Robinson PLC Trading Statement (6124N)
January 24 2023 - 2:00AM
UK Regulatory
TIDMRBN
RNS Number : 6124N
Robinson PLC
24 January 2023
Robinson plc
24 January 2023
TRADING STATEMENT & UPDATE ON DEFINED BENEFIT PENSION SCHEME
BUY-IN
Robinson plc ("Robinson" or the "Group" stock code: RBN), the
custom manufacturer of plastic and paperboard packaging based in
Chesterfield, is pleased to issue the following trading statement,
prior to the announcement of its final results for the year ended
31 December 2022, which are scheduled to be released on 30 March
2023.
Revenue for 2022 is anticipated to be GBP50.5m, which represents
a 10% increase over the prior year, or a 1% increase excluding the
effect of the Schela Plast business, acquired in February 2021.
After adjusting for price changes and foreign exchange, sales
volumes in the underlying business, which have been affected by
changes in consumer behaviour, delisting of certain products by our
customers and overall reduced customer demand, are 10% below
2021.
2021 was heavily impacted by resin and other cost inflation and
we were largely successful in passing these increases through to
sales prices in the first quarter of 2022. We have experienced
further input cost inflation during the year, including that driven
by the Russian invasion of Ukraine and the consequent impact on
global oil and energy markets. We are in the process of a further
substantial sales price increase program with all customers in 2023
to reflect these increased costs.
Notwithstanding the challenges of lower sales volume and input
cost inflation, the directors anticipate the operating profit
before exceptional items and amortisation of intangible assets for
the year ended 31 December 2022 will be in line with the current
market expectations, and comfortably ahead of 2021.
Net debt at 31 December 2022 is expected to be GBP9.2m
(31/12/2021: GBP13.1m) following the payment of GBP2.3m deferred
consideration on the Schela Plast acquisition, the receipt of
GBP3.5m proceeds on sale of two properties in the period and tight
control of working capital.
Property
The Sutton-in-Ashfield factory, which was sold in April, was
vacated in October after the successful relocation of production to
existing Robinson premises in Kirkby-in-Ashfield. Consolidating our
UK plastics manufacturing activity will allow operational
efficiency improvements in 2023 and beyond.
We continue to progress our surplus property disposal program
and subject to the necessary planning approvals, we would expect
further sales in Chesterfield, to be achieved in 2023 and 2024. The
property disposals in the first half of 2022 both achieved
valuations in excess of their book value. As a result, the carrying
value of the Group's remaining UK properties is currently being
assessed in advance of the final results for 2022.
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.
Update on defined benefit pension scheme buy-in
We are also pleased to provide an update on the buy-in
transaction effected by the Robinson & Sons' Limited Pension
Fund (the "Scheme"), which was announced on 7 December 2022. The
transaction completed as planned on 14 December 2022 with the
Scheme having now paid the premium of GBP45.5m, which was financed
entirely using assets held within the Scheme. A full buy-out is
proposed, after a data cleanse exercise, both of which are expected
to complete before the end of 2023. Any surplus remaining in the
Scheme after the full buy-out would be used to augment member
benefits.
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 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.
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END
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