Robinson improves dividend package to mask soft market

Sales of £12.8m in the six months to 30 June declined 6.4% compared to the same period last year, with 2% of reduction due to lower resin prices which were passed on to customers.

Robinson, which has two factories in the UK and two in Poland, broke back into the black at the pre-tax line with a £0.28m profit thanks to lower levels of exceptional costs compared to last year.

Directors lifted the dividend to 3p from 2.75p a year ago, in spite of a £3.8m cash outflow and a £4.6m net debt at the period end.

Packing volumes were lower primarily in the UK and seen among many customers, largely attributed to "reduced call off" rather than losing business, though demand from the retail sector, particularly for premium branded goods, continued to be subdued.

"New business gains have started to come on stream during the period albeit somewhat slower than we had expected," Robinson said, adding that although soft market conditions are expected to continue, "new business should progressively fill that gap in the second half".

"This and further new business, already signed up but not yet in production, will, in the following year, help us to return to our organic growth targets."

Investors were less confident and the shares were down 7.6% to 143.2p by 1115 BST on Wednesday.