Robinson (LON:RBN) – gradual surplus property disposals to reduce borrowings

08.08.2025

Yesterday this Chesterfield-based plastic and paperboard packaging group announced that it has agreed the sale of four surplus properties owned by the group.

Upon completion, the cash proceeds will be used by the company to reduce bank debt.

The intention of the £21m-capitalised group remains, over time, to realise value from the disposal of surplus properties and use the proceeds to reduce indebtedness and develop its packaging business.

The company, which has a substantial property portfolio with development potential, can trace its roots back over 185 years, it specialises in custom packaging with technical and value-added solutions for food and consumer product hygiene, safety, protection, and convenience.

Its main activity is in injection and blow-moulded plastic packaging and rigid paperboard luxury packaging, operating within the food and beverage, homecare, personal care and beauty, and luxury gift sectors.

Robinson provides products and services to major players in the fast-moving consumer goods market including Procter & Gamble, Reckitt Benckiser, SC Johnson and Unilever.

Analyst Ed Stacey, at Cavendish Capital Markets, who has a 155p Target Price on the group’s shares, is estimating that current year sales to end-December will be £59.5m (£56.4m), while its adjusted pre-tax profits could be £2.7m (£2.4m), lifting earnings up to 12.5p (9.6p), double covering a maintained 6.0p a share dividend.

For 2026, he looks for £62.5m sales, £3.2m profits, 14.6p earnings and that maintained 6.0p dividend.

The group’s shares, which were up to 173p just over four years ago, put on 5p on the news, closing at 130p, have upside potential to rise to at least 150p within the next year.

(Profile 02.04.2020 @ 55.50p set a Target Price of 80p*)

(Profile 31.01.2025 @ 117.50p set a Target Price of 140p)