REG - Robinson PLC - Trading Statement

RobinsonAnnouncement

24/01/2023 07:00

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RNS Number : 6124N  Robinson PLC  24 January 2023

Robinson
plc

24 January 2023

 

TRADING STATEMENT & UPDATE ON 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 issue the following trading statement, prior to the announcement of
its final results for the year ended 31 December 2022, which are scheduled to
be released on 30 March 2023.

Revenue for 2022 is anticipated to be £50.5m, which represents a 10% increase
over the prior year, or a 1% increase excluding the effect of the Schela Plast
business, acquired in February 2021. After adjusting for price changes and
foreign exchange, sales volumes in the underlying business, which have been
affected by changes in consumer behaviour, delisting of certain products by
our customers and overall reduced customer demand, are 10% below 2021.

2021 was heavily impacted by resin and other cost inflation and we were
largely successful in passing these increases through to sales prices in the
first quarter of 2022. We have experienced further input cost inflation during
the year, including that driven by the Russian invasion of Ukraine and the
consequent impact on global oil and energy markets. We are in the process of a
further substantial sales price increase program with all customers in 2023 to
reflect these increased costs.

Notwithstanding the challenges of lower sales volume and input cost inflation,
the directors anticipate the operating profit before exceptional items and
amortisation of intangible assets for the year ended 31 December 2022 will be
in line with the current market expectations, and comfortably ahead of 2021.

Net debt at 31 December 2022 is expected to be £9.2m (31/12/2021: £13.1m)
following the payment of £2.3m deferred consideration on the Schela Plast
acquisition, the receipt of £3.5m proceeds on sale of two properties in the
period and tight control of working capital.

Property

The Sutton-in-Ashfield factory, which was sold in April, was vacated in
October after the successful relocation of production to existing Robinson
premises in Kirkby-in-Ashfield. Consolidating our UK plastics manufacturing
activity will allow operational efficiency improvements in 2023 and beyond.

We continue to progress our surplus property disposal program and subject to
the necessary planning approvals, we would expect further sales in
Chesterfield, to be achieved in 2023 and 2024. The property disposals in the
first half of 2022 both achieved valuations in excess of their book value. As
a result, the carrying value of the Group's remaining UK properties is
currently being assessed in advance of the final results for 2022.

The intention of the Group remains, over time, to realise value from the
disposal of surplus properties and to reinvest the proceeds in developing our
packaging business.

Update on defined benefit pension scheme buy-in

We are also pleased to provide an update on the buy-in transaction effected by
the Robinson & Sons' Limited Pension Fund (the "Scheme"), which was
announced on 7 December 2022. The transaction completed as planned on 14
December 2022 with the Scheme having now paid the premium of £45.5m, which
was financed entirely using assets held within the Scheme. A full buy-out is
proposed, after a data cleanse exercise, both of which are expected to
complete before the end of 2023. Any surplus remaining in the Scheme after the
full buy-out would be used to augment member benefits.

 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.

 

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