TIDMRBN
RNS Number : 4183T
Robinson PLC
25 March 2021
Robinson plc
25 March 2021
Final Results for the year ended 31 December 2020
Robinson plc ("Robinson" or the "Group" stock code: RBN), the
custom manufacturer of plastic and paperboard packaging, is pleased
to announce its audited results for the year ended 31 December
2020.
Financial highlights
-- Revenue up 6% to GBP37.2m (2019: GBP35.1m)
-- Gross margin increased to 23.0% from 21.4% in 2019
-- Operating profit before amortisation of intangible assets up 8% to GBP2.7m (2019: GBP2.5m)
-- Profit before tax of GBP1.8m (2019: GBP1.5m)
-- Final dividend of 3.0p per share announced
-- Net debt of GBP6.6m(1) (2019: GBP6.9m), after capital expenditure of GBP4.6m(2)
Operational highlights
-- Rebranded Robinson and defined new purpose and core values
-- Developed sustainability pledge and 15 ambitious goals
-- Successfully installed 11 new machines in the UK to replace
outdated equipment and increase the efficiency and capacity of the
operation
-- Refurbishment of a manufacturing building in
Kirkby-in-Ashfield to support future growth ambitions
-- Post period end, acquisition of Schela Plast in Denmark
-- Progress achieved very recently in surplus property disposal programme
Alan Raleigh, Chairman, commented:
"I am pleased to report further progress in revenues and profits
in 2020, despite the challenging conditions created by the Covid-19
pandemic.
I am very proud of how the team responded, continuing to service
customers throughout the year, whilst maintaining a safe working
environment for all. I would like to thank every Robinson employee
for their outstanding commitment and communicate my appreciation of
the strong collaboration of our suppliers and customers in
2020.
We have recently expanded our footprint, capabilities and
geographical reach with the acquisition of Schela Plast, which will
better position us to serve customers in Northern Europe, as well
as Central Europe and the UK in the coming year.
The pace of recovery from the pandemic across geographies and
short-term spikes in resin prices are likely to create substantial
uncertainty and volatility in the market in 2021. Despite this
uncertainty, we remain committed to delivering above-market
profitable growth and our target of 6-8% adjusted operating
margin(3) . "
For further information, please contact:
Robinson plc www.robinsonpackaging.com
Helene Roberts, CEO Tel: 01246 389280
Mike Cusick, Finance Director
finnCap Limited
Ed Frisby / Giles Rolls, Corporate Tel: 020 7220 0500
Finance
Tim Redfern / Barney Hayward, ECM
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. Its main activity is in injection and blow
moulded plastic packaging and rigid paperboard luxury packaging,
operating within the food and beverage, homecare, personal care and
beauty, and luxury gift sectors. Robinson provides products and
services to major players in the fast-moving consumer goods market
including McBride, Procter & Gamble, Reckitt Benckiser, SC
Johnson and Unilever.
Headquartered in Chesterfield, UK, Robinson has 3 plants in the
UK, 2 in Poland and recently acquired a plant in Denmark, Schela
Plast. Schela Plast specialises in the design and manufacture of
plastic blow moulded containers, serving a number of the major FMCG
brands in Denmark and neighbouring countries.
Robinson was formerly a family business with its origins dating
back 180 years, currently employing nearly 400 people. The Group
also has a substantial property portfolio with development
potential.
(1) cash less borrowings (excludes IFRS 16 operating lease
liabilities)
(2) net capital expenditure excluding operating leases
capitalised under IFRS 16
(3) operating profit margin before exceptional items and amortisation of intangible assets
Chairman's Statement
2020 was a year that tested us all - governments, society,
businesses, and individuals have all been deeply impacted by the
Covid-19 pandemic. Robinson did not escape this test, but I am very
proud of how the team has responded, maintaining a safe working
environment for all, while minimising disruption to our customers
and their consumers. I would like to thank every Robinson employee
for their outstanding commitment and communicate my appreciation
for the strong collaboration of our suppliers and customers in
2020.
The pandemic has created significant uncertainty and volatility
for our business. We saw substantial spikes in demand for some
products, offset by weaker demand in others. To ensure the safety
of our employees, we created new ways of working in our factories
and asked many of our sales and administration office colleagues to
work from home.
As a key industry in both the UK and Poland, the vital
contribution the Robinson team made to the health and wellbeing of
our communities through the supply of essential hygiene and foods
packaging in 2020 is worthy of special note.
Financial and operating performance
We delivered strong sales growth in 2020, with revenue rising by
6%. Underlying volume increased by 8%. Gross margins, at 23% (2019:
21%), have continued the positive trend started in 2019, helped by
softness in resin prices, income from value-added services and
increased operational efficiency. The impact of Covid-19 was
marginally beneficial to revenue and profit in 2020. The additional
demand for some products offset the additional costs of operating
our factories safely.
