Above
&
Beyond
Annual report 2020
Strategic report
| Corporate governance
| Financial statements
| Additional information
Welcome to the Robinson Group
Annual report 2020
2020 was a year of challenges and achievements.
The Covid-19 pandemic has severely impacted all our
stakeholders – from our suppliers to our customers,
communities, shareholders and employees.
Our people remain our top priority, keeping them
safe throughout with minimal disruption to our
operations while meeting customer needs.
As a business, we are proud of what we have been able
to achieve in this difficult climate. We have expanded our
footprint, capabilities and geographical reach with the
acquisition of Schela Plast A/S (Schela Plast), which will
better position us to serve customers in Northern Europe,
as well as in Central Europe and the UK. We have also
delivered strong sales growth, reinvesting in our business
and people.
We have rebranded Robinson with a view to stimulate
the development of our people and our business,
communicating to the marketplace that we remain
committed to our customers and the future of our
industry, which you will see reflected in this report.
Intrinsic to this development is placing sustainability at
the heart of what we do: we have set ourselves a robust
sustainability strategy with 15 ambitious goals that will
make Robinson, our people and communities future-fit
on every level, equipped to serve our customers’ needs
with speed and agility.
Contents
Strategic report
3 Our year in review
4 Chairman’s statement
6 An interview with our CEO
8
Robinson at a glance
10 Our business strategy
12 Guiding our sustainability journey
14 How we create value
16 Risks and opportunities
18 Engaging with stakeholders
21 Responding to Covid-19
22 Performance overview
Corporate governance
26 Corporate governance report
32 Directors’ remuneration report
35 Directors’ report
Financial statements
38 Group income statement and statement
of comprehensive income
39 Statement of financial position
40 Statement of changes in equity
41 Cash flow statement
42 Notes to the financial statements
70
Independent auditor’s report to the
members of Robinson plc
Additional information
74 Notice of Annual General Meeting
75 Form of proxy
76 Annual General Meeting attendance form
Five year summary
Revenue
Gross profit
% of revenue
Operating costs
Operating profit before exceptional items
and amortisation of intangible assets
Exceptional items
Amortisation of intangible asset
Operating profit
Net finance costs
Finance income in respect of pension fund
Profit before taxation
Taxation
Dividends
Retained profit/(loss)
Net assets excluding pension asset after
deduction of related deferred tax
Depreciation
EBITDA (earnings before interest, tax,
depreciation and amortisation)
Capital expenditure
Net debt
Operating profit % of revenue
Return on capital employed %
2016
£’000
27,459
6,258
23%
(4,120)
2,138
190
(783)
1,545
(116)
189
1,618
(390)
(877)
351
2017
£’000
29,813
5,778
19%
(4,457)
1,321
65
(783)
603
(103)
130
630
(317)
(901)
(588)
2018
£’000
32,802
5,884
18%
(4,370)
1,514
110
(783)
841
(156)
-
685
10
(890)
(195)
2019
£’000
35,085
7,492
21%
(4,971)
2,521
-
(810)
1,711
(205)
-
1,506
(296)
(890)
320
2020
£’000
37,203
8,566
23%
(5,878)
2,688
-
(809)
1,879
(127)
-
1,752
(343)
(890)
519
22,612
23,056
22,928
22,923
23,404
1,385
3,713
1,782
4,890
6%
7%
1,492
2,878
3,194
6,510
2%
4%
1,795
3,419
4,355
8,845
3%
5%
1,960
4,481
1,726
6,946
5%
7%
2,164
4,852
4,956
6,865
5%
8%
Basic earnings per share
7.5p
1.9p
4.2p
7.3p
8.5p
Above & Beyond
| Robinson Annual report 2020
| 2
Strategic report
3 Our year in review
4 Chairman’s statement
6 An interview with our CEO
8 Robinson at a glance
10 Our business strategy
12 Guiding our sustainability journey
14 How we create value
16 Risks and opportunities
18 Engaging with stakeholders
21 Responding to Covid-19
22 Performance overview
Corporate governance
26 Corporate governance report
32 Directors’ remuneration report
35 Directors’ report
Financial statements
38 Group income statement and statement
of comprehensive income
39 Statement of financial position
40 Statement of changes in equity
41 Cash flow statement
42 Notes to the financial statements
70
Independent auditor’s report to the
members of Robinson plc
Additional information
74 Notice of Annual General Meeting
75 Form of proxy
76 Annual General Meeting attendance form
Strategic report
| Corporate governance
| Financial statements
| Additional information
Our year in review
Sales
increased
to £37.2m
Gross margin
increased
to 23%
Adjusted EBIT*
increased
to £2.7m
(2019: £35.1m)
(2019: 21%)
(2019: £2.5m)
Rebranded
Robinson and
defined new
purpose and
core values
Post year end
acquisition of
Schela Plast
£4.6m
invested in
net capital
expenditure**
Developed a
sustainability
pledge and
15 goals
Dividend paid
in the year
5.5p
(2019: 5.5p)
(2019: £1.7m)
66% employees
completed
Organisational
Culture Survey with
95% reliability rating
Completed
independent Board
effectiveness review
* Operating profit before amortisation of intangible assets
** Net capital expenditure excluding operating leases capitalised under IFRS 16
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Strategic report
| Corporate governance
| Financial statements
| Additional information
Chairman’s
statement
2020 was a year that tested
us all – governments, society,
businesses and individuals have
all been deeply impacted by the
Covid-19 pandemic. Robinson
did not escape this test, but I am
very proud of how the team has
responded, maintaining a safe
working environment for all
while minimising disruption
to our customers and their
consumers. I would like
to thank every Robinson
employee for their outstanding
commitment and communicate
my appreciation for the strong
collaboration of our suppliers
and customers in 2020.
The pandemic has created significant uncertainty and
volatility for our business. We saw substantial spikes in
demand for some products, offset by weaker demand
in others. To ensure the safety of our employees, we
created new ways of working in our factories and asked
many of our sales and administration office colleagues to
work from home.
As a key industry in both the UK and Poland, the vital
contribution the Robinson team made to the health and
wellbeing of our communities through the supply of
essential hygiene and food packaging in 2020 is worthy
of special note.
Financial and operating performance
We delivered strong sales growth in 2020, with revenue
rising by 6%. Underlying volume increased by 8%.
Gross margins, at 23% (2019: 21%), have continued
the positive trend started in 2019, helped by softness
in resin prices, income from value-added services and
increased operational efficiency. The impact of Covid-19
was marginally beneficial to revenue and profit in 2020.
The additional demand for some products offset the
additional costs of operating our factories safely.
Operating costs were 18% higher than 2019 as we
continued to invest in the business.
Operating profit before amortisation of intangible assets
has increased to £2.7m (2019: £2.5m) and profit before
tax increased to £1.8m (2019: £1.5m).
Cash generated by operations was £6.6m (2019:
£4.9m), benefiting from improved profitability and cash
collection, longer supplier payment terms, lower resin
prices and the impact of UK VAT deferred from March
2020 to March 2021.
Aligned with our customers’ priorities, we purchased
new presses to improve service and responsiveness,
enhanced our capabilities to deliver market-place
innovation and improved our processes to achieve
best-in-class product quality. We also added resources
to partner with key customers and to accelerate our
sustainability agenda. Our new sustainability pledge will
be at the heart of everything we do as a business and
details of the pledge, which is focused on five pillars and
15 commitments, is provided on pages 12 and 13.
In addition, we refreshed the Robinson purpose, values
and our brand identity – confirming our intent to go
above and beyond to create a sustainable future for our
people and our planet.
Above & Beyond
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Strategic report
| Corporate governance
| Financial statements
| Additional information
Strategy and acquisition of Schela Plast
In September 2020, we conducted our annual strategy
and business review, reaffirming our objective to deliver
sustainable shareholder value through above-market
profitable growth, achieving an adjusted operating
margin* of 6-8%. Our three strategic priorities are
described in more detail on pages 10 and 11.
On 10 February 2021, we completed the acquisition of
Schela Plast, a specialist in the design and manufacture
of blow moulded containers, based in Denmark. Schela
Plast is a strong complementary fit to our existing
products and services, customers and manufacturing
locations. Their location and capabilities, together
with our planned investment in additional equipment,
generate areas for growth with key customers in the
market sectors we and Schela Plast serve.
Capital investment, financing and pension
We are committed to maintaining a competitive
manufacturing infrastructure. During the year, we
invested net £4.6m in production equipment to replace
outdated presses, add additional capacity and refurbish
a manufacturing building in our UK business. This
investment was funded by strong cash generation from
operations resulting in net debt (including IFRS 16 leases)
at 31 December 2020 of £6.9m (2019: £6.9m).
To fund the post-year-end Schela Plast acquisition, new
facilities totalling £12m were agreed with HSBC Bank
UK. With total credit facilities of £18m (2019: £13m),
the necessary headroom is available for the Group to
operate effectively.
The results of the triennial actuarial valuation of the
defined benefit pension fund, rolled forward to 30
October 2020, showed the fund had a surplus of
approximately 4% (2017: 2%). The Trustees and the
Company have therefore agreed that the Company
continues to benefit from a contribution holiday.
Further details are provided in note 30 to the accounts.
The IAS 19 valuation of our pension plan at 31 December
2020 reported a surplus of £9.3m (2019: £10.5m).
This surplus is deemed to be irrecoverable and so is
not included in the Group’s assets.
Governance and Board composition
As a Board, we are committed to the highest standards
of corporate governance. We continue to comply with
the Quoted Companies Alliance Corporate Governance
Code. During the year, we undertook an independent
evaluation of Board effectiveness, with encouraging
results. A summary of this exercise is included in the
Corporate governance report on pages 28 and 29.
Guy Robinson retired as Finance Director on 1 January
2021. I am pleased to confirm that, in accordance with
the Board’s succession plan, Guy was succeeded by
existing Executive Board Director Mike Cusick. The Board
will continue to benefit from Guy’s experience as an
Executive Director until the 2021 Annual General Meeting
(AGM) and as a Non-Executive Director thereafter.
Additionally, existing Non-Executive Board Director
Sara Halton was appointed as the Senior Independent
Director and Chair of the Audit and Risk Committee.
As previously communicated, Anthony Glossop will retire
from the Board at the AGM. On behalf of the Board, I
would like to place on record our deep appreciation of his
wise counsel, outstanding contribution and dedication to
our success throughout his many years of service.
I look forward to working with Guy, Mike and Sara in
their new roles at Robinson.
Property
Progress has been made towards selling some of the surplus
property in Chesterfield. Very recently heads of agreement,
subject to contract, with a gross value of £3.4m have been
signed for two plots of land. The total book value of the
plots is less than £1m at 31 December 2020. We hope
that, subject to receiving the necessary planning approvals,
further sales will be achieved in the next two years.
Dividend
The Board proposes a final dividend of 3.0p per share to
be paid on 16 July 2021 to shareholders on the register
at the close of business on 2 July 2021. The ordinary
shares become ex-dividend on 1 July 2021. This brings
the total dividend declared for 2020 to 8.5p (2019: 2.5p)
including the final dividend for 2019 which was deferred.
Outlook
The pace of recovery from the pandemic across
geographies and short-term spikes in resin prices are
likely to create substantial uncertainty and volatility in
the market in 2021. Despite this uncertainty, we remain
committed to delivering above-market profitable growth
and our target of 6–8% adjusted operating margin*.
We will continue to invest in creating a high performance,
expert and diverse team that can thrive in a safe
environment while delivering sustainable value to our
customers and other stakeholders.
Our flexibility, responsiveness, technical capabilities
and, most importantly, our people provide the basis for
Robinson to go “above and beyond” in 2021.
*Operating profit margin before exceptional items and
amortisation of intangible assets
Alan Raleigh
Chairman
24 March 2021
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| Additional information
Interview with
Dr Helene Roberts,CEO
Q. Robinson has announced its purpose and
rebranded with some quite bold changes to its
identity. How did this come about and why now?
Rebranding Robinson is much more than simply changing
our logo; it’s about stimulating development for our
people and the Company, communicating to the
marketplace that we are a key partner to our customers
with our aim to take a leading position on sustainability.
Our new purpose is to go above and beyond to create
a sustainable future for our people and our planet – and
our revitalised identity reflects this.
The new-look Robinson is the result of months of
research into an evolving marketplace, both in terms
of our industry and the markets we serve. We gained
unique insights from those people within and outside our
business who we interact with, affect and are affected
by. This helped us define our core values.
We are linking our past with our future, proud of our
heritage and staying true to ourselves, reflecting on who
we really are as a company and where we need to be.
Q. How have you found your first year of leadership
at Robinson?
For reasons that will be clear to everyone, it has been
a challenging year – but we have achieved so much,
thanks to the dedication and passion of our people.
We have serviced our customers throughout the
pandemic, not only by providing much needed products
but also by offering the responsive and agile service
they have come to expect from Robinson. We have
invested heavily in new equipment and have simplified
and standardised our business processes to create a
consistent one-Robinson approach.
Despite the external challenges in 2020, we have
delivered a strong performance that built on the
foundations laid in 2019. We delivered sustainable
growth in sales, with revenue increasing by 6%, while
improving our gross margin to 23% from 21% in 2019.
We have further invested in the business and our people
through key initiatives, including the implementation
of our People development plan, resources to protect
our people against Covid-19, conducting a Voice of the
Customer survey and a rebranding exercise. As a result,
our operating costs were 18% higher than 2019, but
overall, our profit before tax increased to £1.8m from
£1.5m in 2019.
Again, our people are key to all of this. This is why
engaging with our people has been an absolute priority,
along with ensuring their wellbeing. We are building a
strong and resilient team culture.
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| Additional information
Q. How do you think Robinson has supported
its people in 2020?
Our people are what drives us. We want to help them
thrive and build a safe, healthy and happy workplace.
We recognise that we have significant work to do on
the safety culture in the business, as indicated by the
number of lost-time accidents in 2020. To this end, we
are applying a safety-first culture through implementing
a behaviour-based safety programme at all levels within
our factory and office environments. We are already
seeing the results of our new approach, with increased
near-miss reporting and buy-in to our new 30-second
risk assessments rolled out across the Group.
As the pandemic has lingered, we have become more
aware of the physical and mental health strain it is
causing. We support all of our people, ensuring that
they had quality time with their families at Easter and
Christmas, supplemented by food vouchers and gifts,
and that they now have immediate access to private
medical care.
I believe our culture and behaviour is critical at this time
and that by putting our employees first, by listening
and talking to them, we will emerge as a stronger
business. Diversity and social inclusion are very important
to me. As a business, we have been making real progress
in embracing and benefiting from diversity, and I was
delighted to be recognised as a ‘Woman to Watch’ by
Cranfield University’s School of Management Gender,
Leadership and Inclusion Centre.
Q. Robinson has developed a refreshed sustainability
pledge with 15 ambitious goals. What’s your vision
and how will this benefit people and the environment?
As a company whose products are used every day,
we believe that our long-term success is dependent
on our commitment to manufacture plastic products
responsibly and deliver a future with less waste. We
have launched our sustainability pledge, focusing on
the areas where we believe we can bring the greatest
benefit for our people, the communities we impact
directly and indirectly and how our product design can
have an influence on building circular economies.
By being a prosperous business improving social and
environmental conditions, we create a sustainable
future. Our aim is circularity – to recover, regenerate
and restore all products and materials at the end of
their useful life. Our sustainability strategy aligns these
aims, strengthening our ability to deliver packaging with
purpose.
Q. Apart from sustainability, how would you say
Robinson is preparing for the future? What are the
next steps?
During 2020, we introduced a significant amount of
change to the business. Our focus in 2021 will be on
consolidation, extracting full value while taking the
opportunity to refine our business processes and to
introduce key elements of digitalisation, including new
human resources and production management systems.
We are also delighted with the recent acquisition
of Schela Plast in Denmark and welcome our new
colleagues to Robinson. This investment is part of our
sustainable growth strategy to build on our customised
model, offering a complete packaging solution from
cap to bottle. It adds geographical relevance to core
customers and strategic partnerships, with reach into
Northern Europe, and further strengthens our existing
position in the UK and Central Europe.
While uncertainty looks set to continue during this
pandemic, I am excited about the opportunities for
our people to thrive, strengthening our customer
partnerships while achieving sustainable growth and
delivering improved value.
Above & Beyond
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| Corporate governance
| Financial statements
| Additional information
Robinson
at a glance
Our new purpose is to go
above and beyond to create
a sustainable future for
our people and our planet.
Our business
How we work
Robinson specialises in custom packaging with
technical solutions for hygiene, safety, protection
and convenience. We manufacture injection and blow
moulded plastic packaging and rigid paperboard
luxury packaging.
Robinson is a knowledge-based organisation. Our success
is based on our technical capabilities and our agility and
flexibility to invest in custom solutions with pace. Our
geographical presence also maximises commercial logistical
reach. We are innovators in how we work, adapting inventions
and commercialising them with speed of execution.
Who we serve
Our organisation
Robinson provides products and services within the
food and drink, homecare, personal care and beauty,
and luxury gift markets. We count major players in the
fast-moving consumer goods market among our clients,
including McBride, Procter & Gamble, Reckitt Benckiser,
SC Johnson and Unilever.
Headquartered in Chesterfield, UK, Robinson has three
plants in the UK, two in Poland and a recently acquired
plant in Denmark. The organisation, formerly a family
business with its origins dating back 182 years, currently
employs nearly 400 people. The Group also has a substantial
property portfolio with development potential.
61%
80%
£37.2m
337
revenue from top
10 customers
waste to recycling
turnover
employees
(excluding Schela Plast)
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Strategic report
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| Additional information
Our locations
1
2
3
4
5
6
Kirkby-in-Ashfield
Stanton Hill
Łódź
Mińsk Mazowiecki
Chesterfield
Brørup
(Schela Plast
acquired 10
February 2021)
Robinson Plastic Packaging
Robinson Paperbox Packaging
Denmark
6
UK
2
5
1
Poland
4
3
Doing what we do, with the future of our people
and the planet in mind
Materials
Our suppliers
extract and supply
raw materials for
our packaging, as
well as provide us
with energy, tools,
equipment and
machinery.
Products
We offer custom solutions and
technical capabilities that deliver
social and environmental benefits
while protecting our customers’
products and the consumers
who use them.
Team
We invest in our people,
helping shape their careers
and support their safety,
health and wellbeing.
Operations
We use innovative
processes at all of
our manufacturing
plants and offices to
reduce our impact
on the planet.
Customers
We partner with our
customers, along with
technical specialists, experts
and researchers, to design
packaging with sustainability
features and benefits built
into the entire lifecycle.
Transportation
We partner with our logistics
providers to minimise transport
through intelligent packaging
design and by taking advantage
of our locations close to our key
customers in the UK and Europe.
Above & Beyond
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Strategic report
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| Financial statements
| Additional information
Our business strategy
Our strategic priorities
Customer first
Our sustainability pledge
Our strategy is to grow ahead of the market, by providing excellent
customer service as a long-term strategic partner, while creating a
people-centric business aligned with our purpose. As we transition
to a circular economy, sustainability is at the core of our work.
Our strategic priorities
Customer
first
OUR PURPOSE
Going above
and beyond to
create a sustainable
future for our
people and planet
Thriving
people
Sustainable
growth
Underpinned by operating responsibly and sustainably
Accountable and inclusive governance
Robinson is aware of its corporate social
responsibilities and the need to maintain
balanced relationships with its shareholders
and other stakeholders.
Our sustainability pledge
We believe that our long-term success is
dependent on our commitment to delivering
social benefit, responsible manufacturing
and a future with less waste.
Read more on pages 12 and 13.
Our core values and behaviours
Honest
Agile
Empowered
Engaged
We are refreshingly real,
straightforward and trusted.
We tell it like it is while being
respectful and gaining respect.
We connect with audiences
through being genuine
and open.
We are committed to efficient
success, working flexibly and
responsively to stay on track.
We roll up our sleeves and get
stuck in.
We are confident, working with
authority and competence to
deliver our collective goals. We
are trusted in our knowledge
and our delivery.
We want our people to
thrive, supporting them to
realise their full potential
as we build a happy,
committed culture.
We will partner with our customers to help provide
long-term value by protecting and showcasing their
brands through our sustainable, fully functional custom
packaging solutions. We will take their concepts and
turn them into commercial reality with speed
and agility. We will do this by:
• providing excellent customer service and enabling our
customers to efficiently and effectively serve their
customers and the value chain;
• engaging our customers and making us more relevant
as a long-term strategic partner; and
• creating mutual value for ourselves and our customers
to drive sustainable growth.
Intelligence
We will enable our customers
to contribute to building a
circular economy through
Robinson’s sustainable
products and services.
Transformation
We will drive shared
commercial value and income
streams beyond current
business models, collaborating
with our customers.
Sustainable growth
Our sustainability pledge
We will deliver on our promise to grow our revenue
ahead of the market and achieve profitable growth,
thereby generating long-term shareholder value.
We will do this by:
• doing the right things right through world-class
manufacturing operations, developing a superior
performance-focused mindset of improvement and
extracting capacity for regenerative growth;
• divesting surplus property and reinvesting into
the business; and
• improving financial performance and resilience,
allowing us to invest in the business and helping our
people thrive.
Regeneration
We will extract maximum value
from the resources we use in
our operations, recovering and
restoring materials at the end
of their life.
Transformation
We will drive shared
commercial value and income
streams to regenerate business
models for a circular economy.
