Half Yearly Report

RNS Number : 1205M

Robinson PLC

21 August 2013

 



 Robinson plc

("Robinson" or the "Company)

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2013

HIGHLIGHTS

·      Revenues up 14%

·      Operating profit before exceptional items up 10%

·      Exceptional gain of £1.1m on sale of property

·      Profit before tax £2.2m (2012: £0.6m)

·      Interim dividend increased by 14% to 2.0p (2012: 1.75p)

CHAIRMAN'S STATEMENT

Revenues & Profits

Revenues increased during the first half by 14% compared with the same period last year. Our customers report continued softness in demand for their premium branded products but new contracts have resulted in increased revenues. Plastic resin prices continue to fluctuate but on average have been at a similar level to last year. Whilst gross margins have been maintained, net operating costs have increased by 21% resulting from our previously announced strengthening of our sales and marketing team.

The notional finance income benefit arising from the pension fund surplus has halved to £0.1m in line with the reduction in the surplus in the pension fund shown in our balance sheet at the end of 2012. Other financing income was negligible as bank deposit rates have remained at low levels.

Sale of Property

Sonoco have exercised their option (pursuant to the sale of the spiral wound paperboard business in 2011) to buy the freehold property known as Portland Works in Chesterfield. The sales proceeds are £4.25m and this creates an exceptional gain on disposal of £1.1m in the income statement in the first half of 2013. The proceeds, which were received after the half year end, are included in "trade and other receivables" in these statements. The property was subject to a 15 year lease with an option to purchase, which has now been exercised. As a result, future rental incomes will be reduced by £0.4m per annum with effect from July 2013.

Cash & Finances

The Group's net cash and borrowings position stood at £1.1m at the end of June (2012: £0.4m) and this has improved with the receipt of the balance due from the sale of property referred to above. A final dividend of 2.25p was paid on 3 June 2013 (2012: 2.0p).

The proceeds from the sale of property will be held as cash while the Company continues to actively seek investment opportunities to expand its packaging business in Europe.

Outlook and Dividend

Market conditions for the rest of this year are expected to remain subdued. The directors are nevertheless optimistic that the Group will show progress in the profitability of the trading business for the year. As a result, an increased interim dividend of 2.0p (2012: 1.75p) has been approved to be paid on 1 October 2013 to shareholders on the register at 30 August 2013.

For more information please contact:

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

Robinson plc, Chesterfield, S40 2AB, UK.            Registered number 39811 (England)        AIM code "RBN"

Robinson plc

Group Income Statement

			Six months to 30.06.13		Six months to 30.06.12		Year to 31.12.12
Continuing Operations	Notes		£'000		£'000		£'000
Revenue			10,886		9,517		21,171
Cost of sales			(8,671)		(7,595)		(16,141)
Gross profit			2,215		1,922		5,030
Operating costs			(1,185)		(982)		(2,604)
Exceptional items			1,054		(525)		(83)
Operating profit			2,084		415		2,343
Finance income - interest receivable			2		-		10
Finance income - bank interest payable			(1)		(4)		(9)
Finance income in respect of pension fund			124		237		474
Profit before taxation			2,209		648		2,818
Taxation	2		(310)		(275)		(723)
Profit for the period from continuing operations			1,899		373		2,095
Earnings per ordinary share (EPS)	4
EPS from continuing operations excluding exceptional items			7.1p		7.4p		13.6p
EPS from continuing operations			11.7p		2.3p		13.1p
Diluted EPS	4
EPS from continuing operations excluding exceptional items			5.0p		5.5p		13.1p
EPS from continuing operations			11.3p		2.3p		12.6p
Statement of Comprehensive Income			£'000		£'000		£'000
Profit for the period			1,899		373		2,095
Other comprehensive income
Actuarial loss on retirement benefit obligations			-		(90)		(3,355)
Currency translation (loss)/gain			(58)		3		215
			(58)		(87)		(3,140)
Taxation relating to actuarial loss			-		30		922
Other comprehensive expense			(58)		(57)		(2,218)
Total comprehensive income/(expense) for the period			1,841		316		(123)

