Robinson (AIM:RBN) has warned investors that underlying operating profit for the year ending 31 December will fall between £1.2m and £1.6m, after weaker-than-anticipated demand in its Paperbox and UK Plastics businesses, in what is typically the Group's busiest trading period.
The Chesterfield-based custom manufacturer of plastic and paperboard packaging still expects 2026 revenue of approximately £59m, 6% ahead of 2025, though sales volumes are expected to be 1% below last year's level.
In the Paperbox business, a lack of new orders and lower demand from key customers has cut the sales estimate by £1m, while UK Plastics faces a £1.3m reduction tied to a lower share of volumes from a dual-supplied customer, a filling-line breakdown at another large customer, and softer demand for seasonal products due to warmer weather.
Energy costs across the group have also risen more than expected, which the company linked to the conflict in the Middle East, while Denmark continues to trade in line with expectations and conditions in Poland remain challenging.
Robinson said it is reviewing cost-reduction opportunities in response to lower customer demand and continuing to strengthen its sales capability to secure new projects that it expects to benefit the business in future periods.
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Excluding any benefit from mitigating actions, the board expects FY2027 profitability to be in line with FY2026, while reiterating its target underlying operating margin of 6% to 8%.
On surplus property, the Group has generated £1.5m in cash proceeds from sales so far in 2026, though the expected exchange and completion of one further disposal has slipped to the second quarter of 2027.
Robinson said it continues to expect to exchange and complete on another property sale within the next three months, with reported profit before tax for 2026 set to benefit from the disposals.