Thriving people
Our sustainability pledge
We will create a people-centric business, aligned to
our purpose. We will do this by:
• building a culture that puts people at the core,
focusing on being socially inclusive and driving
diversity in thinking and supporting safety, health
and wellbeing;
• investing in our people, enabling them to reach
their full potential through our continuous training
programmes, helping them shape their careers; and
• engaging people in all aspects of our business
and operations and assisting them in putting our
customers first.
Talent
We want our people to thrive,
enabling our team to reach
their potential in a culture that
prioritises health and wellbeing.
Community
We will deliver real social
and environmental benefits
to our people and the local
communities in which we
operate.
Above & Beyond
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| Financial statements
| Additional information
Guiding our
sustainability journey
We are pushing the boundaries of our business to create a
sustainable future. This vision is driven by our sustainability pledge,
which is focused on five pillars and 15 ambitious commitments.
Our newly launched sustainability pledge underpins our business
strategy. It strengthens our ability to deliver packaging with
purpose, focusing on the areas where we believe we can deliver the
greatest benefit for our people and the communities we impact.
We want our people to thrive,
enabling our team to reach their
potential in a culture that
prioritises health and wellbeing.
Our goals
• People development plan
by 2023
• Zero accidents every year
• Champion employee health and
wellbeing
The UN SDGs* we can have
the greatest impact on
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Going above
and beyond
for people
and planet
Creating sustainable produc t s a n d s e r
Intellige n c e
s
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v i c
We will extract maximum value
from the resources we use in our
operations, recovering and
restoring materials at the end of
their life.
Our goals
• Zero waste to landfill
by 2021
• Net carbon positive
by 2030
• Sustainable buildings
by 2025
The UN SDGs we can have
the greatest impact on
We will enable our customers to
contribute to building a circular
economy by applying purposeful
design, using recycled content
and making our products
recyclable.
Our goals
• 10% virgin plastic reduction
by 2025
• Maximum recycled content
by 2022
• All products fully recyclable
by 2022
The UN SDGs we can have
the greatest impact on
We will drive shared commercial
value and income streams beyond
current business models,
collaborating with our customers
and partners to regenerate local
economies.
Our goals
• Build sustainable business
environments
• Greener spaces and habitats
• Offer reusable products
The UN SDGs we can have
the greatest impact on
We will deliver real social and
environmental benefits to our
communities, educating the next
generation of change-
makers and bringing more
sustainable initiatives to the areas
where we operate.
Our goals
• Offer career-enhancing
work experience and
oppoortunities
• Engage schools on benefits
of packaging and recycling
• Give back to our communities
every year
The UN SDGs we can have
the greatest impact on
Find out more about our pledge at robinsonpackaging.com/sustainability
*United Nations Sustainable Development Goals
Above & Beyond
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| Additional information
How we create value
External drivers
What we
depend on
Our business model
Environmental
sustainability
Plastics use and waste,
pollution, food waste, energy,
and carbon emissions.
Relationships
Thriving
people
The engagement, skill and
efforts of our talented people.
Social and
demographic
changes
Changing role of packaging
and attitudes to waste.
Supply
partnerships
Materials and equipment
procured from a limited
number of partners.
Uncertain
economic
outlook
Medium and long-term
impacts of Covid-19
and Brexit.
Regulation
and legislation
UK and European plastics
legislation from 2022.
Supply chain
disruption
Reliance on timely, high-
quality raw materials.
Digitalisation
and automation
Rapidly advancing
manufacturing techniques
and technology.
Expert groups
and organisations
Insights to policy, legislation
and market trends and driving
positive change.
Customers
Integrated and mutually
beneficial relationships with
key customers.
Resources
Natural
resources
Renewable and non-
renewable materials.
Financial
resources
Cash, equity and debt to
invest for the long-term.
Tangible
assets
Physical assets such as
manufacturing and office
facilities as well as stock.
Our people and expertise
We protect and develop our people to help
them thrive and continue to deliver value to
our business and our customers.
1
Supply chain
We partner with our
suppliers and expert
organisations to help
us develop efficient
processes and
sustainable products.
2
Design and
manufacturing
We use technical
expertise to bring
customer concepts
to commercial
reality with agility,
while minimising
environmental impact.
3
4
Customers
Consumers
We develop
partnerships with
and invest in our
customers to
ensure they can
meet their own
customers’ needs.
We provide packaging
across our market
sectors that is
sustainable, protective
and functional.
5
Post-consumer recycled content
We aim to design closed-loop packaging
– eliminating waste and pollution, keeping
resources in the circular economy and
regenerating natural systems.
The value we
create now
Our long-term
impact
Customers
Protection and differentiation
of customer brands through
sustainable, custom packaging
solutions at speed and at a
competitive price.
People
Motivated people achieving
their full potential and taking
action to improve their health
and wellbeing.
Communities
Increased local employment
and community engagement
in plastics, packaging and
circular economies.
Environment
Reduction in food and product
waste and climate mitigation.
Investors and
shareholders
Profitable, sustainable
growth, generating long-term
shareholder value.
Consumers
Protective packaging
for hygiene, safety and
convenience.
Creating inclusive
and equitable
employment
A diverse workforce with
a culture that prioritises
health and wellbeing, people
development and employee
growth with fair reward.
Protecting
our planet
Sustainable consumption
with clear goals of zero waste
to landfill and becoming net
carbon positive.
Reducing plastic
pollution
Packaging with the lowest
possible plastic content,
maximising recycled
material and driving for
improved recycling systems.
Partnership and
collaboration
Collaboration on the
regeneration of local
economies and education on
the benefits of plastics and
importance of recycling.
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| Additional information
Risks and
opportunities
Our approach to risk management
Our principal risks
The Board maintains a process and procedures for
identifying significant risks faced by the Group as follows:
The Board meets annually to identify risks and
review strategy.
Risks are assessed during the annual planning and
budget process.
The Senior Leadership Team records each risk,
describing mitigation measures and any proposed
future actions.
The status of the most significant risks is reviewed
regularly at Senior Leadership Team meetings.
Risks are assessed across five categories: Strategic;
Business continuity; Environmental, social and
governance; Operational; and Financial. From those
categories, the Directors have identified those risks and
opportunities that are deemed fundamental to the
business due to their potential impact on the delivery of
the Group’s long-term strategic goals.
y
t
i
l
i
b
a
b
o
r
P
h
g
H
i
d
e
M
w
o
L
E
C
B
K
Low
Med
Impact
F
G
D
H
J
I
A
High
The Group’s Audit and Risk Committee assist the
Board in monitoring risk management across
the Group.
A Acquisition integration
E IT and digital security
I People
B Customer relationships
F Environment
J Debt leverage
C Input prices
G Plastics legislation
K Foreign currency
D Raw material supply
H Market competitiveness
Risk increased
Customer first
Sustainable growth
Thriving people
Pages 10 and 11: Our business strategy
Principal risk and impact
Mitigation
Key developments and opportunities
Strategic
A Acquisition integration
The acquisition of Schela Plast creates
potential risks in business stabilisation and
continuity, culture, technology and change
management. Failure to integrate could
reduce business earnings and value.
B Customer relationships
A significant proportion of Group
revenue is derived from a small number
of key customers. The loss of a customer
or worsening of terms could adversely
affect results.
Comprehensive post-acquisition integration
plan in place with regular reviews.
The existing Schela Plast Managing Director
will remain with the business.
Knowledge-sharing opportunities with
UK and Poland operations.
Strong partnerships and targeted strategies.
Multi-level contact points in customer
research and development, technical and
sustainability areas to develop understanding
of goals and ambitions. Building relationships
with other brands.
Independent formal customer survey
highlighting key improvement areas
with specific action plans. Increased
sustainability and marketing expertise.
Principal risk and impact
Mitigation
Key developments and opportunities
Strategic (cont.)
C Input prices
Market prices of electricity and plastic resin,
particularly recycled resin, can fluctuate
significantly leading to higher costs and
lower profitability.
Business continuity
D Raw material supply
Failure to receive timely, high-quality raw
materials (including EU imports) could impact
our ability to meet customer demand.
E IT and digital security
A breach of IT systems could result in the
inability to operate systems effectively or the
release of sensitive information.
Environmental, social and governance
F Environment
Business impacts related to plastics and
waste pollution, food waste, energy and
carbon emissions resulting in climate change.
G Plastics legislation
New plastics legislation may increase costs and
fees and could impact customer demand for
plastic packaging.
Operational
H Market competitiveness
Failure to supply or an uncompetitive cost
position could result in loss of market share.
Being competitive will require additional
capital expenditure.
I People
Our success depends on the efforts and
abilities of our people. Low unemployment
and high demand for skilled people may
restrict our growth.
Financial
J Debt leverage
Higher leverage increases liquidity risk and
may lead to higher finance costs.
K Foreign currency
Currency fluctuations could impact
revenues and profits and the value of
overseas investments.
Where possible, contracts are structured
to allow input cost recovery. Alternative
competitive sources of specific materials
are continually sought, with material tolling
arrangements in place where applicable.
Fixed price energy contracts are used at
some sites.
Virgin resin prices reduced in 2020 while
a lack of recycled material supply kept
prices high. Continue lobbying for financial
mechanisms and drivers to increase supply
and availability of recycled materials. Brexit
and Covid-19 disruption limited availability,
which could affect price in the short term.
Secondary supply sources in place for some
key materials. Additional material stocks held
to reduce the impact of Brexit.
Shortage of corrugate and resin from
European suppliers restricted output in
late December into Q1 2021. Full rollout of
secondary suppliers.
Physical security of servers, anti-malware,
internet monitoring, safe-use policies and
regular employee training.
IT team strengthened. Increased budget
for 2021 and reviewing the possibility to
gain IT security certification.
Established a sustainability pledge and
roadmap. Select sustainable materials and
design choices to prevent product damage
and waste. Ensure sustainable operations
and production.
Increase in the use of recycled plastics.
Sustainability pledge has specific goals
related to reducing environmental
impacts. Appointment of a Group
Sustainability Director.
Active membership of trade bodies
lobbying for the benefit of plastics.
Driving financial incentives in policy and
legislation to increase the availability and
use of recycled materials. Designing for
recyclability without creating unintended
environmental impacts. Monitor
developments and keep close contact
with customers.
Reducing the amount of materials we
use through innovation design and
technology. Developing and identifying
alternative sources of recycled materials
and phasing out non-recyclable
products. Opportunities to develop
closed-loop solutions.
Investment in new technology to improve
costs. Continuous improvement and value
engineering initiatives in place to reduce
costs, including controls over capital
expenditure to ensure maximum returns.
Significant investments to improve
competitiveness and reliability. Bank
funding in place to invest further. New
technology to reduce carbon emissions.
Frequent salary benchmarking and
adjustment. Fair employment practices.
Increased number of permanent rather than
temporary employees. Comprehensive
People development plan.
Continued focus on improving employee
engagement. Improved induction and
onboarding. Roadmap to real living wage
by 2021 outlined. Transition from temporary
to permanent jobs in Poland under way.
Detailed business plans identifying cash
requirements in place. Sales of surplus
property planned to reduce leverage. Strong
relationships with Group bankers. Fixed-
rate borrowings used in the form of finance
leases.
Currency exposures not typically hedged
but exchange rates are closely monitored at
Board level.
New committed bank funding in place
to finance the Schela Plast acquisition.
Polish Zloty weakened by 5% against
Sterling during 2020. Schela Plast
acquisition creates additional exposure
to the Danish Krone.
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| Additional information
Engaging with
stakeholders
We communicate frequently with the
people who most affect and are affected
by our business. As required by Section
172( 1 ) of the Companies Act 2006,
we detail those engagements here.
Investors and banks
Employees
Suppliers
Customers
Expert organisations
Who and why?
Who and why?
Who and why?
Who and why?
Who and why?
Access to capital is vital to our long-
term success. We must get buy-in to
our strategic priorities from investors.
We seek an investor base that is
interested in long-term shareholding.
We engage with employees to help
build a happy and healthy culture,
empowering and enabling them to
achieve their potential. In return, we
expect low absenteeism and turnover
rates, allowing us to maintain high
efficiency and productivity.
Only a limited number of resin
producers and machinery suppliers
can supply the raw materials and
equipment that we need.
We rely on a small number of
customers for a majority of our
revenue. Strong partnerships are
critical to understanding our customers’
markets and plans to ensure we can
provide the best packaging solutions
and services.
We are members of several trade and
industry organisations to stay updated
on related policy, legislation and
trends within our core market sectors.
We partner with organisations and
consortiums to drive transformational
innovation and societal changes.
How we engaged
How we engaged
How we engaged
How we engaged
How we engaged
• AGM.
• Investor presentations and
one-to-one meetings.
• Reports and results announcements.
• Regular meetings with banks
and funding providers.
• Quarterly briefings with senior
site management and employee
consultative committees.
• Annual roadshows with senior
site management and the CEO,
site visits and tours with the Non-
Executive Directors.
• CEO and Managing Director video
communication.
• Annual long-service dinner with
the CEO.
• Independent employee surveys.
• In-house magazine.
• Regular meetings with suppliers.
• Strategic review meetings twice
• Company memberships of
• Supplier site audits.
• Request for quotes and contract
negotiations.
per year with our customers’ senior
management.
• CEO meetings with strategic
partners at least once per year.
• Packaging exhibitions and
trade shows.
• Site audits.
• Independent feedback interviews
and surveys.
industry bodies.
• Senior management as Board
members and Trustees.
• Networking at industry events.
• Active participation in select
workstreams ranging from lobbying
to finding technical, sustainable
solutions in packaging and our
manufacturing operations.
Outcomes and actions
Outcomes and actions
Outcomes and actions
Outcomes and actions
Outcomes and actions
• 2019 final dividend postponed and
repayment holidays sought but not
used on finance leases.
• New partially committed bank
funding package agreed for three-
year term to support the Schela
Plast acquisition.
• Preparing for Brexit by building raw
material stocks and new partnerships
to increase contingency in the EU
and the rest of the world.
• Supply deals arranged for alternative
sources of recycled material and
engagement with industry experts on
the circular economy.
• Purchased 11 moulding
machines and 15 forklift trucks to
improve business efficiency, safety
and capacity.
• Improved hygiene and social
distancing controls during the
Covid-19 pandemic, daily
temperature checks for all staff and
planned shutdowns at Easter and
Christmas 2020.
• Identification of improvement areas
to achieve a high-performing culture,
such as the establishment of a
People development plan.
• Concrete improvement plans to
action findings from employee
surveys.
• Communication and engagement
plans for individual and team
support.
• Employee benefits packages
implemented across the Group
including 24/7 access to a doctor.
• Through feedback from our 21
• Direct and, through the British
largest customers, five key business
improvement areas were identified
and customer service action plans
were implemented.
• Increased pro-active engagement
with customers focused on
enhancing our partnerships.
• Ongoing dialogue with customers
to mitigate delays and supply
disruptions caused by Brexit.
• Continued to serve customers
despite challenges to demand and
credit risk caused by the Covid-19
pandemic.
• Schela Plast acquisition to support
strategic long-term partnership with
our largest customer.
Plastics Federation, indirect lobbying
and consulting governments on
forthcoming requirements, including
the UK Plastics Tax response and
the Extended Producer
Responsibility reform.
• Engaged with RECOUP to test
and trial carbon black detection to
phase out where possible and gain
access to market insight and primary
recycling data.
• Signatory to Operation Clean Sweep
to reduce plastic pellet loss to the
environment.
• Participation in two-year
NEXTLOOPP project to develop
and trial food-grade recycled
polypropylene and establish a secure
supply chain.
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Principal Board decisions
The table below shows, for each principal decision taken during the period,
how the interests of key stakeholders impacted were taken into account.
Principal decision
Factory and machinery upgrade
and replacement programme
Rebranding and development of
Company purpose and values
Development of sustainability
pledge with specific goals
An existing building in Kirkby-in-
Ashfield was refurbished at a cost
of £0.6m. The building is currently
used for storage but is available
for manufacturing expansion. In
2020, 11 new injection moulding
machines were installed, with
benefits in energy usage and
process control.
The new Robinson verbal and
visual brand is modern, relevant
and supports the strategic
priorities of Customer first,
Sustainable growth and Thriving
people, while aligning with the
future of the industry. The project
involved extensive consultation
with employees, investors and
customers of Robinson.
In 2020, we recruited internal
sustainability expertise to lead the
development of a comprehensive
strategy with ambitious goals.
This strategy is underpinned by
our purpose and integrated into
our strategic priorities. Associated
key performance indicators (KPIs)
have been developed to measure
performance.
New machines enable increased
process control and higher quality
and reliability to better serve
customer needs and improve
our responsiveness.
Branding shows confidence and
a straightforward approach.
Company purpose helps
us position ourselves in the
marketplace and beyond.
Require subject matter expertise
on environmental and social
considerations and relevant legislative
matters from their suppliers.
Customers
Employees
Investors
Safer and more modern buildings
and equipment improve the daily
working environment.
Company purpose underpins
everything we do – including
helping employees thrive.
Specific People development plan
and intense focus on employee
safety, health and wellbeing to
help our employees thrive.
New technology uses less energy
and makes production cycles faster,
increasing efficiency, capacity,
and ultimately, return on capital.
Additional manufacturing space will
benefit investors in the long-term
with capacity for further growth.
Focus on long-term sustainable
growth, aligned with the future of
the industry. Purpose showcases
our relevance to existing investors
while attracting new investors.
Improved and professional focus
on the environmental, social
and governance factors that are
increasingly important to investors.
Lower energy consumption and
process waste contribute to lower
greenhouse gas (GHG) emissions.
Company purpose centred around
a sustainable future for our people
and the planet.
Goals are focused on delivering
benefit and mitigating the
environmental impact of our
operations and products.
Environment
Above & Beyond
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| Additional information
Responding to
Covid-19
As a responsible business, we
have closely monitored the
Covid-19 pandemic, working
diligently to ensure the
protection of all our colleagues.
We are aligned with local public
health authorities and follow
the latest government guidelines
on health and safety measures.
Our approach
We have prioritised keeping our people safe while
supplying our customers with essential packaging for
food, hygiene, personal care and homecare products.
Our entire team has worked tirelessly, going above
and beyond to provide a reliable service and meet
growing customer demand. We are grateful to our
teams that work with commitment and determination
to keep customer deliveries on schedule in all our
manufacturing facilities during these challenging times.
Our robust Covid-19 management programme includes
onsite audits, with continuous employee engagement
and communication in all workplaces and for those
working at home. We have implemented additional
protection measures within all factories, warehouses
and offices and always put safety and hygiene before
productivity. Two unplanned assessment visits from the
health and safety authorities to our sites recognised our
diligence and efforts.
Protecting and supporting our employees
We offer all employees private Covid-19 testing
(results within 24 hours), medical cover, access to a
doctor, personal protective equipment and guidance
on how to protect themselves and other people in
and out of work. We also provide ongoing support
to those feeling isolated and full pay to employees
self-isolating or furloughed. All receipts from HMRC
under the UK government scheme have been repaid.
There for our customers
The customer is at the centre of everything we
produce. In our core markets, we are able to support
them with their increased demand for packaging in
ambient food, homecare cleaning and personal hand
hygiene products. We were able to react quickly to
meet the demand, and in some cases, commission
new tools and equipment. Thanks to our strong
partnerships, we have worked hard to consistently
provide packaging solutions and services that secure
long-term loyalty and the opportunity to grow our
collective businesses while keeping everyone safe.
Supporting the communities in which we operate
We are committed to delivering real social and
environmental benefits to our communities. Our UK
and Polish plastics businesses are considered key
industries within the food sector, critical for ensuring
that our nations have access to food.
For the community of Robinson & Sons Ltd pensioners,
we have ensured that they have continuous support,
food supplies and someone to talk to, led by our
Welfare Officer.
Above & Beyond
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| Additional information
Performance
overview
Key performance indicators
We align our KPIs with our three strategic priorities and sustainability pledge to monitor financial
and non-financial performance and value creation.
Customer first
Sustainable growth
Thriving people
Pages 10 and 11: Our business strategy
Financial KPIs
Revenue growth
Our performance in our
strategic priority of
‘Customer first’.
Gross profit margin
Demonstrates the Group’s
profitability from its
manufacturing operations.
Performance in 2020
Revenue growth of 6% included the effect of
falling resin prices – underlying volumes were
up by 8%.
2018
2019
2020
Goal
Above-market profitable growth.
Performance in 2020
Gross margins improved during the year
due to falling resin prices not yet fully
passed through to customers, the effect of
efficiencies in operations and revenue from
value-added services.
Adjusted operating margin*
Demonstrates the
Group’s ability to turn
revenue into profits.
Performance in 2020
Overall adjusted operating margins improved
slightly during the year due to increased
gross margins, partially offset by increases in
operating costs.
Post-tax return on capital employed**
Financial return from all of the
capital invested in the business.
A return higher than the
Group’s weighted average cost
of capital is satisfactory.
Performance in 2020
The return on capital employed increased
slightly compared with the prior year as
profits were higher and capital employed
was lower.
Working capital as a % of sales***
Revenue required to fund
the working capital cycle.
Performance in 2020
Overall working capital levels were lower in
the year despite higher revenues, helped by
the impact of lower resin prices. The Group
also benefited from the UK government’s
scheme to defer VAT payments from Q1
2020.
10%
7%
6%
18%
21%
23%
5%
7%
7%
6-8%
5%
7%
8%
15% in the medium term
26%
26%
22%
Above & Beyond
| Robinson Annual report 2020
| 22
2018
2019
2020
2018
2019
2020
Goal
2018
2019
2020
Goal
2018
2019
2020
Strategic report
Non-financial KPIs
| Corporate governance
| Financial statements
| Additional information
Lost time accidents per 100 employees
Provides a measure of the
likelihood of an employee
having an accident that results
in time off work.
