Former family-owned plastic packaging specialist Robinson (RBN) has seen its shares rise about 30 per cent since early July. A reasonably solid trading performance - as demonstrated by these full-year figures - may partly explain that. But another factor is the company's roster of potentially valuable property assets.
Operationally, lower resin prices were - paradoxically - to blame for the fall in sales as the company is contractually obliged to pass on these price falls to its customers. However, good cost control and a better sales mix meant that the underlying operating profit margin improved from 9.9 per cent to 11.5 per cent and kept profits growing. Moreover, chairman Richard Clothier said new business gained in 2012 should ensure revenue growth this year - although temporary higher costs related to business expansion will limit the full effect of that on earnings.
Robinson could benefit this year from the sale of some of its surplus property assets, too. It currently leases a property to US packaging company Sonoco (NYSE: SON) for a rent of £0.4m a year. However, management said Sonoco is considering whether to exercise an option this year to buy the property outright.
Broker WH Ireland expects adjusted pre-tax profit for 2013 of £2.4m for 2013, giving adjusted EPS of 11.1p (from £2.4m and 10.9p in 2012).
ROBINSON (RBN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 132p | MARKET VALUE: | £21m | |
| TOUCH: | 128-135p | 12-MONTH HIGH: | 132p | LOW: 90p |
| DIVIDEND YIELD: | 3% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 142p | NET CASH: | £1.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 25.8 | 1.35 | 5.70 | 3.25 |
| 2009 | 21.9 | 0.96 | 4.60 | 2.75 |
| 2010 | 19.5 | 2.25 | 10.2 | 3.25 |
| 2011 | 21.5 | 2.67 | 11.9 | 3.75 |
| 2012 | 21.2 | 2.82 | 13.1 | 4.00 |
| % change | -1 | +6 | +10 | +7 |
Ex-div: 15 May Payment: 1 Jun | ||||
