Robinson looking at ways to cut costs as laments weak demand

Robinson PLC on Friday said demand in the Paperbox and UK Plastics businesses was weaker than expected, with warm weather being one reason.

The Chesterfield, England-based plastic and paperboard packaging manufacturer said in total, its 2026 sale estimate for Paperbox is now £1.0 million lower for that business.

The firm added: "In UK Plastics, we have experienced a lower share of volumes from a dual-supplied customer, a breakdown in a filling-line at another large customer and softer demand for some seasonal products due to warmer weather."

Robinson now expects underlying operating profit for 2026 between £1.2 million and £1.6 million, between 56% and 67% lower than £3.6 million in 2025.

Back in March, the firm had expected underlying operating profit in 2026 to be "slightly lower than 2025."

Revenue meanwhile is expected to be £59 million in 2026, up 5.0% from £56.2 million in 2025.

Sales volumes are anticipated to be down 1% in 2026 versus 2025.

Robinson said that energy costs rose more than anticipated due to the conflict in the Middle East. Meanwhile, while Denmark trades in line with expectations, conditions in Poland remain challenging.

The firm said: "In response to lower customer demand, the group is reviewing opportunities to reduce costs. We are continuing to strengthen our sales capability and our approach to securing new projects, which we expect to benefit the business in future periods."

The company said it expects 2027 profitability to be in line with 2026.

"We remain committed to delivering above-market profitable growth and our target underlying operating margin of 6–8%," it said.

Meanwhile, it noted that an expected exchange and completion of one sale has been delayed to the second quarter of 2027.

Robinson shares fell 6.1% to 115.00 pence each on Friday afternoon in London.

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