Gender diversity
Number of females in total and
in senior management positions
as a % of our total employees.
0.65
2018
2019
2020
2.10
2.37
Performance in 2020
There were eight lost time accidents in the year,
compared with seven in 2019. This level is not
acceptable. To improve, we are applying a safety-first
culture. We will focus on achieving zero accidents
in the workplace by implementing formalised,
behaviour-based safety programmes, encouraging
our people to report near-misses and carrying out
on-the-job checks through risk assessments.
Goal
The Group continues to target zero lost
time accidents.
Performance in 2020
The number of females in senior management
positions increased during the year. We
recognise the need for equal opportunities
and to bring in experiences from a variety
of perspectives and backgrounds. We are
committed to improving the diversity of the
Group as a whole and will always seek a
balanced slate when recruiting.
Total females
30%
34%
33%
Females in senior management
17%
15%
20%
2018
2019
2020
2018
2019
2020
Post-consumer recycled content
Level of recycled
material in our packaging
products.
Waste to landfill
Amount of operational
waste that is not
recycled. Waste that is
not recycled is sent to
landfill.
GHG intensity
Measure for the total
amount of carbon dioxide
equivalent (Scope 1
and Scope 2) produced
per tonne of material
processed.
Performance in 2020
Overall usage of post-consumer recycled
(PCR) material increased during the year.
As there are supply constraints for high-quality
PCR, we are actively seeking secondary supply
sources. In addition, mechanically recycled
polypropylene (rPP) does not meet food-grade
requirements. We have joined the NEXTLOOPP
project to develop a supply chain of food-grade
rPP from mechanical recycling. Chemically
recycled food-grade rPP is currently not
commercially available.
Goal
100% recycled content in paperboard
packaging and a minimum of 30% recycled
content in plastic packaging by 2022.
2018
0%
1%
5%
2019
2020
Goal
30%
Recycled plastic consumed
Total plastic consumed
This shows our performance in plastic
packaging. In paperboard, we have
reached 100% recycled content. Our
paper is made from sustainable sources
and we are pursuing FSC certification.
Performance in 2020
We are implementing systems and processes
to maximise our raw material efficiency,
reuse our post-industrial waste and identify
increased end markets to eliminate our waste
to landfill. We are also signed up to the
Operation Clean Sweep initiative to prevent
plastic loss from our operations into the
environment.
Goal
Zero waste to landfill by 2021.
2018
2019
2020
Goal
0%
12%
18%
20%
Performance in 2020
GHG intensity reduced in 2020 as a result of
investments in energy-efficient equipment
and processes.
2019
2020
Goal
Net positive by 2030.
1.166
1.089
*Operating profit margin before amortisation of intangible assets.
**Operating profit before amortisation of intangible assets (£2,688k) less taxation (£343k) divided by the average, current year (£30,269k) and prior year
(£29,869k), capital employed (net assets less net debt).
***Inventory + trade receivables – trade payables.
Above & Beyond
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| Additional information
Streamlined Energy and Carbon
Reporting (SECR)
The SECR regulations require UK companies to report
on their energy use and carbon emissions. The Group
has voluntarily chosen to disclose its total emissions
for transparency and accountability in delivering its
reduction targets. As permitted by the SECR, the Group
has not disclosed any comparative information as this is
the first-year reporting under the SECR regulations.
The Group reports Scope 1, 2 and 3 emissions in tonnes
of carbon dioxide equivalent (tCO₂e):
• Scope 1 covers direct emissions: those that emanate
directly from Group operations. This is principally
natural gas burned for heating and fuel used in
company-owned vehicles.
• Scope 2 covers indirect emissions: those generated by
key suppliers, principally electricity.
• Scope 3 covers other indirect emissions: those as a
result of Group activities occurring from sources not
owned or controlled by the Group in particular, such
as emissions from business travel or employee-owned
vehicles where the Group is responsible for the
fuel purchase.
Group 2020
UK 2020
Poland 2020
kWh 000s
tCO2e
kWh 000s
tCO2e
kWh 000s
22,773
1,462
388
11,406
269
92
10,225
1,194
90
2,384
12,548
220
22
268
298
tCO2e
9,022
49
71
24,623
11,767
11,509
2,626
13,114
9,142
0.97
0.32
0.45
0.13
1.45
0.55
Electricity
Gas
Transport
TOTAL
Intensity (tonnes CO2e
per tonne of plastic polymer)
Intensity (tonnes CO2e
per £’000 revenue)
Electricity is the Group’s largest source of CO2e
emissions, providing heat, light and power for premises,
facilities and other plant and equipment. CO2e emission
factors are fundamentally dependent on the source of
electricity. Poland has a higher proportion of coal-fired
power stations compared with the UK. As such, the
CO2e emission factor per kWh for Poland is significantly
higher, resulting in higher CO2e emissions. The Group is
focused on what it can control, including kWh usage in
its manufacturing.
Tonnes of CO2e per tonne of plastic polymer consumed
and per £’000 of revenue are used as measures of
intensity. The Group aims to reduce its total intensity
over time and has a public GHG target to become net
positive by 2030.
The Group has invested in energy-saving initiatives in
2020, including:
• 11 new hybrid injection moulding machines, delivering
up to 40% energy and associated carbon savings
compared to hydraulic machines;
• a water-cooling system at our Kirkby-in-Ashfield site
that uses energy recovered to heat the warehouse; and
• the latest LED lighting in all our UK factories.
After mapping our energy use for most of our
operations, we are running a much more detailed and
comprehensive exercise to determine exactly where and
how much energy we are using.
Methodology note: the Group has implemented the
UK government guidance on measuring and reporting
GHG emissions, in line with DEFRA guidelines, using
conversion units published in the UK Government
GHG Conversion Factors for Company Reporting 2020.
Emissions in Poland have been converted using rates
from The National Centre for Emissions Management
(KOBiZE) for 2020.
Electricity and gas: calculated from supplier invoices
using metered kWh data. Gas data from Poland has been
converted using UK rates as the KOBiZE does not report
on these annually.
Transport: calculated based on the volume of fuel
purchased and mileage claims details. The volume of fuel
has been converted to kWh using the UK government
conversion factors. For mileage claims, details of the
company vehicles were unknown; therefore, CO2e
emissions were estimated based on typical car type
and average fuel usage.
The strategic report was approved by the Board
of Directors on 24 March 2021 and is signed on its
behalf by:
Mike Cusick
Director
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Above & Beyond
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Corporate
governance report
Board of Directors
Executive Directors
Helene Roberts
CEO
Appointed to
the Board:
November 2019
Guy Robinson
Property Director
Appointed to
the Board:
January 1995
Mike Cusick
Finance Director
Appointed to
the Board:
January 2019
Helene has extensive knowledge of
sustainable materials technology, global
sales, marketing and innovation and people
leadership. She has a degree in Materials
Engineering and a PhD in Polymer Engineering.
Helene’s career started with M&S, initially as a
Materials Technologist before spending seven
years as food and drink Head of Packaging.
Since 2011, Helene has worked for several
packaging converters. Most recently
Helene was Managing Director at Klöckner
Pentaplast, responsible for the UK, Ireland
and Australian business.
Committees:
Nomination
Guy has an honours degree in Mechanical
Engineering from Nottingham University and
qualified as a Chartered Accountant in 1981 at
Coopers & Lybrand, working for them until he
joined Robinson as Management Information
Systems Manager in 1985.
He has held the positions of Group Financial
Controller and Packaging Division Financial
Director and was appointed Finance Director
in 1995, a position that he held until
1 January 2021 when he was appointed
Property Director.
A qualified management accountant, Mike
joined Robinson in 2015. Previously he
was Group Commercial Finance Director,
responsible for the post-acquisition
integration of the Madrox business in
Poland, and new commercial systems
across the Group.
Prior to joining Robinson, Mike gained
international financial experience during
eight years in various finance roles at SIG
plc, latterly as Financial Controller, Mainland
Europe. Mike was appointed Finance Director
on 1 January 2021.
Non-Executive Directors
Alan Raleigh
Independent
Non-Executive
Chairman
Appointed to
the Board:
August 2015
After gaining a BSc (Hons) in Production
Engineering and Production Management from
Strathclyde University, Alan spent much of his
career with Unilever plc holding a variety of
senior positions in the UK, US and Japan. He
was Executive Vice President, Personal Care
Supply Chain until 2016.
Other roles:
Non-Executive Director of Cloetta, a Swedish
confectionery company listed on the Stockholm
Stock Exchange. Alan is also a member of the
Board of Trustees of the Chartered Institute of
Procurement and Supply.
Committees:
Nomination (Chair), Audit and Risk, Remuneration
Sara Halton
Senior Independent
Non-Executive Director
Appointed to
the Board:
January 2019
Sara has held key senior executive positions
at well-known British brands, including CEO
of Molton Brown. She brings a wealth of
experience in driving strategic growth for
global brands. Sara is a Chartered Accountant
having gained an MSc in Economics and a
Econometrics, and a BSc in Economics at the
University of Southampton.
Other roles:
Non-Executive Director of Roys of Wroxham
an independent chain of retail outlets based
in Norfolk.
Committees:
Nomination, Audit and Risk (Chair),
Remuneration
Anthony Glossop
Non-Executive Director
Appointed to
the Board:
January 1995
After qualifying as a solicitor, Anthony entered
the industry as a company secretary. He
became CEO of a West Midlands engineering
group. During the engineering recession of the
1980s, he steered that group into what is now
St Modwen Properties, of which he was CEO
and then Chairman.
Other roles:
Anthony is a Trustee of a number of local
and church charities.
Committees:
Nomination, Audit and Risk,
Remuneration (Chair)
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Chairman’s statement
The Group applies the Quoted Companies Alliance’s
Corporate Governance Code (QCA Code).
As Chairman, it is my responsibility to ensure the
Company complies with the QCA Code and, where the
Company deviates from it, to explain why the Directors
believe this to be in the best interests of the Company.
In this section, we share the Company’s good corporate
governance structure and, where our approach differs
from the QCA Code, we provide an appropriate
explanation. More information on our approach to the 10
principles of the QCA Code can be found in the investor
section on our website.
Governance structure
The Robinson Board recognises the importance of
effective corporate governance in supporting the
long-term success and sustainability of the business.
Robinson plc Group Board
Meets monthly
Chaired by Alan Raleigh
Responsible for developing the strategy and overall leadership of the Group within a robust
framework of internal control and corporate governance. Monitors the culture, values and
standards that are embedded throughout the business to deliver long-term sustainable
growth for the benefit of our shareholders and other stakeholders.
Nomination Committee
Meets twice per year
Chaired by Alan Raleigh
See page 30 for more information
Remuneration Committee
Meets twice per year
Chaired by Anthony Glossop
See page 30 for more information
Audit and Risk Committee
Meets four times per year
Chaired by Sara Halton
See page 30 for more information
Senior Executive Committee
Meets monthly
Chaired by Helene Roberts
Responsible for strategy execution, day-to-day operation of the
business and all matters that have not been reserved for the Board.
Operating businesses
Board of Directors
The Company supports the concept of an effective
Board leading the Group. The Board is responsible for
approving Group policy and strategy with the aim of
developing the business profitably, while assessing and
managing the associated risks. The Directors are free to
seek any further information they consider necessary. All
Directors have access to independent professional advice
at the Group’s expense.
The Board reviews its performance as an integral part of
each Board meeting and appraises the performance of
each Director.
The Board has a written statement of its responsibilities
and there are written terms of reference for the
Nomination, Remuneration and Audit and Risk
Committees. These are available for reference on the
Robinson website.
The Board meets regularly on dates agreed each year
for the calendar year ahead. The Board met 12 times in
2020 and plans to meet 12 times in 2021 – additional
meetings can be called as and when deemed necessary.
A formal schedule of matters requiring Board approval
is maintained covering such areas as strategy, approval
of budgets, financial results, Board appointments and
dividend policy.
The Board consists of a Non-Executive Chairman,
two other Non-Executive Directors, a CEO, a Finance
Director and a Property Director. The Chairman of the
Board is Alan Raleigh and the Group’s business is run by
the CEO (Helene Roberts), the Finance Director (Mike
Cusick) and the Property Director (Guy Robinson).
The Board considers that both Alan Raleigh and Sara
Halton are independent, but Anthony Glossop is not
due to his length of service with the Company.
Above & Beyond
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The Board has determined that, as a whole, it has a complementary set of skills and experience as follows:
Principal skills and experience
Board Member
Alan Raleigh
Helene Roberts
Guy Robinson
Mike Cusick
Sara Halton
Anthony Glossop
Packaging
industry
Manufacturing
Multi-
geography
operations
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Sustainability
Finance
Marketing
Property
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The Company Secretary is responsible for ensuring that
Board procedures are followed and for compliance
with all applicable rules and regulations. Guy Robinson,
who is also the Property Director, performs the role
of Company Secretary, providing an internal advisory
role to the Board. The QCA’s guidelines state that the
role of Company Secretary should not be held by an
Executive Director, and as such, the Company does not
currently comply with this requirement. It is the Board’s
view that the size and complexity of the business does
not necessitate a separate role of Company Secretary
at present. Guy Robinson is supported and guided in
this role by the Company’s legal advisors. This position
will be kept under review by the Board. Following Guy
Robinson’s transition to a Non-Executive role in 2021,
Mike Cusick will take up the role of Company Secretary.
The Senior Independent Director (SID) acts as a sounding
board and intermediary for the Chair and other Board
members. The SID is responsible for leading the
performance evaluation of the Chair, the search for a
new chair and chairing meetings of the Non-Executive
Directors without the Chair being present. Sara Halton
was appointed as the SID in September 2020.
Board evaluation and
effectiveness
A formal review of the effectiveness of the Board was
concluded during the year. The purpose was to perform
a comprehensive, independent and objective evaluation
of the effectiveness and performance of the Board and
its three committees, reflecting the provisions of:
• the QCA Code;
• the key principles of the UK Corporate Governance
Code (2018);
• the UK Financial Reporting Council (FRC) guidance on
board and committee effectiveness (2018); and
• internationally recognised board best practices.
In line with best practice, this evaluation was externally
and independently facilitated by Board Excellence
Limited, which has no connection with the Company
or any individual Director. The evaluation consisted of
an extensive online Board questionnaire, one-to-one
meetings with each Director, a review of 12 months
of Board meeting materials and attendance at one
full Board and Committee meeting. All Directors
fully engaged in the process and the anonymity of
respondents in both the online survey and one-to-one
meetings was ensured in order to promote an open and
candid exchange of views.
The evaluation identified areas of strength in the
way that the Board currently operates and some areas
for enhancement.
Key strengths of the Board
Some key themes with quotes from the external
assessment are summarised below:
Chair leadership and the relationship between the
Chair and CEO:
“The Board Chair – CEO relationship in Robinson is
excellent and is quite close to the ideal model. This
relationship is at the very core of why the Robinson
Board team are performing at a high level today.”
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Oversight of Executive team and approach of
Executive team to the Board:
“The level and quality of oversight in the Robinson
Board team is high and the Non-Executive Directors are
performing well in discharging their oversight duties and
responsibilities. Great credit is due to the CEO who has
a very progressive understanding of the Board’s role and
responsibilities, and demonstrates the highest levels of
accountability, openness and respect for the Board and
has genuinely championed her CEO’s responsibility to
enable this partnership model.”
Dynamics between the Executive and Non-Executive
Directors:
“I believe that there is today a genuine healthy
partnership model in place between the Board Chair and
Non-Executive Directors with the CEO/Executive team
that represents the foundations of the Robinson Board
team growing together as an exceptional high-performing
Board team.”
Culture, ethics, values and behaviours:
“The overriding impression is that of an organisation
which has a deep commitment to the highest standards
of behaviours, ethics, integrity and values.”
Strategy development, monitoring and execution:
“As the Robinson Board and Executive team continue
to build momentum on their Board-Executive team
partnership model, there is an exciting opportunity to
embrace this modern progressive approach to strategy as
it evolves its strategy over the coming months and years.”
Key areas identified for enhancement
Area
Board reporting
Risk management
Board committees
Detail
Proposed actions
Prioritise strategic discussions as the first item
on the agenda.
New Board reporting pack implemented in January
2021 with a prioritised strategic focus.
Evaluate opportunities to improve assurance
of internal controls, including the potential to
implement an internal audit capability.
Include risk assessment as part of Audit
Committee remit to increase focus on risk
management.
Increase focus on IT security at Board level.
Ensure Board committees are organised to further
support and complement the activity of the main
Board through clearer delineation of their work
and meeting calendar.
Revise committee chairmanship and membership
to align with latest best practice.
Enhance processes and procedures to support
revised membership, remit and interaction with
the main Board.
Assessment of need for internal audit included in
brief to Mazars LLP for the 2020 Audit.
Audit and Risk Committee remit updated to
include risk and Sara Halton appointed Chair.
New IT security protocols introduced.
Committee membership, leadership and terms of
reference have been updated.
An annual diary of committee meetings has been
implemented to ensure alignment with key topics
on the Board calendar.
External insights
Strengthen strategy, innovation and thought
leadership capability and processes by bringing
a wider range of external expertise to the Board,
possibly through an Advisory Committee.
The Nomination Committee will consider the
balance of future expertise on the Board and bring
specific external insight through an outside-in
process as appropriate.
Investor relations
Whole Board engagement with existing and
potential shareholders.
Human resources and people
Shift to being a modern progressive employer
of choice.
Investor relations process to be reviewed in 2021
including further engagement by the Chairman
and Non-Executives.
Board agendas to include routine discussions
on people and implementation of People
development plan.
In summary, the external assessment concluded that “the Robinson Board team are making great progress
and there is an exciting opportunity for the Robinson Board to evolve as a very strategic high-performing Board team
that adds significant value to the Company, shareholders, Executive team, employees and stakeholders.”
Above & Beyond
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Committees of the Board
Remuneration Committee report
The Remuneration Committee is chaired by Anthony
Glossop and includes Alan Raleigh and Sara Halton.
On behalf of the Board, the Committee reviews and
approves the remuneration and service contracts
(including benefits) of the Executive Directors and other
senior staff.
The Committee meets at least twice and as often as
required during the year and is responsible for:
• establishing and maintaining formal and transparent
procedures for developing policy on executive
remuneration and for fixing the remuneration packages
of individual Directors and monitoring and reporting
on them;
• determining the remuneration, including pension
arrangements, of the Directors; and
• determining the basis of Executive Director service
agreements, having due regard for the interests of
the shareholders.
The Directors’ remuneration report includes the
Directors’ remuneration and further detail on the work
carried out during the year.
Audit and Risk Committee report
The Audit and Risk Committee is chaired by Sara
Halton and includes Anthony Glossop and Alan Raleigh.
This Committee reviews the interim and preliminary
announcement of final results and the annual financial
statements prior to their publication. It is also responsible
for the appointment or dismissal of the external auditors
and for agreeing their fees. It keeps under review the
scope and methodology of the audit and its cost
effectiveness together with the independence and
objectivity of the auditors. It meets with the auditors at
least twice per year to agree the audit plan and review
the results of the audit.
The primary function of the Committee is to assist
the Board in fulfilling its responsibilities regarding the
integrity of financial reporting, audit, risk management
and internal controls. This comprises:
• monitoring and reviewing the Group’s accounting
policies, practices and significant accounting
judgements; and
• reviewing the annual and interim financial statements
and any public financial announcements and advising
the Board on whether the annual report and accounts
are fair, balanced and understandable.
In relation to the external audit:
• approving the appointment and recommending the
reappointment of the external auditor and its terms of
engagement and fees;
• considering the scope of work to be undertaken by
the external auditor and reviewing the results of that
work;
• reviewing and monitoring the independence of the
external auditor and approving its provision of non-
audit services;
• monitoring and reviewing the effectiveness of the
external auditor;
• monitoring and reviewing the adequacy and
effectiveness of the risk management systems and
processes; and
• assessing and advising the Board on the internal
financial, operational and compliance controls.
Nomination Committee report
The Nomination Committee is chaired by Alan Raleigh
and includes Anthony Glossop, Sara Halton and Helene
Roberts. This Committee will meet at least twice
per year and reviews the Board’s structure, size and
composition. It is also responsible for succession planning
for Directors and other senior executives.
The key responsibilities of the Committee are:
• assessing whether the size, structure and composition
of the Board (including its skills, knowledge,
experience, independence and diversity) continue to
meet the Group’s business and strategic needs;
• examining succession planning for Directors and other
senior executives and for the key roles of Chairman of
the Board and CEO; and
• identifying and nominating for approval by the Board,
candidates to fill Board vacancies as and when they
arise, together with leading the process for such
appointments.
Committee activities and Board changes during the year:
During the year, the Committee recommended that Sara
Halton was appointed as the Senior Independent Director
and Chair of the Audit and Risk Committee. A plan was
agreed for the transition of the Finance Director role from
Guy Robinson to Mike Cusick with effect from 1 January
2021, at which time Guy Robinson assumed the role of
Property Director until transitioning to a Non-Executive
role at the 2021 AGM, and Anthony Glossop will retire as
a Non-Executive Director at that point.
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Attendance at Board and
Committee meetings
The Executive Directors work on a full-time basis within
the business. The Chair is expected to devote on average
three to four days per month and other Non-Executive
Directors two to three days per month to the Company.
