Chesterfield-headquartered packaging manufacturer Robinson plc has slipped to a loss, while revenue has declined, in the six months ended 30 June 2023.
According to interim results, revenue during the business’s first half was £24.3m, down 4.3% from £25.4m in the same period of 2022. Meanwhile, Robinson posted a loss before tax of almost £900,000, dropping from a profit of £2.8m last year.
The results follow the implementation of a restructuring program in June, with exceptional costs of £400,000 and annual savings of £700,000, of which £400,000 will benefit 2023.
Alan Raleigh, chairman, said: “The results for the first half of 2023 reflect the current very challenging macroeconomic conditions, which we expect to continue for the rest of 2023. Despite these conditions, we are now seeing more new business activity with existing and potential new customers, which provides opportunities for additional sales in 2023 and beyond.
“We are progressing well with the previously announced major project in Denmark, with production equipment now installed in our factory and product trials underway; this investment is expected to begin to benefit sales and profit from 2024.
“The demand slowdown that we anticipated has supressed volumes and resulted in lower than desired sales and earnings in the first half of 2023, however, we expect higher sales volumes due to recent business wins and seasonality, and the benefit of the restructuring program actioned in June, to lead to an improved result in the second half of the year.
“Based on trading in the first half and our anticipated pipeline, we expect adjusted operating profit in the 2023 financial year to be marginally ahead of 2022 and in line with current expectations.
“We continue to progress our surplus property disposal agenda, which along with the buy-out of the defined benefit pension scheme and return of the escrow funds will reduce indebtedness and result in a simpler and more streamlined organisation which is able to compete and win in a volatile marketplace.
“We remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”
