TIDMRBN
RNS Number : 6899U
Robinson PLC
30 March 2023
Robinson plc
30 March 2023
Final Results for the year ended 31 December 2022
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
2022.
Financial highlights
-- Revenue up 10% to GBP50.5m (2021: GBP46.0m)
-- Gross margin stable at 17% (2021: 17%)
-- Operating profit before amortisation of intangible assets and
exceptional items increased to GBP2.0m (2021: GBP1.2m)
-- Profit before tax of GBP2.3m (2021: loss GBP0.1m)
-- Exceptional items of GBP1.7m profit - including profit on
sale of properties of GBP2.2m (2021: nil)
-- Final dividend of 3.0p per share
-- Net debt of GBP9.2m (2021: GBP13.1m), after net capital
expenditure of GBP2.5m on plant and equipment
-- Property proceeds of GBP3.5m received
Operational highlights
-- Supported trustees to complete a buy-in of the defined benefit pension scheme liabilities
-- Consolidated UK Plastics operations onto one site in Kirkby-in-Ashfield
-- Won new business projects which will require substantial
capital investment in 2023 and will increase revenues from 2024
Alan Raleigh, Chairman, commented:
"Robinson made good progress in 2022. We were able to improve
profits, achieve a surplus property sale, consolidate our UK
plastics operations and with the support of the pension trustees,
move closer to a full buy-out of the scheme liabilities. I look
forward to building on these foundations and delivering sustainable
long-term value for our shareholders.
We expect the substantial macroeconomic uncertainty and
volatility experienced since the beginning of 2021 to continue
throughout 2023.
We are seeing more new business activity with our existing and
potential customers, which provides opportunities for growth in
2023 and beyond. We have recently been awarded a significant new
contract in Denmark which will require substantial capital
expenditure in 2023, funded from existing facilities and will begin
to benefit sales and profit from 2024.
As a result of the further cost inflation experienced in 2022,
we are seeking substantial price increases from all customers for
2023. Given the ongoing pressure on volumes, input prices and
margins, the Board will continue to prioritise the management of
costs and cashflow.
Despite the ongoing uncertainty, operating profit [1] in the
2023 financial year is expected to be ahead of 2022 and in line
with current expectations. We remain committed in the medium-term
to delivering above-market profitable growth and our target of 6-8%
adjusted operating margin [2] . "
For further information, please contact:
Robinson plc www.robinsonpackaging.com
Helene Roberts, CEO Tel: 01246 389280
Mike Cusick, Finance Director
finnCap Limited
Ed Frisby / Seamus Fricker, Corporate Tel: 020 7220 0500
Finance
Tim Redfern / Barney Hayward, ECM
Graham Cooke / Rosie Pennell, Debt
Advisory
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 2 plants in the
UK, 2 in Poland and acquired a plant in Denmark in 2021, 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 to 1839, currently employing nearly 400 people. The Group also
has a substantial property portfolio with development
potential.
Chairman's Statement
In common with many businesses across the Fast-Moving Consumer
Goods (FMCG) Supply Chain, Robinson continued to experience very
challenging conditions through 2022, as the input price inflation
already evident was exacerbated by the Russian invasion of Ukraine
in February. Customer demand remained volatile with the effects of
inflation and the cost-of-living crisis impacting consumers and
creating demand uncertainty.
The Group performed strongly in the first half of the year as
the strategic supply partnership with Unilever in Denmark had a
substantial positive effect on sales. Our actions to recover cost
increases through increased selling prices across the Group largely
mitigated the impact of increased input costs on margins. Our
strategic choice to build a strong base of high-quality Blue-Chip
customers with strong brands or market positions also provided some
buffer to the effects of the cost-of-living crisis on sales
revenues.
In the second half of the year, sales were under increased
pressure as the cost-of-living crisis deepened and customer volumes
softened as a result. The difficult economic environment coupled
with inflation at 11.5% in the twelve months to December, resulted
in customers pruning their portfolio and again delaying innovation
projects.
Despite these market challenges, Robinson has won significant
new business in the year that confirms our investment in
capabilities, our responsive culture and our focus on providing
cost-effective supply is providing a competitive advantage.
We have continued to progress our sustainability initiatives in
the year and have higher ambitions for the future. We have
increased the level of recycled material in our packaging, reduced
our use of virgin plastic by more than 10% in advance of our 2025
target, and from 2023 will have successfully phased out
non-recyclable polymers and colourants.