The attendance at meetings for the year was as follows:
2020
Board
Audit
Committee
Remuneration
Committee
Nomination
Committee
Attendance*
Number of meetings
Alan Raleigh
Helene Roberts
Guy Robinson
Mike Cusick
Anthony Glossop
Sara Halton
12
12
12
12
12
12
12
3
3
3
3
3
3
3
*Measured against meetings for which Directors were invited to attend
5
5
5
4
4
5
5
1
1
1
1
1
1
1
100%
100%
100%
100%
100%
100%
Internal control
The Board recognises its responsibility for maintaining
systems of internal control and reviewing their
effectiveness.
The Board has reviewed the operation and effectiveness
of the Group’s system of internal financial control for the
financial year up to the date of approval of the financial
statements. The system of internal financial control
is designed to provide reasonable, but not absolute,
assurance against material misstatement or loss.
• a management structure and written procedures
that clearly define the expected levels of authority,
responsibility and accountability;
• well-established business planning, budgeting and
monthly reporting functions with timely reviews at the
appropriate levels of the organisation;
• a comprehensive system for investment appraisal and
review; and
• an Audit and Risk Committee that regularly reviews
the relationship with and matters arising from the
external auditors.
The principal elements of the Group’s systems of internal
financial control include:
On behalf of the Board,
Alan Raleigh
Chairman
24 March 2021
Above & Beyond
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Directors’
remuneration
report
On behalf of the Remuneration
Committee, I am pleased
to present the Directors’
remuneration report for the
year. This report sets out the
Company’s remuneration policy
for the Directors and explains
how this policy was applied
during the financial year to
31 December 2020.
Remuneration policy
Executive Directors
The remuneration policy has been designed to ensure
that Executive Directors receive appropriate incentive
and reward given their performance, responsibility and
experience. When assessing this, the Committee seeks
to ensure that the policy aligns the interests of the
Executive Directors with those of the shareholders and
links to the future strategy of the business.
The Company’s remuneration policy for Executive
Directors is:
• to consider the individual’s experience and the
nature and complexity of their work in order to set
a competitive base salary that attracts and retains
individuals of the appropriate quality, while avoiding
remunerating more than is necessary;
• in the absence of changes in performance,
responsibility or experience, to align annual
adjustments in line with general adjustments to
employees’ remuneration within the Group;
• to link remuneration packages to the Group’s long-
term performance through both bonus schemes and
share plans;
• to set performance measures that are simple to
understand, easy to measure, unambiguous and
consistent with the Group’s future strategy and
performance measures throughout the Group;
• to set an appropriate balance between fixed and
variable pay; and
• to provide post-retirement benefits through pension
arrangements and/or salary supplements.
Executive Directors remuneration packages are
considered annually by the Committee in line with
this policy.
Base salary
Base salary is normally reviewed annually in December.
Within the review process, the Committee takes account
of the profitability and ongoing progress of the Group
and the individual’s contribution, as well as changes
in responsibility and experience. Consideration is also
given to the need to retain and motivate individuals with
reference made to available information on salary levels
in comparable organisations. To assist in this process,
the Committee draws on the findings of external salary
surveys and undertakes its own research.
Annual performance incentive
The performance of Executive Directors is evaluated
by the Committee with a view to ensuring that there
is a strong link between performance and reward.
The Executive Directors are eligible to receive, at the
discretion of the Committee, an annual bonus capped
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at 70% of base salary excluding any salary supplements
in lieu of pension contributions. The Committee
considers the implementation of bonus awards based
upon corporate financial targets and personal objective
measures that align with the long-term interests of the
shareholders and the Group’s three-year plan.
Stretching and transparent but deliverable targets are
put in place with a view to clearly link the motivation of
individuals with the value drivers and attitude to risk of
the business.
Pensions and other benefits
The Company makes a pension contribution of up to
10% of base salary to Executive Directors, or where
pension contributions are not appropriate, a salary
supplement in lieu. Other benefits provided are a
company car or car allowance, life assurance and
private medical insurance.
practice in equivalent companies. The Non-Executive
Directors do not receive any pension payments or
participate in any incentive or share award scheme.
Wider employee considerations
Although it is not the Committee’s responsibility
to set the remuneration arrangements across the
Group, it is kept informed of these so it can ensure
that the Directors’ remuneration policy is consistent
with remuneration practices in the Group. The CEO is
required to obtain the approval of the Committee for
her proposals for the remuneration of her direct reports.
They and other members of the management team
can qualify for a bonus that largely follows the same
structure and applies similar performance targets as for
Executive Directors. These arrangements are reviewed by
the Committee to ensure that Executive Directors and
management are committed to achieving the same
strategic goals.
Share awards
Executive Directors may, at the discretion of the
Committee, be granted share option awards. The current
scheme allows the granting of market-priced options, so
the individual can only benefit if the shareholders have
also benefited by an increase in the share price.
Shareholder engagement
The Committee seeks the views of shareholders on
remuneration on an ongoing basis and they are invited
to make contact with the Chairman of the Committee at
any time should they wish to do so.
Non-Executive Directors
Remuneration Committee advice
The remuneration of the Non-Executive Directors is
determined by the Board as a whole based on current
In undertaking its responsibilities, the Committee takes
independent external advice from a variety of sources
and surveys but, in the present year, did not incur any
cost in doing so.
Annual remuneration statement
The Directors received the following remuneration during the year to 31 December 2020.
Helene Roberts
Guy Robinson
Mike Cusick
Alan Raleigh
Anthony Glossop
Sara Halton
Martin McGee
2020
2019
Base
salary
£’000
Other
benefits
£’000
Bonus
£’000
59
33
25
Pension
£’000
24
–
11
27
12
12
–
–
–
–
–
–
–
–
–
240
154
110
60
45
40
Total
2020
£’000
350
199
158
60
45
40
–
649
625
–
51
35
–
117
185
–
–
35
46
852
Total
2019
£’000
45
182
137
60
45
40
382
891
Other benefits include a company car allowance, private
medical insurance and IFRS 2 charge on share-based
payments.
Helene Roberts receives a pension allowance equivalent
to 10% of basic pay. Mike Cusick is a member of a
money purchase pension plan and the Company
contributes at a rate of 10% of salary.
Above & Beyond
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Annual performance incentive
Average pay
Details of the annual bonuses achieved by the Executive
Directors for the year ended 31 December 2020, as a
percentage of salary, are as follows: Helene Roberts 25%
(2019: N/A); Guy Robinson 21% (2019: 14%); and Mike
Cusick 23% (2019: 14%).
The mean pay of our males across the Group is 1.3 times
higher than the mean pay of females. The average pay of our
CEO in the year was 13.7 times greater than the average pay
of all Group staff.
Directors’ share options
Details of outstanding share options on 0.5p ordinary shares are as follows:
Original
grant
Unexercised
options at
31 Dec 2019
Granted in
the year
Exercised
in the
year
Lapsed or
cancelled
in the year
Unexercised
options at
31 Dec 2020
Exercise
price
Earliest
date of
exercise
Date
of expiry
Helene Roberts
300,000
300,000
–
–
300,000
300,000
Guy Robinson
140,056
140,056
67,494
67,494
Mike Cusick
58,000
58,000
–
–
–
Directors'
share options
Other key
managers
Total share
options
865,550
265,550
600,000
75,000
75,000
–
940,550
340,550
600,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
300,000
118.5p
17-Jul-23
16-Jul-30
300,000
118.5p
17-Jul-25
16-Jul-30
140,056
69p
15-Nov-16
14-Nov-23
67,494
202p
08-Apr-17
07-Apr-24
58,000
130p
12-May-20
11-May-27
865,550
75,000
130p
12-May-20
11-May-27
940,550
340,550 options were exercisable at 31 December 2020. The market value of the shares at 31 December 2020 was
153.5p per share.
Directors shareholdings
The Directors together with their interests in 0.5p ordinary shares in Robinson plc, were as follows:
Guy Robinson
Anthony Glossop
Alan Raleigh
Sara Halton
Mike Cusick
Helene Roberts
31 December 2020
31 December 2019
1,212,601
196,922
36,145
12,049
5,458
3,455
1,212,601
196,922
36,145
12,049
5,458
Nil
No director had any interest in the shares of any other Group company.
Anthony Glossop
Remuneration Committee Chairman
24 March 2021
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| Additional information
Directors’ report
The Directors present their report and the audited financial
statements of the Group for the year ended 31 December 2020.
The financial statements of the Group and the Company have been
prepared under International Financial Reporting Standards (IFRS) as
adopted by the European Union.
Results and dividends
A review of the Group’s performance for the year
ended 31 December 2020 is included in the
Chairman’s statement and in the Strategic report.
to review the effectiveness of communications to key
stakeholders, including employees. Further details on
engagement with key stakeholders during the period are
provided in the Section 172(1 ) statement included in the
Strategic report.
The Directors recommend a final dividend of 3.0p per
share to be paid on 16 July 2021 to shareholders on
the register on 2 July 2021. Further details of dividend
payments during the year are included in note 7 to the
financial statements.
Directors and their interests
The Directors, who held office during the year,
were Alan Raleigh, Helene Roberts, Guy Robinson,
Mike Cusick, Anthony Glossop and Sara Halton. The
biographical details of all Directors are included in the
Corporate governance report.
Information on the Directors’ remuneration and service
contracts is provided in the Directors’ remuneration
report. The beneficial interests of the Directors in the
share capital of the Company are shown in the Directors’
remuneration report.
The Group maintains insurance cover to protect Directors
in respect of their duties as Directors of the Group.
During the year, none of the Directors had any material
interest in any contract of significance in relation to the
Group’s business. In accordance with best-practice
corporate governance, all Directors retire and, with the
exception of Anthony Glossop, offer themselves for re-
election at the AGM. Further details concerning Directors
are provided in the Corporate governance report.
Employee communication
The Directors recognise the need to ensure effective
communication with employees. During the year, they
were provided with financial and other information
affecting the Company and its various operations
by means of the in-house magazine, briefings and
newsletters. Consultative committees in the different
areas of the Company enabled the views of employees
to be heard and considered when making decisions
likely to affect their interests. The Board will continue
Employment of disabled persons
In accordance with Group policy, full and fair
consideration is given to the employment of disabled
persons, having regard to their aptitudes and abilities
and the responsibility and physical demands of the
job. Disabled employees are provided with equal
opportunities for training and career development.
Financial risk management
objectives and policies
Information on the Group’s financial risk management
objectives, policies and activities, and on the exposure
of the Group to relevant risks in respect of financial
instruments, is set out in note 23 to the financial
statements and in the Strategic report.
Going concern
In determining whether the Group’s annual consolidated
financial statements can be prepared on a going concern
basis, the Directors considered the Group’s business
activities, together with the factors likely to affect its
future development, performance and position; these
are set out in the Strategic report.
As part of the acquisition of Schela Plast in February
2021, the Group arranged new credit facilities with
existing bankers HSBC Bank UK. An existing £8m
overdraft was replaced with a £6m commercial mortgage
committed for three years and £6m of other short-term
facilities that are due for renewal in February 2022. The
Group’s forecasts and projections, taking account of
reasonably possible changes in trading performance,
show that the Group should be able to operate within
the level of its current facilities.
As at the date of this report, the Directors have a
reasonable expectation that the Company and Group
have adequate resources to continue in business for
Above & Beyond
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| Financial statements
| Additional information
the foreseeable future. Thus, they continue to adopt
the going concern basis of accounting in preparing the
annual financial statements. Further details are provided
in note 32 to the accounts.
Future developments
See the Chairman’s statement for an update on
future developments.
Subsequent events
See note 29 to the financial statements for reference to
the acquisition of the entire share capital of Schela Plast.
There have been no other events since the balance
sheet date that would have had a material impact on
the financial statements.
Capital structure
As set out in note 21 to the financial statements,
the issued share capital of the Company is 17,687,223
ordinary shares of 0.5p each of which 1,073,834 are
held in treasury. There have been no changes to the
issued share capital since the year end. There is only
one class of shares in issue and there are no restrictions
on the voting rights attached to these shares or the
transfer of securities in the Company. Details of
share options are set out in the Directors’
remuneration report.
Persons with a shareholding of over 3% in the Company
as at 31 December 2020 were:
C W G Robinson
S J Robinson
R B Hartley
R A Shemwell
S C Shemwell
S E A Hardy
H G Shaw
J C Mansell
Total shares
1,212,601
685,645
654,191
598,791
534,091
525,191
515,191
500,000
%
7.3%
4.1%
3.9%
3.6%
3.2%
3.2%
3.1%
3.0%
Business relationships
Independent auditor
Details on how the Directors’ have had regard to the
need to foster the Company’s business relationships
with suppliers, customers and others, and the effect of
that regard, including on the principal decisions taken,
are provided in the Section 172( 1) statement included in
the Strategic report.
Energy and carbon reporting
On the recommendation of the Audit and Risk
Committee, in accordance with Section 489 of the
Act, resolutions are to be proposed at the AGM for
the re-appointment of Mazars LLP as auditor of the
Company and to authorise the Directors to determine
their remuneration. The remuneration of the auditor for
the year ended 31 December 2020 is disclosed in note 4
to the financial statements.
A report on the Group’s energy usage and greenhouse
gas emissions is provided in the Strategic report.
Branches outside the UK
Annual General Meeting
The notice convening the Company’s 2021 AGM for
11:30 am on 24 June 2021 is set out in a separate
document provided on page 74 and is available on
the Group’s website at robinsonpackaging.com.
The Annual report for the year ended 31 December
2020 is available from the Group’s website.
The Company holds indirect investments in one unlisted
company incorporated in Poland and one unlisted
company incorporated in Denmark. Further details are
provided in note 13 to the financial statements.
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| Additional information
Auditor
In the case of each of the persons who are Directors of
the Company at the date of approval of this report:
In preparing these financial statements, the Directors are
required to:
• as each of the Directors is aware, there is no relevant
audit information (as defined in the Companies Act
2006) of which the Company’s auditor is unaware;
and
• each of the Directors has taken all the steps that they
ought to have taken as a Director to make themselves
aware of any relevant audit information (as defined)
and to establish that the Company’s auditor is aware
of that information.
This confirmation is given and should be interpreted in
accordance with the provisions of Section 418 of the
Companies Act 2006.
Directors’ responsibilities
statement
The Directors are responsible for preparing the
Strategic report, Directors’ remuneration report,
Corporate governance report, Directors’ report and the
financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law,
the Directors have elected to prepare the financial
statements in accordance with IFRS, as adopted by
the EU and applicable law. Under company law, the
Directors must not approve the financial statements
unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the
profit or loss of the Group for that period.
• select suitable accounting policies and then apply
them consistently;
• make judgements and accounting estimates that are
reasonable and prudent;
• state whether IFRS as adopted by the EU have been
followed subject to any material departures disclosed
and explained in the financial statements;
• provide additional disclosures when compliance
with specific requirements in IFRS is insufficient to
enable users to understand the impact of particular
transactions, other events and conditions on the
entity’s financial position and financial
performance; and
• prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Company’s transactions and disclose, with
reasonable accuracy at any time, the financial position
of the Company and enable them to ensure that the
financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the
assets of the Company, and hence, for taking reasonable
steps for the prevention and detection of fraud and
other irregularities.
On behalf of the Board,
Mike Cusick
Director
24 March 2021
Above & Beyond
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Strategic report
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Financial statements
Group income statement and statement of comprehensive income
Group income statement
Revenue
Cost of sales
Gross profit
Operating costs
Operating profit before amortisation of intangible assets
Amortisation of intangible assets
Operating profit
Finance income – interest receivable
Finance costs
Profit before taxation
Taxation
Profit for the period
Earnings per ordinary share (EPS)
Basic earnings per share
Diluted earnings per share
All results are from continuing operations.
Group statement of comprehensive income
Profit for the period
Items that will not be reclassified subsequently to the income statement:
Remeasurement of net defined benefit liability
Deferred tax relating to items not reclassified
Items that may be reclassified subsequently to the income statement:
Exchange differences on translation of foreign currency goodwill and intangibles
Exchange differences on translation of foreign currency deferred tax balances
Exchange differences on translation of foreign operations
Other comprehensive (expense)/income for the period
Total comprehensive income for the period
Notes 1 to 32 form an integral part of the financial statements.
Note
2020
£’000
2019
£’000
1
2
11
3
4
6
8
8
37,203
35,085
(28,637)
(27,593)
8,566
(5,878)
2,688
(809)
1,879
1
(128)
1,752
(343)
1,409
p
8.5
8.4
7,492
(4,971)
2,521
(810)
1,711
–
(205)
1,506
(296)
1,210
p
7.3
7.3
Note
2020
£’000
2019
£’000
1,409
1,210
30
180
(34)
146
(55)
7
(163)
(211)
(65)
1,344
145
(28)
117
148
(22)
(580)
(454)
(337)
873
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| Additional information
Statement of financial position as at 31 December
Non-current assets
Goodwill
Other intangible assets
Property, plant and equipment
Investments in subsidiaries
Deferred tax assets
Current assets
Inventories
Trade and other receivables
Cash at bank and on hand
Total assets
Current liabilities
Trade and other payables
Borrowings
Current tax liabilities
Non-current liabilities
Borrowings
Deferred tax liabilities
Amounts due to Group undertakings
Provisions
Total liabilities
Net assets
Equity
Share capital
Share premium
Capital redemption reserve
Translation reserve
Revaluation reserve
Retained earnings
Equity attributable to shareholders
Group
2020
£’000
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
Note
10
11
12
13
17
14
15
16
18
18
17
20
21
22
1,127
2,769
1,144
3,616
20,873
18,338
–
978
–
937
–
–
9,715
14,578
561
–
–
9,233
19,747
508
25,747
24,035
24,854
29,488
3,110
9,185
1,386
13,681
39,428
6,489
3,260
69
9,818
4,991
1,042
–
173
6,206
16,024
23,404
83
732
216
161
4,133
18,079
23,404
2,765
9,646
1,403
13,814
37,849
5,063
3,710
255
9,028
4,639
1,090
–
169
5,898
14,926
22,923
83
732
216
372
4,134
17,386
22,923
–
1,028
839
1,867
26,721
6,422
–
–
6,422
2,700
16
4,829
173
7,718
14,140
12,581
83
732
216
–
390
–
458
325
783
30,271
5,846
1,164
–
7,010
2,700
–
8,249
169
11,118
18,128
12,143
83
732
216
–
391
11,160
12,581
10,721
12,143
As permitted by section 408 of the Companies Act 2006, the parent Company’s income statement has not been included in these financial
statements and its profit for the financial year after tax amounted to £1,152,000 (2019: loss £364,000).
Notes 1 to 32 form an integral part of the financial statements. The financial statements were approved by the Board of Directors on 24 March
2021 and were signed on its behalf by:
Helene Roberts
Director
Registered in England number 39811
Mike Cusick
Director
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Strategic report
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| Additional information
Statement of changes in equity
Group
At 1 January 2019
Profit for the year
Other comprehensive income/(expense)
Transfer from revaluation reserve as a result
of property transactions
Credit in respect of share-based payments
Total comprehensive income for the year
Dividends paid
Transactions with owners
At 31 December 2019
Profit for the year
Other comprehensive income/(expense)
Transfer from revaluation reserve as a result
of property transactions
Credit in respect of share-based payments
Total comprehensive income for the year
Dividends paid
Transactions with owners
At 31 December 2020
Company
At 1 January 2019
Loss for the year
Other comprehensive income
Transfer from revaluation reserve as a result
of property transactions
Credit in respect of share-based payments
Total comprehensive income for the year
Dividends paid
Transactions with owners
At 31 December 2019
Profit for the year
Other comprehensive income
Transfer from revaluation reserve as a result
of property transactions
Credit in respect of share-based payments
Total comprehensive income for the year
Dividends paid
Transactions with owners
At 31 December 2020
Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
Translation
reserve
£’000
Revaluation
reserve
£’000
Retained
earnings
£’000
Total
£’000
83
732
216
-
-
-
-
-
-
-
83
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
732
216
-
-
-
-
-
-
-
-
-
-
-
-
-
-
826
-
(454)
-
-
(454)
-
-
372
-
(211)
-
-
(211)
-
-
4,126
16,945
22,928
-
-
8
-
8
-
-
4,134
-
-
(1)
-
(1)
-
-
1,210
117
1,210
(337)
(8)
12
1,331
(890)
(890)
17,386
1,409
146
(3)
31
1,583
(890)
(890)
-
12
885
(890)
(890)
22,923
1,409
(65)
(4)
31
1,371
(890)
(890)
83
732
216
161
4,133
18,079
23,404
Share
capital
£’000
Share
premium
£’000
Capital
redemption
reserve
£’000
Translation
reserve
£’000
Revaluation
reserve
£’000
Retained
earnings
£’000
Total
£’000
83
732
216
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
83
732
216
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
83
732
216
–
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
388
11,849
13,268
-
-
3
-
3
-
-
(364)
117
(3)
12
(238)
(890)
(890)
(364)
117
-
12
(235)
(890)
(890)
391
10,721
12,143
-
-
(1)
-
(1)
-
-
1,152
145
1
31
1,329
(890)
(890)
1,152
145
-
31
1,328
(890)
(890)
390
11,160
12,581
The share premium account is the amount paid for shares issued in excess of the nominal value. The capital redemption reserve represents
the amount by which the Company’s share capital has been diminished by the cancellation of shares held in treasury. The retained earnings
reserve represents the accumulated realised earnings from the prior and current periods as reduced by losses and dividends from time to time.
