Plastic packaging manufacturer Robinson has increased its final dividend on the back of a rise in 2012 profit.
The final dividend is increasing from 2p a share to 2.25p a share, taking the total for the year to 4p a share. Revenues were slightly lower at £21.2m but that was due to a 9% decline in average plastic resin prices. Pre-tax profit rose from £2.67m to £2.82m, even though there was a decline in finance income on the pension surplus from £550,000 to £474,000.
The NAV fell from £23.2m to £22.6m at the end of 2012, as the pension fund asset on the balance sheet fell from £7.29m to £4.22m. Strong cash generation meant that net debt of £579,000 was turned into net cash of £1.44m.
Robinson expects revenues to grow in 2013 because of the new contracts it has won, although this may be partly offset by pressure on prices. Sonoco is considering exercising its option to acquire the Portland factory in Chesterfield. That would result in a one-off gain but annual rental income would fall by £400,000.
At 127.5p a share, Robinson is valued at £20.3m.
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