REG - Robinson PLC - Final Results

RobinsonAnnouncement

01/04/2020 07:00

RNS Number : 3168I
  
Robinson PLC
  
01 April 2020
  
 

 
 
 
Robinson plc                                                          
 
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019
 
Robinson plc ("Robinson" or the "Group" stock code: RBN), the custom manufacturer of rigid plastic and paperboard packaging based in Chesterfield, announces its audited results for the year ended 31 December 2019.
 
Highlights:
·    Revenue increased by 7% to £35.1m (2018: £32.8m)
·    Gross margin increased from 18% to 21%. Operating costs increased by 14%
·    Operating profit before exceptional items and amortisation of intangible assets increased to £2.5m (2018: £1.5m)
·    Net debt decreased to £6.9m (2018: £8.8m)
·    Capital expenditure was £1.7m (2018: £4.4m)
 
Commenting on the results, Chairman, Alan Raleigh said:
"We have made important steps forward across all aspects of our business in 2019. Our results confirm that our actions to improve competitiveness are bearing fruit in a challenging and uncertain market.
 
We are of course assessing the rapidly evolving coronavirus pandemic and the impact this could have on our people, our customers and our business. Our business is predominantly in the food, personal care and household sectors, with more than 70% of our turnover arising from financially strong multi-national or local players, so we believe we are likely to be less affected by the pandemic than others. We have also stress-tested the resilience of our business to potential cash flow interruptions and believe we have sufficient financial headroom. However, in these current extremely uncertain circumstances, we believe it is prudent to maximise the cash retained in the business, so we have decided not to declare a final dividend in respect of 2019. When there is greater clarity on the impact of coronavirus on market conditions and our currently projected financial strength, it is the Board's ambition to resume dividend payments."
 
For further information, please contact:
 




Robinson plc


 www.robinsonpackaging.com




Guy Robinson, Finance Director


Tel: 01246 389283




 


 




finnCap Limited


 




Ed Frisby / Giles Rolls, corporate finance
Tim Redfern / Tim Harper, ECM


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 320 people. It was formerly a family business, with its origins dating back 180 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"
 
 
CHAIRMAN'S REPORT
 
Revenues, Gross Margin, EBITDA and Operating Profit
We are pleased to announce further strong growth and an increased market share, with revenue rising by 7% to £35.1 million in 2019. Volume growth was 8%.
 
Gross Margin has increased from 18% to 21% of revenue.
 
Despite an increase of 14% in operating costs, as we make further investments in competitive capabilities, we have also made good progress on EBITDA, which increased to £4.5 million in 2019, an increase of 31%. 
 
Operating Profit has doubled to £1.7 million.
 
Basic earnings per share have risen from 4.2p to 7.3p.
 
People
Helene Roberts joined as our new CEO in November 2019. Helene brings a wealth of packaging industry experience and valuable expertise in sustainability, which will be instrumental in shaping the future strategy for Robinson within a plastics circular economy. Helene's profile can be found on page 15 of our annual report.
 
I would particularly like to thank Martin McGee, our interim Chief Executive, who served for much of the year and who has energetically led the progress we have made in 2019. We wish Martin every success in the future.
 
We have also made significant progress in developing the skills and capabilities of our employees across the business in 2019. Investments have been made in health and safety, quality, manufacturing management and business processes to improve our competitiveness and to serve our customers better.
 
Property
Progress has been made towards selling some of the surplus property in Chesterfield and we hope that, subject to receiving the necessary planning approvals, sales will be achieved in 2021.
 
Outlook
Although we are pleased with progress in 2019, the Board recognises we must now move from having a business that has the capabilities to compete to an organisation that can consistently win in the marketplace. 
 
Many challenges and uncertainties exist in the current packaging landscape and we will no doubt face some unexpected headwinds from time to time in the future. However, with uncertainty comes opportunity and we are determined to take advantage of potential dislocations in the market, including playing a leading role in the sustainable packaging and circular economy agenda and leveraging our reputation as a purpose-led, responsible partner to our customers.
 
Subject to any negative impact from the Covid-19 coronavirus pandemic, we expect continued above market revenue growth whilst continuing to deliver industry competitive EBITDA and progressing Operating Profit towards a 6-8% range.
 
Covid-19 coronavirus
The reported spread of the Covid-19 coronavirus in recent weeks has created substantial market uncertainty. At present we have seen an upturn in demand for some of the products we manufacture, including hand wash containers and other personal care, household and food packaging. To the extent this is driven by stocking (as opposed to usage), this may reverse over time. 
 
The largest threats to our business are still to materialise and difficult to predict in this fast-changing environment, but we can envisage that the possibility of staff shortages or lockdowns may restrict our ability to manufacture products in our plants in the UK and Poland.
 
We have undertaken a stress test of our business and concluded that although there are some risks to our business from smaller customers, who fail to survive the pandemic (both in terms of future revenues and potential asset/debt write-offs), our financial position remains strong. Of course, it is difficult to predict the impact of these or the longer-term impact on supply chains or property values due to the significant uncertainties that remain.
 
