Stockpiling by worried consumers sees demand jump at Robinson
Covid-19 stockpiling has caused demand to spike at Robinson, the packaging specialist confirmed on Wednesday, as it posted a jump in full-year revenues.
Publishing its delayed final results, Robinson said revenues in the year to 31 December had risen 7% to £35.1m, while operating profits before one-off items and amortisation came in at £2.5m against £1.5m a year earlier.
Pre-tax profits were £1.51m compared to £685,000.
The AIM-listed company said it had seen "strong growth" during 2019 as it increased market share.
Chairman Alan Raleigh added: "We have made important steps across all aspects of our business in 2019. Our results confirm that our actions to improve competitiveness are bearing fruit in a challenging and uncertain market."
Looking forward, Robinson said that subject to any negative impact from Covid-19, it expected to see "above market revenue growth" and "industry competitive" earnings before interest, tax, deductibles and amortisation.
The outbreak and associated stockpiling had prompted a surge in demand since the year end for some of its products, including hand wash containers and other personal care, household and food packaging.
However, Robinson conceded: "The largest threats to our business are still to materialise and are difficult to predict in this fast-changing environment, but we can envisage that the possibility of staff shortages or lockdowns may restrict our ability to manufacture products in our plants in the UK and Poland.
"Our business is predominately in the food, personal care and household sectors, with more than 70% of our turnover arising from financially strong multi-national or local players, so we believe we are likely to be less affected by the pandemic than others.
"However, in these currently extremely uncertain circumstances we believe it is prudent to maximise the cash retained in the business, so we have decided not to declare a final dividend in respect of 2019."
As at 1130 BST, shares in Robinson were ahead 18% at 60.0p.
Robinson was initially expected to publish results last week, but they were briefly delayed on the advice of its auditors.