Robinson profit rises on higher packaging sales volumes

Writer, Stock Market Wire
Wednesday, August 22, 2018 - 08:11

Packaging company Robinson posted higher first-half profits owing to a rise in sales volumes.

Pre-tax profit for the six months through June rose to £86k, up from £2k on-year, as revenue rose 15% to £15.6m.

Sales volumes rose 9%.

'This volume increase has come from improved trading with existing customers and some commencement of new business arising from our recent investment in a strengthened commercial team in both Poland and the UK,' the company said.

The company held its interim dividend steady at 2.5p per share.

'The revenue line is now showing signs of some momentum, arising from our previous investments in people,' Robinson said.

'We anticipate this momentum continuing with growth in new business expected in the second half.

'It is anticipated that this growth will leverage our completed fixed cost investments in the second half but more significantly beneficially impact in 2019.'

'Investments in plant and equipment, partially to facilitate those new projects, will accelerate in the second half with a further £3m of spend expected and a consequent impact on net borrowings.'

'The recent growth in operating costs (predominantly investment in people capability) has been concluded, so further revenue growth should improve profitability ratios moving forward.'

'Management remains focused on specific actions to recover gross margins to ensure further profit improvement.'

At 8:11am: (LON:RBN) Robinson PLC share price was +2.5p at 77.5p

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