Trading Statement

RNS Number : 3894M

Robinson PLC

21 January 2021

 

Robinson plc

21 January 2021

TRADING STATEMENT

Robinson plc ("Robinson", the "Company" or the "Group"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging, is pleased to issue the following trading statement for the year ended 31 December 2020.

Revenues are expected to be £37m for the year, which represents a 6% increase on 2019. The Directors anticipate adjusted and reported profit before tax for 2020 to be ahead of current market expectations, and ahead of 2019.

During the year the Company has invested £4.6m in new additional and replacement production equipment and in the refurbishment of a manufacturing building in its UK business. These investments are consistent with our commitment to maintain a competitive manufacturing infrastructure that supports our intention to compete and win in our markets through sustainable supply, innovation capabilities, excellent product quality and cost-efficient operations. This investment in the business was funded by strong cash generation from operations resulting in net debt* at 31 December 2020 of £6.6m (2019: £6.9m).

Subject to any negative impact that may arise from the ongoing Covid-19 pandemic, it remains the intention of the Board to pay a total dividend of 8.5p (2019:2.5p) per share for the year ended 31 December 2020, of which 5.5p per share has been paid to date.

The Company expects to report its final results for the year ended 31 December 2020 on 25 March 2021.

Alan Raleigh, Chairman commented:

"Robinson's performance in 2020 has been resilient in the face of significant challenges. This has primarily been achieved due to the dedication of our people. We have continued to trade throughout the period, operating in line with local hygiene and social distancing requirements to ensure the safety and well-being of our colleagues, whilst effectively serving our customers.

I am pleased to confirm that in accordance with the Board's succession plan, Guy Robinson stepped down as Finance Director on 1 January 2021 and was succeeded by existing executive Board Director Mike Cusick. The Board will continue to benefit from Guy's experience as an executive Director until May 2021 and as a non-executive Director thereafter. Additionally, as part of our ongoing commitment to good corporate governance during the year, existing non-executive Board Director Sara Halton was appointed as the Senior Independent Director and Chair of the Audit and Risk Committee. I look forward to working with both Guy, Mike and Sara in their new roles at Robinson.

Despite the uncertain economic environment, we remain committed to ongoing delivery of our target of mid to high single digit sales growth and a 6-8% return on sales**."

*cash less borrowings (excludes IFRS16 lease liabilities)

**operating profit margin before exceptional items and amortisation of intangible assets

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information, please contact:

Robinson plc	www.robinsonpackaging.com
Helene Roberts, CEO Mike Cusick, Finance Director	Tel: [phone]
finnCap Limited
Ed Frisby / Giles Rolls, Corporate Finance Tim Redfern / Tim Harper, ECM	Tel: [phone]

About Robinson:

Being a purpose-led business, Robinson specialises in custom packaging with technical and value-added solutions for food and consumer product hygiene, safety, protection, and convenience; going above and beyond to create a sustainable future for our people and our planet. Their main activity is in injection and blow moulded plastic packaging and rigid paperboard luxury packaging, operating within the food and beverage, homecare, beauty and personal care, and luxury gift sectors. Robinson provides products and services to major players in the fast-moving consumer goods market to include McBride, Procter & Gamble, Reckitt Benckiser, SC Johnson, and Unilever. Headquartered in Chesterfield, UK, Robinson has 3 plants in the UK, and 2 in Poland. The organisation was formerly a family business with its origins dating back 180 years, currently employing over 350 people. The Group also has a substantial property portfolio with development potential.

 

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