Robinson's H1 profits surge, but trading conditions still 'challenging'

(Sharecast News) - Plastic and paperboard packaging group Robinson saw profits more than double in the first half despite subdued top-line performance, but the company delivered a cautious outlook for demand. The Chesterfield-based firm reported a pre-tax profit of £1.8m over the six months to 30 June, up from £0.7m the year before, with gross margins rising to 22% from 21%, due to the recovery of previous inflation through sales prices and reductions in some input costs.

Profits the previous year were also weighed down by £0.5m of charges for the amortisation and impairment of intangible assets, of which this year there are none.

Revenues for the period were up 2% year-on-year at £27.6m, though sales volumes were flat with growth held back by falling volumes in Denmark, which saw "significantly lower and more volatile demand from our larger customers, loss of some contracts and overall, trading conditions in that territory remain challenging", Robinson said.

Looking ahead, chair Alan Raleigh said market conditions "remain challenging" and Robinson continues to see "softness and volatility in demand from some existing customers".

However, the company said it has seen an improved sales pipeline, helped by its partnerships with major FMCG customers.

Meanwhile, Robinson, which is selling off "surplus property" to cut debt levels and create a more streamlined business, said that it now has agreements in place to dispose more than 70% of its portfolio by value. Net debt increased to £8.5m by the end of the period, up from £5.9m at the end of 2024.

The stock was down 8.3% at 142.1p by 0914 BST.