Robinson PLC (AIM:RBN) shares shed 9% on Thursday morning after the custom packaging company announced at its annual general meeting (AGM) today that its CEO, Dr Helene Roberts, will be stepping down to pursue a new opportunity.
The company said its board will initiate a search process for a new CEO, and in the interim, Sara Halton, currently its senior independent director, will assume the role.
Commenting on current trading in the AGM statement, Robinson said that despite ongoing macroeconomic uncertainty and volatility, it expects to meet full-year adjusted operating profit expectations.
Sales in the first five months of the year were 2% lower compared to 2022, the company noted, with sales volumes down 11% due to factors including a supply chain issue with a major UK customer and reduced demand resulting from inflation and the cost-of-living crisis.
Robinson said it has implemented a restructuring program to address these challenges, with exceptional costs of approximately £0.4mln and anticipated annual savings of around £0.7mln.
The company noted that it recently completed the sale of a surplus property in Chesterfield, which reduced bank debt. Further sales of surplus property are expected in the next 12 months. Net debt stood at £9.8mln at the end of May 2023, with the possibility of reducing it by approximately £3.2mln through the return of funds from the pension escrow account.
Robinson said it foresees continued macroeconomic uncertainty and volatility in 2023 but remains optimistic about new business opportunities, including a new contract in Denmark that requires significant investment this year but is expected to drive sales and profit starting in 2024.
Around 11.35am, Robinson shares were down 9.1% at 100p.