REG - Robinson PLC - AGM Trading Statement

RobinsonAnnouncement

09/05/2024 07:00

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RNS Number : 6936N  Robinson PLC  09 May 2024

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:

 

 Robinson plc                                   www.robinsonpackaging.com (http://www.robinsonpackaging.com)
 Sara Halton, Interim CEO                       Tel: 01246 389280

 Mike Cusick, Finance Director

 Cavendish Capital Markets Limited
 Ed Frisby / Seamus Fricker, Corporate Finance  Tel: 020 7220 0500

 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.

 

 

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

 

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