Half Yearly Report

RNS Number : 8908M

Robinson PLC

24 August 2011

 



Robinson plc

("Robinson" or the "Company")

Interim Results for the six months ended 30 June 2011.

Notification of Dividend

CHAIRMAN'S STATEMENT       

Following the closure of the paperboard business in Toronto reported earlier in the year, further developments have been completed, since the end of the period under review, which alter the shape of the Group. The sale of the business in Chesterfield and the investment in Scotplast Ltd, the plastic tub manufacturer in Glasgow, completes the exit from spirally wound paperboard and strengthens the plastic packaging operation. The Group retains a specialist paperboard box-making capability.

The spiral winding paperboard business in Chesterfield was sold to Sonoco (UK) Ltd on the 1st July 2011. Family shareholders will know that this was the heritage business of Robinson, having been acquired originally by John Robinson in 1839. However, despite representing 24% of Group revenues in 2010, it has not contributed to profits in the past 5 years, since it lost a long standing major contract.

As announced on 4 July 2011, the consideration for the disposal was £2.6m in cash subject to adjustment in respect of working capital levels following production of completion accounts. These monies have been used by Robinson to reduce current bank debt. In addition, Sonoco have taken a 15 year lease over the site and factory buildings at Goyt Side Road for which (following a two year rent free period) it will pay rental fees of £0.45m per annum. Sonoco also have an option to purchase the property within the next two years at a fixed price. The transaction provides continued employment for the employees of the Chesterfield factory and provides Sonoco with additional production capability and capacity. Sonoco is a significant customer of Robinson plc for plastic packaging and we hope to build on that relationship.

As the disposal was substantially progressed at the end of the period under review, the net result of the disposed business has been included in this period's group income statement as "discontinued operations" which includes, in prior years, the results of the North American paperboard business which was closed in 2010.

Continuing Operations

Excluding the paperboard operations defined above, revenues for the first six months increased 6% and the profit before tax rose by 3%. All of the continuing businesses showed growth in revenues in the first half compared with last year. The 6% overall increase was primarily attributable to increased input costs passed on, as plastic resin prices reached another all-time high in June 2011 - being 14% higher than a year ago. Margins have remained static as a consequence and the Group profit before tax for the period was £1.0m (Jun-10: £0.9m).

The pension fund remains in surplus and initial indications from the triennial actuarial valuation at 5 April 2011 show a 117% surplus, compared with 110% three years ago.

Despite working capital being £0.4m higher than a year ago, net borrowings have been reduced by £3.1m, which includes £2.3m paid to date by Sonoco. Capital spending has been at a modest level so far this year.

Scotplast

As announced on 12 July 2011, Robinson completed an agreement with the directors and owners of Scotplast Ltd to acquire 35% of its issued share capital for £0.25m. The agreement also provides an opportunity for Robinson plc to acquire the remaining issued share capital in 2013 for a price based on performance of the Scotplast business from the previous two years of trading. Scotplast specialises in producing plastic in-mould labelled ice cream containers for commercial and retail markets. Its audited turnover for the year ended 30 September 2010 was £4.1m, profit before tax for the same period was £0.1m and the total value of its assets was £3.8m on that date. Robinson has granted Scotplast a secured credit facility, repayable on 30 June 2014, of up to £0.3m bearing interest on commercial terms.

Outlook and Dividend

The directors believe market conditions for the rest of this year will remain subdued. Plastic resin prices have started to reduce from their recent peak but remain volatile. The directors are nevertheless optimistic that the Group will show further progress by the end of the year. As a result, a 17% higher interim dividend of 1.75p (Oct-10: 1.5p) has been approved to be paid on 3 October 2011 to shareholders on the register at 2 September 2011.