Exchange differences relating to the translation from the functional currencies of the Group’s foreign subsidiaries are brought to account by
recognising those exchange differences in other comprehensive income and accumulating them in a separate component of equity under the
header of translation reserve. The property revaluation reserve arises on the revaluation of land and buildings. Where revalued land or buildings
are sold, the portion of the property revaluation reserve that relates to that asset, and is effectively realised, is transferred directly to retained
earnings. Land and buildings are held at deemed cost in the Group and at revalued amounts in the Company.
Above & Beyond
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Strategic report
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| Financial statements
| Additional information
Cash flow statement
Cash flows from operating activities
Profit/(loss) for the period
Adjustments for:
Depreciation of property, plant and equipment
Impairment of property, plant and equipment
Profit on disposal of other plant and equipment
Amortisation of intangible assets
Increase/(decrease) in provisions
Finance income
Finance costs
Taxation charged/(credited)
Investment income
Other non-cash items:
– Pension current service cost and expenses
– Charge for share options
Operating cash flows before movements in working capital
5,141
4,645
(Increase)/decrease in inventories
Decrease/(increase) in trade and other receivables
Increase/(decrease) in trade and other payables
Cash generated by operations
Corporation tax (paid)/received
Interest paid
Net cash generated by operating activities
Cash flows from investing activities
Interest received
Acquisition of plant and equipment
Proceeds on disposal of property, plant and equipment
Dividends received
Net cash used in investing activities
Cash flows from financing activities
Loans repaid by subsidiaries
Net proceeds from sale and leaseback transactions
Capital element of lease payments
Dividends paid
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Effect of foreign exchange rate changes
Cash and cash equivalents at end of period
Cash at bank and on hand
Bank overdrafts
Cash and cash equivalents at end of period
Notes 1 to 32 form an integral part of the financial statements.
(363)
296
1,512
6,586
(529)
(128)
5,929
144
807
(745)
4,851
(127)
(205)
4,519
1
–
(4,673)
(1,726)
81
-
62
-
(4,591)
(1,664)
–
1,061
(710)
(890)
(539)
799
(1,678)
(17)
(896)
1,386
(2,282)
(896)
–
1,697
(506)
(890)
301
3,156
(4,820)
(14)
(1,678)
1,403
(3,081)
(1,678)
Group
2020
£’000
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
1,409
1,210
1,152
(364)
2,164
1,959
98
(24)
809
4
(1)
128
343
-
180
31
43
(31)
810
(5)
–
205
296
-
145
12
83
–
(8)
–
46
(22)
84
(75)
(2,000)
180
31
(527)
-
(667)
572
(623)
98
(72)
(597)
22
(565)
8
2,000
1,464
1,705
–
–
(890)
815
1,682
(839)
(4)
839
839
–
839
75
–
(12)
–
(5)
(66)
172
(171)
-
145
12
(214)
–
777
(191)
372
107
(171)
308
66
–
15
-
81
953
–
–
(890)
63
452
(1,291)
–
(839)
325
(1,164)
(839)
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Strategic report
| Corporate governance
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| Additional information
Notes to the financial statements
1 Segmental and revenue information
The Directors consider the one operating segment of the Group to be solely plastic and paperboard packaging. Accordingly, the disclosures
in respect of this segment are those of the Group as a whole. The Group’s internal reports about components of the Group, which are
those reported to the Board of Directors, are based on geographical segments. Results were derived from assets and liabilities held in the
following locations:
2020
Revenue
Operating profit/(loss) before amortisation of intangible assets
Amortisation of intangible assets
Operating profit/(loss)
Other segment information
Assets
Liabilities
Capital expenditure
Depreciation
Finance income - interest receivable
Finance costs
Taxation
Impairment of property, plant and equipment
2019
Revenue
Operating profit/(loss) before amortisation of intangible assets
Amortisation of intangible assets
Operating profit/(loss)
Other segment information
Assets
Liabilities
Capital expenditure
Depreciation
Finance costs
Taxation
Impairment of property, plant and equipment
UK
£’000
Poland
£’000
20,658
16,545
1,354
-
1,354
12,636
(8,078)
3,384
1,070
-
24
166
98
UK
£’000
19,198
1,546
-
1,546
2,126
(809)
1,317
18,412
(3,844)
1,007
1,029
-
36
252
-
Poland
£’000
15,887
1,367
(810)
557
UK head
office
£’000
-
(792)
-
(792)
Total
Group
£’000
37,203
2,688
(809)
1,879
8,380
39,428
(4,102)
(16,024)
565
65
(1)
68
(75)
-
4,956
2,164
(1)
128
343
98
UK head
office
£’000
Total
Group
£’000
-
35,085
(392)
-
(392)
2,521
(810)
1,711
10,059
20,368
7,422
37,849
(5,707)
(4,344)
(4,875)
(14,926)
551
977
23
278
43
1,175
926
33
188
-
-
57
149
(170)
-
1,726
1,960
205
296
43
The segment assets and liabilities presented above exclude intergroup balances and segment capital expenditure excludes intergroup transfers.
The UK – head office operating loss is after crediting external property rental and other income (see note 2).
Revenue by major customer
Revenues from the Group’s largest customer amounted to £4,835,000 (2019: £3,855,000); this is included in the UK and Poland operating
segments. No other customer contributed 10% or more to Group revenue.
Revenue by geographic area
Revenue from external customers was derived from the following geographic areas:
United Kingdom
Europe
Others
2020
£’000
19,929
16,391
883
37,203
2019
£’000
18,559
15,174
1,352
35,085
Above & Beyond
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| Additional information
Notes to the financial statements continued
2 Operating costs
Selling, marketing and distribution costs
Administrative costs
Property lease income
Acquisition costs
Other income
(Gain)/loss on foreign exchange
3 Finance costs
Interest on bank overdrafts
Interest on bank and other loans
Interest on leases
4 Profit before taxation
The profit before taxation has been stated after charging/(crediting):
Cost of inventories (included in cost of sales)
Employee costs (see note 5)
Depreciation of property, plant and equipment (see note 12)
– owned
– held under leasing arrangements
Amortisation of intangible assets (see note 11)
Impairment/(writeback) in respect of:
– inventories (see note 14)
– property, plant and equipment (see note 12)
– receivables (see note 15)
Gain on disposal of plant and equipment
(Gain)/loss on foreign exchange movements
Fees payable by the Group to the Company’s independent auditor, Mazars LLP, and its associates, were as follows:
Audit fees:
– for the audit of the UK companies
– for the audit of the overseas companies
Total audit fees
Non-audit fees – tax services
Total auditor’s remuneration
Audit fees in respect of the Robinson pension plan (charged to the plan)
2020
£’000
1,527
4,693
(261)
84
(105)
(60)
2019
£’000
1,231
4,099
(366)
-
(97)
104
5,878
4,971
2020
£’000
2019
£’000
36
33
59
128
103
47
55
205
2020
£’000
27,136
8,955
2019
£’000
26,435
7,927
1,548
1,557
616
809
366
98
4
(24)
(60)
30
9
39
11
50
4
403
810
71
43
13
(31)
104
29
9
38
9
47
4
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| Additional information
Notes to the financial statements continued
5 Employee information
The average monthly number of persons (including Directors) employed by the Group and Company during the year was:
Number employed:
Manufacturing
Sales, general and administration
Total
Employee costs during the year amounted to:
Wages and salaries
Social security costs
Pension costs
Share-based charges
Total
Group
2020
No.
279
58
337
£’000
7,778
956
190
31
Group
2019
No.
Company
2020
No.
Company
2019
No.
261
61
322
£’000
6,926
848
141
12
–
15
15
£’000
1,165
157
24
31
–
12
12
£’000
995
120
19
12
8,955
7,927
1,377
1,146
The pension costs above all relate to defined contribution plans. Directors' emoluments are included in the above and are detailed further
in the Directors’ remuneration report.
6 Taxation
Current corporation tax is calculated at 19% (2019: 19%) of the estimated assessable profit for the year. In addition, deferred tax of £7,000
(2019: £nil) has been debited/credited directly to equity in the year (see note 17). The tax charge for the year can be reconciled to the profit
per the income statement as follows:
Current tax on profit for the year
Adjustments for current tax of prior periods
Total current tax charge
Increase in deferred tax assets
(Decrease)/increase in deferred tax liability
Total current deferred tax credit
Other tax charge
Total tax charge
Profit before taxation
At the effective rate of tax of 19% (2019: 19%)
Items disallowable for tax
Depreciation on assets ineligible for capital allowances
Capital allowances for year in excess of depreciation
Prior year adjustments – corporation tax
Prior year adjustments – deferred tax
Non-taxable items
Other differences
Tax charge for the year
2020
£’000
2019
£’000
415
13
428
(41)
(44)
(85)
–
343
443
(182)
261
(69)
12
(57)
92
296
1,752
333
1,506
286
31
14
13
13
(46)
(10)
(5)
343
81
21
(8)
(174)
11
(12)
91
296
The total tax recognised in other comprehensive income in the year was £30,000 (2019: £nil). There are unrecognised capital losses carried
forward of £681,000 (2019: £688,000). With this exception, the Directors are not aware of any material factors affecting the future tax charge.
Deferred tax balances have been provided at 19% in these accounts. The Corporation Tax rate for the year ended 31 December 2020 was 19%.
The Corporation Tax rate of 19% was enacted with effect from 1 April 2017 and the Finance Act 2016 legislated the UK Corporation Tax rate to
decrease to 17% from 1 April 2020. However, on 17 March 2020, using the Provisional Collection of Taxes Act 1968, the UK Government
cancelled the proposed drop in Corporation Tax rate to 17%.
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| Financial statements
| Additional information
Notes to the financial statements continued
7 Dividends
Ordinary dividend paid:
2018 final of 3.0p per share
2019 interim of 2.5p per share
2020 interim of 3.5p per share
2020 interim of 2.0p per share
2020
£’000
2019
£’000
–
–
566
324
890
485
405
–
–
890
An interim dividend of 3.5p per ordinary share was paid on 30 July 2020 (2019: 2.5p), a second interim dividend of 2.0p (2019: nil) was paid
on 1 October 2020. The Directors are proposing a final dividend of 3.0p for the year ended 31 December 2020 (2019: nil).
Total dividends paid during the year were £890,000 (2019: £890,000). No dividends have been paid between 31 December 2020 and the
date of signing the financial statements.
8 Earnings per share
The calculation of basic and diluted earnings per ordinary share for continuing operations shown on the income statement is based on the
profit after taxation of £1,409,000 (2019: £1,210,000) divided by the weighted average number of shares in issue, net of treasury shares
of 16,613,389 (2019: 16,613,389) and for diluted earnings per share of 16,781,894 (2019: 16,674,548) after the potentially dilutive effect
of further shares issued through share options is applied.
Weighted average number of ordinary shares in issue (thousands)
Effect of dilutive share option awards (thousands)
Weighted average number of ordinary shares for calculating diluted earnings per share (thousands)
2020
2019
16,613
16,613
169
61
16,782
16,675
200,494 (2019: 200,494) share options were not included in the diluted earnings per share calculation as their effect is anti-dilutive in the
periods presented.
9 Property lease income
Receivable:
– within one year
– between one and two years
– between two and three years
– between three and four years
– between four and five years
2020
£’000
2019
£’000
206
190
183
48
–
627
230
190
190
183
81
874
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| Financial statements
| Additional information
Notes to the financial statements continued
10 Goodwill
Goodwill acquired in a business combination is allocated, at acquisition, to the cash-generating units (CGUs) that are expected to benefit from
that business combination. The total goodwill balance relates to the Madrox business in Poland, acquired in 2014, which forms a part of the
Poland operating segment.
Group
Cost
At 1 January 2019
Exchange differences
At 31 December 2019
Exchange differences
At 31 December 2020
Accumulated impairment losses
At 1 January 2019
Exchange differences
At 31 December 2019
Exchange differences
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
£’000
1,487
39
1,526
(23)
1,503
372
10
382
(6)
376
1,127
1,144
The Group tests goodwill and the associated intangible assets annually for impairment, or more frequently if there are indications that an
impairment may be required. The recoverable amounts of the CGUs are determined from value-in-use calculations. The key assumptions for
these calculations are those regarding discount rates, sales and operating profit growth rates. The Directors estimate discount rates using
pre-tax rates that reflect current market assessments of the time value of money for the Group. In respect of the other assumptions, external
data and management’s best estimates are applied. The Group performs goodwill impairment reviews by forecasting cash flows based upon
the following year’s budget, which anticipates sales growth, and a projection of sales and cash flows based upon industry growth expectations
over a further period of four years. The forecasts used in the annual impairment reviews have been prepared taking into account current
economic conditions. After this period, the sales growth rates applied to the cash flow forecasts are no more than 2% (2019: 2%) in perpetuity.
The pre-tax rate used to discount the forecast cash flows is 3.2% (2019: 5.4%), which reflects the weighted average cost of capital for the
Group. The carrying value of the Group’s CGUs remains supportable. The Group has conducted a sensitivity analysis on the impairment test
of the CGU carrying value. The Directors believe that any reasonably possible change in the key assumptions on which the recoverable
amount of goodwill is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the CGU.
11 Intangible assets
Group
Cost
At 1 January 2019
Exchange differences
At 31 December 2019
Exchange differences
At 31 December 2020
Amortisation
At 1 January 2019
Charge for the year
Exchange differences
At 31 December 2019
Charge for the year
Exchange differences
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019
Customer relationships
£’000
7,830
206
8,036
(122)
7,914
3,524
810
86
4,420
809
(84)
5,145
2,769
3,616
The amortisation period for customer relationships acquired is 10 years.
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| Financial statements
| Additional information
Notes to the financial statements continued
12 Property, plant and equipment
Group
Cost or deemed cost
At 1 January 2019
Additions at cost
Disposals
Reclassified
Exchange movement
At 31 December 2019
Additions at cost
Disposals
Reclassified
Exchange movement
At 31 December 2020
Accumulated depreciation and impairment
At 1 January 2019
Charge for year
Impairment
Disposals
Reclassified
Exchange movement
At 31 December 2019
Charge for year
Impairment
Disposals
Exchange movement
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
Company
Cost or revalued amount
At 1 January 2019
Disposals
At 31 December 2019
Additions at cost
Disposals
At 31 December 2020
Accumulated depreciation and impairment
At 1 January 2019
Charge for year
Intergroup transfer
Disposals
At 31 December 2019
Charge for year
Disposals
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
Land and
buildings
£’000
Surplus
properties
£’000
Plant and
machinery
£’000
Assets under
construction
£’000
9,486
31
-
-
(265)
9,252
599
-
-
(78)
9,773
2,587
240
–
–
–
(72)
2,755
246
-
-
(26)
2,975
4,046
–
-
-
-
4,046
-
-
-
-
4,046
397
–
–
–
–
–
397
-
-
-
-
397
28,146
1,170
(305)
345
(642)
28,714
3,297
(740)
176
(194)
31,253
19,655
1,720
43
(274)
345
(442)
21,047
1,918
98
(683)
(149)
22,231
-
525
-
-
-
525
1,060
-
(176)
(5)
1,404
–
–
–
–
–
–
–
-
-
-
-
–
6,798
6,497
3,649
3,649
9,022
7,667
1,404
525
Land and
buildings
£’000
Surplus
properties
£’000
Plant and
machinery
£’000
Assets under
construction
£’000
4,656
-
4,656
546
-
5,202
1,769
73
–
–
1,842
82
-
1,924
3,278
2,814
6,739
-
6,739
–
-
6,739
322
–
–
–
322
-
-
322
6,417
6,417
66
(42)
65
19
(10)
74
58
2
41
(38)
63
1
(10)
54
20
2
–
-
–
–
-
–
–
–
–
–
–
-
-
–
–
–
Total
£’000
41,678
1,726
(305)
345
(907)
42,537
4,956
(740)
–
(277)
46,476
22,639
1,960
43
(274)
345
(514)
24,199
2,164
98
(683)
(175)
25,603
20,873
18,338
Total
£’000
11,461
(42)
11,460
565
(10)
12,015
2,149
75
41
(38)
2,227
83
(10)
2,300
9,715
9,233
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| Financial statements
| Additional information
Notes to the financial statements continued
12 Property, plant and equipment (continued)
The impairment included in Plant and machinery relates to custom production equipment that is no longer compatible with the Group’s
portfolio of products, in the year this asset was fully impaired and as such the carrying value of this asset is now £nil. At 31 December 2020,
had the land and buildings and surplus properties been carried at historical cost less accumulated depreciation and accumulated impairment
losses, their carrying amount would have been approximately £5,895,000 (2019: £5,541,000); Company £2,344,000 (2019: £1,863,000). The
Directors consider the fair value of the surplus properties held by the Group equates to a market value of £6,400,000 (2019: £6,400,000).
13 Investments in subsidiaries
Company
Cost
At 1 January 2019
Exchange differences
At 31 December 2019
Exchange differences
Loans repaid
At 31 December 2020
Amounts written off
At 1 January 2019
Released in period
At 31 December 2019
Written off in period
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
Shares
in Group
undertakings
£’000
Loans
to Group
undertakings
£’000
Total
£’000
23,274
(952)
22,322
–
(5,127)
17,195
2,584
(9)
2,575
42
2,617
23,273
(952)
22,321
–
(5,127)
17,194
2,584
(9)
2,575
42
2,617
1
–
1
–
–
1
–
–
–
–
–
1
1
14,577
19,746
14,578
19,747
The loans are classed as equity investments and repayment is neither planned nor likely in the foreseeable future. Provision has been made
against amounts due from subsidiaries where there is a shortfall of net assets to satisfy the debtor.
Interests in Group undertakings
The Company has the following interest in subsidiaries, all of which are included in the consolidated accounts:
Name of undertaking
Robinson (Overseas) Limited
Robinson Paperbox Packaging Limited
Robinson Plastic Packaging Limited
Robinson Packaging Polska Sp z o.o
Walton Mill (Chesterfield) Limited
Walton Estates (Chesterfield) Limited
Lowmoor Estates Limited
Portland Works Limited
Robinson Plastic Packaging (Stanton Hill) Limited
Country
England
England
England
Poland
England
England
England
England
England
Activities
Intermediate holding company
Manufacture of paperboard packaging
Manufacture of plastic packaging
Manufacture of plastic packaging
Property company
Dormant company
Dormant company
Dormant company
Dormant company
In each case, the Company’s equity interest is in the form of ordinary shares. The registered address of all the companies is Field House,
Wheatbridge, Chesterfield S40 2AB except for Robinson Packaging Polska Sp z o.o, whose registered address is 238 Gen J Dabrowskiego
Street, 93-231 Łódź, Poland. The percentage shareholding for all subsidiaries is 100%. All investments except Robinson Packaging Polska
Sp z o.o are held directly.
On 10 February 2021, the Group acquired 100% of the share capital of Schela Plast A/S, a manufacturer of plastic packaging domiciled in
Denmark. The acquisition was post year end and is therefore not included in the above table; for further information, see post balance sheet
events as per note 29.
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| Financial statements
| Additional information
Notes to the financial statements continued
14 Inventories
Raw materials, packaging and consumables
Work in progress
Finished goods and goods for resale
Group
2020
£’000
1,927
42
1,141
3,110
Group
2019
£’000
1,789
19
957
2,765
The carrying value of inventories represents fair value less costs to sell; they are stated net of an allowance of £625,000 (2019: £392,000)
in respect of excess, obsolete or slow-moving items.
Movements in the allowance were as follows:
Inventory provision movements
At 1 January
Utilisation
Unused amount reversed
Increase in allowance
At 31 December
15 Trade and other receivables
Trade receivables
Less: provision for impairment of trade receivables
Trade receivables – net
Receivables from subsidiaries
Other receivables
Prepayments
Trade and other receivables
Current tax assets
Total receivables
Group
2020
£’000
(392)
133
67
(433)
(625)
Group
2019
£’000
(452)
131
51
(122)
(392)
Company
2020
£’000
Company
2019
£’000
400
(8)
392
571
7
49
1,019
9
1,028
211
–
211
93
8
39
351
107
458
Group
2020
£’000
8,992
(131)
8,861
–
170
145
9,176
9
9,185
Group
2019
£’000
9,393
(189)
9,204
–
167
168
9,539
107
9,646
Trade terms are a maximum of 150 days credit. The average credit period taken is 71 days (2019: 78 days). Due to their short-term nature,
the fair value of trade and other receivables does not differ from book value. The net impairment of trade receivables charged to the income
statement was £4,000 (2019: £13,000). There is no impairment of any receivables other than trade receivables. Trade receivables from one
customer amounted to £1,001,000 at 31 December 2020 (2019: £1,030,000).
Trade receivables are regularly reviewed for bad and doubtful debts. An allowance has been made for estimated credit losses from trade
receivables as follows:
At 31 December 2020
Expected loss rate
Gross carrying amount (£’000)
Credit loss allowance (£’000)
At 31 December 2019
Expected loss rate
Gross carrying amount (£’000)
Credit loss allowance (£’000)
More than
30 days
past due
More than
90 days
past due
More than
120 days
past due
More than
210 days
past due
–
76
-
–
11
-
50%
100%
51
25
21
21
More than
30 days
past due
More than
90 days
past due
More than
120 days
past due
More than
210 days
past due
–
293
–
–
75
–
50%
100%
91
46
60
60
Current
–
8,833
-
Current
–
8,874
–
Total
8,992
46
Total
9,393
106
In addition to the credit loss allowance, the provision for impairment of trade receivables includes additional specific provisions for estimated
irrecoverable debts of £15,000 (2019: £nil) and credit note provisions of £70,000 (2019: £83,000).
