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

RobinsonAnnouncement

27/03/2015 07:00

RNS Number : 6272I
Robinson PLC
27 March 2015
27 March 2015
Robinson plc
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014
Robinson plc ("Robinson"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2014.
Highlights:
 Madrox acquired on 25 June for 13m contributing 5.1m to revenues and 1.0m to pre-exceptional operating profits in the second half
 Revenue increased by 20% to 28.1m (2013; 23.3m)
o the increase is attributable to the acquisition of Madrox
o underlying sales volumes in the pre-existing business remained at last year's level
 Costs relating to the Madrox acquisition:
o one off costs of 0.4m shown as exceptional
o 0.4m ongoing amortisation of customer relationships
 Pre-exceptional operating profit excluding customer relationship amortisation up 25% to 2.9m
 Net borrowings increased by 9.4m to stand at 4.1m at the year end
 The Board is recommending an increased final dividend for the year of 2.75p per share (2013: 2.5p), raising the total dividend declared in respect of 2014 by 11% to 5p
Commenting on the results, Chairman, Richard Clothier said:
"I am pleased to report that the Madrox business has performed ahead of expectations since its acquisition in June 2014 reflecting our strategy of growth central Europe. Management is committed to new business development and, with the full year contribution from Madrox, further growth in revenues and earnings is expected."
About Robinson
Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz and Warsaw (Poland), Robinson currently employs around 310 people. It was formerly a family business, with its origins dating back some 176 years. Today the Group's main activity is the manufacture and sale of injection moulded plastic packaging. Robinson operates primarily within the food, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, McBride, SC Johnson, Sonoco, Bakkavor, Two Sisters and British Pepper and Spice. The Group also has a substantial property portfolio with development potential.
For further information, please contact:
Guy Robinson, Finance Director, Robinson plc
01246 389283

www.robinsonpackaging.com
Katy Mitchell, WH Ireland
0161 832 2174
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England)  AIM code "RBN"


CHAIRMAN'S STATEMENT
The highlight for the Group in 2014 was the acquisition of Madrox in Poland. This business fits our stated strategy of growth in the developing central European region and, since the acquisition, we are pleased to report that the business has performed ahead of expectations. Our remaining businesses have shown no net change year on year with stable volumes and material prices.
Madrox
Madrox is based near Warsaw, Poland and is a supplier of blow, stretch-blow and injection moulded plastic packaging primarily to major brands and private label businesses operating in the household, toiletries and cosmetics sectors in Central Europe. The acquisition was completed on 25 June 2014 and is fully in line with our strategy to expand in Central Europe through selective acquisition of local plastic packaging manufacturers who supply the strong brand owners and leading private labels in our sectors .It increases our relevance to existing customers and will allow us to take a more prominent position in the growing plastic packaging markets in this region.
The total consideration, which includes an earnout element payable in 2016, is estimated at 13.2m. The level of the earnout is dependent upon performance of the Madrox business prior to the payment of the earnout. The initial cash element of 10.5m has been funded from cash reserves and property backed bank debt. In the second half of 2014, Madrox contributed 5.1m to revenues and 1.0m to pre-exceptional operating profits.
Revenue and profits
Revenues were 28.1m for the year, which represents a 20% increase on last year. All of the increase is attributable to the acquisition of Madrox. Underlying sales volumes in the pre-existing businesses remained at last year's level. This masks a degree of business churn which has been driven by weakening consumer demand for some premium products, however we are encouraged by the new business secured in 2014 which has offset the losses. The gross profit increased from 22.2% to 22.8% through lower resin prices and the acquisition. Madrox added to the operating costs whilst rental income was reduced (0.2m) following the sale of Portland in mid-2013. The operating profit before exceptional items increased from 2.3m to 2.5m. Costs relating to the Madrox acquisition included exceptional one off costs of 0.4m and 0.4m ongoing amortisation of customer relationships - in 2013 there was an exceptional gain on the sale of Portland Works of 1.1m. The profit before tax was 2.4m (2013: 3.7m).
Pension fund
The Group's pension fund triennial valuation was performed as at 5 April 2014 and this showed a surplus of 6% on an ongoing valuation basis
Cash, finances and dividend
Net borrowings amounted to 4.1m at the end of the year. The net cash outflow for the year was 8.7m including 10.8m paid in respect of the acquisition of Madrox. Shareholders' funds rose by 2% to 25.6m but were impacted by a 0.5m foreign exchange revaluation adjustment arising from the impact of the strong GBP against our Polish assets. The Board proposes a final dividend of 2.75p per share to be paid on 8 June 2015 to shareholders on the register at the close of business on 15 May 2015. This brings the total dividend declared in respect of 2014 to 5.0p per share - an increase of 11% over the previous year.
Outlook
The current assessment for 2015 suggests a challenging outlook with little help from the market and volatility in foreign exchange and resin prices. However, management is committed to new business development and, with the full year contribution from Madrox, further growth in revenues and earnings is expected.
Richard Clothier
Chairman
27 March 2015