Operating costs were 18% higher than 2019 as we continued to
invest in the business. Operating profit before amortisation of
intangible assets has increased to GBP2.7m (2019: GBP2.5m) and
profit before tax increased to GBP1.8m (2019: GBP1.5m).
Cash generated by operations was GBP6.6m (2019: GBP4.9m),
benefitting from improved profitability and cash collection, longer
supplier payment terms, lower resin prices and the impact of UK VAT
deferred from March 2020 to March 2021.
Aligned with our customers' priorities, we purchased new presses
to improve service and responsiveness, enhanced our capabilities to
deliver market-place innovation and improved our processes to
achieve best-in-class product quality. We also added resources to
partner with key customers and to accelerate our sustainability
agenda. Our new sustainability pledge will be at the heart of
everything we do as a business and details of the pledge, which is
focused on five pillars and 15 commitments, is provided on pages 12
and 13 of the Annual report.
In addition, we refreshed the Robinson purpose, values and our
brand identity - confirming our intent to go above and beyond to
create a sustainable future for our people and our planet.
Strategy and acquisition of Schela Plast
In September 2020, we conducted our annual strategy and business
review, reaffirming our objective to deliver sustainable
shareholder value through above-market profitable growth, achieving
an adjusted operating margin(3) of 6-8%. Our three strategic
priorities are described in more detail on pages 10 and 11 of the
Annual report.
On 10 February 2021, we completed the acquisition of Schela
Plast, a specialist in the design and manufacture of blow moulded
containers, based in Denmark. Schela Plast is a strong
complementary fit to our existing products and services, customers
and manufacturing locations. Their location and capabilities,
together with our planned investment in additional equipment,
generates areas for growth with key customers in the market sectors
we and Schela Plast serve.
Capital investment, financing and pension
We are committed to maintaining a competitive manufacturing
infrastructure. During the year, we invested net GBP4.6m in
production equipment to replace outdated presses, add additional
capacity and refurbish a manufacturing building in our UK business.
This investment was funded by strong cash generation from
operations resulting in net debt (including IFRS 16 leases) at 31
December 2020 of GBP6.9m (2019: GBP6.9m).
To fund the post-year-end Schela Plast acquisition, new
facilities totalling GBP12m were agreed with HSBC Bank UK. With
total credit facilities of GBP18m (2019: GBP13m), the necessary
headroom is available for the Group to operate effectively.
The results of the triennial actuarial valuation of the defined
benefit pension fund, rolled forward to 30 October 2020, showed the
fund had a surplus of approximately 4% (2017: 2%). The Trustees and
the Company have therefore agreed that the Company continues to
benefit from a contribution holiday. Further details are provided
in note 30 to the Financial statements in the Annual report.
The IAS 19 valuation of our pension plan at 31 December 2020
reported a surplus of GBP9.3m (2019: GBP10.5m). This surplus is
deemed to be irrecoverable and so is not included in the Group's
assets.
Governance and Board composition
As a Board, we are committed to the highest standards of
corporate governance. We continue to comply with the Quoted
Companies Alliance Corporate Governance Code. During the year, we
undertook an independent evaluation of Board effectiveness, with
encouraging results. A summary of this exercise is included in the
Corporate governance report on pages 28 and 29 of the Annual
report.
Guy Robinson retired as Finance Director on 1 January 2021. I am
pleased to confirm that, in accordance with the Board's succession
plan, Guy was succeeded by existing Executive Board Director Mike
Cusick. The Board will continue to benefit from Guy's experience as
an Executive Director until the 2021 Annual General Meeting (AGM)
and as a Non-Executive Director thereafter. Additionally, existing
Non-Executive Board Director Sara Halton was appointed as the
Senior Independent Director and Chair of the Audit and Risk
Committee.
As previously communicated, Anthony Glossop will retire from the
Board at the AGM. On behalf of the Board, I would like to place on
record our deep appreciation of his wise counsel, outstanding
contribution and dedication to our success throughout his many
years of service.
I look forward to working with Guy, Mike and Sara in their new
roles at Robinson.
Property
Progress has been made towards selling some of the surplus
property in Chesterfield. Very recently heads of agreement, subject
to contract, with a gross value of GBP3.4m have been signed for two
plots of land. The total book value of the plots is less than GBP1m
at 31 December 2020. We hope that, subject to receiving the
necessary planning approvals, further sales will be achieved in the
next two years.
Dividend
The Board proposes a final dividend of 3.0p per share to be paid
on 16 July 2021 to shareholders on the register at the close of
business on 2 July 2021. The ordinary shares become ex-dividend on
1 July 2021. This brings the total dividend declared for 2020 to
8.5p (2019: 2.5p) including the final dividend for 2019 which was
deferred.
