Chairman's Statement

2020 was a year that tested us all - governments, society, businesses, and individuals have all been deeply impacted by the Covid-19 pandemic. Robinson did not escape this test, but I am very proud of how the team has responded, maintaining a safe working environment for all, while minimising disruption to our customers and their consumers. I would like to thank every Robinson employee for their outstanding commitment and communicate my appreciation for the strong collaboration of our suppliers and customers in 2020.

The pandemic has created significant uncertainty and volatility for our business. We saw substantial spikes in demand for some products, offset by weaker demand in others. To ensure the safety of our employees, we created new ways of working in our factories and asked many of our sales and administration office colleagues to work from home.

As a key industry in both the UK and Poland, the vital contribution the Robinson team made to the health and wellbeing of our communities through the supply of essential hygiene and foods packaging in 2020 is worthy of special note.

Financial and operating performance

We delivered strong sales growth in 2020, with revenue rising by 6%. Underlying volume increased by 8%. Gross margins, at 23% (2019: 21%), have continued the positive trend started in 2019, helped by softness in resin prices, income from value-added services and increased operational efficiency. The impact of Covid-19 was marginally beneficial to revenue and profit in 2020. The additional demand for some products offset the additional costs of operating our factories safely.

Operating costs were 18% higher than 2019 as we continued to invest in the business. Operating profit before amortisation of intangible assets has increased to £2.7m (2019: £2.5m) and profit before tax increased to £1.8m (2019: £1.5m).

Cash generated by operations was £6.6m (2019: £4.9m), benefitting from improved profitability and cash collection, longer supplier payment terms, lower resin prices and the impact of UK VAT deferred from March 2020 to March 2021.

Aligned with our customers' priorities, we purchased new presses to improve service and responsiveness, enhanced our capabilities to deliver market-place innovation and improved our processes to achieve best-in-class product quality. We also added resources to partner with key customers and to accelerate our sustainability agenda. Our new sustainability pledge will be at the heart of everything we do as a business and details of the pledge, which is focused on five pillars and 15 commitments, is provided on pages 12 and 13 of the Annual report.

In addition, we refreshed the Robinson purpose, values and our brand identity - confirming our intent to go above and beyond to create a sustainable future for our people and our planet.

Strategy and acquisition of Schela Plast

In September 2020, we conducted our annual strategy and business review, reaffirming our objective to deliver sustainable shareholder value through above-market profitable growth, achieving an adjusted operating margin³ of 6-8%. Our three strategic priorities are described in more detail on pages 10 and 11 of the Annual report.

On 10 February 2021, we completed the acquisition of Schela Plast, a specialist in the design and manufacture of blow moulded containers, based in Denmark. Schela Plast is a strong complementary fit to our existing products and services, customers and manufacturing locations. Their location and capabilities, together with our planned investment in additional equipment, generates areas for growth with key customers in the market sectors we and Schela Plast serve.

Capital investment, financing and pension

We are committed to maintaining a competitive manufacturing infrastructure. During the year, we invested net £4.6m in production equipment to replace outdated presses, add additional capacity and refurbish a manufacturing building in our UK business. This investment was funded by strong cash generation from operations resulting in net debt (including IFRS 16 leases) at 31 December 2020 of £6.9m (2019: £6.9m).

To fund the post-year-end Schela Plast acquisition, new facilities totalling £12m were agreed with HSBC Bank UK. With total credit facilities of £18m (2019: £13m), the necessary headroom is available for the Group to operate effectively.

The results of the triennial actuarial valuation of the defined benefit pension fund, rolled forward to 30 October 2020, showed the fund had a surplus of approximately 4% (2017: 2%). The Trustees and the Company have therefore agreed that the Company continues to benefit from a contribution holiday. Further details are provided in note 30 to the Financial statements in the Annual report.

The IAS 19 valuation of our pension plan at 31 December 2020 reported a surplus of £9.3m (2019: £10.5m). This surplus is deemed to be irrecoverable and so is not included in the Group's assets.

Governance and Board composition

As a Board, we are committed to the highest standards of corporate governance. We continue to comply with the Quoted Companies Alliance Corporate Governance Code. During the year, we undertook an independent evaluation of Board effectiveness, with encouraging results. A summary of this exercise is included in the Corporate governance report on pages 28 and 29 of the Annual report.

Guy Robinson retired as Finance Director on 1 January 2021. I am pleased to confirm that, in accordance with the Board's succession plan, Guy was succeeded by existing Executive Board Director Mike Cusick. The Board will continue to benefit from Guy's experience as an Executive Director until the 2021 Annual General Meeting (AGM) and as a Non-Executive Director thereafter. Additionally, existing Non-Executive Board Director Sara Halton was appointed as the Senior Independent Director and Chair of the Audit and Risk Committee.

As previously communicated, Anthony Glossop will retire from the Board at the AGM. On behalf of the Board, I would like to place on record our deep appreciation of his wise counsel, outstanding contribution and dedication to our success throughout his many years of service.

I look forward to working with Guy, Mike and Sara in their new roles at Robinson.

Property

Progress has been made towards selling some of the surplus property in Chesterfield. Very recently heads of agreement, subject to contract, with a gross value of £3.4m have been signed for two plots of land. The total book value of the plots is less than £1m at 31 December 2020. We hope that, subject to receiving the necessary planning approvals, further sales will be achieved in the next two years.

Dividend

The Board proposes a final dividend of 3.0p per share to be paid on 16 July 2021 to shareholders on the register at the close of business on 2 July 2021. The ordinary shares become ex-dividend on 1 July 2021. This brings the total dividend declared for 2020 to 8.5p (2019: 2.5p) including the final dividend for 2019 which was deferred.

Outlook

The pace of recovery from the pandemic across geographies and short-term spikes in resin prices are likely to create substantial uncertainty and volatility in the market in 2021. Despite this uncertainty, we remain committed to delivering above-market profitable growth and our target of 6-8% adjusted operating margin³.

We will continue to invest in creating a high performance, expert and diverse team that can thrive in a safe environment while delivering sustainable value to our customers and other stakeholders.

Our flexibility, responsiveness, technical capabilities and, most importantly, our people provide the basis for Robinson to go "above and beyond" in 2021.

Alan Raleigh

Chairman

24 March 2021