Robinson rockets on profits growth

Plastic packaging maker Robinson has seen revenues and profits beat expectations during 2011 after it managed to sell its underperforming paperboard tube business.

Group revenue increased by 10% over 2010 to £21.5m, better than than the consensus forecast of £21.4m. Profits before tax rose 23% to hit £2.7m, against market expectations of £2m.

The company says higher volumes and stable operating costs improved operating profit by 22% to £2.1m, while an exceptional gain of £1.4m came from selling the spiral wound paperboard tube operation.

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The dividend has been increased by 15% over the prior year to 3.75p per share.

Headquartered in Chesterfield, Derbyshire, with manufacturing facilities in Kirkby-in-Ashfield, Stanton Hill (Nottinghamshire) and Lodz (Poland), Robinson currently employs around 225 people.

Its origins dating back 173 years but today the firm's main activity is the manufacture and sale of injection moulded plastic packaging for clients including Proctor & Gamble, Nestle and Kraft.

The Chairman, Richard Clothier, said the results were the best that Robinson had achieved "for many years and certainly since it was admitted to AIM in 2004."

The outlook is described as stable, with Robinson hoping its exposure to the resilient food, drink and toiletries sectors will stand it in good stead.

Robinson shares have gained 58.4% over the last 12 months. At the open on Friday the stock rocketed 11%.

BS