REG - Robinson PLC - Half-year Report

RobinsonAnnouncement

22/08/2018 07:05

RNS Number : 4936Y
Robinson PLC
22 August 2018
 


Robinson plc
 
("Robinson", the "Company" or the "Group")
 
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2018
 
CHAIRMAN'S STATEMENT
 
Trading Results
I am pleased to report that revenues in the first half year were 15% higher than the same period last year, benefiting from a 9% increase in underlying volumes. This volume increase has come from improved trading with existing customers and some commencement of new business arising from our recent investment in a strengthened commercial team in both Poland and the UK.
 
Gross profit in the period was 18.6% (2017: 19.4%), due to anticipated increases in fixed production costs, depreciation and variable production costs not yet passed through in sales prices.
 
Operating profits before amortisation have improved by 28% versus the same period last year, and profit before tax increased to £0.1m (2017: £nil).
 
Cash
Net borrowings at the end of the period were £6.5m (2017 year end: £6.5m) after spending £2.1m on capital investments in plant and equipment - mainly associated with new business. A final dividend, with respect to 2017, of 3p per share was paid to shareholders on 1 June 2018 (2017: 3p).
 
Property
The sale of surplus properties in Chesterfield has not progressed materially in the six-month period due to the uncertainties in the retail sector and over-supply of housing land. Current market conditions in this sector of the market are now relatively unattractive which is likely to result in any realisations being beyond the next 12 months.
 
Outlook and Dividend
The revenue line is now showing signs of some momentum, arising from our previous investments in people. We anticipate this momentum continuing with growth in new business expected in the second half. It is anticipated that this growth will leverage our completed fixed cost investments in the second half but more significantly beneficially impact in 2019. Investments in plant and equipment, partially to facilitate those new projects, will accelerate in the second half with a further c.£3m of spend expected and a consequent impact on net borrowings. The recent growth in operating costs (predominantly investment in people capability) has been concluded, so further revenue growth should improve profitability ratios moving forward. Management remains focused on specific actions to recover gross margins to ensure further profit improvement.
 
After careful consideration, the Board has decided to hold the interim dividend at 2.5p (2017: 2.5p) to be paid on 1 October 2018 to shareholders on the register at 31 August 2018 (record date). The ordinary shares ex-dividend date is 30 August 2018.
 
Alan Raleigh
Chairman
21 August 2018
 
For further information, please contact:
 
Robinson plc                                        www.robinsonpackaging.com
Guy Robinson, Finance Director           Tel: 01246 389283
 
finnCap Limited
Ed Frisby / Giles Rolls                           Tel: 020 7220 0500
 
Note for Editors:
 
Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire), Warsaw and Lodz (Poland), Robinson currently employs around 310 people. It was formerly a family business, with its origins dating back 179 years. Today the Group's main activity is the manufacture and sale of injection and blow moulded plastic packaging. Robinson operates primarily within the food, household, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as McBride, Proctor & Gamble, Reckitt Benckiser, SC Johnson, and Unilever. The Group also has a substantial property portfolio with development potential.
 
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England)       AIM code "RBN"
 
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.



Robinson plc
 
Group Income Statement




 


 


Six months

to 30.06.18


 


Six months

to 30.06.17


 


Year to

31.12.17




 


 


£'000


 


£'000


 


£'000




 


 


 


 


 


 


 




Revenue


 


15,622


 


13,586


 


29,813




Cost of sales


 


(12,719)


 


(10,950)


 


(24,035)




Gross profit


 


2,903


 


2,636


 


5,778




Operating costs


 


(2,371)


 


(2,221)


 


(4,457)




Operating profit before exceptional items and amortisation of intangible asset


 


532


 


415


 


1,321




Exceptional items


 


0


 


0


 


65




Amortisation of intangible asset


 


(392)


 


(392)


 


(783)




Operating profit after exceptional items


 


140


 


23


 


603




Finance income - interest receivable


 


1


 


0


 


1




Finance costs - bank interest payable


 


(55)


 


(51)


 


(104)




Finance income in respect of pension fund


 


0


 


30


 


130




Profit before taxation


 


