Chairman Richard Clothier said the financial outcome at Robinson (Chesterfield / UK; www.robinsonpackaging.com) was disappointing in 2009 after the packaging group had made good progress in 2008. The business suffered especially from customer destocking in the second quarter, although volumes recovered by year’s end. Sales for the year dropped 9% to GBP 23.4m (EUR 25.7m), leading to a 16% decline in operating profit to GBP 1.8m. Pretax profit fell nearly 50% to GBP 0.7m, but positive cash flow enabled net borrowings to decrease from GBP 3.7m to GBP 2.9m.

Revenues in central Europe increased by 29% during the year as the group benefited from a full 12-month period of business transferred from the UK to the factory in Lodz / Poland. By contrast, North American revenues tumbled 49% as several large cosmetic customers suffered weak sales and undertook substantial destocking. Despite the fall in profits, the gross margin improved from 18% to 20%, thanks to better management of the customer mix, lower direct costs – notably electricity and transport – and lower polymer prices. The sale of surplus properties yielded GBP 0.4m, but the exceptional profits of GBP 0.2m were offset by redundancy costs incurred at the UK factories in Chesterfield and Kirkby-in-Ashfield.

Clothier said 2010 started on a slow footing but the group is experiencing significantly improved revenues in Europe. As a result, it is seeking ways of strengthening its European business, with the plastics packaging operations of the Lodz factory, established in August 2005, expected to show further growth. By contrat, the group is reviewing the importance and viability of the North American paperboard packaging operation in Toronto / Canada, which sells mainly to the toiletries sector.