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No plastic ill-effects for Robinson as revenues rise

The Chesterfield-based group supplies plastic packaging to household names such as McBride, Procter and Gamble, Reckitt and Unilever
plastic bottles
Revenues rose strongly in the first half

Robinson PLC (LON:RBN) saw good revenue growth in its latest half year, which has continued into the second half, said the plastic packaging maker.

The Chesterfield-based group supplies household names such as McBride, Procter and Gamble, Reckitt and Unilever but seems to have been unaffected by growing concerns over the environmental impact of packaging, especially plastic.

Cost-building programme concluded

Retail groups such as Aldi have started to phase out plastic used for food trays, while taxes on single-used plastic are being considered by the Chancellor for his Budget in November.

Robinson though, has increased its staff to cope with the sales growth, something that clipped interim operating margins.

The business also raised its capital spending to £2.1mln in the first six months and will spend a further £3mln over the remainder of the year.

Borrowings have risen as a result but Alan Raleigh, chairman, said this cost-building programme has now concluded, so further revenue growth should improve profitability moving forward, with the full benefit to come through in 2019.

Revenues in the six months to June rose to £15.6mln (£13.6mln) while profits for the half year rose to £86,000 from £2,000.

The interim dividend is maintained at 2.5p.

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