TIDMRBN
RNS Number : 8437M
Robinson PLC
26 May 2022
Robinson plc
26 May 2022
AGM TRADING STATEMENT
Robinson plc ("Robinson", the "Company" or the "Group"; stock
code: RBN), the custom manufacturer of plastic and paperboard
packaging, is holding its Annual General Meeting today at 11:30am
in Chesterfield. The Chairman, Alan Raleigh, will make the
following statement:
Current trading
"Group sales in the first four months of the year are 22% ahead
of the same period in 2021, 6% higher excluding the impact of the
Schela Plast business in both periods. After adjusting for price
changes and foreign exchange, sales volumes in the underlying
business are 14% lower than the same period in 2021.
As a consequence of the cost inflation experienced in the last
16 months, we have agreed substantial sales price increases with
our customers, however, since the Russian invasion of Ukraine in
February, we have seen further increases in global oil and energy
costs flow through to polymer resin and other raw material prices
and impact our costs.
Profits are ahead of the first four months in 2021, where in
2021 gross margins were heavily affected by 60% increases in
polymer resin prices which hadn't yet been fully passed through to
customers.
Property
As previously announced, the Group has completed on the sale of
two properties in the period. The first was a sale of surplus land
and buildings in Chesterfield on 31 March 2022, with consideration
of GBP975,000. The second an operational property in
Sutton-in-Ashfield which completed on 27 April 2022, for
consideration of GBP2,475,000. The proceeds have been received and
have been used by the Company to reduce current bank debt. The
Group will continue to leaseback the operational property until the
end of 2022 and during this period, production will be relocated to
existing Robinson premises in Kirkby-in-Ashfield. It is expected
that the relocation will require investment of approximately
GBP600,000.
Subject to the necessary planning approvals, we would expect
further sales of surplus property, in Chesterfield, to be achieved
in the next 18 months. The intention of the Group remains, over
time, to realise the maximum value from the disposal of surplus
properties and to reinvest the proceeds in developing our packaging
business.
Net debt
Following the two property sales during the period, net debt has
reduced to GBP8.9m at 30 April 2022 (31 December 2021: GBP13.1m).
Deferred consideration of GBP2.3m is payable to the former owners
of Schela Plast before the end of June 2022.
Outlook
The substantial uncertainty and volatility experienced in 2021
will continue throughout 2022, with further inflation in input
costs anticipated. On average, the published inflation in our core
geographic markets was 10% in April, and this may impact consumer
confidence and reduce customer demand for some of our products. We
are closely monitoring the situation, we will drive profitability,
conserve cash and respond as necessary across our geographical
locations.
Despite the ongoing uncertainty, profits in the 2022 financial
year (excluding the uplift from the profits on disposal of
properties) are expected to be inline with expectations, being
comfortably ahead of 2021. We remain committed in the medium-term
to delivering above-market profitable growth and our target of 6-8%
adjusted operating margin(1) ."
(1) operating profit margin before amortisation of intangible
assets and exceptional costs
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
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 to 1839, currently employing nearly 400 people. The Group also
has a substantial property portfolio with development
potential.
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END
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