Robinson profit jumps in H1 as sales rise

Plastic and packaging manufacturer Robinson posted a jump in first-half profit on Wednesday as rising revenue helped to offset higher recruitment costs.

In the six months to the end of June, revenue rose 9% on the same period a year ago to £17.01bn, while pre-tax profit increased to £309m from £86m.

The company's gross margin ticked up to 20% from 19% in 2018, mainly due to pricing movements, while operating costs were up 8% due to recruitment and training.

As indicated in its update in May, volumes in the second quarter were lower as customers unwound Brexit contingency inventory that had been created in the first quarter.

The interim dividend was maintained at 2.5p a share.

"Having undertaken a thorough review of customer demand, despite the ongoing Brexit uncertainty, we continue to target circa 10% annual revenue growth and target for future years progress towards a pre-exceptional return on sales in the range of 6-8%," the company said.

At 1035 BST, the shares were up 1.3% at 79p.