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The price of shares in AIM-listed packaging producer Robinson (LON:RBN) climbed by 8.82% to 55.50p (as of 13:45 BST) after the firm reported a 7% increase in 2019 revenues. Gross margins improved from 18% to 21% and pre-tax profits rose by 119%.
Chairman Alan Raleigh commented: “We have made important steps forward across all aspects of our business in 2019. Our results confirm that our actions to improve competitiveness are bearing fruit in a challenging and uncertain market.
“We are of course assessing the rapidly evolving coronavirus pandemic and the impact this could have on our people, our customers and our business. Our business is predominantly in the food, personal care and household sectors, with more than 70% of our turnover arising from financially strong multi-national or local players, so we believe we are likely to be less affected by the pandemic than others. We have also stress-tested the resilience of our business to potential cash flow interruptions and believe we have sufficient financial headroom. However, in these current extremely uncertain circumstances, we believe it is prudent to maximise the cash retained in the business, so we have decided not to declare a final dividend in respect of 2019. When there is greater clarity on the impact of coronavirus on market conditions and our currently projected financial strength, it is the Board’s ambition to resume dividend payments“.