REG - Robinson PLC - Interim Results

RobinsonAnnouncement

21/08/2019 07:00

RNS Number : 6960J
Robinson PLC
21 August 2019
 


 
21 August 2019
Robinson plc                                                          
 
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019
 
CHAIRMAN'S STATEMENT
 
Trading Results
Revenues in the first half of 2019 are 9% higher than the same period last year, with an underlying volume increase of 8%. As we indicated in May, volumes in Q2 were lower, most notably as customers unwound Brexit contingency inventory that had been created in Q1.
 
Gross margin in the period slightly improved to 20% (2018: 19%), mainly as a result of pricing movements whilst operating costs were 9% higher, largely due to recruitment and training.
 
Operating profits before amortisation have improved by 48% to £0.8m versus the same period last year and profit before tax increased to £0.3m (2018: £0.1m).
 
Net debt
Net borrowings at the end of the period were £9.1m (December 2018: £8.8m) after investment of £1.0m in plant and equipment and increased inventory of £0.5m to provide Brexit contingency cover. A final dividend, with respect to 2018, of 3p per share was paid to shareholders on 3 June 2019 (2018: 3p).
 
Outlook and Dividend
Having undertaken a thorough review of customer demand, despite the ongoing Brexit uncertainty, we continue to target circa 10% annual revenue growth and target for future years progress towards a pre-exceptional return on sales in the range of 6-8%.
 
The Board is pleased to announce an interim dividend of 2.5p (2018: 2.5p) to be paid on 1 October 2019 to shareholders on the register at 30 August 2019 (record date). The ordinary shares ex-dividend date is 29 August 2019.
 
Alan Raleigh
Chairman
20 August 2019
 
 
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 325 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"




 



Income statement and statement of comprehensive income
















































Income statement


£'000


Six months

to 30.06.19


Six months

to 30.06.18


Year to

31.12.18


























Revenue






17,085


15,622


32,802




Cost of sales






(13,721)


(12,719)


(26,918)




Gross profit






3,364


2,903


5,884




Operating costs






(2,576)


(2,371)


(4,370)




Operating profit before exceptional items and amortisation of intangible asset






788


532


1,514




Exceptional items






-


-


110




Amortisation of intangible assets






(375)


(392)


(783)




Operating profit after exceptional items






413


140


841




Finance income - interest receivable






-


1


-




Finance costs - bank interest payable






(104)


(55)


(156)




Finance income in respect of pension fund






-


-


-




Profit before taxation






309


86


685




Taxation






(86)


(139)


10




Profit/(loss) for the period






223


(53)


695


























Earnings per ordinary share (EPS)






p


p


p




Basic earnings per share






1.3


(0.3)


4.2




Diluted earnings per share






1.3


(0.3)


4.2


























Statement of comprehensive income


£'000


Six months

to 30.06.19


Six months

to 30.06.18


Year to

31.12.18


























Profit/(loss) after tax for the period






223


(53)


695




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




















Re-measurement of net defined benefit liability






98


96


193




Deferred tax relating to items not reclassified






(19)


(6)


-












79


90


193




Items that may be reclassified subsequently to the Income Statement:




















Exchange differences on retranslation of foreign currency goodwill and intangibles






428


-


-




Exchange differences on translation of foreign operations






117


(517)


(138)












545


(517)


(138)




Other comprehensive income/(expense) for the period






624


(427)


55




Total comprehensive income/(expense) for the period


847


(480)


750



 




 



Statement of financial position






































Statement of financial position


£'000


30.06.19


30.06.18


31.12.18


























Non-current assets




















Goodwill






1,215


1,115


1,115




Other intangible assets






4,261


4,698


4,306




Property, plant and equipment






19,222


17,598


19,039




Deferred tax asset






895


184


868












25,593


23,595


25,328




Current assets




















Inventories






3,485


3,019


2,972




Trade and other receivables






9,720


9,280


10,699




Cash






1,490


676


1,358












14,695


12,975


15,029




Total assets






40,288


36,570


40,357




Current liabilities




















Trade and other payables






(5,090)


(6,349)


(5,897)




Corporation tax payable






(122)


(246)


(99)




Bank overdrafts






(5,551)


