Preliminary Results - Year ended 31 December 2010

RNS Number : 5991D

Robinson PLC

25 March 2011

 



25 March 2011

Robinson plc

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2010

Robinson plc ("Robinson" or "the Group"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2010.

Highlights:

·          Profit before tax* £1.7m (2009: £1.0m)

·          Revenue* increased by 13% to £24.8m (2009: £21.9m)

·          Loss making North American business closed in December 2010 at minimal cost to the Group

·          Dividends for the year increased by 18%

* continuing operations

Commenting on the results, Chairman, Richard Clothier said:

"We are pleased to report growth in 2010 and also that the current year has started better than last year, in line with management expectations.  With the closure of the North American business, we are able to concentrate our efforts in Europe and we are confident that, unless market conditions deteriorate significantly, we will be able to make further progress in 2011."

About Robinson

Based in Chesterfield, with additional manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz (Poland). Robinson currently employs around 300 people. It was formerly a family business, with its origins dating back some 165 years. Today the Group's main activities are in the manufacture and sale of injection moulded plastic and rigid paperboard packaging. Robinson operates primarily within the food, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestlé, Kraft, United Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon, Boots and Dr Oetker. The Group also has a substantial property portfolio with significant development potential.

For further information, please contact:

Adam Formela, Chief Executive, Robinson plc	01246 505196
Guy Robinson, Finance Director, Robinson plc	www.robinsonpackaging.com
Nick Tulloch, Arbuthnot Securities Limited	020 7012 2000
Paul Gillam, Arbuthnot Securities Limited

CHAIRMAN'S REPORT

Following a strong recovery in 2009, it is pleasing to report further progress in 2010 with profits higher than Robinson has achieved for many years.  The operating results exclude our North American paperboard business which was closed in December 2010 following losses driven largely by the relative strength of the Canadian dollar and weak US demand. The net loss from trading and closure of this business is included as a separate line at the foot of the Group Income Statement.

Revenue

Group revenue increased by 13% on the previous year of which almost half was the result of volume increases and the remainder a reflection of price increases to cover raw material costs.  Resin prices have increased to all-time highs but these have largely been passed on to our customers. Central European revenues increased by 16%, however, margins suffered from the impact of higher input prices for a period before these were passed on to our customers.

Profitability

Profit before tax* was £1.7m (2009: £1.0m). This result was influenced mainly by the following factors:

·    gross margin* improved from 19% to 20% of revenues.  This is attributable to better customer mix and lower direct costs (notably labour and electricity) offset by increasing raw material prices;

·    overhead costs remained flat as revenues recovered; and

·    notional finance income in respect of the pension fund increased by £0.1m.

* Continuing operations

Cash & Finances

Capital expenditure on new plant and machinery of £0.5m (2009: £0.8m) was low in relation to the depreciation charge of £1.4m (2009: £1.5m). Year-end working capital levels were significantly higher than a year earlier as a result of higher sales in the run-up to Christmas, increased use of early payment discounts from suppliers and the early timing of the year end. Despite the £2.1m increase in working capital, net borrowings increased by only £0.5m to £3.7m and remain well within our agreed facilities.

Dividends

The Board proposes an unchanged final dividend of 1.75p per share to be paid on 6 June 2011 to shareholders on the register at the close of business on 20 May 2011. This brings the total dividend declared in respect of 2010 to 3.25p per share - an increase of 18% over the previous year and a recovery to the 2008 level.

Outlook

So far this year market conditions have remained stable for most of our customers. We remain conscious of the possible effects of economic trends and Government policy on our costs and consumer demand, but due to the Group's exposure to the usually resilient food, drink and toiletry sectors we do not expect revenues to be greatly affected. Our progress so far in 2011 is in line with the Board's expectations.

Richard Clothier

Chairman

24 March 2011

Group income statement

FOR THE YEAR ENDED 31 DECEMBER

	2010		2009
	£'000		£'000
Revenue	24,830		21,948
(excluding the discontinued operation in North America)
Cost of sales	(19,833)		(17,770)
Gross profit	4,997		4,178
Operating costs before exceptional items	(3,692)		(3,608)
Operating profit before exceptional items	1,305		570
Exceptional items	-		66
Operating profit after exceptional items	1,305		636
Finance costs - bank interest payable	(66)		(52)
Finance income in respect of pension fund	474		374
Profit before taxation	1,713		958
Taxation	(473)		(229)
Profit for the year from continuing operations	1,240		729
Discontinued operations - loss for the year	(86)		(305)
Profit for the year	1,154		424
Earnings per share
Profit per ordinary share (basic and diluted) from continuing operations	7.8p		4.6p
Loss per ordinary share (basic and diluted) from discontinued operations	( 0.6p )		( 1.9p )
Profit per ordinary share (basic and diluted) from continuing and discontinued operations	7.2p		2.7p

Statement of comprehensive income               

FOR THE YEAR ENDED 31 DECEMBER

	2010		2009
	£'000		£'000
Profit for the year	1,154		424
Other comprehensive income
Actuarial gain on retirement benefit  obligations	513		69
Release of currency translation reserve on closure of subsidiary	(311)		-
Currency translation loss	(56)		(182)
	146		(113)
Taxation relating to actuarial gain	(143)		(20)
Other comprehensive income for the year	3		(133)
Total comprehensive income for the year attributable to the parent's shareholders	1,157		291

