Half Yearly Report

RNS Number : 5811K
Robinson PLC
22 August 2012
 



 

Robinson plc

("Robinson" or the "Company)

 

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2012

 

CHAIRMAN'S STATEMENT                  

 

Trading conditions have weakened during the first half and in  the second quarter revenues have dropped slightly below the previous year.  Margins, however, have been maintained and, with tight cost control, profit before exceptional costs have improved. The Directors have decided to write off our investment in the ice cream container manufacturer, Scotplast, after it had failed to achieve its business plans.

 

Revenues & Profits

Revenues during the first half were marginally down compared with the same period last year. Our customers have seen demand for their premium branded products come under pressure in the current market conditions and have reacted by reducing stock holdings, particularly in the last few months. However, new business won which is scheduled to come on stream during the second half of the year is expected to offset this shortfall.

 

The gross profit is £0.1m higher than the previous year as we have passed on the raw material price rises sustained during the first half. Increasing efficiency is a constant priority for the company and overheads have been reduced by £0.1m. With the Group's cash position broadly neutral and the continued notional benefit arising from the pension fund surplus, the profit before tax was £0.6m (after taking into account the Scotplast impairment) compared with £1.0m the previous half year.

 

Scotplast

During the first quarter of 2012, Scotplast, the company in which we acquired a 35% stake in 2011, has struggled with reduced revenues and margins have been squeezed by higher raw material prices. On 5 April 2012, we increased our shareholding to 49% by injecting £0.1m into the business in an attempt to help the business through a difficult cash flow situation. Since then the performance of the business has materially deteriorated, not helped by the worsening commercial environment and poor summer weather. The Directors have decided to fully write off our investment in this business. This amounts to £0.5m and is shown as an exceptional impairment in the Group Income Statement.

 

Cash & Finances

The Group's net cash and borrowings position stands at £0.4m. This has improved by £1.6m during the past 12 months mainly as a result of the trading profits and proceeds received from the sale of the spiral wound paperboard business in 2011. A final dividend of 2p was paid on 1 June 2012 (2011: 1.75p).

 

 

Outlook and Dividend

Market conditions for the rest of this year are expected to remain subdued. Plastic resin prices have recently reduced significantly from their recent peak and, although this benefit will be passed on to customers, we expect to maintain our margins. The directors are nevertheless optimistic that the Group will show further progress in the profitability of the underlying continuing businesses by the end of the year. As a result, an unchanged interim dividend of 1.75p (Oct-11: 1.75p) has been approved to be paid on 1 October 2012 to shareholders on the register at 31 August 2012.

 

 

For more information please contact:

Robinson plc


Guy Robinson, Finance Director

Tel: 01246 389283


www.robinsonpackaging.com

WH Ireland


Katy Mitchell

Tel: 0161 832 2174

 



 Group Income Statement

 




Six months to 30.06.12


Six months to 30.06.11


Year to 31.12.11


Notes


£'000


£'000


£'000









Revenue



9,517


9,565


21,516

Cost of sales



(7,595)


(7,744)


(16,748)

Gross profit



1,922


1,821


4,768

Operating costs



(982)


(1,121)


(2,637)

Exceptional impairment of investment in associate



(525)


                -


             -

Operating profit



415


700


2,131

Finance income - interest receivable



                -


51


53

Finance income - bank interest payable



(4)


(47)


(62)

Finance income in respect of pension fund



237


274


550

Profit before taxation



648


978


2,672

Taxation

2


(275)


(301)


(779)

Profit after taxation from continuing operations



373


677


1,893

Discontinued operations - gain for the period



                -


796


1,398

Profit for the period



373


1,473


3,291









Earnings per ordinary share (EPS)

4







EPS from continuing operations excluding exceptional items



                7.4p


                6.1p


          11.9p

EPS from continuing operations



                2.3p


                4.2p


          11.9p

EPS from continuing and discontinued operations



                2.3p


                9.2p


          20.6p









Diluted EPS

4







EPS from continuing operations excluding exceptional items



                5.5p


                4.2p


          11.6p

EPS from continuing operations



                2.3p


                4.2p


          11.6p

EPS from continuing and discontinued operations



                2.3p


                9.1p


          20.3p

































Statement of comprehensive income



£'000


£'000


£'000









Profit for the period



373


1,473


3,291

Other comprehensive income








Actuarial loss on retirement benefit obligations



(90)


(130)


(705)

Currency translation gain/(loss)



3


179


(499)




