Financial Summary

  • Financial and operational resilience
    • FY 2023 adjusted1 operating profit in line with expectations
    • Revenue of £316.3m (2022: £337.9m); 4.4% decline at constant currency
    • Adjusted1 operating profit increased to £43.2m (2022: £25.1m)
    • Adjusted1 operating margin expansion to 13.7% (2022: 7.4%)
    • Strong pricing sustained, offsetting inflation
    • Pro-active approach to cost management across the Group
    • Central corporate costs re-sized, in line with the c.£13m run rate previously guided
    • Strategically aligned bolt-on acquisition of BMP TAPPI, completed in October 2023, demonstrating continued momentum of Essentra’s inorganic strategy
  • Strong balance sheet and cash generation, enabling investment in growth
    • Excellent adjusted1 net cash flow from operating activities of £48.2m; conversion of 111.6% (2022: 80.5%)
    • Reported net cash inflow from operating activities of £33.3m (2022: £4.3m)
    • Net debt of £62.5m, representing leverage of 1.0x adjusted EBITDA4 (incl. IFRS 16 lease liabilities of £30.9m)
    • Healthy bolt-on acquisition pipeline; Management remains disciplined in the current environment
    • Delivering on the commitment to return £150m to shareholders. £89.8m special dividend paid in April 2023, and 40% of the £60m share buyback programme completed as of 31 December 2023
    • Recommended final ordinary dividend of 2.4p per share, resulting in a full year dividend of 3.6p per share, representing dividend cover in the order of 3.0x earnings
  • Confidence in delivering medium-term guidance
    • 2024 performance to date is in line with expectations
    • Essentra remains focussed on enhancing its hassle-free customer proposition, delivering strong profit margins and cash conversion, and continues to invest in growth initiatives, whilst delivering on its sustainability goals
    • The business is well positioned for when volume growth returns to normalised levels. Management anticipates 2024 performance will be weighted towards a recovery in the second half
    • The Group remains confident of making further progress towards its medium-term targets in 2024

  • On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items. Further details can be found in Note 3 of the Condensed Consolidated Financial Statements.
    Prior year has been re-presented to remove the disposed Packaging and Filters businesses. See Note 1 to the Condensed Consolidated Financial Statements.
    A reconciliation of free cash flow and net cash inflow from operating is set out in the Financial Review section.
    Adjusted EBITDA is defined as operating profit before depreciation (and other amounts written off property, plant and equipment), share option expense, intangible amortisation and adjusting items.
    Presented including lease liabilities.