FY 2018 summary
Growth restored, recovery on track, strategy being delivered
1 Excludes the impact of acquisitions, disposals and foreign exchange
2Before amortisation of acquired intangible assets and exceptional and other adjusting items
3Operating cash conversion is defined as adjusted operating cash flow divided by adjusted operating profit
4Continuing operations, excluding Porous Technologies, in light of the divestment on 6 March 2017
- Full year results continue HY 2018 return to first growth in profit and margin from a stable revenue base since 2015.
- Revenue unchanged on a like-for-like1basis (+1.4%, adjusting for the closure of the Newport IP5 cartons site at the end of 2017).
- Continued robust result in Components, despite underlying market softness in Q4.
- Return to growth for the Packaging division in H2, with an accelerating trend.
- Modest decline in Filters and Specialist Components.
- Adjusted operating profit2, 4up 9.1% (at constant FX) to £91m, with improving momentum in H2.
- Reported operating profit4of £47m compares to £6m in FY 2017.
- Adjusted basic EPS2, 4higher by 2.3% (at constant FX) at 23.1p.
- Significant increase in minority interest, due to growth in Filters’ joint ventures.
- Reported basic EPS of 9.3p compares to 43.7p in FY 2017.
- Net debt of £240m (31 December 2017: £211m); increase primarily due to dividend payments and cash exceptional & other adjusting items.
- Net debt to EBITDA of 1.8x (31 December 2017: 1.7x).
- Strong operating cash conversion3, 4of c. 85% (FY 2017: c. 95%).
- Balance sheet further strengthened by disposal of Pipe Protection Technologies in January 2019, notwithstanding continued planned investment in Packaging and IT.
- Full year dividend unchanged at 20.7pper share.
- Continued good progress on all key operating metrics of the stability programme: new Executive team now fully in place.
- Stable outlook – value levers primarily in Essentra’s control, in addition to defensive qualities in Packaging and Filters especially.