Outlook
The pace of recovery from the pandemic across geographies and
short-term spikes in resin prices are likely to create substantial
uncertainty and volatility in the market in 2021. Despite this
uncertainty, we remain committed to delivering above-market
profitable growth and our target of 6-8% adjusted operating margin
(3) .
We will continue to invest in creating a high performance,
expert and diverse team that can thrive in a safe environment while
delivering sustainable value to our customers and other
stakeholders.
Our flexibility, responsiveness, technical capabilities and,
most importantly, our people provide the basis for Robinson to go
"above and beyond" in 2021.
Alan Raleigh
Chairman
24 March 2021
Group income statement and statement of comprehensive income
Group income statement GBP'000 2020 2019
Revenue 37,203 35,085
Cost of sales (28,637) (27,593)
-------------------------------------------------------------- --------- ---------
Gross profit 8,566 7,492
Operating costs (5,878) (4,971)
-------------------------------------------------------------- --------- ---------
Operating profit before amortisation of intangible
assets 2,688 2,521
Amortisation of intangible assets (809) (810)
-------------------------------------------------------------- --------- ---------
Operating profit 1,879 1,711
Finance income - interest receivable 1 -
Finance costs (128) (205)
Profit before taxation 1,752 1,506
Taxation (343) (296)
-------------------------------------------------------------- --------- ---------
Profit for the period 1,409 1,210
-------------------------------------------------------------- --------- ---------
Earnings per ordinary share (EPS) p p
Basic earnings per share 8.5 7.3
Diluted earnings per share 8.4 7.3
Group statement of comprehensive income GBP'000 2020 2019
Profit for the period 1,409 1,210
-------------------------------------------------------------- --------- ---------
Items that will not be reclassified subsequently to the income statement:
Re-measurement of net defined benefit
liability 180 145
Deferred tax relating to items not reclassified (34) (28)
-------------------------------------------------------------- --------- ---------
146 117
Items that may be reclassified subsequently to the income statement:
Exchange differences on translation of foreign currency
goodwill and intangibles (55) 148
Exchange differences on translation of foreign currency
deferred tax balances 7 (22)
Exchange differences on translation of foreign operations (163) (580)
-------------------------------------------------------------- --------- ---------
(211) (454)
------------------------------------------------------------- --------- ---------
Other comprehensive (expense)/income for
the period (65) (337)
-------------------------------------------------------------- --------- ---------
Total comprehensive income for the period 1,344 873
-------------------------------------------------------------- --------- ---------
Group statement of financial position
GBP'000 2020 2019
Non-current assets
Goodwill 1,127 1,144
Other intangible assets 2,769 3,616
Property, plant and equipment 20,873 18,338
Deferred tax asset 978 937
25,747 24,035
----------------------------------------------- ------- -------
Current assets
Inventories 3,110 2,765
Trade and other receivables 9,185 9,646
Cash at bank and on hand 1,386 1,403
13,681 13,814
----------------------------------------------- ------- -------
Total assets 39,428 37,849
------------------------------------------------ ------- -------
Current liabilities
Trade and other payables 6,489 5,063
Borrowings 3,260 3,710
Current tax liabilities 69 255
9,818 9,028
----------------------------------------------- ------- -------
Non-current liabilities
Borrowings 4,991 4,639
Deferred tax liabilities 1,042 1,090
Provisions 173 169
6,206 5,898
----------------------------------------------- ------- -------
Total liabilities 16,024 14,926
------------------------------------------------ ------- -------
Net assets 23,404 22,923
------------------------------------------------ ------- -------
Equity
Share capital 83 83
Share premium 732 732
Capital redemption reserve 216 216
Translation reserve 161 372
Revaluation reserve 4,133 4,134
Retained earnings 18,079 17,386
Equity attributable to shareholders 23,404 22,923
------------------------------------------------ ------- -------
Group statement of changes in equity
Capital
Share Share redemption Translation Revaluation Retained
GBP'000 capital premium reserve reserve reserve earnings Total
At 1 January 2019 83 732 216 826 4,126 16,945 22,928
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Profit for the year - - - - - 1,210 1,210
Other comprehensive
income/(expense) - - - (454) - 117 (337)
Transfer from revaluation
reserve
as a result of property
transactions - - - - 8 (8) -
Credit in respect of share-based
payments - - - - - 12 12
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Total comprehensive income for
the
year - - - (454) 8 1,331 885
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Dividends paid - - - - - (890) (890)
Transactions with owners - - - - - (890) (890)
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
At 31 December 2019 83 732 216 372 4,134 17,386 22,923
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Profit for the year - - - - - 1,409 1,409
Other comprehensive
income/(expense) - - - (211) - 146 (65)
Transfer from revaluation
reserve
as a result of property
transactions - - - - (1) (3) (4)
Credit in respect of share-based
