Robinson PLC on Thursday said higher costs and disruption in Poland contributed to a decline in half-year profit although revenue ticked higher.
The Chesterfield, Derbyshire-based manufacturer of plastic and paperboard packaging said pretax profit plunged 44% to £1.0 million in the six months ended June 30 from £1.8 million the year prior, despite revenue growing 4.7% to £28.9 million from £27.6 million.
Hurting the bottom line, a 18% rise in operating costs to £4.9 million from £4.1 million a year ago.
The increased expenses include higher distribution and external storage costs; net investment to support the “refreshed” group strategy; inflation in wages and salaries; and lower property rental income.
Gross margins reduced to 20% from 22% largely reflecting the higher costs and the mix impact of lower sales in Poland.
“Performance was affected by lower volumes and therefore operational gearing in Poland, an isolated raw-material quality issue in Paperbox, and input-cost inflation and supply disruption arising from the Middle East crisis,” the firm said in a statement.
In response, shares in Robinson were down 6.7% at 123.60 pence each in London on Thursday.
Chair Alan Raleigh said the results reflect a “very challenging” trading environment.
He said Robinson has established a new leadership team to drive revenue growth and operational cost reduction across the business, and continues to sell off surplus property to cut debt.
Robinson expects full-year underlying operating profit of between £2.2 million and £2.6 million, which at best would be 28% lower than £3.6 million reported in 2025.
“Several pressures affecting the first half are expected to continue for longer than previously anticipated. The conflict in the Middle East has kept polymer, energy and freight costs elevated, and constrained material availability, while recovery through customer pricing remains uncertain,” the firm added.
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