Annual report 2024

Building momentum

Year ended 31 December 2024

Welcome to the Robinson Group Annual report 2024

We reported twelve months ago that despite the substantial economic headwinds we were starting to see positive momentum and a growing sales pipeline across the business. We are pleased that our actions in recent years have enabled us to capitalise on those opportunities and report substantial revenue growth in 2024.

We have continued to progress our sustainability agenda and during the year 27% of the plastic that we processed was from recycled sources. We completed the buyout of the defined benefit pension scheme and laid the groundwork for further sales of surplus property in 2025.

John Melia joined the business as CEO in December and will lead the evolution of our strategy to further increase revenue and profitability in 2025.

Our close partnerships with major customers have generated a significantly improved sales pipeline for 2025, and, as our customers respond to new market opportunities, we see additional growth potential in future years. With this potential we are well placed to generate sustainable long-term value for our shareholders.

| Partner of choice | Robinson plc Annual report 2024

Contents

Strategic report

• 3 Our year in review

• 4 Chairman's statement

• 6 Chief Executive's report

• 10 Robinson at a glance

• 12 Our business strategy

• 14 Guiding our sustainability journey

• 18 How we create value

• 20 Risks and opportunities

• 22 Engaging with stakeholders

• 26 Performance overview

Corporate governance

30

Corporate governance report

35 Directors' remuneration report

38

Directors' report

Financial statements

42 Group income statement and statement of comprehensive income

43 Statement of financial position

44 Statement of changes in equity

45 Cash flow statement

46 Notes to the financial statements

76 Independent auditor's report to the members of Robinson plc

Additional information

• 83 Notice of Annual General Meeting

• 85 Form of proxy

• 86 Annual General Meeting aendance form

Our year in review

Five year summary

| Robinson plc Annual report 2024 | 3

Chairman's Statement

I am pleased to report strong progress in 2024. Our results build on the positive momentum experienced in the second half of 2023, with substantial revenue growth of 14% to £56.4

million, gross margin increasing to 20% and a 45% increase in underlying operating profit* to £3.2 million. This confirms that our strategy of partnering with major FMCG brand owners, investing in new technology, driving efficiencies, and supplying sustainable packaging is delivering the anticipated results. The underlying performance of the business gives the Board confidence to recommend an increase in the final dividend to 3.5p per share.

Alan Raleigh | Chairman

People and organisation

funds) and the non-cash impairment charge of £1.7m related to the Denmark operation have resulted in a Group loss before tax of £3.8m (2023: loss before tax £0.7m).

Dividend

The Board proposes a final dividend of 3.5p per share, to be paid on 20 June 2025 to shareholders on the register at the close of business on 6 June 2025. The ordinary shares become ex-dividend on 5 June 2025. This brings the total dividend declared for 2024 to 6.0p (2023: 5.5p).

Strategy

Our strategy remains to partner with brand owners in the Food, Personal Care and Household markets across Europe to deliver packaging solutions that enable brand differentiation, product protection and consumer functionality.

Financial performance

We achieved strong financial results for the year ended 31 December 2024, with progress made on all our key financial measures. 2024 revenues were 14% higher than 2023 and gross margin improved to 20% (2023: 19%), despite production start-up issues on the large project in Denmark. Underlying operating profit* increased to £3.2m (2023: £2.2m).

Despite this excellent progress, other items, including the non-cash and non-Company costs of £3.7m related to the buy-out of the defined benefit pension scheme (required by accounting standards despite no impact on shareholders'

We continue to work in close collaboration with customers who share our commitment to sustainability and the circular economy, by leveraging new capabilities across our business. We have a firm commitment to further reduce the amount of plastic in our products, increase the use of recycled material where technically and economically feasible and operate more sustainable supply chains.

John Melia joined the business as CEO in December 2024. John is an accomplished business leader who has a track record of delivery at senior level across both SMEs and multinational businesses. He brings extensive experience of business development, operational performance improvement, a deep understanding of the circular economy and significant manufacturing expertise.

