REG - Robinson PLC - Trading Statement

RobinsonAnnouncement

09/12/2021 07:00

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RNS Number : 0547V  Robinson PLC  09 December 2021

 

 

Robinson
plc

 

9 December 2021

 

TRADING STATEMENT

Robinson plc ("Robinson" or the "Group"; stock code: RBN), the custom
manufacturer of plastic and paperboard packaging, today issues the following
trading statement, prior to the announcement of its final results for the year
ended 31 December 2021, which are scheduled to be released on 24 March 2022.

Revenues for 2021 are anticipated to be £45m, which represents a 21% increase
on the prior year. Excluding the effects of the Schela Plast business acquired
in February, underlying sales are in line with 2020 but include significantly
higher resin prices passed on. We announced in August that we were seeing a
lower-than-normal level of demand in the third quarter due to the ongoing
uncertainty across FMCG supply networks and a varying pace of recovery from
the pandemic. This volatility has continued in the final quarter and in some
sectors, volume has deteriorated further as Brexit and Covid-19 have impacted
customer demand.

 

In the second half, we have seen further inflation in input costs including
secondary packaging, energy, and freight, and in the UK specifically, limited
labour availability has impacted customer service and increased costs. In the
short-term, margins have reduced as we have been unable to immediately
increase sales prices or remove fixed production costs.

 

However, we have begun to seek substantial price increases from all customers,
which will start to recover margins in 2022. Additionally, a restructuring
programme was implemented in November which will result in exceptional costs
of £0.2m in 2021 and annual savings of £0.3m in 2022.

 

As a result of the lower sales volumes, the directors now anticipate that full
year operating profit before exceptional costs and amortisation of intangible
assets will be in the range of £1.2m - £1.3m. Profits in the 2022 financial
year are expected to be ahead of 2021.

 

Property

We previously announced that we expected to dispose of two plots of land in
2021; completion is expected shortly on the first site, whilst planning
approval is now required for the second site which will delay completion until
the end of 2022. The gross proceeds are now expected to be marginally in
excess of the £3.4m previously indicated for the two plots which have a book
value of less than £1m.

 

Subject to the necessary planning approvals, we would expect further sales to
be achieved in 2022. The intention of the Group remains, over time, to realise
the maximum value from the disposal of surplus properties and to reinvest the
proceeds in developing our packaging business.

 

 

 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 3 plants in the UK, 2 in
Poland and recently acquired a plant in
Denmark, 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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