solutions for food and consumer product hygiene,
safety, protection, and convenience; going above and beyond to create a
sustainable future for our people and our planet. Its main activity is in
injection and blow moulded plastic packaging and rigid paperboard luxury
packaging, operating within the food and beverage, homecare, personal care and
beauty, and luxury gift sectors. Robinson provides products and services to
major players in the fast-moving consumer goods market including McBride,
Procter & Gamble, Reckitt Benckiser, SC Johnson and Unilever.

 

Headquartered in Chesterfield, UK, Robinson has 3 plants in the UK, 2 in
Poland and recently acquired a plant in
Denmark, Schela Plast. Schela Plast specialises in the design and
manufacture of plastic blow moulded containers, serving a number of the
major FMCG brands in Denmark and neighbouring countries.

 

Robinson was formerly a family business with its origins dating back to 1839,
currently employing nearly 400 people. The Group also has a substantial
property portfolio with development potential.

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