Interim Management Statement

RNS Number : 9005B

Filtrona plc

24 April 2012

 



For Immediate Release                                                                                                                                                    24 April 2012

FILTRONA PLC

("Filtrona" or "the Company")

 A leading international supplier of speciality plastic, fibre and foam products

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1^st JANUARY 2012

ACQUISITION OF JAE YONG CO. LTD IN POROUS TECHNOLOGIES DIVISION

STRONG MOMENTUM MAINTAINED IN Q1

ON TRACK TO DELIVER FURTHER BALANCED GROWTH IN FY 2012

At its Annual General Meeting to be held at 12 noon today, Jeff Harris, Chairman, will make the following statement:

Company Financial Performance

During the first quarter¹ of 2012, the Company's overall performance was in line with the Board's expectations.  Revenue was +22% versus Q1 2011 ("comparable period"²) at constant FX and up +21% at actual rates: like-for-like ("LFL" ³) growth was +8%.

Divisional Overview

Revenue versus comparable period	% change Actual FX	% change Constant FX
Protection & Finishing Products	+61%	+63%
-      LFL	+13%	+14%
Porous Technologies4	+3%	+3%
Coated & Security Products	+4%	+5%
-      LFL	+2%	+4%
-      LFL excluding Enitor5	+7%	+7%
Filter Products	+4%	+7%
Total Company	+21%	+22%
-      LFL	+6%	+8%

¹ Period from 1 January 2012 to 31 March 2012

² Period from 1 January 2011 to 2 April 2011

³ Adjusted to exclude the impact of acquisitions, disposals and foreign exchange

⁴ Excludes intercompany revenue

⁵ Q1 2012 LFL revenue growth for Enitor was -6%

The performance in Protection & Finishing Products was broad-based across the division, and was further boosted by the acquisitions of Reid Supply Company and Richco, Inc.  Growth in Porous Technologies came largely from Printer Systems, while the increase in Coated & Security Products was led by Packaging Solutions in tobacco and was partially offset by weakness in the smaller Enitor plastic extrusion business.  Strong volume growth and a positive mix effect drove the result in Filter Products. 

There has been no material change in the financial position of the Company during the period.

Acquisition of Securit World Ltd

As previously announced on 22 February 2012, the Company acquired 100% of the share capital of Securit World Ltd for a cash consideration of £6m. 

Acquisition of Jae Yong Co. Ltd

The Company today announces that it has completed the acquisition of 100% of the share capital of Jae Yong Co. Ltd ("Jae Yong") from the Lee family for an undisclosed cash consideration funded from the Company's existing facilities. 

Based in South Korea, Jae Yong is a globally recognised manufacturer of reservoirs, nibs and tubes for the writing instruments industry, and will be reported under the Porous Technologies division.  Jae Yong adds new writing instrument reservoir customers and additional writing instrument components to the division's product range, including an entry point into the nibs segment.  The transaction also enhances the division's geographic presence in the growing Asian market.  For the year ended 31 December 2011, Jae Yong had gross assets of £1.4m, and the transaction will be immediately earnings enhancing to the Company.

Commenting on today's Interim Management Statement, Colin Day, Chief Executive, said:

"With Q1 revenue ahead 8% on a like-for-like basis and 22% at constant exchange, the Company has not only maintained its positive organic growth trend into 2012 but is also progressing well with the integration of recent acquisitions.

We are also pleased to have completed the acquisition of Jae Yong, a value-creating transaction in Porous Technologies which enhances both the product range and the geographic presence of the division.

Given this strong start to the year, Filtrona remains well-positioned to deliver further balanced growth in 2012 and to continue to make progress towards its Vision 2015 objectives of at least mid single-digit like-for-like revenue growth and double-digit adjusted EPS growth at constant exchange." 

The Company will hold a conference call to discuss this Interim Management Statement at 08:00 (UK time) today, details of which are as follows:

Dial-in number:	[phone]
Toll-free number:	0800 368 1895
PIN code:	127363#
Replay number:	[phone] 0800 368 1890

Enquiries

Filtrona plc Joanna Speed, Corporate Affairs Director Tel: [phone]

Buchanan Richard Oldworth Jeremy Garcia Tel: [phone]

 Notes to Editors

About Filtrona plc

www.filtrona.com

Filtrona plc is a FTSE 250 company and a leading international supplier of speciality plastic, fibre and foam products.  Through its four operating divisions, Filtrona focuses on the light manufacture and distribution of high volume, essential components which serve customers in a wide variety of end-markets and geographies.

Protection & Finishing Products

A global market leading supplier of protection and finishing products, manufacturing and distributing plastic injection moulded, vinyl dip moulded, and metal items as well as pressure sensitive tapes. The division has 60 operating units in 21 countries serving a very broad industrial 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 purchase and tubular metal products.

Porous Technologies

A global market leading developer and manufacturer of custom fluid handling components, engineered from a portfolio of technologies that includes bonded fibre, polyurethane foam, and porous plastic.  Representing leading innovations used in healthcare, consumer and industrial applications, its enabling components are found in a wide range of products from medical diagnostics tests to advanced wound care pads, inkjet printer cartridges, writing instruments and air fresheners.  Customers in 56 countries are served from five manufacturing facilities with research and development centres supporting the division globally.

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 the consumer packaging, identity and valuable documents markets. 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

The only global independent cigarette filter supplier.  The nine worldwide locations, including a UK-based research facility and three regional development centres provide a flexible infrastructure strategically positioned to serve the tobacco industry.  The division supplies a wide range of value adding high quality innovative filters, packaging solutions to the roll your own sector and analytical laboratory services for ingredient measurement for the industry. Headquartered in the United Kingdom, Filtrona's global network extends to 28 countries and includes 33 principal manufacturing facilities, 63 sales & distribution operations and 5 research & development centres.  The Company's strategy - called Vision 2015 - seeks to maximise shareholder value through the delivery of balanced profitable growth in both its existing and future opportunity markets and technologies, with the objective of delivering at least mid single-digit like-for-like revenue growth and double-digit adjusted EPS growth at constant exchange.  The strategy also calls for strong conversion of profit into cash and a progressive dividend policy.  The Company looks to complement this balanced organic growth with value-adding acquisitions.

 

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