Group income statement
FOR THE YEAR ENDED 31 DECEMBER







2014 

2013 







'000 

'000 










Continuing operations









Revenue



28,071 

23,329 
Cost of sales






(21,669)

(18,148)
Gross profit






6,402 

5,181 
Operating costs






(3,490)

(2,859)
Amortisation of intangible asset




(392)

-
Operating profit before exceptional items



2,520 

2,322 
Exceptional items






(364) 

1,054
Operating profit after exceptional items



2,156 

3,376 
Finance income - interest receivable



27 

11 
Finance costs - bank interest payable



(106)

(1)
Finance income in respect of pension fund



342 

307 
Profit before taxation






2,419 

3,693 
Taxation






(418)

(599)
Profit for year attributable to the owners of the Company
2,001 

3,094 










Basic earnings per share









EPS from continuing operations



12.2p 

19.2p 
EPS from continuing operations excluding exceptional items

14.4p 

12.6p 










Diluted earnings per share









EPS from continuing operations



11.7p 

18.5p 
EPS from continuing operations excluding exceptional items

13.9p 

12.2p 
Statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER







2014 

2013 







'000 

'000 
Profit for the year






2,001 

3,094 
Items that will not be reclassified subsequently to profit or loss:



Remeasurement of net defined benefit liability
(402)

(308)
Deferred tax relating to items not reclassified
122 

152 







(280)

(156)
Items that may be reclassified subsequently to profit or loss:



Exchange differences on translation of foreign operations



(544) 

3 
Other comprehensive expense for the year
(824)

(153)
Total comprehensive income for the year attributable to the owners of the Company
1,177 

2,941


Statement of financial position
AS AT 31 DECEMBER


Group


2014 

2013 



'000 

'000 

Non-current assets





Goodwill

1,413 

- 

Other intangible assets

7,438

-

Property, plant and equipment

14,761

10,802

Deferred tax asset

132 

160 

Pension asset

3,825 

4,053 



27,569 

15,015 

Current assets





Inventories

2,635 

2,150 

Trade and other receivables

8,919 

6,565 

Cash

710 

5,375 



12,264 

14,090 

Non-current assets held for sale

- 

1,250 

Total assets

39,833 

30,355 






Current liabilities





Trade and other payables

(4,919)

(4,527)

Corporation tax payable

(44)

(130)

Borrowings

(2,856) 

-



(7,819)

(4,657)

Non-current liabilities





Borrowings

(2,002)

-

Other payables

(2,520)

-

Deferred tax liabilities

(1,728)

(407)

Provisions

(184)

(187)



(6,434)

(711)

Total liabilities

(14,253)

(5,251)







Net assets

25,580 

25,104 







Equity





Share capital

82 

82 

Share premium 

610 

610 

Capital redemption reserve

216 

216 

Translation reserve

(245) 

299 

Revaluation reserve

4,463 

4,416 

Retained earnings

20,454 

19,481 

Equity attributable to shareholders

25,580 

25,104 



Statement of changes in equity
FOR THE YEAR ENDED 31 DECEMBER
Group
Share
Share 
Capital
Translation
Revaluation
Retained
Total

capital
premium
redemption
reserve
reserve
earnings



account
reserve





'000 
'000 
'000 
'000 
'000 
'000 
'000








At 1 January 2013
80 
419 
216 
296 
4,580 
16,991 
22,582
Profit for the year





3,094 
3,094 
Other comprehensive income/(expense)



3 

(153)
(150)
Transfer to revaluation reserves as a result of property transactions




