Robinson
plc
9 May 2024
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
appointment
After a thorough search process with
a leading recruitment agency, we are in advanced discussions on the
appointment of a new CEO.
Current trading
The momentum that we experienced in
the second half of 2023 has continued into 2024. Sales volumes in
the first four months of the year are 12% above the same period in
2023. With the effect of sales price and foreign exchange
movements, total revenue is 8% ahead of the same period in
2023.
This sales growth gives us
confidence that our approach to partnering with major FMCG brand
owners, our investment in new technology and our ability to deliver
packaging made from post-consumer recycled material is delivering
results. In the first quarter of the year we have made substantial
progress towards our target of 30% recycled content in our
packaging.
As a result of the higher sales
volume, combined with improved gross margins and lower operating
costs, profits are ahead of the first four months in
2023.
Property
We are continuing to pursue the sale
of surplus properties in Chesterfield. Based on professional
independent valuations, the Directors estimate that the current
market value of those properties is approximately £7.4m, and this
includes the previously announced c.1.3 acres of Walton Works where
exchange of contracts has occurred and completion remains subject
to satisfactory planning approval.
Subject to the necessary planning
approvals, we would expect further sales of surplus property 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 use the proceeds to reduce indebtedness and develop our
packaging business.
Net
debt
Net debt has increased to £7.0m at
30 April 2024 (31 December 2023: £6.3m), including £1.1m of capital
expenditure.
Outlook
After strong performance in the
first four months, the Company expects revenue for the 2024
financial year to be ahead of 2023 and current market expectations.
With this additional revenue, full year operating profit (before
amortisation of intangible assets and any exceptional items) is
expected to be in the region of £3.0m (2023: £2.2m), this being
ahead of current market expectations. We remain committed in the
medium-term to delivering above-market profitable growth and our
target of 6-8% adjusted operating margin*.
For further information, please
contact:
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Robinson plc
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www.robinsonpackaging.com
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Sara Halton, Interim CEO
Mike Cusick, Finance
Director
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Tel: 01246 389280
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Cavendish Capital Markets
Limited
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Ed Frisby / Seamus Fricker,
Corporate Finance
Tim Redfern, Corporate
Broking
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Tel: 020 7220
0500
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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.
* operating
profit margin before amortisation of intangible assets and
exceptional items