John will lead the evolution and sharpening of our strategy to increase revenue and improve profitability.

The Board appreciates the excellent contribution of our Robinson colleagues, who enable everything we achieve.

I would also like to thank Sara Halton for her contribution as Interim Chief Executive from September 2023 to December 2024. I look forward to Sara continuing her non-executive responsibilities in 2025.

Shareholder engagement

The main topics discussed with investors over the last 12 months include CEO recruitment, capital allocation, recycled materials, carbon emission targets and dividend policy, all of which are addressed in this report.

We welcome the opportunity to speak with existing and prospective investors and look forward to greeting shareholders at our AGM on 22 May 2025.

Outlook

Our close partnerships with major customers have generated a significantly improved sales pipeline for 2025, and, as our customers respond to new market opportunities, we see additional growth potential in future years.

* Operating profit before other items.

** Operating profit margin before other items.

As we grow revenue and underlying volumes, we will continue to drive improved efficiency and profitability across our operations.

The disposal of surplus properties, with some sales expected to complete within 2025, will improve our financial leverage and ability to support aractive growth projects.

This combination of volume and revenue growth, efficiency and profitability gains, improved financial leverage and new leadership, gives the Board confidence that we are well placed to compete and win. As such, we expect underlying operating profit* for the 2025 financial year to be ahead of 2024. We remain commied to delivering above-market profitable growth and our target of 6-8% underlying operating margin**.

Alan Raleigh Chairman

26 March 2025

Chief Executive's Report

With a refreshed strategy, an improved organisation structure and an investment mindset I

Underlying group performance 2024 revenues and sales volumes were 14% higher than 2023, benefiing from new business projects introduced in the last 18 months, both including the previously announced large new project in Denmark. A strong pipeline of future projects positions us well for continued sales growth.

Gross margins improved by 1% in the year as a result of the operational gearing benefit of higher sales volumes and lower input cost inflation. This is despite production start-up issues on the large project implemented in Denmark, which caused

Business unit performance

Revenue

Underlying operating profit**

Underlying operating profit margin***

Capital expenditure

higher short-term direct costs associated with processing post-consumer recycled resin, demand variability and a longer learning curve than anticipated.

Underlying operating costs* were £8.3m (2023: £7.4m). The increase of £0.9m includes:

• • £0.8m increase in wages and salaries in response to market inflation and substantial mandatory minimum wage increases plus performance related pay;

• • £0.2m increase in insurance premiums after suffering an insured loss related to the flood in 2023;

• • £0.2m warehousing and storage costs as a result of the increased volumes during the year; and

• • the partial offset of £0.3m reduction in costs as a result of the full year effect of the restructuring programme initiated in June 2023.

In total, underlying operating profit** increased to £3.2m (2023: £2.2m).

2024

UK £'000

Poland £'000

Denmark £'000

Head office £'000

Group

UK

• £'000 £'000

2023

Poland £'000

Denmark £'000

Head office Group

£'000 £'000

19,897 501 2.5% 364

18,259 2,147 11.8% 1,338

11,514

- 49,670

(109) (328) 2,211

-0.9% 2,332

n/a 4.5%

- 4,034

In Poland, sales volumes increased by 18% compared to 2023, the majority of which was due to new project wins with a major brand owner in the food sector and a fast-growing local producer of own label products in the personal care sector. We also started to see demand for air freshener devices and other discretionary products return as inflation and the cost-of-living crisis eased. Following the success of our investment in 2023 to expand our capability to manufacture products with recycled material content, we invested in further capacity in 2024. This new equipment has now reached full utilisation and we are planning a third similar investment to replace existing older equipment in 2025. Currency movements had a positive impact on Poland sales of 3% (£0.5m) against the prior year.