86


 


2


 


630




Taxation


 


(139)


 


(176)


 


(317)




(Loss)/profit for the period


 


(53)


 


(174)


 


313




 


 


 


 


 


 


 




Earnings per ordinary share (EPS)


 


p


 


p


 


p




Basic earnings per share


 


(0.3)


 


(1.1)


 


1.9




Diluted earnings per share


 


(0.3)


 


(1.1)


 


1.9




 


 


 


 


 


 


 




Statement of comprehensive income


 


£'000


 


£'000


 


£'000




 


 


 


 


 


 


 




(Loss)/profit for the period


 


(53)


 


(174)


 


313




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


 


 


 


 


 


 




Re-measurement of net defined benefit liability


 


96


 


0


 


61




Deferred tax relating to items not reclassified


 


(6)


 


0


 


(11)




 


 


90


 


0


 


50




Items that may be reclassified subsequently to profit or loss:


 


 


 


 


 


 




Exchange differences on translation of foreign operations


 


(517)


 


592


 


818




Other comprehensive expense for the period


 


(427)


 


592


 


868




Total comprehensive income for the period


 


(480)


 


418


 


1,181




 


 


 


 


 


 


 




 
 
 
 
 
Robinson plc
 
Group Statement of Financial Position
 




 


30.06.18


 


30.06.17


 


31.12.17




 


£'000


 


£'000


 


£'000




Non-current assets


 


 


 


 


 




Goodwill


1,115


 


1,041


 


1,115




Other intangible assets


4,698


 


5,481


 


5,089




Property, plant and equipment


17,598


 


15,490


 


17,011




Deferred tax asset


184


 


119


 


95




 


23,595


 


22,131


 


23,310




Current assets


 


 


 


 


 




Inventories


3,019


 


2,887


 


2,838




Trade and other receivables


9,280


 


8,628


 


9,905




Cash


676


 


649


 


283




 


12,975


 


12,164


 


13,026




Total assets


36,570


 


34,295


 


36,336




 


 


 


 


 


 




Current liabilities


 


 


 


 


 




Trade and other payables


(6,349)


 


(4,551)


 


(5,568)




Corporation tax payable


(246)


 


(169)


 


(250)




Bank overdrafts


(7,059)


 


(5,334)


 


(6,441)




Bank loans


0


 


(475)


 


(221)




Obligations under finance lease contracts


(64)


 


(42)


 


(44)




 


(13,718)


 


(10,571)


 


(12,524)




Non-current liabilities


 


 


 


 


 




Obligations under finance lease contracts


(74)


 


(78)


 


(87)




Deferred tax liabilities


(494)


 


(680)


 


(488)




Provisions


(181)


 


(185)


 


(181)




 


(749)


 


(943)


 


(756)




Total liabilities


(14,467)


 


(11,514)


 


(13,280)




 


 


 


 


 


 




Net assets


22,103


 


22,781


 


23,056




 


 


 


 


 


 




Equity


 


 


 


 


 




Share capital


83


 


83


 


83




Share premium


732


 


732


 


732




Capital redemption reserve


216


 


216


 


216




Translation reserve


447


 


738


 


964




Revaluation reserve


4,315


 


4,324


 


4,321




Retained earnings


16,310


 


16,687


 


16,740




Equity attributable to shareholders


22,103


 


22,781


 


23,056




 


 


 


 


 


 




 
 
 
Robinson plc
 
Group Statement of Cash Flows
 




 


Six months

to 30.06.18


 


Six months

to 30.06.17


 


Year to

31.12.17




 


£'000


 


£'000


 


£'000




Cash flows from operating activities


 


 


 


 


 




 (Loss)/profit for the period


(53)


 


(174)


 


313




 Adjustments for:


 


 


 


 


 




 Depreciation of property, plant and equipment


850


 


687


 


1,492




 Profit on disposal of other plant and equipment


0


 


(71)


 


(85)




 Impairment/Amortisation of goodwill and customer relationships


392


 


465


 


783




 Decrease in provisions


0


 


0


 


(4)




 Other finance income in respect of pension fund


0


 


(30)


