Robinson sees sales dip and ponders future of Canadian operation

Announcing its financial results for the year ended 31 December 2009, Robinson chairman, Richard Clothier said that after good progress in 2008, the outcome for 2009 was disappointing. A sharp drop in revenue occurred during the second quarter of the year as a consequence of customers reacting to the general economic outlook by reducing their stockholding and, as a result, the first half was 15% below the same period in 2008. He went on: "We are pleased to be able to report a recovery in our markets following destocking in the second quarter of 2009. Stronger revenues in the second half produced a net profit and positive cash flow for the year. The current year has started slowly, as it did last year, but we are confident that unless market conditions deteriorate significantly then we will be able to make further progress in 2010 and resume the growth that the company began to show in 2008." In the face of a 9% drop in sales to £23.4 million for the year as a whole (2008: £25.8m), profit held up disproportionately well, Clothier said. Pre-tax profit was £0.7 million, a reduction from £1.3 million in 2008. Looking ahead, the company said it was conscious of the possible effects of the economy and Government policy on its costs and on consumer demand but as Robinson was mainly exposed to the food, drink and toiletry sectors, it did not expect the sector to be greatly affected. Clothier added that the company is reviewing the strategic importance and viability of its North American operation in Toronto and is seeking ways of strengthening its European business. "We expect the Central European business based in Poland to show further growth in 2010," he added. Based in Chesterfield, with additional manufacturing facilities in Kirkby-in-Ashfield and Stanton Hill (Nottinghamshire) in Toronto (Canada) and in Lodz (Poland), Robinson currently employs around 350 people. It operates primarily within the food, drink, confectionery, cosmetic and toiletry sectors, providing niche or custom manufacture to major players in the fast moving consumer goods market, such as Proctor & Gamble, Nestlé, Kraft, Northern Foods, Masterfoods, Bakkavor, Unilever, Avon and Reckitt Benckiser.