(7,059)


(6,178)




Obligations under finance lease contracts






(431)


(64)


(276)












(11,194)


(13,718)


(12,450)




Non-current liabilities




















Bank and other loans






(2,700)


-


(2,700)




Obligations under finance lease contracts






(1,917)


(74)


(1,049)




Deferred tax liabilities






(1,008)


(494)


(1,056)




Provisions






(174)


(181)


(174)












(5,799)


(749)


(4,979)




Total liabilities






(16,993)


(14,467)


(17,429)




Net assets






23,295


22,103


22,928


























Equity




















Share capital






83


83


83




Share premium






732


732


732




Capital redemption reserve






216


216


216




Translation reserve






1,371


447


826




Revaluation reserve






4,122


4,315


4,126




Retained earnings






16,771


16,310


16,945




Equity attributable to shareholders






23,295


22,103


22,928



 




 



Statement of cash flows
































































Statement of cash flows


£'000


Six months

to 30.06.19


Six months

to 30.06.18


Year to

31.12.18


























Cash flows from operating activities




















 Profit/(loss) for the period






223


(53)


695




 Adjustments for:




















 Depreciation of property, plant and equipment






915


850


1,795




 Impairment of property, plant and equipment






-


-


189




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






(16)


-


209




 Amortisation of intangible assets






375


392


783




 Decrease in provisions






-


-


(7)




 Finance income






-


(1)


-




 Finance costs






104


55


156




 Taxation charged






86


139


(10)




 Other non-cash items:




















   Pension current service cost and expenses






98


98


193




   Charge for share options






5


5


12




Operating cash flows before movements in working capital






1,790


1,485


4,015




 Increase in inventories






(513)


(238)


(151)




 Decrease/(increase) in trade and other receivables






979


436


(853)




 (Decrease)/increase in trade and other payables






(818)


1,158


329




Cash generated by operations






1,438


2,841


3,340




 Corporation tax paid






(95)


(228)


(294)




 Interest paid






(104)


(55)


(150)




Net cash generated by operating activities






1,239


2,558


2,896


























Cash flows from investing activities




















 Interest received






-


1


-




 Acquisition of plant and equipment






(1,041)


(2,055)


(4,355)




 Proceeds on disposal of property, plant and equipment






21


-


15




Net cash used in investing activities






(1,020)


(2,054)


(4,340)


























Cash flows from financing activities




















 Loans repaid






-


(211)


(221)




 Loans drawndown






-


-


2,700




 Finance leases drawndown






1,279


-


1,300




 Finance lease payments






(256)


(20)


(106)




 Dividends paid






(485)


(485)


(890)




Net cash used in financing activities






538


(716)


2,783


























Net increase/(decrease) in cash and cash equivalents






756


(212)


1,339




 Cash and cash equivalents at 1 January






(4,820)


(6,158)


(6,158)




 Effect of foreign exchange rate changes






3


(13)


(1)




Cash and cash equivalents at end of period






(4,061)


(6,383)


(4,820)


























Cash






1,490


676


1,358




Overdraft






(5,551)


(7,059)


(6,178)




Cash and cash equivalents at end of period






(4,061)


(6,383)


(4,820)



 
 




 
Notes to the Interim Report
 
1.   Basis of preparation
The interim report for the six month period to 30 June 2019 was approved by the directors on 20 August 2019. 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 2018, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2018 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 2019 has been calculated based on the estimated effective tax rate on profits before tax for the year to 31 December 2019.
 
3.   Dividends
 











£'000


Six months

to 30.06.19


Six months

to 30.06.18


Year to

31.12.18




Ordinary dividend paid:


2017 final of 3.0p per share






-


485


485








2018 interim of 2.5p per share






-


-


405








2018 final of 3.0p per share






485


-


-
















485


485


890



 
 
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 profit after taxation of £223,000 divided by the weighted average number of shares in issue, net of treasury shares, of 16,613,389 (basic) and 16,754,935 (diluted).
 
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.   Standards effective from 1 January 2019
Robinson plc has adopted IFRS 16 and this introduction has not resulted in a material impact on the statement of financial position or on profit or loss or on retained earnings in the current period.
 
7.   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.
 
 
                                  




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