We currently have no known positive cases within our workforce at any of our plants and are taking the appropriate measures to protect the business and its stakeholders.
 
In the circumstances as a precautionary measure, we have decided to move the proposed AGM date back to 30 June 2020 and not declare a final dividend in respect of 2019.
 
 
 
 
Alan Raleigh
Chairman
31 March 2020

 
 
Group income statement
FOR THE YEAR ENDED 31 DECEMBER
 




 


£'000 


2019 


2018 




 


 


 


 




Revenue


 


35,085


32,802




Cost of sales


 


(27,593)


(26,918)




Gross profit


 


7,492


5,884




Operating costs


 


(4,971)


(4,370)




Operating profit before exceptional items and amortisation of intangible asset


 


2,521


1,514




Exceptional items


 


-


110




Amortisation of intangible assets


 


(810)


(783)




Operating profit after exceptional items and amortisation of intangible asset


 


1,711


841




Finance costs


 


(205)


(156)




Profit before taxation


 


1,506


685




Taxation


 


(296)


10




Profit for the period


 


1,210


695




 


 


 


 




Earnings per ordinary share (EPS)


 


p


p




Basic earnings per share


 


7.3


4.2




Diluted earnings per share


 


7.3


4.1




 


 


 


 




All results are from continuing operations.
 
 


 


 


 




 
 
Group statement of comprehensive income
FOR THE YEAR ENDED 31 DECEMBER
 




Group statement of comprehensive income


£'000 


2019 


2018 




 


 


 


 




Profit for the period


 


1,210


695




Items that will not be reclassified subsequently to the Income Statement:


 


 


 




Re-measurement of net defined benefit liability


 


145


193




Deferred tax relating to items not reclassified


 


(28)


-




 


 


117


193




Items that may be reclassified subsequently to the Income Statement:


 


 


 




Exchange differences on retranslation of foreign currency goodwill and intangibles


 


148


-




Exchange differences on retranslation of foreign currency deferred tax balances


 


(23)


-




Exchange differences on translation of foreign operations


 


(579)


(138)




 


 


(454)


(138)




Other comprehensive (expense)/income for the period


 


(337)


55




Total comprehensive income for the period


 


873


750




 
 
 
 
 
 
Group statement of financial position
 AS AT 31 DECEMBER
 




 


 


Group


Group




 


£'000 


2019


2018




 


 


 


 




Non-current assets


 


 


 




Goodwill


 


1,144


1,115




Other intangible assets


 


3,616


4,306




Property, plant and equipment


 


18,338


19,039




Deferred tax assets


 


937


868




 


 


24,035


25,328




Current assets


 


 


 




Inventories


 


2,765


2,972




Trade and other receivables


 


9,646


10,699




Cash at bank and on hand


 


1,403


1,358




 


 


13,814


15,029




Total assets


 


37,849


40,357




Current liabilities


 


 


 




Trade and other payables


 


5,063


5,897




Borrowings


 


3,710


6,454




Current tax liabilities


 


255


99




 


 


9,028


12,450




Non-current liabilities


 


 


 




Borrowings


 


4,639


3,749




Deferred tax liabilities


 


1,090


1,056




Provisions


 


169


174




 


 


5,898


4,979




Total liabilities


 


14,926


17,429




Net assets


 


22,923


22,928




 


 


 


 




Equity


 


 


 




Share capital


 


83


83




Share premium 


 


732


732




Capital redemption reserve


 


216


216




Translation reserve


 


372


826




Revaluation reserve


 


4,134


4,126




Retained earnings


 


17,386


16,945




Equity attributable to shareholders


 


22,923


22,928




 
 
Group statement of changes in equity
 
FOR THE YEAR ENDED 31 DECEMBER
 




 


£'000 


Share capital


Share premium


Capital redemption reserve


Translation reserve


Revaluation reserve


Retained earnings


Total 




Group


 


 


 


 


 


 


 


 




At 1 January 2018


 


83


732


216


964


4,321


16,740


23,056




Profit for the year


 


 


 


 


 


 


695 


695 




Other comprehensive income/(expense)


 


 


 


 


(138)


 


193 


55 




Transfer from revaluation reserve as a result of property transactions


 


 


 


 


 


(195)


195


-




Credit in respect of share based payments


 


 


 


 


 


 


12 


12 




Total comprehensive income for the year


 


-


-


-


(138)


(195)


1,095


762




Dividends paid


 


 


 


 


 


 


(890)


(890)




Transactions with owners


 


-


-


-


-


-


(890)


(890)




At 31 December 2018


 


83 


732 


216 


826 


4,126 


16,945 


22,928 




Profit for the year


 


 


 


 


 


 


1,210 


1,210 




Other comprehensive income/(expense)


 


 


 


 


(454)


 


117 


(337)




Transfer from revaluation reserve as a result of property transactions


 


 


 


 


 


8


(8)


-




Credit in respect of share based payments


 


 


 


 


 


 


