REG - Robinson PLC - AGM Statement

RobinsonAnnouncement

22/06/2023 07:00

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RNS Number : 5135D  Robinson PLC  22 June 2023

Robinson
plc

22 June 2023

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 at the Peak Edge Hotel, Darley Road,
Chesterfield S45 0LW. The Chairman, Alan Raleigh, will make the following
statement:

 

CEO announcement

 

Dr Helene Roberts has informed the Board of her intention to step down as CEO
to take up a new opportunity. We would like to thank Helene for her enormous
contribution during her time with Robinson.

 

The Board will now initiate a search process to recruit a new CEO. The
effective date for Helene's departure will be agreed shortly and at that time,
to support the transition, Sara Halton, currently the Senior Independent
Director, will assume Interim CEO responsibility.

 

Current trading

 

The Group expects to deliver full year adjusted operating profit in line with
current expectations, despite the ongoing macroeconomic uncertainty and
volatility, which has included reduced volumes.

 

Sales in the first five months of the year are 2% below the comparative period
in 2022. After adjusting for price changes and foreign exchange, sales volumes
are 11% lower than the comparative period in 2022, of which 4% is due to a
major UK customer experiencing a supply chain issue. Whilst we are unlikely to
recover the lost sales in 2023, we expect to return to the normal run-rate on
these products. We are also seeing reduced demand due to inflation and the
cost-of-living crisis.

 

Profits are substantially below the first five months in 2022. Despite
agreeing substantial sales price increases with our customers, we have been
unable to cover the full inflation in costs in the period, due to the
reduction in sales volume.

 

As a result, we have implemented a restructuring program which will result in
exceptional costs of c.£0.4m and annual savings of c.£0.7m, of which £0.4m
will benefit 2023.

 

Property

 

As previously announced, the Group completed on the sale of a surplus property
in Chesterfield on 30 May 2023. Consideration of £0.7m was received in cash
and these monies were used by the Company to reduce bank debt.

 

Subject to the necessary planning approvals, we would expect further sales of
surplus property in Chesterfield to be achieved in the next 12 months. The
intention of the Group remains, over time, to realise value from the disposal
of surplus properties and to reinvest the proceeds in developing our packaging
business.

 

Net debt

 

Net debt has increased to £9.8m at 31 May 2023 (31 December 2022: £9.2m),
including £1.1m capital expenditure and proceeds of £0.7m from the sale of
surplus property.

 

Following receipt of an indicative actuarial valuation, showing the pension
scheme is in surplus, it is likely that the funds in the pension escrow
account, being c.£3.2m at 31 December 2022, and of which, £2.7m are loaned
to the Group on commercial terms, would be returned to the Group. Group net
debt would be reduced by c.£3.2m, including the cancellation of the existing
loan.

 

Outlook

 

We expect the substantial macroeconomic uncertainty and volatility experienced
since the beginning of 2021 to continue throughout 2023.

 

We are seeing more new business activity with our existing and potential
customers, which provides opportunities for additional sales in 2023 and
beyond. In particular, the previously announced new contract in Denmark
requires substantial investment in the current year but will begin to benefit
sales and profit from 2024. We have a portfolio of opportunities, close to
completion, which if converted would comprise more than 10% of annual sales.

 

Given the ongoing pressure on volumes, input prices and margins, the Board
will continue to prioritise the management of costs and cashflow.

 

Despite the ongoing uncertainty, with the current restructuring programme, we
expect adjusted operating profit in the 2023 financial year to be ahead of
2022 and in line with current expectations. We remain committed in the
medium-term to delivering above-market profitable growth and our target of
6-8% adjusted operating margin(1).

 

 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 Procter &
Gamble, Reckitt Benckiser, SC Johnson and Unilever.

 

Headquartered in Chesterfield, UK, Robinson has plants in the UK, Poland and
Denmark. 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.

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

1. operating profit margin before amortisation of intangible assets and
exceptional items

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