Financial Summary

  • The strategic reviews of both the Filters and Packaging divisions are progressing in line with expectations
  • FY 2021 results displayed a strong performance with operating profit within the range of analyst forecasts, demonstrating Essentra’s strong market positions, clear market share gain strategy and agile operations:
    • Revenue increase of 8.4% on a like-for-like1 (“LFL”) basis
    • Adjusted2,3 operating profit up 46.5% (at constant FX) to £83.9m
    • Reported3 operating profit of £49.7m versus £11.6m in 2020
    • Adjusted2,3 basic EPS 54.6% higher (at constant FX) at 18.2p
    • Reported3 basic EPS of 8.9p compares to 1.2p loss in 2020
    • Adjusted2,3 operating cash flow £64.5m in 2021 (2020: £86.7m)
  • Strong performance across the Group for the FY:
    • Components delivered a strong trading performance with revenue +21.7% on a LFL constant currency basis. Successful navigation of ongoing supply chain disruptions and mitigation of inflationary cost increases, whilst satisfying accelerated demand, resulted in operating profit increasing to £56.9m with 100bps margin expansion to 18.9% on a constant currency basis
    • Packaging revenue declined 3.6% on a LFL constant currency basis due to the ongoing impact of the pandemic on prescription and elective surgery volumes. Operating profit reached £15.4m with 40bps margin expansion to 4.2% on a constant currency basis. A Q4 margin of 7.9% was achieved as a result of uplifted trading performance and timing related one-off benefits. Strong customer relationships and signs of market recovery have resulted in encouraging order book trends
    • Filters sales grew 12.9% on a constant currency basis underpinned by growing volumes of outsourced contract business wins. There has been an increased commercial interest in proprietary ECO and Tobacco Heating Products (“THP”). Operating profit increased to £28.2m with margin expanding 50bps to 9.5% on a constant currency basis
  • Accelerated revenue growth seen in all three divisions in Q4 on a LFL basis. Continued momentum seen in early 2022 with sales on a YTD basis continuing to grow compared to the same period last year
  • Stability of our balance sheet has provided optionality to invest in capex, M&A activity and working capital requirements
    • Net debt of £234.7m (2020: £210.4m), with net debt to EBITDA at 1.7x (2020: 1.8x) and 1.5x excluding lease liabilities (unchanged from 2020)
  • Given the Group’s continued strong performance and financial position, the Board has recommended a final dividend of 4.0p per share, making a total dividend distribution for the year of 6.0p (2020: 3.3p), aligned with our progressive dividend policy
  • A non-cash change to the Group’s accounting policy driven by IFRIC relating to the de-recognition of certain software assets from the balance sheet totals £11.8m in 2021 and £16.9m relating to 2020 and prior years
Excludes the impact of acquisitions and foreign exchange
Before amortisation of acquired intangible assets and adjusting items. Further details can be found in Alternative Performance Measures section
Prior year restatement required for the adoption of IFRIC agenda decision on cloud-based software arrangements. See note 1 to the Consolidated Financial Statements