ROBINSON PLC

Earnings Release • Mar 21, 2013

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RNS Number : 4962A

Robinson PLC

21 March 2013

	21 March 2013

Robinson plc

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2012

Robinson plc ("Robinson"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2012.

Highlights:

·   Profit before tax was £2.8m (2011: £2.7m).

·   Revenue decreased by 2% to £21.2m (2011: £21.5m) but underlying volumes increased by 2%.

·   Gross margin improved as a result of lower plastic resin costs and improved mix of business.

·   Cash inflow for the year was £1.7m leaving net cash and borrowings of £1.4m.

·   The surplus in the Group's pension fund increased by 1% to £7.7m.

·   A £3.4m restriction in the pension fund surplus has been reflected in the Group's assets.

·   The Board is recommending an increased final dividend for the year of 2.25p per share (2011:2p) raising the total dividend declared in respect of 2012 by 7% to 4p.

·   Diluted earnings per share increased by 9%.

Commenting on the results, Chairman, Richard Clothier said:

"It is pleasing to report continued improvement in profits despite a subdued market environment. Sales volumes increased by 2% year on year but, despite this, revenue declined by 2% due to our contractual arrangements with customers to pass on raw material price reductions. The full year effect of the new business gained during 2012 should ensure revenue growth in 2013."

About Robinson

Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz (Poland), Robinson currently employs around 225 people. It was formerly a family business, with its origins dating back some 165 years. Today the group's main activity is the manufacture and sale of injection moulded plastic packaging. Robinson operates primarily within the food, drink, confectionery, toiletry, cosmetic and homecare sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestle, Kraft, United Biscuits, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon, Heinz, Boots and Dr Oetker. The Group also has a substantial property portfolio with development potential.

For further information, please contact:

Adam Formela, Chief Executive, Robinson plc	01246 389287
Guy Robinson, Finance Director, Robinson plc	www.robinsonpackaging.com
Katy Mitchell, WH Ireland	0161 832 2174

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

CHAIRMAN'S STATEMENT

In what has been a rather dull market I am pleased to report continued improvement in profits. We did secure some important new business earlier in the year that has taken longer than originally anticipated to get into full production but has helped the new year to get off to a good start.

Revenue and profits

Group revenue reduced by 2% in the year but this was affected by plastic resin prices being lower by an average of 9%. As these were passed back to our customers, reported revenues reduced but we estimate that volumes were actually 2% higher in the year. Lower input prices and an improved mix of business contributed to the gross profit improving to 24%. Operating costs were contained and, with the help of a full year's notional rent from Sonoco in respect of the Portland property, profit before tax rose slightly to £2.8m (2011: £2.7m).

Surplus properties

The Group's surplus properties include the Portland factory in Chesterfield which is subject to a 15 year lease to Sonoco, who has a two year rent free period during which it can exercise an option to buy the property. Sonoco has indicated that it is considering exercising that option which expires during 2013. If it does exercise its option then this is likely to result in an exceptional gain and cash inflow and the annual rental income will reduce by £0.4m. The remaining surplus properties have the potential to realise value on disposal once property market conditions improve.

Pension fund

The Group's pension fund surplus increased by 1% to £7.7m despite the reported increase in liabilities driven by fixed interest yields. The Company and trustees anticipate that market conditions will enable a buy out of the liabilities of the fund to be achieved without cost to the Company within the next 6 years. As a consequence of the anticipated buyout the pension asset shown on the balance sheet has been restricted and reduced by £3.4m. This does not affect the underlying value of the pension fund.

Cash, finances and dividend

The net cash inflow for the year was £1.7m after capital expenditure of £0.9m. Net cash less bank borrowing amounted to £1.4m at the end of the year. Shareholders' funds reduced by £0.6m as profits for the year of £2.1m were offset by the reduction in the pension fund surplus, however, with diluted earnings per share up by 9% the Board proposes a final dividend of 2.25p per share to be paid on 1 June 2013 to shareholders on the register at the close of business on 17 May 2013. This brings the total dividend declared in respect of 2012 to 4p per share - an increase of 7% over the previous year.

Outlook

The full year effect of the new business gained during 2012 should ensure revenue growth in 2013, however, in an effort to grow the business further additions to the management team will increase costs which will temporarily limit the full effect of this growth in earnings. Volatility in plastic resin prices can affect margins in the short term and management are anticipating some pressure on selling prices in the current market that may, to some extent, counter the impact of higher volumes. Nevertheless, progress so far in 2013 is positive and in line with our expectations. 

Richard Clothier

Chairman

21 March 2013

Group income statement

FOR THE YEAR ENDED 31 DECEMBER

							2012		2011
							£'000		£'000
Continuing operations
Revenue							21,171		21,516
Cost of sales							(16,141)		(16,748)
Gross profit							5,030		4,768
Operating costs							(2,604)		(2,637)
Operating profit before exceptional items							2,426		2,131
Exceptional items							(83)		-
Operating profit after exceptional items							2,343		2,131
Finance income - interest receivable							10		53
Finance costs - bank interest payable							(9)		(62)
Finance income in respect of pension fund							474		550
Profit before taxation							2,818		2,672
Taxation							(723)		(779)
Profit after tax from continuing operations							2,095		1,893
Discontinued operations - profit for the year							-		1,398
Profit for the year							2,095		3,291
Basic earnings per share
Profit per ordinary share from continuing operations							13.1p		11.9p
Profit per ordinary share from discontinued operations							0.0p		8.8p
Profit per ordinary share from continuing and discontinued operations							13.1p		20.6p
Diluted earnings per share
Profit per ordinary share from continuing operations							12.6p		11.6p
Profit per ordinary share from discontinued operations							0.0p		8.7p
Profit per ordinary share from continuing and discontinued operations							12.6p		20.3p

