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
  
  Notes:
¹ 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.
² Prior year has been re-presented to remove the disposed Packaging and Filters businesses. See Note 1 to the Condensed Consolidated Financial Statements.
³ A reconciliation of free cash flow and net cash inflow from operating is set out in the Financial Review section.
⁴ 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.
⁵ Presented including lease liabilities.