TIDMRBN
RNS Number : 5135D
Robinson PLC
22 June 2023
Robinson plc
22 June 2023
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
at the Peak Edge Hotel, Darley Road, Chesterfield S45 0LW. The
Chairman, Alan Raleigh, will make the following statement:
CEO announcement
Dr Helene Roberts has informed the Board of her intention to
step down as CEO to take up a new opportunity. We would like to
thank Helene for her enormous contribution during her time with
Robinson.
The Board will now initiate a search process to recruit a new
CEO. The effective date for Helene's departure will be agreed
shortly and at that time, to support the transition, Sara Halton,
currently the Senior Independent Director, will assume Interim CEO
responsibility.
Current trading
The Group expects to deliver full year adjusted operating profit
in line with current expectations, despite the ongoing
macroeconomic uncertainty and volatility, which has included
reduced volumes.
Sales in the first five months of the year are 2% below the
comparative period in 2022. After adjusting for price changes and
foreign exchange, sales volumes are 11% lower than the comparative
period in 2022, of which 4% is due to a major UK customer
experiencing a supply chain issue. Whilst we are unlikely to
recover the lost sales in 2023, we expect to return to the normal
run-rate on these products. We are also seeing reduced demand due
to inflation and the cost-of-living crisis.
Profits are substantially below the first five months in 2022.
Despite agreeing substantial sales price increases with our
customers, we have been unable to cover the full inflation in costs
in the period, due to the reduction in sales volume.
As a result, we have implemented a restructuring program which
will result in exceptional costs of c.GBP0.4m and annual savings of
c.GBP0.7m, of which GBP0.4m will benefit 2023.
Property
As previously announced, the Group completed on the sale of a
surplus property in Chesterfield on 30 May 2023. Consideration of
GBP0.7m was received in cash and these monies were used by the
Company to reduce bank debt.
Subject to the necessary planning approvals, we would expect
further sales of surplus property in Chesterfield to be achieved in
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.
Net debt
Net debt has increased to GBP9.8m at 31 May 2023 (31 December
2022: GBP9.2m), including GBP1.1m capital expenditure and proceeds
of GBP0.7m from the sale of surplus property.
Following receipt of an indicative actuarial valuation, showing
the pension scheme is in surplus, it is likely that the funds in
the pension escrow account, being c.GBP3.2m at 31 December 2022,
and of which, GBP2.7m are loaned to the Group on commercial terms,
would be returned to the Group. Group net debt would be reduced by
c.GBP3.2m, including the cancellation of the existing loan.
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 additional
sales in 2023 and beyond. In particular, the previously announced
new contract in Denmark requires substantial investment in the
current year but will begin to benefit sales and profit from 2024.
We have a portfolio of opportunities, close to completion, which if
converted would comprise more than 10% of annual sales.
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, with the current restructuring
programme, we expect adjusted operating profit in the 2023
financial year 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(1) .
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 Procter & Gamble, Reckitt Benckiser, SC Johnson and
Unilever.
Headquartered in Chesterfield, UK, Robinson has plants in the
UK, Poland and Denmark. 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.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
1. operating profit margin before amortisation of intangible
assets and exceptional items
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END
AGMKFLFLXQLEBBZ
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June 22, 2023 02:00 ET (06:00 GMT)
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