(87)


49


(1,204)

Taxation relating to actuarial loss



30


34


407

Other comprehensive (expense)/income for the period



(57)


83


(797)

Total comprehensive income for the period



316


1,556


2,494

 



 Group Balance Sheet

 

 




30.06.12


30.06.11


31.12.11




£'000


£'000


£'000

Non-current assets








Property, plant and equipment



8,847


11,398


8,763

Interests in associate



                -


              -


250

Loan to associate



                -


              -


200

Deferred tax assets



173


249


221

Pension asset



7,292


7,696


7,292




16,312


19,343


16,726

Current assets








Inventories



1,590


1,449


1,379

Trade and other receivables



5,884


6,238


6,555

Cash



902


1,204


333




8,376


8,891


8,267

Non-current assets held for sale



4,998


2,782


4,998

Total assets



29,686


31,016


29,991









Current liabilities








Trade and other payables



(4,140)


(3,663)


(3,940)

Corporation tax payable



(220)


(681)


(391)

Borrowings



(335)


(1,709)


(605)




(4,695)


(6,053)


(4,936)

Non-current liabilities








Borrowings



(140)


(667)


(307)

Deferred tax liabilities



(1,417)


(1,541)


(1,372)

Provisions



(189)


(191)


(189)




(1,746)


(2,399)


(1,868)

Total liabilities



(6,441)


(8,452)


(6,804)









Net assets



23,245


22,564


23,187

















Equity








Share capital



80


80


80

Share premium



419


419


419

Capital redemption reserve



216


216


216

Translation reserve



84


759


81

Revaluation reserve



4,568


4,420


4,567

Retained earnings



17,878


16,670


17,824

Equity attributable to shareholders



23,245


22,564


23,187

 



 Group cash flow statement




Six months to 30.06.12


Six months to 30.06.11


Year to 31.12.11




£'000


£'000


£'000

Cash flows from operating activities








 Profit for the period



373


1,473


3,291

 Adjustments for:








 Impairment of investment in associates



550


              -


             -

 Depreciation of property, plant and equipment



431


604


1,061

 Profit on disposal of other plant and equipment



                -


(72)


(86)

 Gain on disposal or closure of discontinued operations



                -


(1,041)


(1,891)

 Decrease in provisions



                -


              -


(2)

 Other finance income in respect of pension fund



(237)


(274)


(550)

 Finance income



4


(4)


62

 Taxation charged



275


211


779

 Non-cash items:








   Pension current service cost



116


144


249

   Cost of share options



30


12


50

Operating cash flows before movements in working capital



1,542


1,053


2,963

 Increase in inventories



(211)


(262)


(216)

 Decrease/(Increase) in trade and other receivables



664


(501)


(1,222)

 Increase in trade and other payables



200


209


265

Cash generated by operations



2,195


499


1,790

 UK corporation tax paid



(291)


(51)


(779)

 Interest (paid)/received



(5)


3


(69)

Net cash generated from operating activities



1,899


451


942

Cash flows from investing activities








 Disposal or closure of discontinued operations



                -


2,340


3,729

 Investment in an associate



(100)


              -


(450)

 Acquisition of property, plant and equipment



(505)


(459)


(1,059)

 Disposal of other plant and equipment



                -


158


172

Net cash (used in)/generated from investing activities



(605)


2,039


2,392

Cash flows from financing activities








 Loans paid



(167)


(206)


(647)

 Dividends paid



(288)


(260)


(512)

Net cash used in financing activities



(455)


(466)


(1,159)

Net increase in cash and cash equivalents



839


2,024


2,175

Cash and cash equivalents at 1 January



63


(2,112)


(2,112)

Cash and cash equivalents at end of period



902


(88)


63









Cash



902


1,205


333

Overdraft



 - 


(1,293)


(270)

Cash and cash equivalents at end of period



902


(88)


63



 

                                                                   Notes to the Interim Report

 

1.   Basis of preparation

The interim report for the six month period to 30 June 2012 was approved by the directors on 22 August 2012. 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 2012 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2012.

 

3.   Dividends

 

Six months to 30.06.12


Six months to 30.06.11


Year to 31.12.11

Ordinary:

£'000


£'000


£'000

     Final

288


260


255

     Interim

              -


             -


257


288


260


512

 

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 £373,000 divided by the weighted average number of shares in issue, net of treasury shares of 15,943,501: for diluted earnings per share 16,331,830.

 

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.   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.


This information is provided by RNS
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