Preliminary Results - Year ended 31 December 2009

26 March 2010

Robinson plc

PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2009

Robinson plc ("Robinson" or "the Group"; stock code: RBN), the custom manufacturer of plastic and paperboard packaging based in Chesterfield, announces its results for the year ended 31 December 2009.

Highlights:

·; Profit before tax £0.7m (2008: £1.3m)

·; Operating profit before exceptional items and depreciation £1.8m (2008: £2.2m)

·; Revenue reduced by 9% to £23.4m (2008: £25.8m), mainly due to market weakness in the first half; revenues recovered in the second half

·; Net borrowings decreased to £2.9m (2008: £3.7m)

·; The Group's pension fund remains in a healthy surplus although the pension credit in the income statement has decreased by £0.7m

·; The Board recommends an unchanged final dividend for the year of 1.75p per share

Commenting on the results, Chairman, Richard Clothier said:

"We are pleased to be able to report a recovery in our markets following destocking in the second quarter of 2009. Stronger revenues in the second half produced a net profit and positive cash flow for the year. The current year has started slowly, as it did last year, but we are confident that unless market conditions deteriorate significantly then we will be able to make further progress in 2010 and resume the growth that the company began to show in 2008."

About Robinson

Based in Chesterfield, with additional manufacturing facilities in Kirkby-in-Ashfield and Stanton Hill (Nottinghamshire) in Toronto (Canada) and in Lodz (Poland), Robinson currently employs around 350 people. It was formerly a family business, with its origins dating back some 165 years. Today the Group's main activities are in the manufacture and sale of injection moulded plastic and rigid paperboard packaging. Robinson operates primarily within the food, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestlé, Kraft, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon and Reckitt Benckiser. The Group also has a substantial property portfolio with significant development potential.

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CHAIRMAN'S REPORT

After good progress in 2008, the outcome for 2009 was disappointing. A sharp drop in revenue occurred during the second quarter of the year as a consequence of our customers reacting to the general economic outlook by reducing their stockholding and, as a result, the first half was 15% below the same period in 2008.

I am pleased to report, however, that in the second half revenues recovered to only slightly below the previous year. In the face of a 9% drop in sales for the year as a whole, profit held up disproportionately well. Profit before tax for the year was £0.7m, a reduction from £1.3m in 2008 but it is important to point out that this includes a £0.7m lower notional pension finance credit and a negative swing of £0.7m due to exchange rate movements.

The compensating positive effects were a further improvement in gross margins and an underlying reduction in operating costs.

Revenue

Group revenue reduced by 9% on the previous year as a result of destocking and lower polymer prices. North American revenues fell by 49% due to several large cosmetics customers who were holding substantial stock overhang from 2008 and whose own sales, mainly in the toiletries sector, were very weak. Central European revenues increased by 29% (41% in local currency terms) as we benefited from the full year effect of business transferred from the UK together with new business gained.

Profitability

Profit before tax was £0.7m (2008: £1.3m).This result was influenced by the following significant factors:

·; the gross margin improved from 18% to 20% of revenues. This is attributable to better management of the customer mix, lower direct costs (notably electricity and transport), and lower polymer prices

·; an overhead cost reduction of £0.4m was offset by £0.7m currency exchange effect resulting in an operating cost increase of £0.3m

·; the notional finance income in respect of the pension fund reduced by £0.7m to £0.4m as a consequence of moving the fund from equities to bonds during 2008

·; exceptional profits on the sale of property of £0.2m were offset by redundancy costs incurred at Chesterfield and Kirkby

Cash & Finances

Capital expenditure on new plant and machinery of £0.8m (2008: £1.0m) was low in relation to the depreciation charge of £1.5m (2008: £1.6m). The sale of surplus properties yielded £0.4m whilst working capital levels remained constant resulting in positive cash flows which enabled a reduction in net borrowings from £3.7m to £2.8m.

Dividends

The interim dividend was cut from 1.5p to 1.0p per share following the announcement of the first half results. At that stage the Board was mindful of the need to conserve cash given the sudden drop in sales and the considerable uncertainty as to the future economic climate. However, with an improvement in our recent performance, the Board proposes an unchanged final dividend of 1.75p per share to be paid on 7 June 2010 to shareholders on the register at the close of business on 21 May 2010.

Outlook

So far this year market conditions have been stable for most of our customers. We are conscious of the possible effects of the economy and Government policy on our costs and on consumer demand but as the Group is mainly exposed to the food, drink and toiletry sectors we do not expect our sector to be greatly affected. Our progress so far is in line with the Board's expectations, including significantly improved revenues in Europe.

The Board is reviewing the strategic importance and viability of its North American operation in Toronto and is seeking ways of strengthening its European business. We expect the Central European business based in Poland to show further growth in 2010.

Richard Clothier

Chairman

25 March 2010

Group income statement

FOR THE YEAR ENDED 31 DECEMBER

All activities of the Group are continuing.

Statement of comprehensive income

FOR THE YEAR ENDED 31 DECEMBER

Statement of financial position

 AS AT 31 DECEMBER

Statement of changes in equity

FOR THE YEAR ENDED 31 DECEMBER

Statement of cash flows

FOR THE YEAR ENDED 31 DECEMBER

Notes to the financial statements

1. Basis of preparation

The consolidated and Company financial statements have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union. All standards and interpretations that have been issued and are effective at the 31 December 2009 have been applied in the financial statements. The financial statements have been prepared under the historical cost convention except for certain assets and liabilities which are held at fair value.

IAS 1 Presentation of Financial Statements (Revised 2007) requires presentation of a comparative balance sheet as at the beginning of the first comparative period, in some circumstances. Management considers that this is not necessary this year because the 2007 balance sheet is the same as that previously published.

2. Publication of non-statutory financial statements

The statutory financial statements for the year ended 31 December 2009 are expected to be posted to shareholders in due course and will be delivered to the Registrar of Companies after they have been laid before the Company at the Annual General Meeting planned for 13 May 2010. Copies will also be available from Robinson plc's registered office: Portland, Goytside Road, Chesterfield, S40 2PH and on the Group's website at www.robinsonpackaging.com 

The auditor has reported on those financial statements; their reports were unqualified and did not contain statements under the Companies Act 2006, section 498 (2) or (3).

Ends