Richard Clothier		23 August 2011
Chairman		Robinson plc

For more information please contact:

Robinson plc
Guy Robinson, Finance Director	Tel: [phone]
	www.robinsonpackaging.com
WH Ireland
Katy Mitchell	Tel: [phone]

Robinson plc

Group Income Statement

			Six months to 30.06.11		Six months to 30.06.10		Year to 31.12.10
	Notes		£'000		£'000		£'000
Revenue			9,565		9,022		19,527
Cost of sales			(7,744)		(7,187)		(15,188)
Gross profit			1,821		1,835		4,339
Operating costs			(1,121)		(1,136)		(2,596)
Operating profit			700		699		1,743
Finance income			4		14		23
Finance income in respect of pension fund			274		236		474
Profit before taxation			978		949		2,240
Taxation	2		(301)		(227)		(621)
Profit after taxation from continuing operations			677		722		1,619
Discontinued operations - gain/(loss) for the period	3		796		(618)		(465)
Profit for the period			1,473		104		1,154
Earnings per share	5
Earnings per ordinary share (basic and diluted) from continuing operations			4.2p		4.5p		10.2p
Earnings per ordinary share (basic and diluted) from discontinued operations			5.0p		( 3.9p )		( 2.9p )
Earnings per ordinary share (basic and diluted) from continuing and discontinued operations			9.2p		0.6p		7.3p
Statement of comprehensive income			Six months to 30.06.11		Six months to 30.06.10		Year to 31.12.10
			£'000		£'000		£'000
Profit for the period			1,473		104		1,154
Other comprehensive income
Actuarial (loss)/gain on retirement benefit obligations			(130)		(100)		513
Release of currency translation reserve on closure of subsidiary			-		-		(311)
Currency translation gain/(loss)			179		(302)		(56)
			49		(402)		146
Taxation relating to actuarial (loss)/gain			34		28		(143)
Other comprehensive income/(expense) for the period			83		(374)		3
Total comprehensive income for the period			1,556		(270)		1,157

Robinson plc

Group Balance Sheet

			30.06.11		30.06.10		31.12.10
			£'000		£'000		£'000
Non-current assets
Property, plant and equipment			11,398		12,406		12,394
Deferred tax assets			249		342		288
Pension asset			7,696		6,996		7,696
			19,343		19,744		20,378
Current assets
Inventories			1,449		2,018		1,982
Trade and other receivables			6,238		5,779		6,447
Cash			1,204		158		347
			8,891		7,955		8,776
Non-current assets held for sale			2,782		2,782		2,782
Total assets			31,016		30,481		31,936
Current liabilities
Trade and other payables			(3,663)		(4,182)		(4,605)
Corporation tax payable			(681)		(204)		(542)
Borrowings			(1,709)		(3,321)		(2,872)
			(6,053)		(7,707)		(8,019)
Non-current liabilities
Borrowings			(667)		(1,084)		(876)
Deferred tax liabilities			(1,541)		(1,574)		(1,701)
Provisions			(191)		(194)		(191)
			(2,399)		(2,852)		(2,768)
Total liabilities			(8,452)		(10,559)		(10,787)
Net assets			22,564		19,922		21,149
Equity
Share capital			80		80		80
Share premium			419		419		419
Capital redemption reserve			216		216		216
Translation reserve			759		643		580
Revaluation reserve			4,420		4,461		4,420
Retained earnings			16,670		14,103		15,434
Equity attributable to shareholders			22,564		19,922		21,149