payments - - - - - 31 31
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Total comprehensive income for
the
year - - - (211) (1) 1,583 1,371
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Dividends paid - - - - - (890) (890)
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Transactions with owners - - - - - (890) (890)
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
At 31 December 2020 83 732 216 161 4,133 18,079 23,404
--------------------------------- --------- --------- ------------ ------------ ------------ ---------- -------
Group cash flow statement
GBP'000 2020 2019
Cash flows from operating activities
Profit for the period 1,409 1,210
Adjustments for:
Depreciation of property, plant and equipment 2,164 1,959
Impairment of property, plant and equipment 98 43
Profit on disposal of other plant and
equipment (24) (31)
Amortisation of intangible assets 809 810
Increase/(decrease) in provisions 4 (5)
Finance income (1) -
Finance costs 128 205
Taxation charged/(credited) 343 296
Other non-cash items:
- Pension current service cost and expenses 180 145
- Charge for share options 31 12
Operating cash flows before movements in working
capital 5,141 4,645
(Increase)/decrease in inventories (363) 144
Decrease/(increase) in trade and other
receivables 296 807
Increase/(decrease) in trade and other
payables 1,512 (745)
Cash generated by operations 6,586 4,851
Corporation tax (paid)/received (529) (127)
Interest paid (128) (205)
Net cash generated by operating activities 5,929 4,519
--------------------------------------------------------------- -------- --------
Cash flows from investing activities
Interest received 1 -
Acquisition of plant and equipment (4,673) (1,726)
Proceeds on disposal of property, plant
and equipment 81 62
Net cash used in investing activities (4,591) (1,664)
--------------------------------------------------------------- -------- --------
Cash flows from financing activities
Net proceeds from sale and leaseback transactions 1,061 1,697
Capital element of lease payments (710) (506)
Dividends paid (890) (890)
-------- --------
Net cash used in financing activities (539) 301
--------------------------------------------------------------- -------- --------
Net increase in cash and cash equivalents 799 3,156
Cash and cash equivalents at 1 January (1,678) (4,820)
Effect of foreign exchange rate changes (17) (14)
Cash and cash equivalents at end of period (896) (1,678)
--------------------------------------------------------------- -------- --------
Cash at bank and on hand 1,386 1,403
Bank overdrafts (2,282) (3,081)
-------- --------
Cash and cash equivalents at end of period (896) (1,678)
--------------------------------------------------------------- -------- --------
Notes to the financial statements
1. Basis of preparation
Robinson prepares its financial statements on a historical cost
basis, unless accounting standards require an alternate measurement
basis. Where there are assets and liabilities calculated on a
different basis, this fact is disclosed either in the relevant
accounting policy or in the notes to the financial statements. The
financial statements comply with the Companies Act 2006 as
applicable to companies using International Financial Reporting
Standards ("IFRS"). The Group's financial statements are prepared
on a going concern basis. The financial information contained in
this announcement does not constitute statutory accounts as defined
in Section 434 of the Companies Act 2006. However, the financial
statements contained in this announcement are extracted from
audited statutory accounts for the financial year ended 31 December
2020 which will be delivered to the Registrar of Companies. Those
accounts have an unqualified audit opinion.
2. Accounting Standards
Robinson prepares its financial statements in accordance with
applicable IFRS, issued by the International Accounting Standards
Board ("IASB") in conformity with the requirements of the Companies
Act 2006, and interpretations issued by the IFRS Interpretations
Committee. The Group's financial statements are also consistent
with IFRS as issued by the IASB as they apply to accounting periods
ended 31 December 2020.
3. Going Concern
The Directors have considered the factors relevant to support a
statement of going concern. In assessing whether the going concern
assumption is appropriate, the Board and the Audit and Risk
committee considered the Group cash flow forecasts under various
scenarios, identifying risks and mitigants and ensuring the Group
has sufficient funding to meet its current commitments as and when
they fall due for a period of at least 12 months from the date of
signing these financial statements. The Directors have a reasonable
expectation that the Group will continue in operational existence
for this 12 month period and have therefore used the going concern
basis in preparing the financial statements.
4. Publication of statutory financial statements
The Company's financial statements, including the Notice of
Annual General Meeting, are due to be made available on the
Company's website ( www.robinsonpackaging.com ) on 25 March 2021
and posted to shareholders by 21 May 2021. Copies will also be
available at the Company's registered office, Field House,
Wheatbridge, Chesterfield, S40 2AB. The Annual General Meeting is
due to be held at 11.30am on 24 June 2021 at Casa Hotel, Lockoford
Lane, Chesterfield S41 7JB.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
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