29 August 2005
Chairman’s Statement I am pleased to present Filtrona plc’s interim results for the six months to 30 June 2005, the first since the company was listed on the London Stock Exchange on 6 June 2005. The demerger of Filtrona has presented us with a tremendous opportunity to strengthen further our international market positions and management. This process has already begun in the short period since the company was listed. The company has continued to win new customers and is benefiting from the recruitment of new high quality senior management to complement the established team. For the half year to 30 June 2005, sales were £251.9m (2004: £237.6m) up 6.0%. Operating profit before intangible amortisation and excluding non recurring IFRS adjustments was £30.0m (2004: £25.2m) up 11.6%. Profit before tax was £26.3m (2004: £24.2m) up 8.7% in line with expectations. As at 30 June 2005, net debt was £109.6m. Our key business ratios improved over those of the first half of last year with increases in cash generation, operating margins, return on capital employed and in employee productivity. The Board has declared an interim dividend of 2.13 pence per share. The dividend will be paid on 31 October 2005 to shareholders on the register on 30 September 2005 with an ex-dividend date of 28 September 2005. Filtrona’s established market positions, combined with its spread of geographies and broad customer base, have enabled the company to deliver these good results. The Board is confident that the skills and experience of Filtrona employees, and ongoing investment in service and supply chain efficiencies, new products and technological developments, coupled with the lowering of unit costs will enable Filtrona to continue to grow in line with expectations during the current financial year. To conclude, I should like to thank all of the staff in Filtrona for their outstanding contribution to both the demerger process and these strong results. Jeff Harris Chairman 30 August 2005