In these very difficult times, we would like to pay tribute to
our employees for their continued commitment and excellent
contribution during the year. We will continue to work hard to
provide support to our employees as they face the pressures of the
current economic climate and increases in the cost-of-living.
Financial and operating performance
Revenues were 10% higher than 2021, including 9% related to the
Schela Plast business which was acquired in February 2021. After
adjusting for the acquisition, price changes and foreign exchange,
sales volumes in the underlying business are 10% below 2021.
Gross margins of 17% (2021: 17%) were in line with 2021 but
remain lower than our historical norm due to the overall weighting
of material prices in the sales price, the structurally lower gross
margin in Schela Plast and the operational gearing effect of
reduced sales volume in the underlying business.
Operating costs excluding exceptional items were 3% higher than
in 2021. The effect of the Schela Plast acquisition and inflation
were largely offset by cost-saving initiatives, including the
restructuring actions taken in the final quarter of 2021 and first
quarter of 2022.
Operating profit before amortisation of intangible assets and
exceptional items has increased to GBP2.0m (2021: GBP1.2m). After
taking into account GBP2.2m profit on disposal from two properties
during the year, profit before tax was GBP2.3m (2021: loss of
GBP0.1m).
Cash generated by operations was GBP7.6m (2021: GBP5.4m),
benefitting substantially from improved payment terms with
suppliers and customers.
Capital investment, financing, and pension
During the year, we invested a net GBP2.5m in property, plant
and equipment, of which GBP0.3m was related to the relocation of
production from Sutton-in-Ashfield to the Kirkby-in-Ashfield site.
Property proceeds of GBP3.5m were received in March and April and
deferred consideration of GBP2.3m was paid to the former owners of
Schela Plast in July. With lower working capital, net debt at 31
December 2022 was GBP9.2m (2021: GBP13.1m). In March 2023, the
Group successfully refinanced a GBP4.5m commercial mortgage for
three years with HSBC Bank UK. With total credit facilities of GBP
19m (2021: GBP22m), the necessary headroom is available for the
Group to operate effectively.
The IAS 19 valuation of our pension plan at 31 December 2022
reported a surplus of GBP7.0m (2021: GBP13.2m). This surplus is
deemed to be irrecoverable and so is not included in the Group's
assets.
In December, the Robinson & Sons' Limited Pension Fund (the
"Scheme") completed a buy-in of all the Group's defined benefit
pension scheme liabilities. Following completion, the Scheme's
liabilities are matched by an insurance policy and the Group no
longer bears any investment longevity, inflation or interest rate
risk associated with the Scheme. As the Scheme is in surplus, the
Group was already benefitting from a contribution holiday and there
is no immediate benefit to cashflow.
The Group and the Scheme trustees have long shared an ambition
to achieve a buy-out of the liabilities when market conditions
allow. The buy-in is the first step towards this goal, with a full
buy-out proposed after a data cleanse exercise, which is expected
to be completed by the end of 2023. In line with the Trust deed ,
any surplus remaining in the Scheme after the full buy-out would be
used to augment member benefits.
If a surplus remains following completion of a full buy-out,
then it is likely that the funds in the pension escrow account,
which are c.GBP3.2m, of which, GBP2.7m are loaned to the Group on
commercial terms, will be returned to the Group. Any funds returned
to the Group would be used to reduce net debt.
Property
The Group completed on the sale of two properties in 2022.
In March, a part of the surplus land and buildings in
Chesterfield was sold for consideration of GBP975,000. The proceeds
have been received and were used to reduce bank debt.
In April, an operational property in Sutton-in-Ashfield was sold
for consideration of GBP2,475,000. Following the sale, production
was relocated to an existing Robinson premises in
Kirkby-in-Ashfield. As planned, GBP600,000 was invested in the
relocation project, the proceeds have been received and after the
relocation costs, the remaining cash was used to reduce bank debt.
This consolidation of sites will provide opportunities to improve
operational efficiency in the UK plastics business in 2023 and
beyond.
After undertaking a professional independent valuation, the fair
value of the surplus properties is now estimated to be GBP8.1m. The
current net book value is GBP2.8m.
Subject to the necessary planning approvals, we would expect
further sales of surplus property, in Chesterfield, to be achieved
within the next 12 months. The intention of the Group remains, over
time, to realise value from the disposal of surplus properties and
to reinvest the proceeds in developing our packaging business.
Dividend
The Board proposes a final dividend of 3.0p per share to be paid
on 21 July 2023 to shareholders on the register at the close of
business on 7 July 2023. The ordinary shares become ex-dividend on
6 July 2023. This brings the total dividend declared for 2022 to
5.5p (2021: 5.5p).