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| Corporate governance
| Financial statements
| Additional information
Notes to the financial statements continued
15 Trade and other receivables (continued)
Movement in the allowance for doubtful debts
At 1 January
Utilisation
Unused amount reversed
Charged to income statement
At 31 December
Group
2020
£’000
(189)
62
121
(125)
(131)
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
(206)
30
148
(161)
(189)
–
–
–
(8)
(8)
–
–
–
–
–
The Group applies the IFRS 9 simplified approach to measuring expected credit losses (ECLs), which uses a lifetime expected loss allowance
for all trade receivables. To measure the ECLs, trade receivables have been grouped based on shared credit risk characteristics and the days
past due. The expected loss rates are based on the payment profiles of sales over a period of 36 months before 31 December 2020 or
31 December 2019 and the historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and
forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. Trade receivables are
written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include,
among others, the failure of a debtor to engage in a repayment plan with the Group and a failure to make contractual payments for a period
greater than 365 days past due. Trade receivables are measured at amortised cost.
16 Trade and other payables
Trade payables
Amounts due to subsidiaries
Social security and other taxes
Other payables
Accruals
Group
2020
£’000
4,234
–
925
484
846
Group
2019
£’000
2,964
–
702
716
681
Company
2020
£’000
Company
2019
£’000
256
5,114
500
87
465
91
5,107
236
79
333
6,489
5,063
6,422
5,846
The carrying amount of trade and other payables approximates to their fair value. The Group has financial risk management policies in place
to ensure that all payables are paid on a timely basis. The average credit period taken is 45 days (2019: 41).
Above & Beyond
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Strategic report
| Corporate governance
| Financial statements
| Additional information
Notes to the financial statements continued
17 Deferred taxation
The deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior reporting period
are as follows:
Group
At 1 January 2019
Charge to income
Exchange differences
At 31 December 2019
Charge to income
Charged through other comprehensive income
Exchange differences
At 31 December 2020
Company
At 1 January 2019
Charge to income
At 31 December 2019
Charge to income
At 31 December 2020
Deferred tax liability
Deferred tax asset
Accelerated
tax
depreciation
£’000
Short term
temporary
differences
£’000
Fair value
gains
£’000
7
50
–
57
148
–
–
205
(3)
2
(1)
4
3
157
(107)
22
72
(233)
(7)
-
(168)
(532)
13
(519)
(43)
(562)
24
–
–
24
–
–
3
27
12
–
12
1
13
Total
£’000
188
(57)
22
153
(85)
(7)
3
64
(523)
15
(508)
(38)
(546)
Group
2020
£’000
1,042
(978)
64
Group
2019
£’000
1,090
(937)
153
Company
2020
£’000
Company
2019
£’000
16
(561)
(545)
–
(508)
(508)
Deferred tax has been provided at 19%. Certain deferred tax liabilities have been offset. The above is the analysis of the deferred tax balances
(after offset) for financial reporting purposes. The Directors consider that the Group will generate sufficient taxable profits in future years with
which to recover the deferred tax asset.
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| Corporate governance
| Financial statements
| Additional information
Notes to the financial statements continued
18 Borrowings
Group
Company
Borrowings may be analysed as follows:
Current
liabilities
Non-current
liabilities
Total
liabilities
Current
liabilities
Non-current
liabilities
Total
liabilities
At 31 December 2020
Bank overdrafts
Bank and other loans
Lease liabilities
Total
At 31 December 2019
Bank overdrafts
Bank and other loans
Lease liabilities
Total
Bank and other loans are repayable as follows:
Bank and other loans
– due after two and within five years
2,282
–
978
3,260
3,081
–
629
3,710
–
2,700
2,291
4,991
–
2,700
1,939
4,639
2,282
2,700
3,269
8,251
3,081
2,700
2,568
8,349
Group
2020
£’000
2,700
2,700
–
–
–
–
1,164
–
–
1,164
–
2,700
–
2,700
–
2,700
–
2,700
–
2,700
–
2,700
1,164
2,700
–
3,864
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
2,700
2,700
2,700
2,700
2,700
2,700
The bank overdraft facility is repayable on demand and bears interest at a rate that varies with the HSBC Sterling base rate. It is secured on
a first charge over certain of the Group’s properties. The undrawn facility at 31 December 2020 was £5.7m. A loan of £2.7m from the Pension
Escrow Account was made during 2018, which bears interest at a rate that varies with the Bank of England Sterling base rate and is secured by
a charge over certain of the Group’s properties (see note 30 for more details). The Group leases certain plant and machinery under finance
lease and hire purchase contracts, which are denominated in Sterling, Euros and Polish Zloty. The average remaining lease term is 3.6 years
(2019: 3.8 years). For the year ended 31 December 2020, the average effective borrowing rate was 1.0% (2019: 1.0%). Lease liabilities are
secured on the assets to which they relate. The carrying amount of the Group’s lease obligations approximates to their fair value.
19 Leasing
Leased assets where the Group is a lessee
The balance sheet includes the following amounts relating to leased assets
where the Group is a lessee:
Right-of-use assets
Plant and machinery
Lease liabilities
Current
Non-current
Group
2020
£’000
3,864
3,864
978
2,291
3,269
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
3,115
3,115
629
1,939
2,568
–
–
–
–
–
–
–
–
–
–
Additions to right-of-use assets during the year amounted to £1,391,000 (2019: £1,891,000).
The Group income statement includes the following amounts relating to leased assets:
Depreciation charge on right-of-use assets
Plant and machinery
Interest expense (see note 3)
Group
2020
£’000
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
616
616
59
403
403
55
–
–
–
–
–
–
Above & Beyond
| Robinson Annual report 2020
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| Corporate governance
| Financial statements
| Additional information
Notes to the financial statements continued
19 Leasing (continued)
Leases are repayable as follows:
Group
Amounts payable under lease contracts:
– within one year
– after one and within five years
– after five years
Less: future finance charges
Present value of lease obligations
Minimum lease
payments
Present value of minimum
lease payments
2020
£’000
1,005
2,295
18
3,318
(49)
3,269
2019
£’000
660
1,974
–
2,634
(66)
2,568
2020
£’000
978
2,273
18
3,269
2019
£’000
629
1,939
–
2,568
Sale and leaseback transactions
In the normal course of business, the Group constructs plant and machinery assets over a period of time, typically six to nine months. In some
cases after commissioning of the asset, it may be subject to a sale and hire purchase transaction, whereby the Group sells the asset to
a finance provider and commits to paying monthly lease rentals for a period of time before re-assuming ownership. In 2020, there were two
transactions of this type raising £1,061,000 (2019: £2,102,000) before deposit payments. No gain or loss was recognised on these transactions
during the period. Due to the fact that the lessor is a financial institution, these arrangements do not meet the definition of a sale in IFRS 15,
and as such, the amounts received from the financial institution are instead accounted for as a financial liability under IFRS 9.
Leased assets where the Group is a lessor
The Group leases various properties to tenants with rentals payable monthly or quarterly in advance. Lease payments for some contracts
include RPI/CPI increases, but there are no other variable lease payments that depend on an index or rate. Although the Group is exposed to
changes in the residual value at the end of the current leases, the Group typically enters into new operating leases and, therefore, will not
immediately realise any reduction in residual value at the end of these leases. Expectations about the future residual values are reflected in the
fair value of the properties. The Group carrying value of properties subject to operating leases is £4,278,000 (2019: £4,301,000), only part of
which is occupied by tenants. Property lease income is disclosed in note 2, and minimum receipts under property leases are disclosed in note 9.
20 Provisions for liabilities
Group and Company
At 1 January 2019
Movement in year
At 31 December 2019
Movement in year
At 31 December 2020
Post-retirement benefits
£’000
174
(5)
169
4
173
The Group provides medical insurance to certain retired employees and to an Executive Director on retirement. A provision has been
made to meet this liability. The principal assumptions used in determining the required provisions are a discount rate of 3.5% per annum,
medical cost inflation of 10% per annum and individual life expectancy assumptions. Based on those assumptions, the provision is expected
to be utilised over 30 years.
21 Called up share capital
Authorised:
70,000,000 ordinary shares of 0.5p each
Allotted, called up and fully paid (ordinary shares of 0.5p):
17,687,223 shares
Held in Treasury: 1,073,834 shares (2019: 1,073,834)
Net issued share capital: 16,613,389 shares (2019: 16,613,389)
2020
£’000
2019
£’000
350
350
88
(5)
83
88
(5)
83
The Company has one class of ordinary shares that carries no right to fixed income. There are no special rights or restrictions associated
with these ordinary shares. The shares held in Treasury arise from the buy-back of shares in 2004 and have not been cancelled as they are
being used to satisfy share options and other future issues of shares.
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| Additional information
Notes to the financial statements continued
22 Retained earnings
An amount of £200,000 included in the retained earnings of the Company relates to the revaluation of property held in its subsidiaries
and is not distributable.
23 Risk management objectives and policies
The Group and the Company are exposed to market risk through their use of financial instruments and specifically to credit risk and foreign
currency risks, which result from the Group’s operating activities and the Company’s investing activities. The Group’s risk is managed in close
co-operation with the Board of Directors and focuses on actively securing the Group’s short to medium-term cash flows by minimising the
exposure to financial markets. Robinson does not engage in the trading of financial assets for speculative purposes nor does it write options.
The most significant financial risks to which the Group is exposed are described below. See also below for a summary of the Group’s financial
assets and liabilities by category.
Summary of financial assets and financial liabilities by category
The carrying amounts of financial assets and liabilities as recognised at 31 December of the reporting periods under review may also be
categorised as follows:
Financial assets measured at amortised cost
Trade receivables
Other receivables
Amounts due from subsidiaries
Cash at bank and on hand
Financial liabilities measured at amortised cost
Trade payables
Other payables
Accrued expenses
Amounts due to Group undertakings
Bank overdrafts
Bank and other loans
Lease liabilities
Net financial assets and liabilities
Non-financial assets and liabilities
Total equity
Group
2020
£’000
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
8,861
9,204
170
–
1,386
10,417
167
–
1,403
10,774
(4,234)
(2,964)
(484)
(846)
–
(2,282)
(2,700)
(3,269)
(716)
(681)
–
(3,081)
(2,700)
(2,568)
392
7
571
839
1,809
(256)
(87)
(465)
211
8
93
325
637
(91)
(79)
(333)
(9,943)
(13,356)
-
(2,700)
–
(1,164)
(2,700)
–
(13,815)
(12,710)
(13,451)
(17,723)
(3,398)
26,802
23,404
(1,936)
(11,642)
(17,086)
24,859
22,923
24,223
12,581
29,229
12,143
All financial assets and financial liabilities noted in the above table are measured at amortised cost. Cash at bank and on hand, bank overdrafts
and bank and other loans largely attract floating interest rates. Accordingly, management considers that their carrying amount approximates
to fair value. Lease liabilities may attract floating interest rates or fixed interest rates implicit in the lease rentals and their fair value has been
assessed relative to prevailing market interest rates, management considers that their carrying amount approximates to fair value.
Foreign currency risk
Transaction risk
Foreign currency transaction risk arises on sales and purchases denominated in currencies other than the functional currency of the entity that
enters into the transaction. Group transactions are primarily in Sterling, Polish Zloty or Euros. The magnitude of these transactional exposures is
relatively low for the Group as sales and purchases are typically matched by currency and commercial contracts that include escalators for
currency movements on raw materials. The Group does not typically hedge transactional currency risk with derivative instruments, but
exchange rate movements are regularly monitored.
Translation risk
Foreign currency translation risk arises on consolidation in relation to the translation into Sterling of the results and net assets of the Group’s
Polish subsidiary.
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| Additional information
Notes to the financial statements continued
23 Risk management objectives and policies (continued)
The currency profile of net assets was as follows:
Net assets by currency
Sterling
Polish Zloty
Euro
Others
Total
Group
2020
£’000
9,079
14,183
208
(66)
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
6,574
15,293
1,065
(10)
12,026
12,443
(20)
637
(62)
(622)
322
–
23,404
22,923
12,581
12,143
The following table details the Group’s sensitivity to a 10% increase and decrease in Sterling against the relevant foreign currencies.
The sensitivity analysis includes only outstanding foreign currency denominated monetary items at the period end. A positive number below
indicates an increase in profit and other equity where Sterling weakens 10% against the Euro and Polish Zloty.
Currency impact
Profit or loss for the year
Equity
Interest rate risk
Euro
Polish Zloty
+10%
-10%
+10%
-10%
(19)
(19)
23
23
(103)
(103)
126
126
Interest rate risk is the risk that the fair value of, or future cash flows associated with, a financial instrument will fluctuate because of changes
in market interest rates. The Group is exposed to interest rate risk on its floating rate borrowings. The interest rate profile of the Group’s
interest-bearing financial assets and financial liabilities was as follows:
Floating rate
Bank overdrafts
Bank and other loans:
– pension escrow loan
Lease liabilities
Cash at bank and on hand
Amounts due to Group undertakings
Fixed rate
Lease liabilities
Total
Group
2020
£’000
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
(2,282)
(3,081)
–
(1,164)
(2,700)
(1,878)
1,386
–
(2,700)
(1,161)
1,403
–
(1,391)
(1,391)
(6,865)
(1,407)
(1,407)
(6,946)
(2,700)
(2,700)
–
839
–
–
–
–
325
(603)
(4,142)
–
–
(1,861)
(4,142)
(5,474)
(5,539)
(1,861)
Interest payable on bank overdrafts and floating rate loans is based on base rates and short-term interbank rates. At 31 December 2020,
the weighted average interest rate payable on bank overdrafts was 1.35% (2019: 2.00%). At 31 December 2020, the weighted average interest
rate payable on bank and other loans was 1.10% (2019: 1.75%). At 31 December 2020, the weighted average interest rate receivable on cash
at bank and in hand was nil% (2019: nil%). At 31 December 2020, the weighted average interest rate payable on amounts due to Group
undertakings was nil% (2019: 3.6%).
On the assumption that a change in market interest rates would be applied to the interest rate exposures that were in existence at the balance
sheet date an increase/decrease of 100 basis points in market interest rates would decrease/increase the Group’s profit before tax by £69,000
(2019: £69,000), and the Company’s profit before tax by £27,000 (2019: £45,000).
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| Additional information
Notes to the financial statements continued
23 Risk management objectives and policies (continued)
Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group has three types of financial assets that are subject to the ECL model: trade receivables, other receivables, and cash at bank and in
hand. Disclosure regarding ECLs on trade receivables is provided in note 15. While other receivables and cash at bank and on hand are also
subject to the requirements of IFRS 9, the identified impairment loss was immaterial. The Group’s cash balances are managed such that there is
no significant concentration of credit risk in any one bank or other financial institution. Management monitors the credit quality of the
institutions with which it holds deposits. The Group continuously monitors defaults (for debts beyond due date) of customers and
incorporates this information into its credit risk controls. External credit ratings and reports on customers are obtained and used. The Group’s
policy is to deal only with creditworthy customers. The Group’s management considers that all the above financial assets that are not
impaired for each of the reporting dates under review are of good credit quality, including those that are past due. In respect of trade and
other receivables, the Group is not exposed to any significant credit risk exposure to any counterparty or Group of counterparties having
similar characteristics.
At 31 December 2020, the maximum exposure to credit risk (excluding intercompany balances in the Company) was as follows:
Trade and other receivables:
– Trade receivables
– Other receivables
Cash at bank and on hand
Total
Liquidity risk analysis
Group
2020
£’000
8,992
170
9,162
1,386
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
9,393
167
9,560
1,403
400
7
407
839
211
8
219
325
544
10,548
10,963
1,246
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities. The Group’s
borrowing facilities are monitored against forecast requirements and timely action is taken to put in place, renew or replace credit lines.
The Group manages its liquidity needs by carefully monitoring cash outflows due in day-to-day business. The Group’s liabilities have
contractual maturities that are summarised below:
Group
At 31 December 2020
Trade payables
Other financial liabilities
Bank overdrafts
Bank and other loans:
– principal
– interest
Minimum lease payments
Group
At 31 December 2019
Trade payables
Other financial liabilities
Bank overdrafts
Bank and other loans:
– principal
– interest
Minimum lease payments
Within 1
year
£’000
Between
1 and 2
years
£’000
Between
2 and 3
years
£’000
Between
3 and 4
years
£’000
Between
4 and 5
years
£’000
4,234
1,330
2,282
-
15
1,005
8,866
2,964
1,397
3,081
–
47
660
8,149
–
–
–
–
–
919
919
–
–
–
2,700
12
690
3,402
–
–
–
2,700
–
820
3,520
–
–
–
–
–
630
630
–
–
–
–
–
376
376
–
–
–
–
–
520
520
–
–
–
–
–
198
198
–
–
–
–
–
134
134
Total
£’000
4,234
1,330
2,282
2,700
15
3,318
13,879
2,964
1,397
3,081
2,700
59
2,634
12,835
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| Additional information
Notes to the financial statements continued
23 Risk management objectives and policies (continued)
The Company’s liabilities have contractual maturities that are summarised below:
Company
At 31 December 2020
Trade payables
Other financial liabilities
Bank overdrafts
Bank and other loans:
– principal
– interest
Amounts owed to subsidiaries
Company
At 31 December 2019
Trade payables
Other financial liabilities
Bank overdrafts
Bank and other loans:
– principal
– interest
Amounts owed to subsidiaries
24 Group capital and net debt
Within
1 year
£’000
Between
1 and 2
years
£’000
Between
2 and 3
years
£’000
Between
3 and 4
years
£’000
Between
4 and 5
years
£’000
256
552
–
–
15
5,114
5,937
91
412
1,164
–
47
5,107
6,821
–
–
–
-
–
–
-
–
–
–
2,700
12
–
2,712
–
–
–
2,700
–
–
2,700
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
4,829
4,829
–
–
–
–
–
8,249
8,249
Total
£’000
256
552
–
2,700
15
9,943
13,466
91
412
1,164
2,700
59
13,356
17,782
The Group’s capital comprises total equity and net debt. The Group’s capital management objectives are:
• to ensure the Group’s ability to continue as a going concern; and
• to provide an adequate return to shareholders by pricing products commensurately with the level of risk.
The Group monitors capital based on the carrying amount of equity and net debt. Robinson manages the capital structure and adjusts it in
light of changes in economic conditions and the risk characteristics of the underlying assets. The Directors aim to maintain an efficient capital
structure with a relatively conservative level of debt-to-equity gearing so as to ensure continued access to a broad range of financing sources
that provide them sufficient flexibility in pursuing commercial opportunities as they arise. In order to maintain its capital structure, the Group
may adjust the dividends paid to shareholders, issue new shares or sell assets to reduce debt.
The Group’s capital was as follows:
Total equity
Net debt
Capital
Gearing (average net debt/average capital)
2020
£’000
23,404
6,865
30,269
23%
2019
£’000
22,923
6,946
29,869
26%
2018
£’000
22,928
8,845
31,773
25%
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| Additional information
Notes to the financial statements continued
24 Group capital and net debt (continued)
Movements in Group net debt were as follows:
Cash at bank and on hand
Bank overdrafts
Bank and other loans
Lease liabilities
Net debt
Cash at bank and on hand
Bank overdrafts
Bank and other loans
Lease liabilities
Net debt
25 Capital commitments
Contracted but not provided in these financial statements
At 31
December
2018
Exchange
movements
At 31
December
2019
1,403
(3,081)
(2,700)
(2,568)
(6,946)
1,358
(6,178)
(2,700)
(1,325)
(8,845)
Group
2020
£’000
1,045
Exchange
movements
Cash
flows
At 31
December
2020
1,386
(2,282)
(2,700)
(3,269)
(6,865)
At 31
December
2019
1,403
(3,081)
(2,700)
(2,568)
(6,946)
(82)
799
–
(635)
82
Cash
flows
115
3,097
–
(1,302)
1,910
65
–
–
(66)
(1)
(70)
–
–
59
(11)
Group
2019
£’000
2,208
Company
2020
£’000
Company
2019
£’000
45
469
26 Assets pledged as security
The carrying amounts of assets pledged as security (excluding intercompany balances in the Company) for current and non-current
borrowings are:
Current
Floating charge:
– Cash and cash equivalents
– Trade and other receivables
Total current assets pledged as security
Non-current
First mortgage:
– Land and buildings
– Surplus properties
Lease liabilities:
– Plant and equipment
Floating charge:
– Plant and equipment
Total non-current assets pledged as security
Total assets pledged as security
Group
2020
£’000
Group
2019
£’000
Company
2020
£’000
Company
2019
£’000
639
5,788
6,427
3,055
3,649
6,704
3,864
3,864
3,545
3,545
14,113
20,540
326
5,105
5,431
2,573
3,649
6,222
3,115
3,115
2,316
2,316
11,653
17,084
839
457
1,296
3,278
6,417
9,695
–
–
20
20
325
365
690
2,815
6,417
9,232
–
–
2
2
9,715
11,011
9,234
9,924
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| Additional information
Notes to the financial statements continued
27 Contingent liabilities
There were contingent liabilities at 31 December 2020 in relation to cross guarantees of bank overdrafts and leases given by the Company
on behalf of other Group undertakings. The amount guaranteed at 31 December 2020 was £4,585,000 (2019: £3,079,000). The Directors
have considered the fair value of the cross guarantee and do not consider this to be significant.
28 Related parties
Transactions took place in the normal course of business between the Company and its subsidiaries during the year as follows:
Charges by the Company to its subsidiaries:
Rent
Management charges
Interest
Other charges (including costs incurred by the Company on behalf of its subsidiaries
and subsequently recharged to them)
Charges by the subsidiaries to the Company (mainly costs incurred by them on behalf
of the Company and recharged to it)
Net balances due from subsidiaries outstanding at the year end
£7,659,000 of the net charges in 2020 related to UK subsidiaries (2019: £7,469,000).
