Results for the Half Year ended 30 June 2016

29 July 2016

HY 2016 IMPACTED BY A NUMBER OF CHALLENGES FY 2016 OUTLOOK REFLECTS STRONGER H2 PERFORMANCE – ADJ. OPERATING PROFIT GUIDANCE OF £155 – 165M REITERATED

HY 2016 summary:

• Revenue broadly unchanged at £545m, down 7% on a like-for-like¹ basis.
• Adjusted operating profit² down 18% (constant FX) to £70m.
• Adjusted operating margin² -200bps to 12.9%.
• Adjusted EPS² 18% lower (constant FX) at 19.2p.
• Tax rate on adjusted profit reduced by 300bps to 20.0%.
• Net debt of £434m (FY 2015: £374m), with cash flow generation offset by higher dividends and foreign exchange.
• Half year dividend unchanged at 6.3p per share.
• Essentra Board working in conjunction with Chief Executive on succession planning.

Results at a glance:

	HY 2016	HY 2015	% change Actual FX	% change Constant FX
1 Excludes the impact of acquisitions, disposals and foreign exchange 2 Before intangible amortisation and exceptional operating items 3 Net income is defined as profit after tax
Revenue	£545m	£550m	-1	-5
Operating profit – adjusted2	£70m	£82m	-14	-18
Pre-tax profit – adjusted2	£63m	£77m	-18	-21
Net income – adjusted2	£51m	£59m	-14	-18
Basic earnings per share – adjusted2	19.2p	22.7p	-15	-18
Dividend per share	6.3p	6.3p
Operating profit	£50m	£50m	-2	-6
Pre-tax profit	£43m	£45m	-6	-10
Net income3	£34m	£36m	-4	-9
Basic earnings per share	13.0p	13.7p	-5	-9

Commenting on today’s results, Colin Day, Chief Executive, said:

“As reported in our trading update of 9th June 2016, Essentra has experienced a number of challenges – notably in the Filter Products and Health & Personal Care business – which have impacted our interim results. Notwithstanding these challenges, however, the Company remains fundamentally strong, with global leading market positions in endmarkets with positive growth characteristics, and attractive levels of profitability and cash generation.

Given that many of the issues highlighted in the interim results are temporary in nature and / or showing improvement in line with expectations, Essentra is confident of delivering a stronger result in the second half of 2016. As such, our FY 2016 outlook is for a mid single-digit decline in like-for-like revenue, with adjusted operating profit in the range of £155 – 165m.”

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