(168)
168
-
Tax on revaluation




4 

4 
Total comprehensive income for the year



3 
(164) 
3,109
2,948
Credit in respect of share based payments




43 
43 
Issue of ordinary shares under employee share option scheme
2
191



193
Dividends paid





(662)
(662)
Transactions with owners
2
191



(619)
(426)
At 31 December 2013
82
610
216 
299 
4,416 
19,481 
25,104 
Profit for the year





2,001 
2,001 
Other comprehensive expense



(544) 

(266)
(810)
Transfer to revaluation reserves as a result of property transactions




49
(49) 
 - 
Tax on revaluation




(2) 

(2) 
Total comprehensive income for the year



(544) 
47
1,686 
1,189 
Credit in respect of share based payments




42 
42 
Dividends paid





(755)
(755)
Transactions with owners





(713)
(713)
At 31 December 2014
82 
610 
216 
245 
4,463 
20,454 
25,580 










Statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER


Group


2014 

2013 



'000 

'000 

Cash flows from operating activities





Profit for the year

2,001 

3,094 

Adjustments for:





Depreciation of property, plant and equipment

1,176 

969

Profit on disposal of other plant and equipment

(7)

(20)

Profit on sale of non-current asset

-

(1,054)

Amortisation of goodwill and customer relationships

466

-

Decrease in provisions

(3) 

-

Other finance income in respect of Pension Fund

(342)

(307)

Finance costs

106 

1

Finance income

(27)

(11)

Taxation charged

418 

599

Other non-cash items:





 Pension current service cost and expenses

184 

170

 Charge for share options

42 

43

Operating cash flows before movements in working capital

4,014 

3,484 

Increase in inventories

(485)

(542)

Increase in trade and other receivables

(2,354)

(641) 

Increase/(decrease) in trade and other payables

2,840

(25) 

Cash generated by operations

4,015 

2,276 

Corporation tax paid

(632)

(769)

Interest paid

(101)

(3)

Net cash generated from operating activities

3,282 

1,504 







Cash flows from investing activities





Interest received

26 

 11

Acquisition of plant & equipment

(993)

(1,402)

Proceeds on disposal of plant & equipment

41 

45 

Proceeds on disposal of non-current assets

-

4,250

Acquisition of subsidiary

(10,346)

 - 

Net cash (used in)/generated from investing activities

(11,272) 

2,904







Cash flows from financing activities





Loans received/(repaid)

2,040

(307)

Proceeds on issue of shares

- 

 193

Dividends paid

(755)

(662)

Net cash generated from/(used in) financing activities

1,285

(776)







Net (decrease)/increase in cash and cash equivalents

(6,705) 

3,632 

Cash and cash equivalents at 1 January

5,375 

1,743 

Cash and cash equivalents at 31 December

(1,330) 

5,375 







Cash

710

5,375

Overdraft

(2,040) 

- 

Cash and cash equivalents at 31 December

(1,330)

5,375 



Notes to the financial statements
1. Basis of preparation
Whilst this financial information has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The consolidated and Company financial statements have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union. All standards and interpretations that have been issued and are effective at 31 December 2014 have been applied in the financial statements. The financial statements have been prepared under the historical cost convention. No accounting standards coming into effect in 2014 have had any effect on the financial statements.
In determining whether the Group's 2014 financial statements can be prepared on a going concern basis, the Directors considered all factors likely to affect its future development, performance and its financial position, including cash flows, liquidity position and borrowing facilities and the risks and uncertainties relating to its business activities. As at the date of this report, the directors have a reasonable expectation that the Company and Group have adequate resources to continue in business for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
2. Publication of statutory financial statements
The financial information set out above does not constitute the company's statutory financial statements for the years ended 31 December 2013 or 2014, but is derived from those financial statements. The statutory financial statements for the year ended 31 December 2013 have been delivered to the Registrar of Companies and those for 2014 are expected to be posted to shareholders on 20 April 2015 and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 14 May 2015. Copies will also be available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB and on the Group's website at www.robinsonpackaging.com from 20 April 2015. The auditor has reported on those financial statements; their reports were unqualified and did not contain statements under the Companies Act 2006, section 498 (2) or (3).

This information is provided by RNS
The company news service from the London Stock Exchange
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