Slide 1: Financial results 2020
Financial results 2020 25 March 2021
Slide 2: Disclaimer
Disclaimer The information contained in these slides and any accompanying verbal presentation as well as any question and answer sessions (together, the "Presentation") have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 ("FSMA"). Reliance
Slide 3: About us
About us Custom packaging with value-added sustainable solutions for hygiene, safety, protection and convenience Injection and blow moulded plastic packaging and rigid paperboard luxury packaging Products and services within the food and drink, homecare, beauty and personal care and luxury gift sect
Slide 4: Track record
Track record Last 3 years demonstrate sustainable growth after inconsistent performance during 2015-2017 Sales (£m) Gross Margin % Adj. Operating Profit* 35.1 37.2 (£m) 32.8 24.0 29.1 29.8 22.8 23.0 27.5 21.4 3.2 19.4 17.9 2.7 2.5 2.1 1.3 1.5 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 20
Slide 5: 2020 highlights
2020 highlights While 2020 was a year of unprecedented challenges, it was also a year when our purpose came to life bringing achievement and strong performance Financial Operational • Revenue increased by 6% to £37.2m – volume +8% • Rebranded Robinson and defined new purpose and core values • Gross
Slide 6: Market drivers and opportunities
Market drivers and opportunities Our strategy is to grow organically and sustainably with existing multi-national FMCG customers in our core markets, while targeting strategically-aligned new customers in our focus sectors Growth markets Customer relationships For food and consumer product benefits
Slide 7: Creating value
Creating value Our purpose driven business is focused on creating sustained mutual shared value for all stakeholders 7
Slide 8: Developing our strategy
Developing our strategy Growing ahead of the market by providing excellent customer service as a long-term strategic partner while creating a people-centric business aligned with our purpose Sustainability is at the core as we transition to decarbonisation and a circular economy 8
Slide 9: Guiding our sustainability journey
Guiding our sustainability journey Our newly launched sustainability pledge underpins our business strategy, delivering packaging with purpose and focusing on where we can deliver the greatest benefit for people and planet 9
Slide 10: Performance against the strategy
Performance against the strategy We align our KPIs with our three strategic priorities and sustainability pledge, to monitor financial and non-financial performance and value creation Revenue growth Lost time accidents per 100 employees Gross profit margin Gender diversity (total females) Adjusted o
Slide 11: Principal risks
Principal risks Those risks with the most potential to impact delivery of the Group’s long-term strategic goals A) Acquisition integration – failure may reduce business earnings and value Comprehensive post-acquisition integration plan in place with regular reviews. The existing Schela Plast Managin
Slide 12: Acquisition - Schela Plast A/S
Acquisition - Schela Plast A/S Acquired Schela Plast A/S in February 2021 – supporting key Group customers in the Nordic region • Specialist in the design and manufacture of plastic blow moulded containers • Complementary market sectors to those served by Robinson • Expands geographic reach and crea
Slide 13: Covid-19 update
Covid-19 update Key industries and resilient market sectors allowed us to continue operations while safeguarding our employees Staff and operations • All factories continued to trade with customers, while safeguarding employees • New ways of working, many of our sales and administration colleagues c
Slide 14: Corporate governance
Corporate governance The Board is committed to the highest standards of corporate governance Board and committee changes • Guy Robinson retired as Finance Director on 1 January 2021 as planned, and was succeeded by Mike Cusick • Sara Halton appointed as Senior Independent Director and Chair of the A
Slide 15: Income statement
Income statement £’000 2020 2019 % change Revenue 37,203 35,085 +6.0% Gross profit 8,566 7,492 +14.3% Gross profit % 23.0% 21.4% +160bps Operating costs (5,794) (4,971) +16.6% Acquisition costs (84) - n/a Adjusted operating profit 2,688 2,521 +6.6% Adjusted operating profit % 7.2% 7.2% nil Amortisat
Slide 16: Balance sheet
Balance sheet £'000 2020 2019 £'000 2020 2019 Non-current assets Intangible assets 3,896 4,760 Cash 1,386 1,403 Property, plant and equipment 20,873 18,338 Bank overdrafts (2,282) (3,081) Deferred tax assets 978 937 Bank and other loans (2,700) (2,700) 25,747 24,035 Lease liabilities (3,269) (2,568)
Slide 17: Cashflow
Cashflow £’000 2020 2019 % change Operating cash flow before working capital 5,141 4,645 +11% Cash generated from operations 6,586 4,851 +36% Cash generated from operating activities 5,929 4,519 +31% Net cash used in investing activities (4,591) (1,664) -176% Net cash used in financing activities (5
Slide 18: Summary and outlook
Summary and outlook Committed to delivering above-market profitable growth and 6-8% adjusted operating profit margin Full year 2020 • Strong financial results despite significant challenges • Covid-19 impact marginally beneficial to revenue and profit • Investment in capabilities in manufacturing, s
Slide 19: Appendices
Appendices 19
Slide 20: Introductions
Introductions Helene Roberts – CEO Helene has extensive knowledge of sustainable materials technology, global sales, marketing and innovation and people leadership. She has a degree in Materials Engineering and a PhD in Polymer Engineering. Helene’s career started with M&S, initially as a materials
Slide 21: External landscape
External landscape Plastics use and waste, Environmental Regulation and UK and European Plastics pollution, food waste, sustainability energy, carbon emissions. legislation legislation from 2022. Role of packaging Reliance on timely, high Social and and attitudes to waste. quality raw materials. dem
Slide 22: Surplus property
Surplus property Increase cash reserves for reinvestment Surplus properties • Book value £4m (valued end of 2008) • Estimated fair value £6.4m • Current gross rental income £0.3m per annum – reduced by £0.1m due to Covid-19 rent holidays. • Progress achieved very recently in surplus property disposa
Slide 23: Pension fund
Pension fund Defined benefit pension plan • Closed to new entrants in 1997 • Assets £67m at end of 2020 (2019: £66m) • IAS 19 surplus at 31 Dec of £9.3m (2019: £10.5m) • Escrow account has £3.1m - £2.7m loaned to Company • Intention to buy-out when market conditions allow • Triennial actuarial valua
Slide 24: Together since 1839