Robinson plc

Group cash flow statement

			Six months to 30.06.11		Six months to 30.06.10		Year to 31.12.10
			£'000		£'000		£'000
Cash flows from operating activities
Profit for the period			1,473		104		1,154
Adjustments for:
Depreciation of property, plant and equipment			604		673		1,379
(Profit)/loss on disposal of other plant and equipment			(72)		(3)		1
Gain on disposal or closure of discontinued operations			(1,041)		-		(165)
Decrease in provisions			-		-		(3)
Other finance income in respect of pension fund			(274)		(236)		(474)
Finance income			(4)		52		66
Taxation charged			211		103		474
Non-cash items:
Pension current service cost			144		136		285
Cost of share options			12		16		30
Operating cash flows before movements in working capital			1,053		845		2,747
Increase in inventories			(262)		(483)		(497)
Increase in trade and other receivables			(501)		(116)		(1,222)
Increase/(decrease) in trade and other payables			209		(1,256)		(348)
Cash generated/(used in) by operations			499		(1,010)		680
UK corporation tax(paid)/received			(51)		12		(114)
Interest received/(paid)			3		(50)		(67)
Net cash generated from/(used in) operating activities			451		(1,048)		499
Cash flows from investing activities
Disposal or closure of discontinued operations			2,340		-		(66)
Acquisition of property, plant and equipment			(459)		(117)		(542)
Disposal of other plant and equipment			158		17		17
Net cash generated from/(used in) investing activities			2,039		(100)		(591)
Cash flows from financing activities
Loans paid			(206)		(203)		(409)
Dividends paid			(260)		(246)		(456)
Net cash used in financing activities			(466)		(449)		(865)
Net increase/(decrease) in cash and cash equivalents			2,024		(1,597)		(957)
Cash and cash equivalents at 1 January			(2,112)		(1,155)		(1,155)
Cash and cash equivalents at end of period			(88)		(2,752)		(2,112)
Cash			1,205		158		347
Overdraft			(1,293)		(2,910)		(2,459)
Cash and cash equivalents at end of period			(88)		(2,752)		(2,112)

Robinson plc                                                                  Notes to the Interim Report

1.   Basis of preparation

The interim report for the six month period to 30 June 2011 was approved by the directors on 23 August 2011. The interim financial information is not audited.

The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention except that they have been modified to include the valuation of certain financial assets and liabilities. The interim financial statements do not constitute statutory financial statements in accordance with section 435 of the Companies Act 2006. The full year figures are derived from the statutory accounts on which the auditors gave an unmodified report. The Group's statutory financial statements prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union have been filed with the Registrar of Companies.

2.   Taxation

The taxation charge for the six months to 30 June 2011 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2011.

3.   Discontinued operations 

On 1 July 2011 the business of designing, manufacturing and selling spirally wound paperboard containers based in Chesterfield was sold to Sonoco Limited. This sale has been included in the financial statements for the half year as the sale had been agreed and substantially completed in the half year. In the previous period Robinson Paperboard Packaging (North America) Ltd was closed. All comparatives in the income statement have been restated to disclose these operations as discontinued. The results of the discontinued operations were as follows:

		Six months to 30.06.11		Six months to 30.06.10		Year to 31.12.10
		£'000		£'000		£'000
Revenue		2,882		2,497		6,908
Expenses		(3,217)		(3,254)		(7,685)
Loss before tax		(335)		(757)		(777)
Attributable tax credit		64		139		147
		(271)		(618)		(630)
Gain on disposal or closure of discontinued operations		1,041		-		165
Attributable tax expense		26		-		-
Net gain/(loss) attributable to discontinued operations		796		(618)		(465)

The net assets of the Chesterfield paperboard business at the date of closure were:

						£'000
Property, plant and equipment						887
Inventories						795
Trade receivables						1,204
Trade payables						(1,032)
Other payables						(118)
						1,736
Gain on disposal						1,041
Total consideration						2,777
Satisfied by:
Cash and cash equivalents						2,340
Deferred consideration, including estimated working capital adjustment						437
						2,777
Gain on net assets						1,116
Closure costs						(75)
Gain on closure						1,041

4.   Dividends

	Six months to 30.06.11		Six months to 30.06.10		Year to 31.12.10
Ordinary:	£'000		£'000		£'000
Final	260		246		246
Interim	-		-		210
	260		246		456

5.   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 (£677,000) divided by the weighted average number of shares in issue (15,943,501). The share options are not dilutive as the average market price is not sufficiently higher than the exercise price. The calculation in respect of discontinued operations is based on the profit of £796,000. The calculation in respect of continuing and discontinued operations is based on the profit for the period of £1,473,000.

6.   Interim Report

Copies of the interim report are available from Robinson plc's registered office: Portland, Goyt Side Road, Chesterfield, S40 2PH, UK or from its website at www.robinsonpackaging.com.

 

END

 

 

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