In Denmark, sales volumes increased by 19% reflecting delivery of a major new project for the Group's largest customer. Despite the increased sales, we experienced start-up issues on the project, associated with challenges in processing post-consumer recycled resin, demand variability and a longer learning curve than anticipated. As a result, the business made a substantial operating

loss in 2024. In response, we made a number of operational changes in 2024, including recruitment of new employees in key positions; these interventions are already delivering improvements and as a result we have confidence that we will return the operation to profitability in 2025. Despite the predicted improvement, the downturn in performance in the current year and associated reduction in future forecast cash flows has led to an impairment of £1.7m, which has been allocated to the goodwill and customer relationships intangible assets. The impairment is included in other items in the income statement and further details are provided in note 11 of the accounts. Currency movements reduced Denmark sales by 3% (£0.3m) against the prior year.

In the UK Plastics business, sales volumes increased by 5% as we started to benefit from new business won in the previous 12 months. In response to market opportunities, we doubled our capacity for PET bole production in the year and having already achieved full utilisation, we have commied to expand further in this area in 2025. We expect to see a high profit drop-through in this business as we focus on cost control whilst rebuilding the scale lost in recent years.

In the UK Paperbox business, sales volumes increased by 44% despite the flood that happened in October 2023 which continued to affect the factory until August 2024. With the support of our insurers, we were able to outsource production to retain our order book and protect our customer relationships. When our equipment was finally repaired or replaced, we were able to capitalise on our skills and technology to aract and retain large new customers across our market sectors. Thanks to the enormous efforts of our people, the business made an operating profit for the first time since 2019, an impressive achievement given the circumstances. With further stability and a strong pipeline, we expect this business to contribute further to profits in 2025.

Other items, finance costs and taxation

Other items of £6.3m (2023: £2.1m) were recognised in the period. £3.7m (2023: £0.3m) relates to the buy-out of the defined benefit pension scheme, £2.4m (2023: £1.0m) relates to the amortisation and impairment of intangible assets, and £0.2m (2023: £nil) is linked to future sales of surplus properties. Finance costs were £0.8m (2023: £0.8m) as interest rates remain high across the Group's countries of operation. Including these items, the loss before tax was £3.8m (2023: £0.7m).

Taxation for the year was a credit of £0.5m (2023: charge of £0.2m), largely driven by a £0.9m credit due to the tax effect of the IAS 19 pension charge recognised in the period.

Cash flow, capital investment, financing and pension scheme

Cash generated by operations was £7.0m (2023: £5.0m) due to the improved underlying operating profit** from the packaging business and a working capital inflow in the period. Further details are provided in the cash flow statement on page 45.

During the year, we invested £4.5m in property, plant and equipment including installation of four new moulding machines across the Group to expand capacity and facilitate sales growth in 2024 and 2025. As a consequence, net debt at 31 December 2024 was £5.9m (2023: £6.3m). With total credit facilities of £13.5m (2023: £15m), the necessary headroom is available for the Group to operate effectively.

The Robinson & Sons' Limited Pension Fund (the "Scheme") completed a buy-out of all the Group's defined benefit pension liabilities during the year and the Scheme was wound-up on 16 December 2024. As required by IAS 19, the Company has recorded an exceptional cost of £3.7m related to the buy-out and closure of the Scheme in the period. This cost was covered entirely by the surplus in the Scheme and has no impact on the Company's balance sheet or cash flow. Further details are provided in note 31 to the accounts.

Surplus property

We are continuing to pursue the sale of surplus properties in Chesterfield. Subject to the necessary approvals, we would expect a further sale of surplus property to be achieved in 2025.

Based on professional independent valuations, the Directors estimate that the current market value of surplus properties is approximately £7.4m, and this includes the previously announced c.1.3 acres of Walton Works where exchange of contracts has occurred, and completion remains subject to satisfactory agreement of costs.

Sustainability

Sustainability is central to our core values and delivery of the key priorities outlined in our strategy (see page 12).

