Interim Management Statement

RNS Number : 6425U

Filtrona plc

20 October 2010

 



20 October 2010

Filtrona plc

Interim Management Statement

Filtrona plc ("Filtrona" or the "Company"), the leading international supplier of speciality plastic and fibre products, today issues its interim management statement for the period from 1 July 2010.

All statistics and qualitative statements made below relate to continuing operations and therefore exclude the North American Plastic Profile & Sheet business, the disposal of which completed on 27 March 2009.

Company Financial Performance

During the third quarter¹ of 2010, the Company's overall performance was in line with the Board's expectations.

Third quarter¹ Company revenue was up 17% versus the third quarter of last year ("comparable period²") and up 15% at constant exchange rates.

For the cumulative three quarters³ of 2010, Company revenue was up 11% versus the first three quarters of the prior year ("comparable cumulative period"⁴) and up 10% at constant exchange rates.

Protection & Finishing Products

Third quarter¹ revenue within the Protection & Finishing Products division was up 45% versus the comparable period² (up 44% at constant exchange rates). Revenue for the first three quarters³ was up 36% (up 36% at constant exchange rates) compared to the comparable cumulative period⁴.

The division has continued to experience encouraging broad-based revenue growth, benefiting from both its ongoing marketing programmes and from strong demand in MSI, the oil country tubular goods thread protector business.

Porous Technologies

The Porous Technologies division delivered third quarter¹ revenue up 6% versus the strong comparable period².  At constant exchange rates, revenue was up 7%. Revenue for the first three quarters³ was up 18% (up 19% at constant exchange rates) compared to the comparable cumulative period⁴. 

As expected, revenue growth has moderated in the third quarter¹ due to the strong prior period comparator.  Current indications are that the balance of the year will be impacted by both a further moderation in the revenue growth rate and by product mix.

Coated & Security Products

Third quarter¹ revenue within the Coated & Security Products division was up 12% versus the comparable period² (up 12% at constant exchange rates).  Revenue for the first three quarters³ was up 4% (up 4% at constant exchange rates) compared to the comparable cumulative period⁴.

Revenue growth in the third quarter¹ included a full incremental contribution from BP Labels, acquired in March 2010, and was also supported by a continuing strong performance from the Payne authentication system.

Filter Products

Third quarter¹ revenue within the Filter Products division was up 8% versus the comparable period² (up 3% at constant exchange rates).  Revenue for the first three quarters³ was level (down 3% at constant exchange rates) compared to the comparable cumulative period⁴. 

Overall volumes in the third quarter¹ were 5% up versus the comparable period^2,   with growth in Asia more than off-setting declines in Europe and the Americas.

Financial Position

Net debt was £88.9m as at 2 October 2010.

 Interest on the US$160m of private placement loan notes, issued in April 2010, is payable half yearly, with the first payment of £2.9m due on 29 October 2010. The interim dividend of 3.0 pence per share (total £6.1m) is payable on 29 October 2010.

Outlook

Against the backdrop of continuing positive trading momentum, the Board remains confident in its expectations for the year and of the ongoing progress of the Company.

¹      Period from 1 July 2010 to 2 October 2010

²      Period from 1 July 2009 to 3 October 2009

³      Period from 1 January 2010 to 2 October 2010 (196 trading days)

⁴      Period from 1 January 2009 to 3 October 2009 (197 trading days)

Enquiries

Filtrona plc Mark Harper, Chief Executive Steve Crummett, Group Finance Director Tel: [phone]

Financial Dynamics Richard Mountain Tel: [phone]

Notes to Editors

Filtrona plc is a leading international supplier of speciality plastic and fibre products. Further information can be found on the website www.filtrona.com.

Protection & Finishing Products

A global market leading provider of product protection and finishing solutions, manufacturing and distributing plastic injection moulded, dip moulded, adhesive-coated foam and metal products.  Operating units in 14 countries serve a very broad base of customers with a rapid supply of primarily plastic products for protection and finishing applications in industries such as hydraulics, pneumatics, oil and gas, electrical controls, point of sale and tubular metal products.

Porous Technologies

The leading global technology developer and manufacturer of custom bonded fibre and hydrophilic foam components.  Its components handle fluid and vapour and deliver high value and precision performance to many of the most well-known healthcare, consumer and industrial brand owners in the world.  The components are used in a wide range of product applications including medical diagnostics and wound care, inkjet printer cartridges, writing instruments, and air fresheners.

Coated & Security Products

The global market leading producer of high quality self-adhesive tear tape and a growing supplier of labels, products and technologies for brand protection, document authentication, personal identification and track and trace.  Customers in over 100 countries are served from facilities operating in six countries. The division also includes plastic profile extrusion activities in The Netherlands.

Filter Products

This division is the only global independent cigarette filter supplier.  The 12 worldwide locations, including a UK-based research facility and three regional development centres provide a flexible infrastructure strategically positioned to serve the cigarette industry.  The division supplies a wide range of value adding high quality innovative filters from monoacetate to multi-segment speciality filters with sophisticated adsorbent materials.

 

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