Financial Data

FY 2020 Summary

 

Summary:

  • FY 2020 results displayed a resilient performance, notwithstanding the impacts of COVID-19 (the 'pandemic'), demonstrating Essentra's strong market positions, balanced portfolio and agile operations
    • Revenue decline of -6.3% on a like-for-like1 (LFL) basis, with steady improvement each quarter following the immediate impact of the pandemic (-9.8% in Q2, -6.7% in Q3 and -1.0% in Q4)
    • Adjusted2 operating profit down 27.9% (at constant FX) to £62.0m
      • Business disposals completed in 2019 accounted for £5.0m of the £24.0m decline, with the remainder driven predominantly by the effect of volume gearing and temporary manufacturing inefficiencies linked to the pandemic, partially offset by continued successful pricing management and cost control actions
    • Reported operating profit of £21.7m versus £80.0m in 2019; prior year included an overall adjusting items credit of £15.4m (mainly due to gains on business disposals), whilst 2020 has a total charge from adjusting items of £17.7m (mainly due to restructuring costs)
    • Adjusted2 basic EPS lower by 37.2% (at constant FX) at 13.1p (FY 2019: 21.3p)
    • Reported basic EPS of 1.7p compares to 14.7p in 2019
    • Adjusted2 operating cash flow of £76.3m in 2020, giving a cash conversion3 of 123%
  • High customer satisfaction levels leading to deepened customer franchises
  • Well-positioned for growth across the Group:
    • Components most affected by the pandemic, but with a steady recovery in revenue and order trends throughout the year and further growth expected as end markets recover
    • Resilient performance in Packaging, with strategic initiatives in place to underpin further margin improvement
    • Filters made strong progress on game changers with the commencement of new outsourcing contracts, helping return the division to marginal growth in H2
  • Value enhancing acquisition of 3C! Packaging completed, with integration progressing well
  • A strengthened balance sheet, providing strategic optionality
    • Net debt of £210.4m (2019: £284.4m), with net debt / EBITDA at 1.8x (excluding lease liabilities, net debt / EBITDA ratio is 1.5x)
  • Given the Group's resilient performance, encouraging outlook and strong financial position, the Board recommends a resumption of dividend payments, with a FY 2020 final dividend of 3.3p per share. The dividend payment being proposed is to be funded in full from cash flows generated from the operations of the Company during 2020
Excludes the impact of acquisitions, disposals and foreign exchange
Before amortisation of acquired intangible assets and adjusting items
Cash conversion ratio being: adjusted operating cash flow / adjusted operating profit