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Robinson PLC on Tuesday said weaker trading in Denmark held back performance in 2025, while higher costs and lower rental income will pressure profits in 2026. In response, shares in Chesterfield, Derbyshire-based manufacturer of plastic and paperboard packaging plunged 9.8% to 115.05 pence each in London on Tuesday morning. In a trading update, Robinson said revenue for 2025 is expected of around £56 million, which is in line with 2024’s £56.4 million. Underlying operating profit, which excludes any profits from property disposals, is expected to be ahead of £3.2 million in 2024, and in line with current market expectations. Sales volumes in the UK continue to exceed the prior year due to new projects won and implemented in the previous 24 months, the company said. In Plastics, market regulation is driving significant demand for PET bottles, while Paperbox has seen significant growth with two new customers which commenced in 2024. But Robinson said this growth has been largely offset by a reduction in volume in Denmark, which has seen significantly lower and more volatile demand from larger customers and the loss of some contracts with smaller customers. ‘Overall, trading conditions in that territory remain challenging,’ Robinson said. In addition, the company said it is ‘starting to see some challenges emerge in our Polish business as customers are under severe pressure from retailers to reduce their costs.’ Robinson expects trading in Denmark and Poland to remain challenging in 2026, but predicts further progress in revenue and profits in its two UK business. Overall, the firm anticipates an overall increase in revenue but expects underlying operating profit in 2026 to be slightly lower than 2025. This reflects higher operating costs and lower rental income due to the disposal of surplus properties. Further, Robinson said a previously announced sale of three properties for £760,000 is expected to exchange and complete in January. The firm has also recently agreed to sell two other surplus properties in Chesterfield for a total £2.1 million. Proceeds will be used by the company to reduce bank debt. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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