Statement of comprehensive income               

FOR THE YEAR ENDED 31 DECEMBER

							2012		2011
							£'000		£'000
Profit for the year							2,095		3,291
Other comprehensive income
Actuarial loss on retirement benefit  obligations							(3,355)		(705)
Currency translation gain/(loss)							215		(499)
						(3,140)			(1,204)
Taxation relating to actuarial loss							922		407
Other comprehensive expense for the year							(2,218)		(797)
Total comprehensive (expense)/income for the year attributable to the company's shareholders							(123)		2,494

Statement of financial position

AS AT 31 DECEMBER

		Group
		2012		2011
		£'000		£'000
Non-current assets
Property, plant and equipment		8,857		8,763
Interests in associate		-		250
Loan to associate		-		200
Deferred tax asset		158		221
Pension asset		4,224		7,292
		13,239		16,726
Current assets
Inventories		1,608		1,379
Trade and other receivables		6,704		6,555
Corporation tax receivable		165		-
Cash		1,743		333
		10,220		8,267
Non-current assets held for sale		4,998		4,998
Total assets		28,457		29,991
Current liabilities
Trade and other payables		(4,355)		(3,940)
Corporation tax payable		(502)		(391)
Borrowings		(307)		(605)
		(5,164)		(4,936)
Non-current liabilities
Borrowings		-		(307)
Deferred tax liabilities		(524)		(1,372)
Provisions		(187)		(189)
		(711)		(1,868)
Total liabilities		(5,875)		(6,804)
Net assets		22,582		23,187
Equity
Share capital		80		80
Share premium		419		419
Capital redemption reserve		216		216
Translation reserve		296		81
Revaluation reserve		4,580		4,567
Retained earnings		16,991		17,824
Equity attributable to shareholders		22,582		23,187

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 2011	80		419		216		580		4,420		15,434	21,149
Profit for the year											3,291	3,291
Other comprehensive expense							(499)				(298)	(797)
Transfer to revaluation reserves as a result of property transactions									141		(141)	-
Tax on revaluation									6		-	6
Total comprehensive income for the year	-		-		-		(499)		147		2,852	2,500
Credit in respect of share based payments											50	50
Dividends paid											(512)	(512)
Transactions with owners											(462)	(462)
At 31 December 2011	80		419		216		81		4,567		17,824	23,187
Profit for the year											2,095	2,095
Other comprehensive income/(expense)							215				(2,433)	(2,218)
Transfer to revaluation reserves as a result of property transactions											-	-
Tax on revaluation									13		-	13
Total comprehensive income for the year	-		-		-		215		13		(338)	(110)
Credit in respect of share based payments											63	63
Dividends paid											(558)	(558)
Transactions with owners											(495)	(495)
At 31 December 2012	80		419		216		296		4,580		16,991	22,582

Statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER

		Group
		2012		2011
		£'000		£'000
Cash flows from operating activities
Profit for the year		2,095		3,291
Adjustments for:
Depreciation of property, plant and equipment		892		1,061
Profit on disposal of other plant and equipment		(148)		(86)
Profit on sale or closure of discontinued operations		-		(1,891)
Decrease in provisions		(2)		(2)
Other finance income in respect of Pension Fund		(474)		(550)
Finance costs		9		62
Taxation charged		723		779
Other non-cash items:
Pension current service cost		188		249
Charge for share options		63		50
Operating cash flows before movements in working capital		3,346		2,963
Increase in inventories		(229)		(216)
Decrease/(increase) in trade and other receivables		341		(1,222)
Increase in trade and other payables		417		265
Cash generated by operations		3,875		1,790
UK corporation tax paid		(643)		(779)
Interest paid		(11)		(69)
Net cash generated from operating activities		3,221		942
Cash flows from investing activities
Sale of discontinued operations		-		3,729
Investment in an associate		-		(450)
Acquisition of plant & equipment		(902)		(1,059)
Proceeds on disposal of other plant and equipment		254		172
Net cash (used in)/generated from investing activities		(648)		2,392
Cash flows from financing activities
Loans repaid		(335)		(647)
Dividends paid		(558)		(512)
Net cash used in financing activities		(893)		(1,159)
Net increase in cash and cash equivalents		1,680		2,175
Cash and cash equivalents at 1 January		63		(2,112)
Cash and cash equivalents at 31 December		1,743		63
Cash		1,743		333
Overdraft		-		(270)
Cash and cash equivalents at 31 December		1,743		63

Notes to the financial statements

1.   Basis of preparation

Whilst this financial information has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. 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 2012 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 2012 have had any effect on the financial statements.

In determining whether the Group's 2012 financial statements can be prepared on a going concern basis, the Directors considered all factors likely to affect its future development, performance and its financial position, including cash flows, liquidity position and borrowing facilities and the risks and uncertainties relating to its business activities. As at the date of this report, the directors have a reasonable expectation that the Company and Group have adequate resources to continue in business for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2.   Publication of statutory financial statements

The financial information set out above does not constitute the company's statutory financial statements for the years ended 31 December 2011 or 2012, but is derived from those financial statements. The statutory financial statements for the year ended 31 December 2011 have been delivered to the Registrar of Companies and those for 2012 are expected to be posted to shareholders on 8 April 2013 and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 2 May 2013. Copies will also be available from Robinson plc's registered office: Field House, Wheatbridge, Chesterfield, S40 2AB and on the Group's website at www.robinsonpackaging.com from 8 April 2013. 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).

This information is provided by RNS

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