Filtrona half year results

26 August 2010

Filtrona announces its half year results for the six months ended 30 June 2010.

Filtrona plc (“Filtrona” or the “Company”), the leading international supplier of speciality plastic and fibre products, announces its results for the half year ended 30 June 2010.

Half Year ended 30 June (Continuing operations)	2010	2009	% change	% change at contant exchange rates
Revenue	£247.6m	£227.7m	8.7%	7.1%
Adjusted operating profit1	£40.0m	£29.6m	35.1%	30.7%
Adjusted profit before tax1	£34.6m	£25.3m	36.8%
Adjusted earnings per share1	11.3p	8.1p	39.5%
Operating cash flow2	£25.1m	£30.7m	(18.2%)
Interim dividend per share	3.0p	2.7p	11.1%
Net debt	£106.0m	£118.9m	(10.8%)
Operating profit	£38.5m	£22.8m	68.9%
Profit before tax	£33.1m	£18.5m	78.9%
Basic earnings per share	10.8p	5.0p	116.0%

¹ Before intangible amortisation (2009: before intangible amortisation and major restructuring costs).
² Adjusted operating profit before depreciation, share option expense and other non-cash items, less working capital movements, less net capital expenditure.

Highlights

• Revenue growth of 8.7% with an increase in adjusted operating profit¹ of 35.1%.
• Significant increase in adjusted operating margin¹ to 16.2%, from 13.0%.
• Adjusted earnings per share¹ increase of 39.5% to 11.3p.
• Strong balance sheet with net debt of £106.0m (1.2 x EBITDA).
• Protection & Finishing Products: Strong revenue and margin recovery with adjusted operating profit¹ up 73.5%.
• Porous Technologies: Continued strength from new products and printer systems, with a 74.1% increase in adjusted operating profit¹.
• Coated & Security Products: Encouraging performance with increased margins and growth in the Payne authentication system.
• Filter Products: Continued resilience with focus on manufacturing efficiency and cost control delivering margin improvement.
• Interim dividend increased 11.1% to 3.0p.

Commenting on the results, Mark Harper, Chief Executive of Filtrona, said:

“Filtrona achieved excellent results in the first half of 2010 following sustained investment in sales & marketing and research & development, allied to the implementation of significant cost reductions. These actions, together with a general improvement in many of our international served markets, enabled Filtrona to return to growth rapidly following the economic downturn.

“Looking ahead to the rest of the year, the Company expects to see a normal seasonal weighting in trading. Overall, the Board believes that Filtrona is well positioned to benefit from the current positive trading momentum and, despite uncertainty with regard to general economic conditions, expects that the Company will grow strongly in the second half of the year.”