27th Mar 2025 12:24
(Alliance News) - Robinson PLC on Thursday expressed confidence in 2025 trading owing to its "very strong" sales pipeline as it reported a widening of its loss.
The Chesterfield, England-based plastic and paperboard packaging manufacturer reported a widening of its pretax loss in 2024 to GBP3.8 million from GBP660,000 in 2023.
Its loss widened despite an improvement in revenue, which advanced 14% to GBP56.4 million from GBP49.7 million as Robinson benefitted from new business projects introduced within the last 18 months.
Profitability for Robinson weakened as it reported a 12% increase in cost of sales to GBP44.9 million from GBP40.0 million.
An increase in operating costs also hampered profit as they rose 53% to GBP14.6 million from GBP9.5 million, with Robinson recording a non-cash GBP1.7 million impairment charge relating to its Denmark operation.
Shares in Robinson were up 5.5% at 124.00 pence on Thursday afternoon in London.
The firm lifted its final dividend to 3.5p, up 17% from the prior year's 3.0p. This lifted its total dividend for the year by 9.1% to 6.0p from 5.5p.
Looking ahead, Robinson draws confidence in 2025 trading from its "significantly improved sales pipeline", which it attributes to its close partnerships with "major customers".
Robinson expects underlying operating profit in 2025 to surpass 2024 levels, with the firm still targeting "above-market profitable growth" as well as 6%-8% underlying operating margin.
In 2024 Robinson recorded an underlying operating profit of GBP3.2 million, up 45% from GBP2.2 million the previous year.
Chair Alan Raleigh commented: "I am pleased to report strong progress in 2024. Our results build on the positive momentum experienced in the second half of 2023.
"Our excellent customer relationships have created a very strong sales pipeline for 2025, and as our customers respond to new market opportunities, we see additional growth potential in future years. As we grow revenue and underlying volumes, we will continue to drive improved efficiency and profitability across our operations.
By Christopher Ward, Alliance News reporter
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