(RBN) Robinson

Robinson plc

("Robinson" or the "Company")

Interim Results for the six months ended 30 June 2011.

Notification of Dividend

CHAIRMAN'S STATEMENT       

Following the closure of the paperboard business in Toronto reported earlier in the year, further developments have been completed, since the end of the period under review, which alter the shape of the Group. The sale of the business in Chesterfield and the investment in Scotplast Ltd, the plastic tub manufacturer in Glasgow, completes the exit from spirally wound paperboard and strengthens the plastic packaging operation. The Group retains a specialist paperboard box-making capability.

The spiral winding paperboard business in Chesterfield was sold to Sonoco (UK) Ltd on the 1st July 2011. Family shareholders will know that this was the heritage business of Robinson, having been acquired originally by John Robinson in 1839. However, despite representing 24% of Group revenues in 2010, it has not contributed to profits in the past 5 years, since it lost a long standing major contract.

As announced on 4 July 2011, the consideration for the disposal was £2.6m in cash subject to adjustment in respect of working capital levels following production of completion accounts. These monies have been used by Robinson to reduce current bank debt. In addition, Sonoco have taken a 15 year lease over the site and factory buildings at Goyt Side Road for which (following a two year rent free period) it will pay rental fees of £0.45m per annum. Sonoco also have an option to purchase the property within the next two years at a fixed price. The transaction provides continued employment for the employees of the Chesterfield factory and provides Sonoco with additional production capability and capacity. Sonoco is a significant customer of Robinson plc for plastic packaging and we hope to build on that relationship.

As the disposal was substantially progressed at the end of the period under review, the net result of the disposed business has been included in this period's group income statement as "discontinued operations" which includes, in prior years, the results of the North American paperboard business which was closed in 2010.

Continuing Operations

Excluding the paperboard operations defined above, revenues for the first six months increased 6% and the profit before tax rose by 3%. All of the continuing businesses showed growth in revenues in the first half compared with last year. The 6% overall increase was primarily attributable to increased input costs passed on, as plastic resin prices reached another all-time high in June 2011 - being 14% higher than a year ago. Margins have remained static as a consequence and the Group profit before tax for the period was £1.0m (Jun-10: £0.9m).

The pension fund remains in surplus and initial indications from the triennial actuarial valuation at 5 April 2011 show a 117% surplus, compared with 110% three years ago.

Despite working capital being £0.4m higher than a year ago, net borrowings have been reduced by £3.1m, which includes £2.3m paid to date by Sonoco. Capital spending has been at a modest level so far this year.

Scotplast

As announced on 12 July 2011, Robinson completed an agreement with the directors and owners of Scotplast Ltd to acquire 35% of its issued share capital for £0.25m. The agreement also provides an opportunity for Robinson plc to acquire the remaining issued share capital in 2013 for a price based on performance of the Scotplast business from the previous two years of trading. Scotplast specialises in producing plastic in-mould labelled ice cream containers for commercial and retail markets. Its audited turnover for the year ended 30 September 2010 was £4.1m, profit before tax for the same period was £0.1m and the total value of its assets was £3.8m on that date. Robinson has granted Scotplast a secured credit facility, repayable on 30 June 2014, of up to £0.3m bearing interest on commercial terms.

Outlook and Dividend

The directors believe market conditions for the rest of this year will remain subdued. Plastic resin prices have started to reduce from their recent peak but remain volatile. The directors are nevertheless optimistic that the Group will show further progress by the end of the year. As a result, a 17% higher interim dividend of 1.75p (Oct-10: 1.5p) has been approved to be paid on 3 October 2011 to shareholders on the register at 2 September 2011.

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Robinson plc

Group Income Statement

Robinson plc

Group Balance Sheet

Robinson plc

Group cash flow statement

Robinson plc                                                                  Notes to the Interim Report

1.   Basis of preparation

The interim report for the six month period to 30 June 2011 was approved by the directors on 23 August 2011. The interim financial information is not audited.

The interim financial statements have been prepared in accordance with applicable accounting standards and under the historical cost convention except that they have been modified to include the valuation of certain financial assets and liabilities. The interim financial statements do not constitute statutory financial statements in accordance with section 435 of the Companies Act 2006. The full year figures are derived from the statutory accounts on which the auditors gave an unmodified report. The Group's statutory financial statements prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union have been filed with the Registrar of Companies.

2.   Taxation

The taxation charge for the six months to 30 June 2011 has been calculated on the basis of the estimated effective tax rate on profits before tax for the year to 31 December 2011.

3.   Discontinued operations 

On 1 July 2011 the business of designing, manufacturing and selling spirally wound paperboard containers based in Chesterfield was sold to Sonoco Limited. This sale has been included in the financial statements for the half year as the sale had been agreed and substantially completed in the half year. In the previous period Robinson Paperboard Packaging (North America) Ltd was closed. All comparatives in the income statement have been restated to disclose these operations as discontinued. The results of the discontinued operations were as follows:

The net assets of the Chesterfield paperboard business at the date of closure were:

4.   Dividends

5.   Earnings per share

The calculation of basic and diluted earnings per ordinary share for continuing operations shown on the income statement is based on the profit after taxation (£677,000) divided by the weighted average number of shares in issue (15,943,501). The share options are not dilutive as the average market price is not sufficiently higher than the exercise price. The calculation in respect of discontinued operations is based on the profit of £796,000. The calculation in respect of continuing and discontinued operations is based on the profit for the period of £1,473,000.

6.   Interim Report

Copies of the interim report are available from Robinson plc's registered office: Portland, Goyt Side Road, Chesterfield, S40 2PH, UK or from its website at www.robinsonpackaging.com.