2020
£’000
2019
£’000
543
409
21
7,152
8,125
154
5,205
543
300
66
6,841
7,750
126
6,483
Note 27 discloses cross-guarantees between the Company, its subsidiaries and finance providers in relation to bank overdrafts and leases.
This is considered to have minimal value.
Details of transactions between the Group and other related parties are disclosed below:
Post-employment benefit plans
Contributions amounting to £11,000 (2019: £170,000) were payable by the Company to a pension plan established for the benefit of its
employees. At 31 December 2020, £1,000 (2019: £1,000) in respect of contributions due was included in other payables. An amount of
£2.7m held in the Pension Escrow Account is loaned to the Company on commercial terms and secured on surplus property valued at £2.8m
held by the Group (see note 30 for further details). In 2020, Robinson plc incurred and recharged expenses of £54,000 (2019: £41,000)
on behalf of the pension plan and charged £27,000 (2019: £31,000) in respect of administration services provided to the plan.
Compensation of key management personnel
For the purposes of these disclosures, the Group and Company regards its key management personnel as the Directors, including Non-
Executive Directors. Compensation payable to key management personnel in respect of their services to the Group was as follows:
Short-term employee benefits
IFRS 2 share option charge
2020
£’000
829
24
853
2019
£’000
886
5
891
29 Events after the end of the reporting period
Acquisition of Schela Plast
On 10 February 2021, the Group acquired the entire share capital of Schela Plast a Danish designer and manufacturer of blow moulded
containers. The acquisition expands the geographic reach of the Group and creates sales growth opportunities with new and existing Robinson
customers. The total consideration payable for the acquisition is £4.4m, comprising £1.4m paid in cash at completion and £3.0m of deferred
contingent consideration. The deferred contingent consideration is payable based on the 2020 and 2021 EBITDA (Earnings before interest, tax,
depreciation and amortisation) performance of Schela Plast. The fair value of the total consideration expected to be paid is £4.4m.
The fair value of the net assets acquired totalled £2.5m. Due to the proximity of the acquisition to the Group’s reporting date, the fair values
of assets and liabilities acquired are provisional to allow for further adjustments in the measurement period. The difference between the fair
value of consideration of £4.4m and net assets acquired of £2.5m will be attributed to goodwill and intangible fixed assets including customer
relationships. None of the goodwill recognised is expected to be deductible for tax purposes.
Acquisition costs of £84,000 were incurred in the year and were expensed to the income statement.
As Schela Plast was acquired after the end of the current reporting period, the business made no contribution to the Group revenue or profit
before taxation in the year.
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| Financial statements
| Additional information
Notes to the financial statements continued
30 Employee benefit obligations
The Group operates a defined contribution plan for UK employees, which is held in a separate Mastertrust arrangement from the Robinson
& Sons Limited Pension Fund. This plan receives contributions to the members’ pension pots from the Group and member. Polish employees
are members of a pay-as-you-go plan based on notional defined contribution accounts, run by the Polish state-owned Social Insurance
Institution. The Group’s obligations in respect of these plans are limited to the contributions. The expense is recognised in the current income
statement. The rest of this note relates to the Group’s UK defined benefit plan (the “Plan”).
The Robinson & Sons Limited Pension Fund is a defined benefit plan, which was closed to new members in 1997 and provides benefits to
members in the form of a guaranteed pension for life. The level of benefits is based on each member’s salary and pensionable service prior to
leaving the Plan. Benefits receive statutory revaluation in deferment. Once in payment, pension increases are applied, the majority of which
are linked to inflation (subject to floors and caps).
The Plan’s assets are held separately from the Group in a trust fund. The fund is looked after by Trustees on behalf of the members.
The assets are invested to meet the benefits promised by a combination of investment returns and future contributions. Under the normal
course of events, actuarial valuations are undertaken every three years to confirm whether the assets are expected to be sufficient to provide
the benefits. If there is a shortfall, a recovery plan is put in place under which the Group is required to pay additional contributions over a
period of time, as agreed with the Trustees. The last triennial actuarial valuation was at 5 April 2020, which indicated the fund was in deficit.
The funding position was reassessed based on rolled forward asset values and market conditions as of 30 October 2020, the date of signing
the recovery plan. The scheme at that date had a funding surplus. The Trustees and the Company have therefore agreed that the Company
is not required to pay contributions. The next full valuation is due as at 5 April 2023.
The accounting disclosures are based on different assumptions from the plan’s funding assumptions. This is because:
i) the funding and accounting valuations may be carried out at different dates and so are based on different market conditions and
ii) the funding assumptions are determined by the Trustees who must include margins for prudence. The accounting assumptions
are determined by the Group Directors in accordance with accounting standards, which are different from funding regulations.
The IAS 19 value placed on the pension benefit obligation has been determined by rolling forward from previous results, making adjustments
to reflect benefits paid out of the Plan, and for differences between the assumptions used at this year end and the previous year end.
Amounts recognised in statement of financial position
Fair value of Plan assets
Liability value (present value of funded obligation)
Surplus
Unrecognised assets due to asset ceiling
Net asset
2020
£’000
2019
£’000
66,903
66,392
(57,605)
(55,871)
9,298
10,521
(9,298)
(10,521)
–
–
The main reasons for the improvement in the balance sheet position since last year are:
• the investment return achieved on the Plan’s assets over the period was around 5%, which was higher than the discount rate used last year;
• inflation experienced has been lower than was assumed, which has helped to reduce the value placed on liabilities; and
• the estimated impact of the change from RPI from 2030.
The above improvements have been partly offset by the change in market conditions over the year – bond yields have decreased over the
period, resulting in a lower discount rate and a higher liability value.
The surplus is not recognised in the Group balance sheet, on the basis that future ‘economic benefits’ are not available in the form of reduced
future contributions or a cash refund.
The amounts recognised in the balance sheet and the movements in the defined benefit obligation over the year are as follows:
Change in funded defined benefit obligation (DBO)
DBO at beginning of year
Service cost
Interest on DBO
Employee contributions
Remeasurement – actuarial (gain)/loss from financial items
Remeasurement – actuarial (gain)/loss from demographic items
Benefits paid
DBO at end of year
2020
£’000
2019
£’000
55,871
54,512
94
1,093
14
3,495
(324)
(2,638)
57,605
86
1,430
11
4,346
(1,293)
(3,221)
55,871
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| Financial statements
| Additional information
Notes to the financial statements continued
30 Employee benefit obligations (continued)
Change in Plan assets
Fair value at beginning of year
Employee contributions
Interest income on Plan assets
Impact of interest on asset ceiling
Remeasurement – actuarial gain
Employer contributions
Benefits paid
Expenses paid
Fair value at end of year
Asset return
Interest income on Plan assets (expected return)
Impact of interest on asset ceiling
Remeasurement – actuarial gain
Actual return on Plan assets
The following amounts were recognised in the income statement:
Income statement
Current service cost
Expenses
Net interest cost
Impact of interest on the asset ceiling
Total cost recognised in the income statement
The following amounts were not recognised in the statement of other comprehensive income:
Remeasurement DBO – actuarial loss from financial items
Remeasurement DBO – actuarial (gain) from demographic items
Remeasurement Plan assets – actuarial (gain) on assets
Effect of asset limitation and minimum funding requirement
Total (gain)/loss not recognised in other comprehensive income
2020
£’000
2019
£’000
66,392
60,972
14
1,301
(208)
2,128
–
11
1,602
(172)
7,259
–
(2,638)
(3,221)
(86)
(59)
66,903
66,392
2020
£’000
1,301
(208)
2,128
3,221
2020
£’000
94
86
(208)
208
180
3,495
(324)
(2,128)
(1,223)
(180)
2019
£’000
1,602
(172)
7,259
8,689
2019
£’000
86
59
(172)
172
145
4,346
(1,293)
(7,259)
4,061
(145)
Cumulative actuarial losses recognised in other comprehensive income
11,484
11,664
Reconciliation of prepaid/(accrued) pension cost
Net periodic pension cost
Impact of limit on net assets
Remeasurements – actuarial (gains)/losses not recognised in other comprehensive income
Prepaid/(accrued) at end of year (IAS)
Change in asset ceiling + additional liability IFRIC14
Asset not recognised at beginning of year
Changes in unrecognised asset due to asset ceiling
Asset not recognised at end of year
180
(1,223)
1,043
–
145
4,061
(4,206)
–
10,521
(1,223)
9,298
6,460
4,061
10,521
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Notes to the financial statements continued
30 Employee benefit obligations (continued)
Key assumptions used were:
Discount rate at beginning of year
Discount rate at end of year
RPI inflation
CPI inflation
Salary inflation
Expected return on assets
Mortality (average)
Mortality improvements
The average life expectancy of a pensioner is as follows:
Life expectancy of 45 year old man at the age of 65 years
Life expectancy of 45 year old woman at the age of 65 years
Life expectancy of 65 year old man at the age of 65 years
Life expectancy of 65 year old woman at the age of 65 years
Sensitivity to assumptions
The following table shows the impact of changes to the main assumptions:
2020
2019
2020
2019
Weighted average
2.0%
1.4%
2.7%
2.0%
1.4%
2.0%
1.4%
2.8%
1.8%
3.1%
1.4%
2.0%
3.2%
2.2%
3.5%
2.0%
S3PXA
S2PXA
CMI2019[1%]
CMI2018[1%]
2020
22.8
25.3
21.8
24.1
2019
22.4
24.5
21.3
23.3
Reduce discount rate by 0.25% pa
Increase inflation rate by 0.25% pa
Add one year to life expectancies
Change to liability value
(%)
Addition to liability value
£’000
3.4%
2.0%
4.4%
1,900
1,100
2,500
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely
to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the DBO to significant actuarial
assumptions, the same method (present value of the DBO calculated with the projected unit credit method at the end of the reporting
period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of
assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Pension Escrow Account
Following the actuarial valuation carried out in April 2002, it was clear that there was no need for the employer to pay contributions into the
Plan for existing members. The Group has nonetheless paid employer contributions set aside in the Group’s financial statements since the
actuarial valuation in April 2002, together with money purchase contributions between 2005 and 2017, into an escrow account. The outcome
of the next actuarial valuation in April 2023 will determine whether the contributions will be paid over to the Plan, returned to the Group or
whether some other arrangements will be made. It is likely that the escrow account will be returned to the Plan, and therefore, it has been
disclosed as an asset of the Plan. £2.7m of the escrow account is loaned to the Group on commercial terms secured on surplus property
valued at £2.8m held by the Group. The total set aside in the escrow account at 31 December 2020, including the £2.7m loan receivable,
amounted to £3.1m (2019: £3.1m).
Asset class allocation
The major categories of Plan assets are as follows:
Equity securities
Debt securities
Real estate
Other
Cash
Weighted average duration of the Plan (years)
Expected contributions in the following period
2020
41.9%
44.2%
4.8%
4.8%
4.3%
100%
14
–
2019
46.0%
40.5%
4.6%
4.7%
4.2%
100%
14
–
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Notes to the financial statements continued
30 Employee benefit obligations (continued)
As at the last actuarial valuation (5 April 2020), the present value of the DBO included £2.6m in respect of active members, £7.1m in respect
of deferred members and £47.2m in respect of pensioners.
Risk exposure
Through its defined benefit pension plan, the Group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility
The Plan liabilities are calculated using a discount rate set with reference to corporate bond yields; if Plan assets underperform this yield,
this will create a deficit. The Plan holds a significant proportion of equities, which are expected to outperform corporate bonds in the long
term while providing volatility and risk in the short term. The Group believes that, due to the long-term nature of the Plan liabilities and the
strength of the supporting Group, a level of continuing equity investment is an appropriate element of the Group’s long-term strategy to
achieve a buyout of liabilities, when market conditions allow.
Changes in bond yields
A decrease in corporate bond yields will increase Plan liabilities, although this will be partially offset by an increase in the value of the
Plans’ holdings.
Interest and Inflation risks
The Plan is exposed to interest and inflation rate risks. The Plan invests in liability-driven investments with a target level of hedging
of 70% of the risk to funding associated with the impact of changes in long-term interest rates and inflation expectations on the Plan’s
technical provisions.
Life expectancy
The Plans’ obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the
Plans’ liabilities.
31 Share-based payments
During the year ended 31 December 2020, the Group had six share-based payment arrangements under two schemes.
Grants in the year are detailed below:
Grant date
Vesting period ends
Share price at date of grant (pence)
Volatility
Option life
Expected dividend yield
Risk-free investment rate
Fair value at grant date (pence)
Exercise price at date of grant (pence)
Incentive plan 2016
Incentive plan 2016
15/07/2020
15/07/2023
118.5
49.6%
10 years
4.3%
0.17%
23.2
118.5
15/07/2020
15/07/2025
118.5
49.6%
10 years
4.3%
0.17%
23.2
118.5
The Enterprise Management Incentive Plan 2004 (EMI Plan 2004) is part of the remuneration package of the Executive Directors of the
Company. Options under this scheme will vest in accordance with a timescale over 36 months if certain performance criteria are met. Upon
vesting, each option allows the holder to purchase one ordinary share at the stated price. If the option holder leaves the employment of the
Company, the option is forfeited.
The Incentive Plan 2016 is part of the remuneration package of the Executive Directors and other senior managers of the Company. Options
under this scheme will vest in accordance with a timescale over 36 months if certain performance criteria are met. Upon vesting, each option
allows the holder to purchase one ordinary share at the stated price. If the option holder leaves the employment of the Company, the option
is forfeited.
Fair values for the share option schemes have been determined using the Black-Scholes model. The expected volatility is based on historical
volatility over the past three years. The expected life is the average expected period to exercise. The risk-free rate of return is the yield on
zero-coupon UK government bonds of a term consistent with the assumed option life.
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Notes to the financial statements continued
31 Share-based payments (continued)
A reconciliation of option movements over the year to 31 December 2020 is shown below:
Outstanding at 31 December 2018 and 31 December 2019
Granted
Outstanding at 31 December 2020
EMI Plan
2004
67,494
-
67,494
Weighted
average
price (p)
202.0
-
202.0
Incentive
Plan 2016
273,056
600,000
873,056
Weighted
average
price (p)
98.7
118.5
118.5
Exercisable at 31 December 2019 and 31 December 2020
67,494
202.0
273,056
98.7
The range of exercise prices for options outstanding at the end of the period is 69p to 202p. The weighted average contractual life of options
at the end of the period is 7.5 years. The total charge in the year ended 31 December 2020 relating to employee share-based payment plans,
in accordance with IFRS 2, was £31,000 (2019: £12,000). All of which was related to equity-settled share-based payment transactions.
32 Accounting policies
Robinson plc is a company incorporated in the UK under the Companies Act 2006. The consolidated and Company financial statements
have been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006.
All standards and interpretations that have been issued and are effective at the year end have been applied in the financial statements. The
financial statements have been prepared under the historical cost convention adjusted for the revaluation of certain properties.
Consolidation
The Group’s financial statements consolidate the financial statements of Robinson plc and all its subsidiaries. Subsidiaries are consolidated
from the date on which control transfers to the Group and are included until the date on which the Group ceases to control them.
Transactions and year-end balances between Group companies are eliminated on consolidation. All entities have coterminous year ends.
The Group obtains and exercises control through voting rights. Investments in subsidiary undertakings are accounted for in accordance with
IAS 27 Separate Financial Statements and IFRS 10 Consolidated Financial Statements and are recognised at cost less impairment.
Revenue
The Group manufactures and sells a range of plastic and paperboard packaging to its customers. Revenue is recognised when control of the
products is transferred, being when the products are delivered to the customer, and there is no unfulfilled performance obligation that could
affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks
of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the
sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.
Products are sometimes sold with retrospective volume rebates based on aggregate sales over a 12 months period. Revenue from these sales
is recognised based on the price specified in the contract, net of the estimated volume rebates. Accumulated experience is used to estimate
and provide for the rebates, using the expected value method, and revenue is only recognised to the extent that it is highly probable that
a significant reversal will not occur. A rebate liability (included in trade and other payables) is recognised for expected volume rebates payable
to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made
with credit terms that are considered within the range of normal industry practice. A receivable is recognised when the goods are delivered, as
this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.
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Notes to the financial statements continued
32 Accounting policies (continued)
Foreign currencies
Assets and liabilities of overseas subsidiaries are translated into Sterling, the functional currency of the parent company, at the rate
of exchange ruling at the year end. The results and cash flows of overseas subsidiaries are translated into Sterling using the average rate
of exchange for the year as this is considered approximate to the actual rate. Exchange movements on the restatement of the net assets
of overseas subsidiaries and the adjustment between the income statement translated at the average rate and the closing rate are taken
directly to other reserves and reported in the other comprehensive income. All other exchange differences arising on monetary items are dealt
with through the consolidated income statement. On disposal of a foreign subsidiary, the accumulated exchange differences in relation to the
operation are reclassified into the income statement.
Property, plant and equipment
Property, plant and equipment are stated at cost less a provision for depreciation and impairment losses. Depreciation is calculated to write
off the cost less estimated residual values of the assets in equal instalments over their expected useful lives. No depreciation is provided on
freehold land or surplus properties. Surplus properties are stated at cost; they are not being depreciated as they are surplus and not currently
in use and the value is therefore not being consumed. Depreciation is provided on other assets at the following annual rates:
Buildings
Plant and machinery
4% – 20% per annum
5% – 33% per annum
Residual values and estimated useful lives are re-assessed annually. Assets under construction are not depreciated until they are ready for use.
Inventories
Inventories are valued at the lower of cost, including related overheads, and net realisable value. Cost comprises direct materials and,
where applicable, direct labour costs and the overheads incurred in bringing items to their present location and condition. Inventories are
valued on a first in, first out basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to
be incurred in marketing, selling and distribution.
Trade and other receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are
recognised initially at the amount of consideration that is unconditional. The Group holds the trade receivables with the objective of collecting
the contractual cash flows, and therefore, measures them subsequently at amortised cost using the effective interest method, less provision
for impairment. A provision for impairment of trade receivables is established based on the ECL. The Group applies the IFRS 9 simplified
approach to measuring ECLs that uses a lifetime expected loss allowance for all trade receivables, which are grouped based on shared credit
risk characteristics and the days past due. The amount of the provision is recognised in the balance sheet within trade receivables. Movements
in the provision are recognised in the profit and loss account in administrative expenses. Any change in their value through impairment or
reversal of impairment is recognised in the income statement.
Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, demand deposits with banks,
and other short-term, highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are
shown within current liabilities in the statement of financial position.
Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid.
The amounts are unsecured and are usually paid within 60 days of recognition. Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost.
Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period
of the borrowings using the effective interest method. Borrowings are removed from the balance sheet when the obligation specified in the
contract is discharged, cancelled or expired. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period. Borrowings include bank overdrafts, bank and other loans, and
lease liabilities.
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Notes to the financial statements continued
32 Accounting policies (continued)
Taxation
Current income tax assets and/or liabilities comprise obligations to, or claims from, fiscal authorities relating to the current or prior reporting
periods that are unpaid/due at the reporting date. Current tax is payable on taxable profits, which may differ from profit or loss in the financial
statements. Calculation of current tax is based on the tax rates and tax laws that have been enacted or substantively enacted at the reporting
period.
Deferred taxation is provided on taxable and deductible temporary differences between the carrying amounts of assets and liabilities
in the financial statements and their corresponding tax bases. Deferred tax assets are recognised to the extent that it is probable that taxable
profits will be available against which temporary differences can be utilised or that they will reverse. Deferred tax is measured using the tax
rates expected to apply when the asset is realised, or the liability settled based on tax rates enacted or substantively enacted by the reporting
date. Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability on the reporting date differs from
its tax base except for differences arising on investments in subsidiaries where the Group can control the timing of the reversal of the
difference and it is probable that the difference will not reverse in the foreseeable future. Changes in deferred tax assets or liabilities are
recognised as a component of tax expense in the income statement, except where they relate to items that are charged directly to other
comprehensive income (such as the revaluation of land or relating to transactions with owners) in which case the related deferred tax is
also charged or credited directly to other comprehensive income. Current tax is the tax currently payable on taxable profit for the year.
Employee benefits
The retirement benefit asset and/or liabilities recognised in the statement of financial position represents the fair value of defined benefit
Plan assets less the present value of the DBO, to the extent that this is recoverable by means of a contribution holiday, payment of money
purchase contributions and expenses from the Plan calculated on the projected unit credit method. Operating costs comprise the current
service cost plus expenses. Finance income comprises the expected return on Plan assets less the interest on Plan liabilities. Actuarial gains or
losses comprising differences between the actual and expected return on Plan assets, changes in Plan liabilities due to experience and changes
in actuarial assumptions are recognised immediately in other comprehensive income. Pension costs for the money purchase section represent
contributions payable during the year.
Goodwill
All business combinations are accounted for by applying the purchase method. Goodwill arising on consolidation represents the excess
of the cost of the acquisition over the Group’s interest in the fair value of identifiable assets (including intangible assets) and liabilities of the
business acquired. Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill
is allocated to each of the Group’s CGUs expected to benefit from the synergies of the combination. CGUs to which goodwill has been
allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable
amount of the CGU is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any
goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
An impairment loss recognised for goodwill is not reversed in a subsequent period. On the disposal of a CGU, the attributable amount of
goodwill is included in the determination of the profit or loss on disposal. Goodwill recorded in foreign currencies is retranslated at each period
end. Any movements in the carrying value of goodwill as a result of foreign exchange rate movements are recognised in the statement of
comprehensive income.
