Robinson warns on profit as demand weakens in second half

Robinson warned that its profit would fall short of hopes this year, after demand weakened in the second half, its busiest period.

The group’s operating profit fell to £0.9m from £2.0m in the first half, and it appears there will be no bounce back in the second half.

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The packaging manufacturer said it now expects underlying operating profit of between £1.2m and £1.6m for 2026, as orders came in below expectations in its Paperbox and UK Plastics businesses.

Shares fell 6% in early trading on Friday.

Revenue is still expected to rise 6% to around £59m, though sales volumes will be slightly lower. It blamed a lack of new business and softer orders from key customers, a customer’s production breakdown, and weaker demand for some seasonal products due to warmer weather, while higher energy costs — linked to the Middle East conflict added further pressure.

The company said it was reviewing cost-cutting opportunities and strengthening its sales efforts, and expected profitability next year to match this year’s before any such measures.

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It added that sales of surplus property had generated £1.5m of cash so far this year, with further disposals expected to benefit its reported profit.

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