Statement of financial position

 AS AT 31 DECEMBER

	Group
	2010		2009
	£'000		£'000
Non-current assets
Property, plant and equipment	12,394		13,237
Deferred tax asset	288		344
Pension asset	7,696		6,996
	20,378		20,577
Current assets
Inventories	1,982		1,535
Trade and other receivables	6,447		5,708
Cash	347		334
	8,776		7,577
Non-current assets held for sale	2,782		2,782
Total assets	31,936		30,936
Current liabilities
Trade and other payables	(4,605)		(5,341)
Corporation tax payable	(542)		(218)
Borrowings	(2,872)		(1,897)
	(8,019)		(7,456)
Non-current liabilities
Borrowings	(876)		(1,290)
Deferred tax liabilities	(1,701)		(1,578)
Provisions	(191)		(194)
	(2,768)		(3,062)
Total liabilities	(10,787)		(10,518)
Net assets	21,149		20,418
Equity
Share capital	80		80
Share premium	419		419
Capital redemption reserve	216		216
Translation reserve	580		947
Revaluation reserve	4,420		4,461
Retained earnings	15,434		14,295
Equity attributable to shareholders	21,149		20,418

Statement of changes in equity

FOR THE YEAR ENDED 31 DECEMBER

Share		Share		Capital		Translation		Revaluation			Retained	Total
capital		premium		redemption		reserve		reserve			earnings
		account		reserve
	£'000		£'000		£'000		£'000		£'000		£'000	£'000
Group
At 1 January 2009	80		419		216		1,129		4,361		14,273	20,478
Profit for the year											424	424
Other comprehensive income							(182)				49	(133)
Transfer from revaluation reserves as
a result of property transactions									99		(99)	-
Total comprehensive income for the year	-		-		-		(182)		99		374	291
Tax on revaluation									1		-	1
Credit in respect of share based payments											32	32
Dividends paid											(384)	(384)
Transactions with owners											(352)	(352)
At 31 December 2009	80		419		216		947		4,461		14,295	20,418
Profit for the year											1,154	1,154
Other comprehensive income							(367)				370	3
Transfer from revaluation reserves as
a result of property transactions									(41)		41	-
Total comprehensive income for the year	-		-		-		(367)		(41)		1,565	1,157
Credit in respect of share based payments											30	30
Dividends paid											(456)	(456)
Transactions with owners											(426)	(426)
At 31 December 2010	80		419		216		580		4,420		15,434	21,149

Statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER

		Group
		2010		2009
		£'000		£'000
Cash flows from operating activities
Profit for the year		1,154		424
Adjustments for:
Depreciation of property, plant and equipment		1,379		1,477
Profit on disposal of land and buildings		-		(44)
Profit on disposal of non-current assets held for sale		-		(176)
Loss on disposal of other plant and equipment		1		-
Profit on closure of discontinued operations		(165)		-
Decrease in provisions		(3)		(5)
Other finance income in respect of Pension Fund		(474)		(374)
Finance costs		66		92
Taxation charged		474		230
Other non-cash items:
Pension current service cost		285		255
Charge for share options		30		32
Operating cash flows before movements in working capital		2,747		1,911
(Increase)/decrease in inventories		(497)		205
(Increase)/decrease in trade and other receivables		(1,222)		1,323
Decrease in trade and other payables		(348)		(1,476)
Cash generated by operations		680		1,963
UK corporation tax (paid)		(114)		(143)
Interest paid		(67)		(158)
Net cash generated from operating activities		499		1,662
Cash flows from investing activities
Sale of surplus properties		-		67
Closure of discontinued operations		(66)		-
Sale of non-current assets		-		348
Acquisition of property, plant & equipment		(542)		(841)
Sale of other plant and equipment		17		14
Net cash used in from investing activities		(591)		(412)
Cash flows from financing activities
Loans received		-		415
Loans repaid		(409)		(336)
Dividends paid		(456)		(384)
Net cash used in from financing activities		(865)		(305)
Net (decrease)/increase in cash and cash equivalents		(957)		945
Cash and cash equivalents at 1 January		(1,155)		(2,100)
Cash and cash equivalents at 31 December		(2,112)		(1,155)
Cash		347		334
Overdraft		(2,459)		(1,489)
Cash and cash equivalents at 31 December		(2,112)		(1,155)

Notes to the financial statements

1.   Basis of preparation

The consolidated and Company financial statements have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union. All standards and interpretations that have been issued and are effective at 31 December 2010 have been applied in the financial statements. The financial statements have been prepared under the historical cost convention. No accounting standards coming into effect in 2010 have had any effect on the financial statements.

IAS 1 Presentation of Financial Statements (Revised 2007) requires presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances.  Management considers that this is not necessary this year because the 2008 balance sheet is the same as that previously published.

2.   Closure of subsidiary

On 20 December 2010 Robinson Paperboard Packaging (North America) Ltd was closed. The results of the discontinued operation, which have been included in the Group income statement, were as follows:

	2010		2009
	£'000		£'000
Revenue	1,605		1,477
Expenses	(1,855)		(1,781)
Loss before tax	(250)		(304)
Attributable tax expense	(1)		(1)
	(251)		(305)
Gain on closure of discontinued operations	165		-
Net loss attributable to discontinued operations	(86)		(305)

The gain on closure was derived as follows:

Gain on translation reclassified	311
Loss on net assets	(132)
Closure costs	(14)
Gain on closure	165

3.   Publication of non-statutory financial statements

The statutory financial statements for the year ended 31 December 2010 are expected to be posted to shareholders in due course and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 5 May 2011. Copies will also be available from Robinson plc's registered office: Portland, Goytside Road, Chesterfield, S40 2PH and on the Group's website at www.robinsonpackaging.com 

The auditor has reported on those financial statements; their reports were unqualified and did not contain statements under the Companies Act 2006, section 498 (2) or (3).

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