TIDMRBN
RNS Number : 1409J
Robinson PLC
14 August 2023
Robinson plc
14 August 2023
COMPANY UPDATE AND NOTICE OF RESULTS
Robinson plc ("Robinson", the "Company" or the "Group" stock
code: RBN), the custom manufacturer of plastic and paperboard
packaging based in Chesterfield, is pleased to provide an update on
the change of CEO, Pension Fund Escrow Account and an agreement to
sell a surplus property.
CEO change
As previously announced, on 22 June, Dr Helene Roberts informed
the Board of her intention to step down as CEO to take up a new
opportunity. Helene will resign as CEO and a Director of the
Company on 1 September 2023, at which point Sara Halton will assume
responsibility as the Interim CEO for a transitional period whilst
the Board conducts a search for a new CEO.
We would like to thank Helene again for her enormous
contribution during her time with Robinson.
Defined Benefit Pension Scheme - Escrow Account
The Company is pleased to announce that it has now reached
agreement with the Trustees of the Robinson & Sons' Limited
Pension Fund (the "Scheme") in relation to the Pension Fund Escrow
Account (the "Escrow"), which reduces Group net debt by
c.GBP3.3m.
In December 2022, the Scheme completed a buy-in of all the
Group's defined benefit pension scheme liabilities with a plan to
complete a full buy-out during 2023, following a data cleanse
exercise. The data cleanse is ongoing, with completion expected
before the end of the year.
The Company announced in its 2022 final results, that if a
surplus remained following completion of a full buy-out, then it
would be 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.
The Scheme actuary has performed an indicative valuation which
shows the Scheme is currently in surplus and is likely to remain in
surplus following the full buy-out. The Scheme Trustees and the
Group have now agreed that the funds held in the Escrow, totalling
c.GBP3.3m, can be returned to the Group, in the form of the
cancellation of the existing loan of GBP2.7m, and the transfer to
the Group of the remaining cash of c.GBP0.6m. The c.GBP0.6m will be
used by the Company to reduce current bank debt. Group net debt is
reduced in total by c.GBP3.3m and the Group now expects to
recognise an exceptional profit in relation to this of c.GBP3.3m in
its income statement for the 12 months to 31 December 2023.
In accordance with normal practice, the Group has provided an
indemnity to the Trustees of the Scheme and at the time of buy-out,
insurance policies will be purchased by the Scheme. The Scheme also
holds security over one of the Group's surplus properties with a
market value estimated at GBP2.9m and it is intended that this
security will remain in place until the buy-out is complete. As
previously announced, any surplus remaining in the Scheme after the
buy-out will, in accordance with the trust deed, be used to augment
member benefits.
Conditional sale of surplus property
On 11 August 2023, the Company exchanged contracts for the sale
of c.1.3 acres of the Walton Works surplus property in Chesterfield
(the "Property"). Completion is subject to conditions, notably
including satisfactory planning approval, and is expected to take
around 12-18 months.
The majority of the Property is vacant with a small part
periodically let to third parties on short term tenancies. The
consideration payable on completion would be GBP1,500,000 in cash,
with estimated Company costs of GBP400,000. The net proceeds of
GBP1,100,000 would be used by the Company to reduce current bank
debt. The Property currently attracts annual rental income of
c.GBP5,000 and the book value was c.GBP540,000 at 31 December
2022.
Including this Property, the Directors estimate that the current
market value of the remaining surplus properties held by the Group
is approximately GBP7,400,000.
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.
Notice of Results
In addition, the Company would also like to notify shareholders
that it intends to publish its interim results for the six-month
period ended 30 June 2023 on 17 August 2023. The interim results
and any accompanying presentation will be posted on the Company's
website that same day.
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.
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END
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