TIDMRBN
RNS Number : 0708A
Robinson PLC
18 January 2024
Robinson plc
18 January 2024
YEAR END TRADING STATEMENT
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 issue the following
trading statement, prior to the announcement of its final results
for the year ended 31 December 2023, which are scheduled to be
released on 22 March 2024 .
Revenue for 2023 is anticipated to be GBP49.6m, which is 1.8%
below the prior year. After adjusting for price changes and foreign
exchange, sales volumes are 6% lower than in 2022. However, the
Company is pleased to report that 2023 operating profit before
exceptional items and amortisation of intangible assets is expected
to be ahead of 2022, and in line with current market
expectations.
We anticipated that sales volumes would come under further
pressure because of inflation, the cost-of-living crisis, the
de-listing of some products by our customers, and certain of our
customers continuing to prioritise existing business over
innovation projects, a characteristic which started during the
Covid-19 pandemic. These factors have manifested in lower sales in
2023, notably in the first half of the financial year. As
previously announced, with the lower demand and continued
inflationary pressures, we implemented a restructuring program in
June, which resulted in exceptional costs of c.GBP0.4m and annual
savings of c.GBP0.7m, of which GBP0.4m benefited 2023.
We believe we have now passed the worst of the downturn with our
customers; sales volumes in the second half of 2023 were 1% above
the comparative period in 2022, as implemented new projects began
to take effect. As a result of successful sales activity, we expect
a substantial increase in sales volume in the plastics business in
2024.
Net debt at 31 December 2023 is expected to be GBP6.3m
(31/12/2022: GBP9.2m) including the receipt of GBP0.7m proceeds on
sale of surplus property and the return of the defined benefit
pension escrow funds of GBP3.3m in the period.
Impact of Storm Babet
The Company announced on 24 October 2023 that the River Hipper,
which flows through our premises in Chesterfield, had risen to its
highest ever recorded level and flooded part of the site. Part of
the premises are occupied by the Group, including the Paperbox
manufacturing business and the Group head office; the remainder is
let to tenants. The Paperbox business represented 4.5% of the
Group's revenues in 2023 (2022: 4.0%). The Group's plastics
business was unaffected.
Despite the substantial efforts of our employees, some damage
was caused to facilities, materials and equipment and manufacturing
operations were paused. Our insurance covers facilities, materials,
equipment and business interruption, with an excess of GBP100,000.
The insurers' liability for the loss was confirmed in November and
subsequently an interim payment of GBP450,000 was received by
Robinson in December. The impact on the 2023 results is expected to
be an exceptional cost of GBP0.1m.
The majority of the cleaning activities are now complete, but
on-site manufacturing continues to be disrupted due to the scale of
the clean-up operations and complications in re-instating damaged
plant and machinery. Customer orders are being met through
sub-contracting.
CEO position
As previously announced, Dr Helene Roberts resigned as CEO and a
Director of the Company on 1 September 2023, at which point Sara
Halton assumed responsibility as the Interim CEO. The selection
process is underway, and the Directors expect to make an
announcement on the appointment of a permanent CEO in due
course.
Property
As previously announced, part of the Walton Works surplus
property in Chesterfield, known as "Mill Lane", was sold on 30 May
2023. The consideration of GBP0.7m was received in cash and used to
reduce bank debt.
On 11 August 2023, the Company also exchanged contracts for the
sale of c.1.3 acres of the Walton Works surplus property.
Completion is subject to conditions, notably including satisfactory
planning approval, and is currently expected to take up to 18
months. The consideration payable on completion would be GBP1.5m in
cash, with estimated Company costs of GBP0.4m. The net proceeds of
GBP1.1m would be used by the Company to reduce current bank debt or
invested in the listed Walton Mill buildings to enhance their
saleability. Including this property transaction, which is not yet
completed, the Directors estimate that the current market value of
the remaining surplus properties held by the Group is approximately
GBP7.4m.
We expect further sales of surplus property in Chesterfield to
be achieved in the next 12 months . The intention of the Group is,
over time, to realise value from the disposal of surplus properties
and use the proceeds to reduce indebtedness and develop our
packaging business.
Defined benefit pension scheme
In December 2022, the Robinson & Sons' Limited Pension Fund
(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. A data cleanse exercise was completed, and the
administration and payroll functions were handed over to Legal and
General Assurance Society Limited from 1 August 2023. Whilst the
final buy-out has been delayed slightly, full completion is now
expected to take place very shortly . Any surplus remaining in the
Scheme after the full buy-out would be used to augment member
benefits. Non-cash exceptional costs are estimated to be
approximately GBP0.3m in 2023, including the costs of enhancing the
benefits of active members and the expenses of moving towards
buyout. These costs are payable by the Scheme but accounted for in
the Company under IAS19.
As announced on 14 August 2023, the Company reached agreement
with the trustees of the Scheme for the funds held in the pension
escrow account, totalling c.GBP3.3m, to be returned to the Group
(of which, GBP2.7m was already loaned to the Company), and this was
included in the reduced net debt at 31 December 2023. The Group
will recognise an exceptional profit of c.GBP3.3m for this item in
its income statement for 2023.
2024 Outlook
Following improved momentum in the second half of 2023 and
reflecting the effect of new customer projects and the full year
impact of cost savings, the Company expects revenue, and operating
profit (before amortisation of intangible assets and any
exceptional items), for the 2024 financial year to be ahead of
2023.
Robinson plc www.robinsonpackaging.com
Sara Halton, Interim CEO Tel: 01246 389280
Mike Cusick, Finance Director
Cavendish Capital Markets Limited
Ed Frisby / Seamus Fricker, Corporate Tel: 020 7220 0500
Finance
Tim Redfern, Corporate Broking
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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