REG - Robinson PLC - Interim Results <Origin Href="QuoteRef">RBSN.L</Origin>

RobinsonAnnouncement

23/08/2017 07:05

RNS Number : 7139O
Robinson PLC
23 August 2017
Robinson plc
("Robinson", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017
CHAIRMAN'S STATEMENT
Trading and Cash
Revenue of 13.5m was 6% higher than the same period in the previous year, lifted by favourable exchange rates and higher resin prices passed on to customers. Allowing for these effects, sales volume in the first half was very similar to 2016. Increased costs, including some resin costs not yet passed on to customers, have reduced gross margins and operating expenses have been increased primarily by our action to strengthen the sales team. The resulting profit before tax was 0.3m lower than the same period last year at just above break-even for the first six months (2016: 0.3m). In addition to the largely temporary effect of resin prices, the lower margins are also as a result of sales mix factors such as consumers trading down from premium branded products in some sectors. As we have reported previously, new business gains have been secured but have taken longer to bring to fruition.
With the amortisation of intangible assets and depreciation together amounting to 1.1m, the cash generated from operating activities of 0.9m was sufficient to cover the final dividend for 2016 and the loan repayments but not all the net capital reinvestment. The latter, at 0.8m, is mainly equipment associated with new business yet to come on stream. Net debt therefore increased by 0.3m to end the period at 5.2m. A final dividend, with respect to 2016, of 3p was paid to shareholders on 1 June 2017 (2016: 3p). 
Property
The sale of surplus properties in Chesterfield is progressing and developments for the Walton Mill and Boythorpe Works sites are being discussed with prospective tenants and buyers. This process is likely to take several more months but we do expect some realisations in 2018.
Outlook and Dividend
We do expect to see sufficient new business coming through in the second half to achieve growth in revenue for the year as a whole and we expect to continue to build the pipeline for further growth in 2018. Re-organisation of manufacturing to achieve efficiencies and investments in capital equipment to improve capacity and capability are being carried out to support this growth and help to recover margins.
The Board has approved an interim dividend of 2.5p (2016: 2.5p) to be paid on 2 October 2017 to shareholders on the register at 1 September 2017. The ordinary shares ex-dividend date is 31 August 2017.
For more information, please contact:
Robinson plc

Guy Robinson, Finance Director
Tel: 01246 389283

www.robinsonpackaging.com
FinnCap

Ed Frisby / Giles Rolls - corporate finance
Tel: 020 7220 0500
Stephen Norcross / Sultan Awan - corporate broking

About Robinson
Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz and Warsaw (Poland), Robinson currently employs around 300 people. It was formerly a family business, with its origins dating back some 178 years. Today the Group's main activity is the manufacture and sale of rigid plastic packaging. Robinson operates primarily within the food & drink, toiletries & cosmetics and household sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market. 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 30.06.17

Six months to 30.06.16

Year to 31.12.16


'000 

'000 

'000 







Revenue

13,586

12,762

27,459
Cost of sales

(10,950)

(9,716)

(21,201)
Gross profit

2,636

2,775

6,258
Operating costs

(2,221)

(2,151)

(4,120)
Amortisation of intangible asset

(392)

(392)

(783)
Exceptional costs

0

0

190
Operating profit

23

232

1,545
Finance costs - bank interest payable

(51)

(44)

(116)
Finance income in respect of pension fund

30

96

189
Profit before taxation

2

284

1,618
Taxation

(176)

(122)

(390)
(Loss)/profit for the period

(174)

162

1,228














Earnings per ordinary share (EPS)

p

p

p
Basic (loss)/earnings per share

(1.1) 

1.0 

7.5 
Diluted (loss)/earnings per share

(1.1) 

1.0 

7.3 







Statement of comprehensive income

'000 

'000 

'000 







(Loss)/profit for the period

(174)

162

1,228
Items that will not be reclassified subsequently to profit or loss:






Re-measurement of net defined benefit liability

0

0

(3,774)
Deferred tax relating to items not reclassified

0

0

683


0

0

(3,091)
Items that may be reclassified subsequently to profit or loss:






Exchange differences on translation of foreign operations

592

340

766
Other comprehensive expense for the period

592

340

(2,325)
Total comprehensive income for the period

418

502

(1,097)


