REG - Robinson PLC - Defined Benefit Pension Scheme Buy In

RobinsonAnnouncement

07/12/2022 13:15

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RNS Number : 9441I  Robinson PLC  07 December 2022

Robinson
plc

7 December 2022

 

DEFINED BENEFIT PENSION SCHEME BUY-IN

 

Robinson plc ("Robinson" or the "Group" stock code: RBN), the custom
manufacturer of plastic and paperboard packaging based in Chesterfield, is
pleased to announce that the Robinson & Sons' Limited Pension Fund (the
"Scheme") has executed a conditional agreement with Legal and General
Assurance Society Limited ("L&G") to effect a buy-in of all the Group's
defined benefit pension scheme liabilities.

The Scheme has exchanged contracts to purchase a bulk annuity insurance policy
from L&G covering all liabilities required to pay all pensions for the
Scheme's circa 500 members and any eligible dependents. Completion is subject
to payment by the Scheme of the agreed circa £44m premium to L&G which is
expected on 14 December 2022. The purchase of the insurance policy will be
financed entirely using existing assets held within the Scheme.

The Scheme's circa £44m of liabilities will be matched by the insurance
policy and following completion the Group will no longer bear any investment,
longevity, inflation or interest rate risk associated with the Scheme. The
buy-in will deliver greater security to the Scheme's members.

The Group and the Scheme trustees have long shared an ambition to achieve a
buy-out of the liabilities when market conditions allow. The buy-in is the
first step towards this goal, with a full buy-out proposed after a data
cleanse exercise, which is expected to be completed by the end of 2023.

The Scheme closed to new entrants in 1997 and there are 9 remaining active
members who, subject to the outcome of a consultation process, would cease
accrual and be offered pensions in the Group's money purchase pension scheme.

As the Scheme is in surplus, the Group is currently benefitting from a
contribution holiday and there will be no immediate benefit to cashflow. If a
surplus remains following the data cleanse exercise and completion of a full
buy-out, then it is likely that the funds in the pension escrow account, which
are circa £3.2m, of which, £2.7m are loaned to the Group on commercial
terms, will be returned to the Group. Any funds returned to the Group would be
used to reduce net debt.

Alan Raleigh, Chairman, commented:

"The transaction is an excellent outcome for our defined benefit pension
scheme members, the Group and our shareholders. We have worked hard with the
Scheme trustees to reach this position and those efforts mean that the Scheme
can now be fully de-risked for the benefit of members and the Group."

 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 2 plants in the UK, 2 in
Poland and acquired a plant in Denmark in
2021, 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.

 

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.

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