The packaging maker's seasonal busy period failed to deliver, leaving full-year profit guidance sharply lower.
Robinson (AIM: RBN) has warned that annual profit will fall well short of previous expectations after trading weakened in what is normally its busiest trading period, sending underlying operating profit guidance for 2026 down to between £1.2m and £1.6m.
The packaging group said operating profit in the first half had already slipped to £0.9m from £2.0m a year earlier, and rather than the usual seasonal pick-up, orders in the second half came in below expectations across both its Paperbox and UK Plastics divisions, forcing the downgrade.
Robinson pointed to a combination of factors behind the shortfall, including a lack of new business wins, softer ordering from key customers, a production breakdown at one customer, and weaker demand for seasonal lines after unusually warm weather. Rising energy costs, which it linked to the ongoing Middle East conflict, added further pressure to margins.
Despite the profit downgrade, the company said full-year revenue is still expected to rise 6% to around £59m, even though sales volumes will be slightly lower than hoped, implying pricing and mix are doing some of the heavy lifting. Robinson has also raised £1.5m in cash so far this year from sales of surplus property, with further disposals in the pipeline expected to flow through to reported profit.
Management said it is now reviewing cost-cutting measures and stepping up sales efforts to rebuild the order book, but cautioned that underlying profitability next year is likely to match this year's reduced level before any benefit from those actions is felt, leaving investors with little prospect of a quick recovery.
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This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Luke Heibert on Unsplash.