Outlook
We expect the substantial macroeconomic uncertainty and
volatility experienced since the beginning of 2021 to continue
throughout 2023.
We are seeing more new business activity with our existing and
potential customers, which provides opportunities for growth in
2023 and beyond. We have recently been awarded a significant new
contract in Denmark which will require substantial capital
expenditure in 2023, funded from existing facilities and will begin
to benefit sales and profit from 2024.
As a result of the further cost inflation experienced in 2022,
we are seeking substantial price increases from all customers for
2023. Given the ongoing pressure on volumes, input prices and
margins, the Board will continue to prioritise the management of
costs and cashflow.
Despite the ongoing uncertainty, operating profit [3] in the
2023 financial year is expected to be ahead of 2022 and in line
with current expectations. We remain committed in the medium-term
to delivering above-market profitable growth and our target of 6-8%
adjusted operating margin [4] .
Alan Raleigh
Chairman
29 March 2023
Group income statement and statement of comprehensive income
Group income statement GBP'000 2022 2021
Revenue 50,529 45,954
Cost of sales (41,765) (38,204)
--------------------------------------------------------------- -------- --------
Gross profit 8,764 7,750
Operating costs (5,017) (6,568)
--------------------------------------------------------------- -------- --------
Operating profit before amortisation of intangible
assets 3,747 1,182
Amortisation of intangible assets (947) (957)
--------------------------------------------------------------- -------- --------
Operating profit 2,800 225
Finance income - interest receivable - 1
Finance costs (507) (374)
Profit/(loss) before taxation 2,293 (148)
Taxation 51 176
--------------------------------------------------------------- -------- --------
Profit for the period 2,344 28
--------------------------------------------------------------- -------- --------
Earnings per ordinary share (EPS) p p
Basic earnings per share 14.0 0.2
Diluted earnings per share 14.0 0.2
--------------------------------------------------------------- -------- --------
All results are from continuing operations.
Group statement of comprehensive income GBP'000 2022 2021
Profit for the period 2,344 28
--------------------------------------------------------------- -------- --------
Items that will not be reclassified subsequently
to the income statement:
Remeasurement of net defined benefit liability 180 192
Deferred tax relating to items not reclassified (34) (36)
--------------------------------------------------------------- -------- --------
146 156
Items that may be reclassified subsequently to
the income statement:
Exchange differences on translation of foreign
currency goodwill and intangibles 176 (367)
Exchange differences on translation of foreign
currency deferred tax balances (26) 54
Exchange differences on translation of foreign
operations 481 (846)
--------------------------------------------------------------- -------- --------
631 (1,159)
------------------------------------------------------------- -------- --------
Other comprehensive income/(expense) for the period 777 (1,003)
--------------------------------------------------------------- -------- --------
Total comprehensive income/(expense) for the period 3,121 (975)
--------------------------------------------------------------- -------- --------
Group Statement of financial position
GBP'000 2022 2021
Non-current assets
Goodwill 1,570 1,514
Other intangible assets 2,924 3,751
Property, plant and equipment 22,960 24,892
Deferred tax assets 1,294 1,188
28,748 31,345
----------------------------------------------- ------- -------
Current assets
Inventories 5,155 5,067
Trade and other receivables 9,522 10,033
Cash at bank and on hand 5,097 2,775
Current tax asset 110 -
Assets classified as held for sale 642 238
20,526 18,113
----------------------------------------------- ------- -------
Total assets 49,274 49,458
------------------------------------------------- ------- -------
Current liabilities
Trade and other payables 9,543 10,273
Borrowings 5,535 1,681
Current tax liabilities - 109
15,078 12,063
----------------------------------------------- ------- -------
Non-current liabilities
Borrowings 8,743 14,221
Deferred tax liabilities 1,395 1,376
Provisions 116 128
10,254 15,725
----------------------------------------------- ------- -------
Total liabilities 25,332 27,788
------------------------------------------------- ------- -------
Net assets 23,942 21,670
------------------------------------------------- ------- -------
Equity
Share capital 84 84
Share premium 828 828
Capital redemption reserve 216 216
Translation reserve (367) (998)
Revaluation reserve 3,856 4,107
Retained earnings 19,325 17,433
Equity attributable to shareholders 23,942 21,670
------------------------------------------------- ------- -------
Group statement of changes in equity
Capital
Share Share redemption Translation Revaluation Retained
GBP'000 capital premium reserve reserve reserve earnings Total
Group
At 1 January 2021 83 732 216 161 4,133 18,079 23,404
