Filtrona Full Year Results

25 February 2010

Filtrona announces its full year results to 31 December 2009.

Filtrona plc (“Filtrona”), the leading international supplier of speciality plastic and fibre products, today announces its results for the year ended 31 December 2009.

Year ended 31 December (Continuing operations)	2009	2008	% change	% change at constant exchange rates
Revenue	£444.0m	£431.7m	2.8%	(5.8%)
Adjusted operating profit 1	£56.2m	£56.8m	(1.1%)	(12.2%)
Adjusted profit before tax 1	£46.2m	£50.0m	(7.6%)
Adjusted earnings per share 1	14.8p	16.1p	(8.1%)
Operating cash flow2	£72.5m	£56.3m	28.8%
Total dividend per share	7.78p	7.78p	-
Operating profit	£42.3m	£53.5m	(20.9%)
Profit before tax	£32.3m	£46.7m	(30.8%)
Basic earnings per share	9.1p	14.8p	(38.5%)

¹ Before intangible amortisation, major restructuring costs (£8.9m) and exceptional acquisition fees (£1.9m) (2008: intangible amortisation and exceptional acquisition fees).
² Adjusted operating profit before depreciation, share option expense and other non-cash items, less working capital movements, less net capital expenditure.

Highlights

• Reported revenue growth of 2.8%, with adjusted operating profit1 down 1.1%.
• Robust adjusted operating margin1 of 12.7%.
• Three of four divisions deliver growth in adjusted operating profit1 at constant exchange rates.
• Operating cash flow2 of £72.5m, up 28.8%. Cash conversion of 129%.
• Strong balance sheet, with net debt reduced by £75.0m to £107.1m (1.4 x EBITDA).
• Good performance in Porous Technologies, with the division benefiting from significant new inkjet printer business and continued growth in medical.
• Operating margin growth in Coated & Security Products, supported by revenues from the Payne authentication system.
• Continued resilience from Filter Products, evidenced by revenue growth and steady operating margin.
• Effective cost control and sustained marketing in Protection & Finishing Products provides strong platform to benefit from the recovery.
• Total dividend maintained at 7.78p per share.

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

“We are pleased with the Group’s performance in 2009 given the challenging trading conditions prevailing throughout the year. We have again delivered excellent cash flow which reflects the strength of our market positions and cash generative business model. We have sustained our investment in sales & marketing and research & development which will assist future growth.

"Early signs of recovery have been seen in the Protection & Finishing Products division and success with new product introductions in the Porous Technologies division is continuing. Continued resilience in the Coated & Security Products and Filter Products divisions is expected and, while the profile of the global econmic recovery is currently unclear, the Board looks forward to Filtrona's performance in 2010 with confidence."

Enquiries

Filtrona plc
Mark Harper, Chief Executive
Steve Crummett, Group Finance Director
Tel: 01908 359 100

Financial Dynamics
Richard Mountain
Sophie Kernon
Tel: 020 7269 7291

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