Robinson plc
Group Statement of Financial Position

30.06.17

30.06.16

31.12.16

'000 

'000 

'000 
Non-current assets





Goodwill
1,041

1,190

1,115
Other Intangible Assets
5,481

6,263

5,872
Property, plant and equipment
15,490

14,437

14,834
Deferred tax assets
119

133

188
Pension asset
0

3,747

0

22,131

25,770

22,009
Current assets





Inventories
2,887

2,363

2,471
Trade and other receivables
8,628

7,249

8,722
Cash
649

1,069

881

12,164

10,681

12,074






Total assets
34,295

36,451

34,083






Current liabilities





Trade and other payables
(4,593)

(4,239)

(4,518)
Corporation tax payable
(169)

(275)

(234)
Borrowings
(5,809)

(4,899)

(5,570)

(10,571)

(9,413)

(10,322)
Non-current liabilities





Borrowings
0

(772)

(201)
Other Payables
(78)

(62)

(78)
Deferred tax liabilities
(680)

(1,429)

(660)
Provisions
(185)

(183)

(185)

(943)

(2,446)

(1,124)
Total liabilities
(11,514)

(11,859)

(11,446)






Net assets
22,781

24,592

22,637












Equity





Share capital
83

82

82
Share premium 
732

610

610
Capital redemption reserve
216

216

216
Translation reserve
738

(263)

146
Revaluation reserve
4,324

4,484

4,402
Retained earnings
16,687

19,463

17,181
Equity attributable to shareholders
22,781

24,592

22,637


Robinson plc
Group Statement of Cash Flows

Six months to 30.06.17

Six months to 30.06.16

Year to 31.12.16

'000 

'000 

'000 
Cash flows from operating activities





(Loss)/profit for the period
(174)

161

1,228
Adjustments for:





Depreciation of property, plant and equipment
687

747

1,385
Profit on disposal of other plant and equipment
(71)

(55)

(189)
Amortisation of goodwill and customer relationships
465

466

932
Increase in provisions
0

0

2
Other finance income in respect of pension fund
(30)

(96)

(189)
Finance costs
51

38

122
Finance income
0

(6)

(6)
Taxation charged
176

122

390
Non-cash items:





Pension current service cost
108

96

162
Cost of share options
11

19

39
Operating cash flows before movements in working capital
1,223

1,493

3,876
(Increase) in inventories
(339)

(291)

(399)
Decrease in trade and other receivables
500

1,633

222
(Decrease) in trade and other payables
(166)

(747)

(499)
Cash generated by operations
1,218

2,088

3,200
Corporation tax paid
(241)

(71)

(446)
Interest paid
(40)

(44)

(122)
Net cash generated from operating activities
937

1,973

2,632
Cash flows from investing activities





Interest received
0

5

6
Deferred consideration paid on acquisition
0

(4,265)

(4,265)
Acquisition of plant and equipment
(914)

(783)

(1,782)
Disposal of other plant and equipment
121

105

481
Net cash used in investing activities
(793)

(4,938)

(5,560)
Cash flows from financing activities





Loans paid
(259)

(401)

(1,226)
Proceeds from exercise of share options
123

0

0
Dividends paid
(485)

(477)

(877)
Net cash used in financing activities
(621)

(878)

(2,103)
Net decrease in cash and cash equivalents
(478)

(3,843)

(5,031)
Cash and cash equivalents at 1 January
(4,206)

825

825
Cash and cash equivalents at end of period
(4,684)

(3,018)

(4,206)






Cash
649

1,069

881
Overdraft
(5,333)

(4,087)

(5,087)
Cash and cash equivalents at end of period
(4,684)

(3,018)

(4,206)


Robinson plc 
Notes to the Interim Report
1. Basis of preparation
The interim report for the six month period to 30 June 2017 was approved by the directors on 22 August 2017. 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 2016, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2016 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 2017 has been calculated based on the estimated effective tax rate on profits before tax for the year to 31 December 2017.
3. Dividends

Six months to 30.06.17 

Six months to 30.06.16 

Year to 31.12.16 
Ordinary: 
'000 

'000 

'000 
 Final
485

477

479
 Interim 
-

-

398

485

477

877
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 174,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,508,083. 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. 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 company news service from the London Stock Exchange
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