We launched our sustainability pledge in February 2021 and through practical application, we successfully achieved our initial goals of zero percent waste to landfill and 100% recyclable products across all our operations.

We have not yet met our target of 30% recycled material content in plastics although the ratio improved significantly in 2024 to 27% (2023: 18%) with the launch of the major new project in Denmark which runs at 98% recycled content. Our growth in recycled content in recent years has been largely due to our partnerships with the major premium brand owners, helping them to deliver their own sustainability goals, but gradually we are starting to see the wider market, perhaps under pressure from retailers, looking to move to recycled material despite the higher costs involved. Legislation in the UK and EU continues to limit the use of mechanically recycled polypropylene material for food applications and as this captures more than 35% of our plastic products, this remains a challenge to further increasing our use of recycled raw materials.

Reducing the carbon footprint of our operations by reducing energy consumption is a key strand of our sustainable approach to manufacturing. We continue to decommission old equipment and consolidate production using more modern and energy efficient technology as well as investing in new machinery when appropriate. Energy monitoring systems have successfully been used to identify areas for improvement and will be rolled out further in the next 12 months. We continue to monitor self-generation technology and will invest when we believe this is efficient and suitable for the Group's needs.

During the year a £2.7m mortgage held with HSBC Bank UK was converted to a sustainability improvement loan. Future finance costs will be determined by whether Robinson achieves the sustainability performance criteria aached to the loan or not.

Operating with excellence

In 2024, there were five (2023: nine) lost-time accidents across the Group, which all occurred across two of our five sites. The health and safety of our team is of paramount importance and we will continue to focus on behavioural safety and delivering a Group-wide approach to ensure Robinson standards are clearly understood and complied with on all our sites. With this approach rolled out across our operations, there have been no accidents resulting in lost-time since June 2024.

In 2024, we were able to process 16% more polymer and deliver a 14% increase in revenue with fewer people. Continuous improvement of our operations is a key focus for the Group.

Our focus ahead

We will evolve and refresh the Group strategy during 2025, including empowering a revitalised senior executive team to drive execution and improved performance.

The work that has gone into developing close customer partnerships has led to a healthy sales pipeline, which

* Operating costs before other items ** Operating profit before other items *** Operating profit margin before other items

should present substantial growth opportunities in 2025 and beyond. To deliver this growth and remain competitive, we will need to continue to invest in growing and improving our asset base.

We will also sharpen our approach to sustainability, focusing on a small number of primary targets that we will actively pursue to make progress on our own ESG agenda as well ensuring we are able to support our customers and the wider market in delivering their sustainability goals.

In my first three months, I have been impressed by the knowledge and commitment of the loyal workforce who clearly want to make Robinson successful. I see opportunities to supplement this strong foundation with new resources, skills and an improved organisation structure. Health and safety, sustainability and operational excellence are all areas that will receive sustained focus alongside our continued drive for growth.

With a refreshed strategy, an improved organisation structure and an investment mindset I anticipate a great opportunity to develop and grow the Robinson business to provide value and security for all key stakeholders.

John Melia CEO

26 March 2025

Robinson at a glance

Our purpose is to go above and beyond to create a sustainable future for our people and our planet.

Robinson specialises in custom packaging with technical solutions for hygiene, safety, protection and convenience. We manufacture injection and blow moulded plastic packaging and rigid paperboard luxury packaging.

End-to-end solution provider, from concept to manufacturing reality

More than 185 years of industry expertise

344Geographical reach into Northern & Eastern Europe and the UK Employing 344 people

Our core values and behaviours

How we work

Honest

We are refreshingly real, straightforward, and trusted by our customers

We are nimble and work responsively to keep on track, quickly bringing concepts to manufacturing reality

We are confident. Working with authority and competence to deliver our collective goals

Engaged

We want our people to thrive, supporting them to realise their full potential

Geographical reach

The location of our sites maximises our logistical reach to deliver cost-effective solutions

Bringing customers sustainable solutions that align with Robinson values

10