12 


12 




Total comprehensive income for the year


 


-


-


-


(454)


8


1,331


885




Dividends paid


 


 


 


 


 


 


(890)


(890)




Transactions with owners


 


           - 


             - 


                   - 


                  - 


                   - 


(890)


(890)




At 31 December 2019


 


83 


732 


216 


372 


4,134 


17,386 


22,923 




 
 
Group cash flow statement
FOR THE YEAR ENDED 31 DECEMBER
 




 


 


Group


Group




 


£'000 


2019 


2018 




 


 


 


 




Cash flows from operating activities


 


 


 




 Profit/(loss) for the period


 


1,210


695




 Adjustments for:


 


 


 




 Depreciation of property, plant and equipment


 


1,959


1,795




 Impairment of property, plant and equipment


 


43


189




 (Profit)/loss on disposal of other plant and equipment


 


(31)


209




 Impairment/amortisation of goodwill and customer relationships


 


810


783




 Decrease in provisions


 


(5)


(7)




 Finance income


 


-


-




 Finance costs


 


205


156




 Taxation charged/(credited)


 


296


(10)




 Other non-cash items:


 


 


 




   Pension current service cost and expenses


 


145


193




   Charge for share options


 


12


12




Operating cash flows before movements in working capital


 


4,645


4,015




 Decrease/(increase) in inventories


 


144


(151)




 Increase/(decrease) in trade and other receivables


 


807


(853)




(Decrease)/Increase in trade and other payables


 


(745)


329




Cash generated by operations


 


4,851


3,340




 Corporation tax paid


 


(127)


(294)




 Interest paid


 


(205)


(150)




Net cash generated by operating activities


 


4,519


2,896




 


 


 


 




Cash flows from investing activities


 


 


 




 Interest received


 


-


-




 Acquisition of plant and equipment


 


(1,726)


(4,355)




 Proceeds on disposal of property, plant and equipment


 


62


15




Net cash used in investing activities


 


(1,664)


(4,340)




 


 


 


 




Cash flows from financing activities


 


 


 




 Loans repaid


 


-


(221)




 Loans drawndown


 


-


2,700




 Loans granted to subsidiaries


 


-


-




 Loans repaid by subsidiaries


 


-


-




 Net proceeds from sale and leaseback transactions


 


1,697


1,300




 Capital element of lease payments


 


(506)


(106)




 Dividends paid


 


(890)


(890)




Net cash used in financing activities


 


301


2,783




 


 


 


 




Net increase in cash and cash equivalents


 


3,156


1,339




 Cash and cash equivalents at 1 January


 


(4,820)


(6,158)




 Effect of foreign exchange rate changes


 


(14)


(1)




Cash and cash equivalents at end of period


 


(1,678)


(4,820)




 


 


 


 




Cash at bank and on hand


 


1,403


1,358




Bank overdrafts


 


(3,081)


(6,178)




Cash and cash equivalents at end of period


 


(1,678)


(4,820)




 
 
Notes to the financial statements
 
1.   Basis of preparation
Robinson prepares its financial statements on a historical cost basis, unless accounting standards require an alternate measurement basis. Where there are assets and liabilities calculated on a different basis, this fact is disclosed either in the relevant accounting policy or in the notes to the financial statements. The financial statements comply with the Companies Act 2006 as applicable to companies using International Financial Reporting Standards ("IFRS"). The Group's financial statements are prepared on a going concern basis. The financial information contained in this announcement does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. However, the financial statements contained in this announcement are extracted from audited statutory accounts for the financial year ended 31 December 2019 which will be delivered to the Registrar of Companies. Those accounts have an unqualified audit opinion.
 
2.   Accounting Standards
Robinson prepares its financial statements in accordance with applicable IFRS, issued by the International Accounting Standards Board ("IASB") as adopted by the EU, and interpretations issued by the IFRS Interpretations Committee, and Companies Act 2006 applicable to companies reporting under IFRS. The Group's financial statements are also consistent with IFRS as issued by the IASB as they apply to accounting periods ended 31 December 2019.
 
3.   Going Concern
The Directors have considered the factors relevant to support a statement of going concern. In assessing whether the going concern assumption is appropriate, the Board and audit committee considered the Group cash flow forecasts under various scenarios, identifying risks and mitigants and ensuring the Group has sufficient funding to meet its current commitments as and when they fall due for a period of at least 12 months from the date of signing these financial statements. The Directors have a reasonable expectation that the Group will continue in operational existence for this 12 month period and have therefore used the going concern basis in preparing the financial statements.
 
4.   Publication of statutory financial statements
The Company's financial statements are due to be made available on the Company's website (www.robinsonpackaging.com) on 1 April 2020 and posted to shareholders by 8 June 2020. Copies will also be available at the Company's registered office, Field House, Wheatbridge, Chesterfield, S40 2AB. The Annual General Meeting is due to be held at 11.30am on 30 June 2020 and a further announcement will be made in due course when the Notice of Annual General Meeting is posted to shareholders.
 
 
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.


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