30 June 2020
AGM TRADING STATEMENT
Robinson plc ("Robinson" or the "Group" stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, is holding its Annual General Meeting today at 11.30 am. The Chairman, Alan Raleigh, will make the following statement:
"We are pleased to report sales growth of 5% in first half of the year compared with 2019 despite challenging market conditions. Margins have maintained the momentum experienced in the second half of 2019 and operating costs were at a similar level with a consequent increase in operating profits.
Net debt has reduced to currently £6m from the 2019 year end of £7m, after capital expenditure of £2m as we continue to invest in new and upgraded facilities and plant to secure future growth.
The Covid-19 pandemic has presented both challenges and opportunities for the business. End consumer demand for the products for which we supply packaging has resulted in some ups and down with a net positive effect on sales. We have successfully managed to keep our manufacturing operations safely running through the dedicated efforts of our employees. We still have no known positive cases amongst our workforce.
The pandemic has, however, slowed down progress with selling our surplus properties due to the inability to conclude site inspections during the lockdown and volatility in the UK housing sector. Consequently, we expect delays of at least 6 months to previously indicated timescales.
Whilst the outlook for the year remains uncertain, we are confident the business can prosper, and we continue to explore and develop the opportunities that will emerge.
In March we decided, because of the uncertainties facing the business due to the Covid-19 pandemic, not to declare a final dividend in respect of 2019 to conserve cash. As we have gained greater clarity on the impact on the business, the Board is pleased to effectively re-instate this and announces a first FY20 interim dividend of 3.5p (2018 equivalent final: 3.5p) to be paid on 30 July 2020 to shareholders on the register at 10 July 2020 (record date). The ordinary shares ex-dividend date is 9 July 2020."
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
For further information, please contact:
Guy Robinson, Finance Director
Tel: 01246 389283
Ed Frisby / Giles Rolls, corporate finance
Tim Redfern / Tim Harper, ECM
Tel: 020 7220 0500
Note for Editors:
Headquartered in Chesterfield, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire), Chesterfield, Warsaw and Lodz (Poland), Robinson currently employs around 320 people. It was formerly a family business, with its origins dating back over 181 years. Today the Group's main activity is the manufacture and sale of injection and blow moulded plastic packaging as well as rigid paperboard premium gift packaging. Robinson operates primarily within the food, household, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major brands in the fast-moving consumer goods market, such as Unilever, Proctor & Gamble, Reckitt Benckiser, SC Johnson, and McBride. The Group also has a substantial property portfolio with development potential.
Robinson plc, Chesterfield, S40 2AB, UK. Registered number 39811 (England) AIM code "RBN"
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