Other intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated
impairment losses. Amortisation is recognised in the profit for the year on a straight line basis over their estimated useful lives. The estimated
useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less
accumulated impairment losses. Intangible assets acquired in a business combination and recognised separately from goodwill are initially
recognised at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, intangible assets
acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same
basis as intangible assets that are acquired separately. Intangible assets recorded in foreign currencies are retranslated at each period end.
Any movements in the carrying value of intangible assets as a result of foreign exchange rate movements are recognised in the statement of
comprehensive income.
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Notes to the financial statements continued
32 Accounting policies (continued)
Leased assets
The Group as a lessee
The Group recognises a right-of-use asset and a lease liability at the commencement date of the contract for all leases conveying the right
to control the use of an identified asset for a period of time, with the exception of short-term leases and leases for which the underlying asset
is of low value. The right-of-use asset is initially measured at cost, and subsequently, at cost less any accumulated depreciation and any
accumulated impairment losses and adjusted for any remeasurement of the lease liability. If the lease transfers ownership of the underlying
asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option,
the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset on a straight
line basis. Otherwise, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term on a straight line basis.
The lease liability is initially measured at the present value of the lease payments not paid at that date. Lease payments are discounted using
the Group’s incremental borrowing rate or the rate implicit in the lease contract. The lease liability is subsequently remeasured to reflect lease
payments made. Short-term and low-value leases are recognised in profit or loss on a straight line basis over the term of the lease.
The Group as a lessor
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the
Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised
as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account
the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). When some
or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an
asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
Land and buildings
Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the balance
sheet at their deemed cost, being the fair value at the date of transition to IFRS less any subsequent accumulated depreciation and
subsequent accumulated impairment losses. Any revaluation increase arising on the revaluation of such land and buildings prior to deemed
cost being adopted was credited to the properties revaluation reserve, except to the extent that it reversed a revaluation decrease for the
same asset previously recognised as an expense, in which case the increase was credited to the income statement to the extent of the
decrease previously expensed. A decrease in carrying amount arising from the revaluation of such land and buildings was charged as an
expense to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that
asset. Depreciation on revalued buildings is charged to income. On the subsequent sale or scrappage of a previously revalued property,
the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings. Freehold land is
not depreciated.
Surplus properties
The Group owns several properties, which were previously used in its trading businesses, that are now surplus to its current business needs.
There is an active plan to sell these properties as and when market conditions allow. For the purposes of these financial statements, these
properties have been included under the heading Surplus properties.
Share-based payments
The fair value at the date of grant of share options is calculated using the Black Scholes pricing model and charged to the income statement
on a straight line basis over the vesting period of the award. The charge to the income statement takes account of the estimated number
of share options that will vest. The corresponding credit to an equity settled share-based payment is recognised in equity. If vesting periods
or other non-market vesting conditions apply, the expense is allocated over the vesting period based on the best-available estimate of the
number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options
expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period.
No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different from those estimated
on vesting. Further details are given in the Directors’ report.
Employee benefit trusts
The Company has established trusts for the benefit of employees and certain of their dependants. Monies held in these trusts are held
by independent Trustees and managed at their discretion. Where monies held in a trust are determined by the Company based on employees’
past services to the business and the Company can obtain no future economic benefit from these monies, such monies, whether in trust
or accrued for by the Company, are charged to the income statement in the period to which they relate.
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Notes to the financial statements continued
32 Accounting policies (continued)
Going concern
In determining whether the Group’s annual consolidated financial statements can be prepared on a going concern basis, the Directors
considered the Group’s business activities, together with the factors likely to affect its future development, performance and position;
these are set out in the Strategic report.
During the year, the Group arranged new credit facilities with existing bankers HSBC Bank UK. An existing £8m overdraft was replaced with a
£6m commercial mortgage committed for three years and £6m of other short-term facilities that are to be renewed annually. The Group will
meet its day-to-day working capital requirements through a £2m overdraft facility and a £4m invoice discounting facility. The Group will seek
to renegotiate these facilities in due course and management is confident that facilities will be forthcoming on acceptable terms. The forecasts
used to assess the going concern assumption were approved by the Board on 18 February 2021. As a result of the market uncertainty due to
the ongoing Covid-19 coronavirus pandemic, the Directors have performed a detailed stress test to confirm that the business will be able to
operate for at least the following 12 months from the date of approval of these financial statements. This involves assessing the headroom
against available credit facilities and financial covenants in a stressed scenario, the assumptions used for this test are as follows:
• 5% reduction in revenues;
• suspension of dividend payments to shareholders;
• deferment of 2020 bonuses due to senior management;
• a moratorium on uncommitted, non-essential capital expenditure; and
• continued availability of existing credit facilities from the Group’s finance providers.
As at the date of this report, the Directors have a reasonable expectation that the Company and Group have adequate resources to
continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the
annual financial statements.
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the reporting date.
However, uncertainty about the assumptions and estimates could result in outcomes that could require a material adjustment to the
carrying amount of the asset or liability affected in the future.
The Directors consider the following to be the critical judgements and key sources of estimation uncertainty made in preparing these financial
statements that, if not borne out in practice, may affect the Group’s results during the next financial year.
Critical judgements
1) Classification of surplus properties
The Group owns several properties, which were previously used in its trading businesses, that are now surplus to its current business needs.
Management is required to determine which properties were surplus during the year and at the reporting date; the basis of the determination
is whether the properties are in operational use. There were no changes in the classification of properties during the current or prior year.
Key sources of estimation uncertainty
1) Pensions and other post-employment benefits
The cost of defined benefit pension plans and other post-employment benefit is determined using actuarial valuations. The actuarial valuation
involves making assumptions about discount rates, expected rates of return on assets, mortality rates and future pension increases. Due to the
long-term nature of these plans, such estimates are subject to significant uncertainty. The irrecoverable surplus is based on estimates of the
recoverable surplus. These are based on expectations in line with the underlying assumptions in the valuation and current circumstances.
Further details can be found in note 30.
2) Impairment of goodwill, other intangible assets and property, plant and equipment
The Group tests goodwill, intangible assets and property, plant and equipment annually for impairment, or more frequently if there are
indications that an impairment may be required. Determining whether goodwill is impaired requires an estimation of the value in use of the
CGUs to which goodwill has been allocated. The value-in-use calculation requires the entity to estimate the future cash flows expected to
arise from the CGU and a suitable discount rate in order to calculate present value. Further details on this process are set out in note 10.
3) Sales volume rebates
Some products are sold with retrospective volume rebates based on aggregate sales over a 12-month period. Accumulated experience is used
to estimate and provide for the rebates, using the expected value method. Where the sales volume exceeds the agreed thresholds and meets
other contractual terms, a rebate liability is recognised for expected volume rebates payable to customers in relation to sales made until the
end of the reporting period.
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Notes to the financial statements continued
32 Accounting policies (continued)
Amendments to IFRSs that are mandatorily effective for the current year
The adoption of the following mentioned standards, amendments and interpretations in the current year have not had a material impact
on the Group’s/Company’s financial statements.
EU effective date – periods beginning on or after
IAS 1 Presentation of Financial Statements and IAS 8 Accounting
Policies, Changes in Accounting Estimates and Errors (Amendment):
Definition of Material
IFRS 9 Financial Instruments, IAS 39 Financial Instruments:
Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures (Amendments): Interest Rate Benchmark Reform – Phase 1
Conceptual Framework (Amendment): Amendments to References
to the Conceptual Framework in IFRS Standards
1 January 2020
1 January 2020
1 January 2020
IFRS 3 Business Combinations (Amendment): Definition of a Business
1 January 2020
The adoption of the following mentioned standards, amendments and interpretations in future years are not expected to have a material
impact on the Group’s/Company’s financial statements.
EU effective date – periods beginning on or after
IFRS 16 Leases (Amendment): Covid-19-related Rent Concessions
IFRS 9 Financial Instruments, IAS 39 Financial Instruments:
Recognition and Measurement, IFRS 7 Financial Instruments:
Disclosures, IFRS 4 Insurance Contracts and IFRS 16 Leases
(Amendments): Interest Rate Benchmark Reform – Phase 2
IFRS 4 Insurance Contracts (Amendment): Extension of the
Temporary Exemption from Applying IFRS 9
IAS 16 Property, Plant and Equipment (Amendment):
Proceeds before Intended Use
IAS 37 Provisions, Contingent Liabilities and Contingent Assets:
(Amendment): Onerous Contracts – Cost of Fulfilling a Contract
IFRS 3 Business Combinations (Amendment): Reference to the
Conceptual Framework
Annual Improvements to IFRSs (2018 – 2020 cycle)
IAS 1 Presentation of Financial Statements (Amendment):
Classification of Liabilities as Current or Non-current and Classification
of Liabilities as Current or Non-current – Deferral of Effective Date
1 June 2020
1 January 2021
1 January 2021
1 January 2022
1 January 2022
1 January 2022
1 January 2022
1 January 2023
IFRS 17 Insurance Contracts and Amendments to IFRS 17
1 January 2023
Comment on standards effective from 1 January 2021
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2020 reporting
periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity
in the current or future reporting periods and on foreseeable future transactions.
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Independent auditor’s report to
the members of Robinson plc
Opinion
We have audited the financial statements of Robinson plc (the ‘parent company’) and its subsidiaries (the ‘Group’) for the year ended
31 December 2020 which comprise the Group income statement, the Group statement of comprehensive income, the Group and Company
statement of financial position, the Group and Company Statement of changes in equity, the Group and Company Cash flow statement and
Notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and international accounting standards
in conformity with the requirements of the Companies Act 2006 and, as regards the Company financial statements, as applied in accordance
with the provisions of the Companies Act 2006.
In our opinion, the financial statements have been prepared in accordance with the requirements of the
Companies Act 2006 and:
• give a true and fair view of the state of the Group’s and of the parent company’s affairs as at 31 December 2020 and of the Group’s profit for
the year then ended; and
• have been properly prepared in accordance with international accounting standards in conformity with the requirements of the Companies
Act 2006 and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are
independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard, as applied to SME listed entities, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of
the financial statements is appropriate.
Our audit procedures to evaluate the directors’ assessment of the Group’s and the parent company’s ability to continue to adopt the going
concern basis of accounting included but were not limited to:
• undertaking an initial assessment at the planning stage of the audit to identify events or conditions that may cast significant doubt on the
Group’s and the parent company’s ability to continue as a going concern;
• obtaining an understanding of the relevant controls relating to the directors’ going concern assessment;
• evaluating the directors’ method to assess the Group’s and the parent company’s ability to continue as a going concern;
• reviewing the directors’ going concern assessment including related stress testing which incorporated severe but plausible scenarios;
• evaluating the key assumptions used and judgements applied by the directors in forming their conclusions on going concern; and
• reviewing the appropriateness of the directors’ disclosures in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group’s and the parent company’s ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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Independent auditor’s report to the members of Robinson plc continued
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified,
including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts
of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matter
How our scope addressed this matter
Revenue recognition
The Group’s accounting policy in respect of revenue recognition
is set out in the accounting policy notes on page 64. Revenue is
a material balance for Robinson plc and represents the largest
balance in the Group income statement. An error in this balance
could significantly affect users’ interpretation of the financial
statements. As a result, there is a risk of fraud or error in revenue
recognition due to the potential to inappropriately record revenue
in the wrong period. We therefore consider cut-off to be a key audit
matter.
Our response
Our procedures over revenue recognition included, but were not
limited to:
• Obtaining an understanding of the processes and controls over
the recognition of revenue and performing walkthrough procedures
to validate that controls were appropriately designed and
implemented; and
• Substantive testing of a sample of revenue transactions around the
year end to ensure they were accounted for in the correct period.
• Performed a review of material receipts pre and post year end to
provide additional comfort that revenue around the year end was
appropriately recognised in the correct period.
Our observations
Our work performed in relation to controls over the recognition of
revenue confirmed that the controls in place were designed and
implemented effectively. Based on our work performed on
transactions around the year end, revenue was appropriately
recognised in the correct period.
Our application of materiality and an overview of the scope of our audit
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together
with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on
the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and on the financial
statements as a whole. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall materiality
How we determined it
Rationale for benchmark applied
Performance materiality
Reporting threshold
£651,000
The overall materiality level has been determined with reference to a
benchmark of Group revenue.
In our view, revenue is the most relevant measure of the underlying
performance of the Group and therefore, has been selected as the
materiality benchmark. The percentage applied to this benchmark is
1.75%.
Performance materiality is set to reduce to an appropriately low level
the probability that the aggregate of uncorrected and undetected
misstatements in the financial statements exceeds materiality for the
financial statements as a whole.
This was set at £520,000.
We agreed with the directors that we would report to them
misstatements identified during our audit above £19,500. as well as
misstatements below that amount that, in our view, warranted
reporting for qualitative reasons.
As part of designing our audit, we assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and
then designed and performed audit procedures responsive to those risks. In particular, we looked at where the directors made subjective
judgements, such as making assumptions on significant accounting estimates.
We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as
a whole. We used the outputs of a risk assessment, our understanding of the Group and parent company, their environment, controls and
critical business processes, to consider qualitative factors in order to ensure that we obtained sufficient coverage across all financial statement
line items.
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Independent auditor’s report to the members of Robinson plc continued
Our Group audit scope included an audit of the Group and the parent company financial statements of Robinson plc. Based on our risk
assessment, Robinson Plastic Packaging Limited, Robinson Paperbox Packaging Limited, Robinson (Overseas) Limited, Portland Works Limited
and Walton Mill (Chesterfield) Limited within the Group were subject to full scope audit and was performed by the Group audit team.
Robinson Packaging Polska SP z.o.o was also subject to a full scope audit undertaken by component auditors, Mazars Poland. The group audit
team directed and reviewed the work of the component auditor to gather sufficient and appropriate evidence in order to support the opinion
on the consolidated financial statements.
At the parent company level we also tested the consolidation process and carried out analytical procedures to confirm our conclusion that
there were no significant risks of material misstatement of the aggregated financial information.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report other
than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information
and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether
there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
• the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Group and the parent company and its environment obtained in the course of the audit,
we have not identified material misstatements in the Strategic report or the Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
in our opinion:
• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from
branches not visited by us; or
• the parent company financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the directors’ responsibilities statement set out on page 37, the directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the parent company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.
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Independent auditor’s report to the members of Robinson plc continued
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but
is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Group and the parent company and its industry, we identified that the principal risks of non-compliance
with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation and
we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws
and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including
the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial
performance, management bias through judgements and assumptions in significant accounting estimates.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities)
and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
• Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations.;
• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance
throughout our audit; and
• Considering the risk of acts by the Group and the parent company which were contrary to the applicable laws and regulations, including
fraud.
Our audit procedures in relation to fraud included but were not limited to:
• Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
• Gaining an understanding of the internal controls established to mitigate risks related to fraud;
• Discussing amongst the engagement team the risks of fraud; and
• Addressing the risks of fraud through management override of controls by performing journal entry testing.
The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and
management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional
omissions, misrepresentations or the override of internal controls.
As a result of our procedures, we did not identify any key audit matters relating to irregularities. The risks of material misstatement that had
the greatest effect on our audit, including fraud, are discussed under “Key audit matters” within this report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit report
This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.
Alistair Wesson
(Senior Statutory Auditor) for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
Park View House
58 The Ropewalk
Nottingham
NG1 5DW
24 March 2021
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Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting
of Robinson plc will be held at:
Casa Hotel, Lockoford Lane,
Chesterfield S41 7JB
on Thursday 24 June 2021 at 11:30 am
for the following purposes:
Resolutions
To consider and, if thought fit, pass the following resolutions,
which will be proposed as ordinary resolutions:
1. to receive and adopt the report of the Directors and the audited
financial statements for the year ended 31 December 2020
2. to declare a final dividend of 3p per ordinary share
3. to re-elect Alan Raleigh as a Director of the Company
4. to re-elect Helene Roberts as a Director of the Company
5. to re-elect Guy Robinson as a Director of the Company
6. to re-elect Mike Cusick as a Director of the Company
7. to re-elect Sara Halton as a Director of the Company
8. to re-appoint Mazars LLP as auditors of the Company and to authorise
the Directors to determine their remuneration
To transact any other ordinary business of an Annual General Meeting.
On behalf of the Board,
Guy Robinson
Director
24 March 2021
A member entitled to attend and vote at the meeting is entitled to appoint one or more
proxies to attend and, on a poll, vote in his or her stead. A proxy need not be a member
of the Company.
To be valid, Forms of Proxy must be deposited at the Registered Office of the Company
not less than 48 hours before the time of the meeting.
Only those members in the register of members of the Company as at 11:30 am on
22 June 2021 or, if the meeting is adjourned, in the register of members 48 hours before
the time of any adjourned meeting shall be entitled to attend or vote at the meeting
in respect of the number of shares registered in their name at that time. Changes to entries
in the register of members after 11:30 am on 22 June 2021 or, if the meeting is adjourned,
after 48 hours before the time of any adjourned meeting, shall be disregarded in determining
the rights of any person to attend or vote at the meeting.
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Form of proxy
For use at the Annual General Meeting of Robinson plc convened for 24 June 2021 and any adjournments thereof.
I/We, (see note 1) (block capitals please) (name):
of (address):
being a member of Robinson plc hereby appoint the Chairman of the Meeting* or (see note 2) (name/address):
or (see note 2) failing him/her (name/address):
as my/our proxy to attend and vote in my/our name(s) and on my/our behalf at the Annual General Meeting of the Company
to be held on 24 June 2021 and at any adjournment thereof.
This form is to be used in respect of the resolutions mentioned below as indicated.
Where no instructions are given, the proxy may vote as he/she thinks fit or abstain from voting.
Resolutions:
1. To adopt the Directors’ report and
financial statements for the
year ended 31 December 2020
* For
* Against
* Withheld
2. To declare a final dividend
of 3p per ordinary share
3. To re-elect Alan Raleigh
as a Director
4. To re-elect Helene Roberts
as a Director
5. To re-elect Guy Robinson
as a Director
6. To re-elect Mike Cusick
as a Director
7. To re-elect Sara Halton
as a Director
8. To reappoint Mazars LLP
as auditor of the Company
and to authorise the Directors
to determine their remuneration
* For
* Against
* Withheld
* For
* Against
* Withheld
* For
* Against
* Withheld
* For
* Against
* Withheld
* For
* Against
* Withheld
* For
* Against
* Withheld
* For
* Against
* Withheld
* Please delete whichever is not desired or leave blank to allow your proxy to choose.
Signature(s):
Dated:
Notes
1.
2.
3.
The names of all registered holders should
be stated in block capitals.
If it is desired to appoint a proxy other than
the Chairman of the meeting, his/her name and
address should be inserted, the reference to the
Chairman deleted and the alteration initialled.
A member entitled to attend and vote at the
meeting is entitled to appoint one or more
proxies to attend and, on a poll, vote in his
or her stead. A proxy need not be a member
of the Company.
4. In the case of joint holders, the signature
of any one holder is sufficient, but the names
of all joint holders must be stated. The vote
of the senior who tenders a vote whether
in person or by proxy will be accepted to the
exclusion of the other votes of joint holders.
For this purpose, seniority will be in the order
in which the names appear in the register of
members for the joint holding.
5.
Unless otherwise indicated, or upon any matter
properly before the meeting but not referred
to above, the proxy may vote or abstain from
voting as he/she thinks fit.
6. To be valid, forms of proxy must be deposited
at the Registered Office of the Company,
Field House, Wheatbridge, Chesterfield
S40 2AB, not less than 48 hours before
the time appointed for the meeting.
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Annual General Meeting attendance form
Annual General Meeting
Thursday 24 June 2021
The Board very much hopes that you will be able to attend this year’s annual General Meeting,
which will again be held at Casa Hotel, Lockoford Lane, Chesterfield S41 7JB at 11:30 am.
To assist with catering and arrangements, it would be helpful if you would complete and return this attendance form.
If you are appointing a proxy, then please ask your proxy to complete and return the form.
Me
My proxy
Thank you and we look forward to seeing you.
From (full name in CAPITALS please):
I shall be attending the AGM
I shall be staying for the buffet lunch
Please tick the appropriate boxes.
Signature:
Dated:
Please return this form to:
Guy Robinson
Robinson plc
Field House
Wheatbridge
Chesterfield
S40 2AB
UK
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Directors and Advisers
Directors
Alan Raleigh Non-Executive Chairman
Helene Roberts Chief Executive Officer
Guy Robinson Property Director
Mike Cusick Finance Director
Anthony Glossop Non-Executive Director
Sara Halton Non-Executive Director
Registered Office
Field House, Wheatbridge, Chesterfield, S40 2AB
Nominated Adviser/Broker
FinnCap 60 New Broad Street, London, EC2M 1JJ
Solicitor
DLA Piper UK LLP 1 St Paul’s Place, Sheffield, S1 2JX
Auditor
Mazars LLP Park View House,
58 The Ropewalk, Nottingham, NG1 5DW
Tax Adviser
Garbutt & Elliot LLP 33 Park Place, Leeds, LS1 2RY
Registrar
Neville Registrars Ltd Steelpark Rd, Halesowen, B62 8HD
Banker
HSBC 1 Bond Court, Leeds, LS1 2JZ
The Company is incorporated in England, registered no.
39811
@robinsonpack
/robinsonpackaging
robinson-packaging-innovation
Visit us online at robinsonpackaging.com
Robinson plc, Field House, Wheatbridge,
Chesterfield, S40 2AB United Kingdom
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