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Profit for the year - - - - - 28 28
Other comprehensive
income/(expense) - - - (1,159) - 156 (1,003)
Transfer from revaluation
reserve
as a result of property
transactions - - - - (26) 18 (8)
Credit in respect of
share-based
payments - - - - - 50 50
Total comprehensive income
for the year - - - (1,159) (26) 252 (933)
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Shares issued 1 96 - - - - 97
Dividends paid - - - - - (898) (898)
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Transactions with owners 1 96 - - - (898) (801)
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
At 31 December 2021 84 828 216 (998) 4,107 17,433 21,670
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Profit for the year - - - - - 2,344 2,344
Other comprehensive income - - - 631 - 146 777
Transfer from revaluation
reserve
as a result of property
transactions - - - - (251) 255 4
Credit in respect of
share-based
payments - - - - - 45 45
Total comprehensive income
for the year - - - 631 (251) 2,790 3,170
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Dividends paid - - - - - (898) (898)
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Transactions with owners - - - - - (898) (898)
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
At 31 December 2022 84 828 216 (367) 3,856 19,325 23,942
----------------------------- ----------------- -------------------- -------------------------- --------------------------- ------------------------- --------------------- --------
Group Cash flow statement
GBP'000 2022 2021
Cash flows from operating activities
Profit for the period 2,344 28
Adjustments for:
Depreciation of property, plant and
equipment 3,151 2,963
Profit on disposal of property, plant
and equipment (1,454) (87)
Profit on disposal of assets held for (737) -
sale
Amortisation of intangible assets 947 957
Decrease in provisions (12) (45)
Finance income - (1)
Finance costs 507 374
Taxation credited (51) (176)
Other non-cash items:
Pension current service cost and expenses 180 192
Charge for share options 45 50
Operating cash flows before movements
in working capital 4,920 4,255
Decrease/(Increase) in inventories 36 (1,237)
Decrease in trade and other receivables 671 511
Increase in trade and other payables 1,951 1,868
Cash generated by operations 7,578 5,397
Corporation tax paid (317) (99)
Interest paid (492) (349)
Net cash generated by operating activities 6,769 4,949
------------------------------------------------------------- -------- --------
Cash flows from investing activities
Interest received - 1
Acquisition of property, plant and
equipment (2,584) (3,991)
Proceeds on disposal of property, plant
and equipment 2,600 128
Proceeds on disposal of assets held 975 -
for sale
Cash outflow on acquisition of subsidiary - (1,832)
Deferred consideration paid (2,261) -
Net cash used in investing activities (1,270) (5,694)
------------------------------------------------------------- -------- --------
Cash flows from financing activities
Loans repaid (1,501) (468)
Loans drawn down 440 6,000
Net proceeds from sale and leaseback
transactions 439 1,721
Proceeds from issue of ordinary shares - 97
Capital element of lease payments (1,714) (1,987)
Dividends paid (898) (898)
-------- --------
Net cash used in financing activities (3,234) 4,465
------------------------------------------------------------- -------- --------
Net increase in cash and cash equivalents 2,265 3,720
Cash and cash equivalents at 1 January 2,775 (896)
Effect of foreign exchange rate changes 57 (49)
Cash and cash equivalents at end of
period 5,097 2,775
------------------------------------------------------------- -------- --------
Cash at bank and on hand 5,097 2,775
------------------------------------------------------------- -------- --------
Cash and cash equivalents at end of
period 5,097 2,775
------------------------------------------------------------- -------- --------
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
2022 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 2022.
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 are due to be made available
on the Company's website ( www.robinsonpackaging.com ) on 30 March
2023 and posted to shareholders with the Notice of Annual General
Meeting on 28 April 2023, at which time the Notice of Annual
General Meeting will be made available on the Company's website.
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 22 June 2023 at the Peak
Edge Hotel, Darley Road, Chesterfield S45 0LW.
[1] operating profit before amortisation of intangible assets
and exceptional items
[2] operating profit margin before amortisation of intangible
assets and exceptional items
[3] operating profit before amortisation of intangible assets
and exceptional items
[4] operating profit margin before amortisation of intangible
assets and exceptional items
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END
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(END) Dow Jones Newswires
March 30, 2023 02:00 ET (06:00 GMT)
Robinson (LSE:RBN)
過去 株価チャート
から 11 2024 まで 12 2024
Robinson (LSE:RBN)
過去 株価チャート
から 12 2023 まで 12 2024