 


(130)




 Finance costs


55


 


51


 


104




 Finance income


(1)


 


0


 


(1)




 Taxation charged


139


 


176


 


317




 Other non-cash items:


 


 


 


 


 




   Pension current service cost and expenses


98


 


108


 


191




   Charge for share options


5


 


11


 


16




Operating cash flows before movements in working capital


1,485


 


1,223


 


2,996




 Increase in inventories


(238)


 


(339)


 


(263)




 Decrease/(increase) in trade and other receivables


436


 


500


 


(875)




 Increase/(decrease) in trade and other payables


1,158


 


(166)


 


411




Cash generated by operations


2,841


 


1,218


 


2,269




 Corporation tax paid


(228)


 


(241)


 


(405)




 Interest paid


(55)


 


(40)


 


(104)




Net cash generated by operating activities


2,558


 


937


 


1,760




 


 


 


 


 


 




Cash flows from investing activities


 


 


 


 


 




 Interest received


1


 


0


 


1




 Acquisition of plant and equipment


(2,055)


 


(914)


 


(2,614)




 Proceeds on disposal of property, plant and equipment


0


 


121


 


151




Net cash used in investing activities


(2,054)


 


(793)


 


(2,462)




 


 


 


 


 


 




Cash flows from financing activities


 


 


 


 


 




 Loans repaid


(211)


 


(259)


 


(531)




 Shares issued


0


 


123


 


123




 Finance lease payments


(20)


 


 


 


(28)




 Dividends paid


(485)


 


(485)


 


(901)




Net cash used in financing activities


(716)


 


(621)


 


(1,337)




 


 


 


 


 


 




Net decrease in cash and cash equivalents


(212)


 


(478)


 


(2,039)




 Cash and cash equivalents at 1 January


(6,158)


 


(4,206)


 


(4,206)




 Effect of foreign exchange rate changes


(13)


 


0


 


87




Cash and cash equivalents at end of period


(6,383)


 


(4,684)


 


(6,158)




 


 


 


 


 


 




Cash


676


 


649


 


283




Bank overdraft


(7,059)


 


(5,333)


 


(6,441)




Cash and cash equivalents at end of period


(6,383)


 


(4,684)


 


(6,158)




 


 


 


 


 


 




 
 
Robinson plc
 
Notes to the Interim Report
 
1.   Basis of preparation
The interim report for the six month period to 30 June 2018 was approved by the directors on 21 August 2018. The interim financial information is not audited.
 
The interim financial statements have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs). These should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2017 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under sections 498 (2) or (3) respectively of the Companies Act 2006.
 
2.   Taxation
The taxation charge for the six months to 30 June 2018 has been calculated based on the estimated effective tax rate on profits before tax for the year to 31 December 2018.
 
3.   Dividends




 


Six months

to 30.06.18


 


Six months

to 30.06.17


 


Year to

31.12.17




Ordinary dividend paid:


£'000


 


£'000


 


£'000




     Final


485


 


485


 


485




     Interim


0


 


0


 


416




 


485


 


485


 


901




 

 


 


 


 


 


 




 
4.   Earnings per share
The calculation of basic and diluted earnings per ordinary share for continuing operations shown on the income statement is based on the loss after taxation of £53,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,613,389. There was no difference in the weighted average number of shares used for the calculation of basic and diluted loss per share as the effect of potentially dilutive shares outstanding was anti-dilutive.
 
5.   Going concern
The directors have considered the cash flow forecasts for the Group and the availability of facilities. As at the date of this report, the directors have a reasonable expectation that the Group has adequate resources to continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting.
 
6.   Standards effective from 1 January 2018
Robinson plc has adopted IFRS 15 using the cumulative effect method. Under this method, the comparative information is not restated. The introduction of IFRS 15 has not resulted in a material impact on profit or loss or on retained earnings in the current period. The adoption of IFRS 9 has had no impact on the classification and measurement of the Group's financial assets or financial liabilities.
 
7.   Interim report
Copies of the interim report are available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB, UK or from its website at www.robinsonpackaging.com.
 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR PGUMCRUPRGBG