Robinson, the custom manufacturer of plastic and paperboard packaging, has slipped to a pre-tax loss after experiencing “very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the COVID-19 pandemic.”
According to audited results for the year ended 31 December 2021, revenue grew 24% to £46m, up from £37.2m in 2020. Despite this, the Chesterfield-headquartered company posted a loss before tax of £0.1m, in comparison to a £1.8m profit in 2020.
Robinson, whose origins date back to 1839, launched a “modest restructuring programme” in November, to deliver £0.3m of cost savings annually.
Alan Raleigh, chairman, said: “The Robinson business has experienced very challenging conditions throughout 2021 across input price inflation, customer demand and the ongoing uncertainty resulting from the COVID-19 pandemic.
“The substantial uncertainty and volatility experienced in 2021 is likely to continue through 2022, with further inflation in input costs anticipated.
“As a result of the inflation already experienced in 2021, we are seeking substantial price increases from all customers, which will support the improvement of margins in 2022. Given the ongoing pressure on input prices the board will continue to prioritise the management of fixed costs in 2022.
“It is likely that the consequences of the Russian invasion of Ukraine will remain for some time. Whilst we cannot foresee or fully quantify the impact, we are closely monitoring the situation, we will drive profitability, conserve cash and respond as necessary across our geographical locations.
“Despite the ongoing uncertainty, profits in the 2022 financial year are expected to be ahead of 2021 and we remain committed in the medium-term to delivering above-market profitable growth and our target of 6-8% adjusted operating margin.”