Robinson plc

Group Statement of Financial Position

			30.06.13		30.06.12		31.12.12
			£'000		£'000		£'000
Non-current assets
Property, plant and equipment			8,913		8,847		8,857
Deferred tax assets			111		173		158
Pension asset			4,224		7,292		4,224
			13,248		16,312		13,239
Current assets
Inventories			1,958		1,590		1,608
Trade and other receivables			9,802		5,884		6,704
Cash			1,055		902		1,743
			12,815		8,376		10,055
Non-current assets held for sale			2,782		4,998		4,998
Total assets			28,845		29,686		28,292
Current liabilities
Trade and other payables			(3,821)		(4,140)		(4,355)
Corporation tax payable			(211)		(220)		(337)
Borrowings			-		(335)		(307)
			(4,032)		(4,695)		(4,999)
Non-current liabilities
Borrowings			-		(140)		-
Deferred tax liabilities			(545)		(1,417)		(524)
Provisions			(187)		(189)		(187)
			(732)		(1,746)		(711)
Total liabilities			(4,764)		(6,441)		(5,710)
Net assets			24,081		23,245		22,582
Equity
Share capital			80		80		80
Share premium			526		419		419
Capital redemption reserve			216		216		216
Translation reserve			240		84		296
Revaluation reserve			4,371		4,568		4,580
Retained earnings			18,648		17,878		16,991
Equity attributable to shareholders			24,081		23,245		22,582

Robinson plc

Group Statement of Cash Flows

	Six months to 30.06.13		Six months to 30.06.12		Year to 31.12.12
	£'000		£'000		£'000
Cash flows from operating activities
Profit for the period	1,899		373		2,095
Adjustments for:
Impairment of investment in associates	-		550		-
Depreciation of property, plant and equipment	476		431		892
Profit on disposal of other plant and equipment	(5)		-		(148)
Decrease in provisions	-		-		(2)
Other finance income in respect of pension fund	(128)		(237)		(474)
Finance income	1		4		9
Taxation charged	310		275		723
Non-cash items:
Pension current service cost	128		116		188
Cost of share options	24		30		63
Operating cash flows before movements in working capital	2,705		1,542		3,346
Increase in inventories	(350)		(211)		(229)
(Increase)/Decrease in trade and other receivables	(882)		664		341
(Decrease)/Increase in trade and other payables	(587)		200		417
Cash generated by operations	886		2,195		3,875
UK corporation tax paid	(367)		(291)		(643)
Interest paid	(2)		(5)		(11)
Net cash generated by operating activities	517		1,899		3,221
Cash flows from investing activities
Investment in an associate	-		(100)		-
Acquisition of property, plant and equipment	(565)		(505)		(902)
Disposal of other plant and equipment	28		-		254
Net cash used in investing activities	(537)		(605)		(648)
Cash flows from financing activities
Loans paid	(307)		(167)		(335)
Dividends paid	(361)		(288)		(558)
Net cash used in financing activities	(668)		(455)		(893)
Net (decrease)/increase in cash and cash equivalents	(688)		839		1,680
Cash and cash equivalents at 1 January	1,743		63		63
Cash and cash equivalents at end of period	1,055		902		1,743
Cash	1,055		902		1,743
Cash and cash equivalents at end of period	1,055		902		1,743

Robinson plc

Notes to the Interim Report

1.   Basis of preparation

The interim report for the six month period to 30 June 2013 was approved by the directors on 21 August 2013. 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 2012, which have been prepared in accordance with applicable IFRSs. The information for the year ended 31 December 2012 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 2013 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2013.

3.   Dividends

	Six months to 30.06.13		Six months to 30.06.12		Year to 31.12.12
Ordinary:	£'000		£'000		£'000
Final	361		288		296
Interim	-		-		262
	361		288		558

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 £1,899,000 divided by the weighted average number of shares in issue, net of treasury shares of 16,193,501: for diluted earnings per share 16,853,501.The calculation of basic and diluted earnings per ordinary share for continuing operations excluding exceptional items is based on a profit of £845,000 being the profit after taxation of £1,899,000 less the exceptional item of £1,054,000.

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.

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