17 February 2017
FY 2016: A YEAR OF CHALLENGE AND CHANGE
FY 2017: FOCUS ON STABILISATION; STRATEGIC REVIEW TO RESTORE MEDIUM-TERM GROWTH
1 Excludes the impact of acquisitions, disposals and foreign exchange
|Adjusted2 operating profit|
|Adjusted2 pre-tax profit – total||119||161||-26||-32|
|Adjusted2 net income5 – total||96||124||-23||-31|
|Adjusted2 basic earnings per share|
|Dividend per share||20.7p||20.7p||-|
|Reported operating (loss) / profit - continuing4||(50)||84|
|Reported pre-tax (loss) / profit – continuing4||(63)||74|
|Reported net (loss) / income5 – total||(40)||69|
|Reported basic (loss) / earnings per share – total||(15.4)p||26.2p|
Commenting on today's results, Paul Lester, Chairman, said:
"FY 2016 has been a year of challenge and change for our Company. In particular, the integration
issues primarily relating to the Clondalkin acquisition in Health & Personal Care Packaging – as
highlighted in the trading updates - not only resulted in additional cost but also in an accelerating
decline in the underlying trading position at the impacted sites. Notwithstanding these challenges,
however, the Board is recommending to hold the final dividend unchanged.
Essentra remains a fundamentally strong organisation, and I and my Board colleagues look forward to working with our new Chief Executive, Paul Forman, as we drive our collective objectives of delivering sustainable, long-term shareholder value, excellent customer service and a motivated and engaged workforce." .
Paul Forman, Chief Executive, additionally stated:
"Essentra is a complex international group and it is still early in my tenure. However, since my appointment at the beginning of January, I have already visited many sites and met with many excellent colleagues, and – while there is much to do – I firmly believe that the fundamental strengths exist across all our businesses which we can build upon. As such, based on my initial assessment, the issues which have evidently impacted FY 2016 are predominantly self-inflicted, and therefore capable of reversal. The necessary process of stabilising the business will be facilitated by a strengthening of the balance sheet following the imminent divestment of Porous Technologies, and a restructuring of the organisation – together with a measured recruitment of talent – is already underway. I look forward to presenting our future corporate strategy alongside the HY 2017 results at end-July.
In terms of current year outlook, while Component Solutions and Filtration Products enter 2017 on a more stable footing, the Health & Personal Care Packaging business is receiving specific short-term focus and remedial action, in light of the continued significant decline in revenue and operating profit during the last months of 2016 and at the start of 2017 – with a deteriorating exit rate which needs to be stabilised. We therefore currently anticipate a reduction in Group like-for-like revenue and adjusted operating profit in FY 2017."