Pre-close trading update

RNS Number : 5381U

Filtrona plc

26 June 2009

 



26 June 2009

Filtrona plc

Pre-close trading update

Filtrona plc ('Filtrona' or 'the Company'), the international market leading speciality plastic and fibre products supplier, today issues a pre-close trading statement ahead of its half year results for the six months ending 30 June 2009, which will be announced on 27 August 2009. In addition, the Company is publishing its 2008 half year and full year results restated for the revised reporting segmentation which the Company will be adopting with its half year results for the six months ending 30 June 2009 and thereafter.

The Company's overall performance in the year to date has been in line with the Board's expectations. 

Trading cash flow has been strong in the year to date as a result of continued focus on working capital and lower levels of capital expenditure.  

The relative resilience of the global tobacco industry has continued to benefit the Coated and Security Products and Filter Products divisions.  The depressed level of activity in the US and European manufacturing sectors, combined with significant weakness in the onshore oil and gas market, generated a difficult trading environment for the Protection and Finishing Products division in the year to date.  The Porous Technologies division has experienced slightly improved trading conditions in the second quarter versus the first quarter due to higher printer system revenues. 

The previously announced restructuring programmes are progressing well and according to plan. 

Outlook

The Company's focus on cash generation, cost control and the reinforcement of its strong market positions, allied to the defensive nature of its largest served market, give the Board confidence that the Company will continue to trade in line with expectations.

Restatement of 2008 results for revised reporting segments

In order to provide increased transparency, the Company is changing its reporting segments with its half year for 2009 being the first results to be published under its revised segmentation.

Filtrona will no longer report its results under Plastic Technologies and Fibre Technologies and will instead report its results under four operating segments, in accordance with IFRS 8. These operating segments will be Protection and Finishing Products, Coated and Security Products, Filter Products and Porous Technologies.  

In advance of the publication of its half year results on 27 August 2009, the Company is hereby publishing its 2008 half and full year results, restated under the revised reporting segmentation.

Additionally, the 2008 comparatives have been restated for the following items:

1.    Disposal of the North American Plastic Profile and Sheet business.

As a result of the disposal of the North American Plastic Profile and Sheet business, completed in March 2009, this is shown as a 'Discontinued Operation'.

The results of Enitor are reported within Coated and Security Products. 

2.    Restatement for amendment to IAS 38: Intangible Assets (catalogue costs)

IAS 38 as amended requires an entity to recognise an expense in respect of advertising and promotional activities, in this case catalogue costs, when it receives access to those goods. In prior periods, the adopted policy was to recognise these costs as the catalogues were distributed to customers. In applying the new policy retrospectively to 2008, the impact is to reduce operating profit within Protection and Finishing Products by £0.5m and £0.4m at the half and full year respectively.

3.    Reclassification of FractureCode legal costs.

All legal costs relating to FractureCode litigation, previously reported within Central Services, have been re-allocated to Coated and Security Products. The costs in 2008 were £0.5m and £1.1m at the half and full year respectively.

	2008 Half Year
	Protection & Finishing Products	Coated & Security Products	Filter Products	Porous Technologies	Central Services	Eliminations	Continuing Operations	Discontinued Operations	Discontinued Eliminations	Filtrona
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue	57.5	44.4	92.0	25.1	-	(2.9)	216.1	48.8	(0.3)	264.6
Operating profit/(loss) before intangible amortisation	13.4	5.6	9.7	5.2	(4.3)	-	29.6	4.1	-	33.7
Intangible amortisation	(0.7)	(0.1)	(0.1)	-	-	-	(0.9)	-	-	(0.9)
Operating profit/(loss)	12.7	5.5	9.6	5.2	(4.3)	-	28.7	4.1	-	32.8
Finance income							5.6	-		5.6
Finance expense							(8.8)	-		(8.8)
Profit before tax							25.5	4.1		29.6
Income tax expense							(8.1)	(1.7)		(9.8)
Profit after tax							17.4	2.4		19.8
Minority interests							(0.5)	-		(0.5)
Profit attributable to equity holders of Filtrona plc							16.9	2.4		19.3
Basic eps							8.3p	1.2p		9.5p
Adjusted eps							8.6p	1.2p		9.8p

	2008 Full Year
	Protection & Finishing Products	Coated & Security Products	Filter Products	Porous Technologies	Central Services	Eliminations	Continuing Operations	Discontinued Operations	Discontinued Eliminations	Filtrona
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Revenue	114.6	86.1	187.5	49.7	-	(6.2)	431.7	95.2	(0.5)	526.4
Operating profit/(loss) before intangible amortisation and exceptional acquisition fees	26.7	10.0	19.8	9.0	(8.7)	-	56.8	7.8	-	64.6
Intangible amortisation	(1.6)	(0.1)	(0.2)	(0.1)	-	-	(2.0)	-	-	(2.0)
Exceptional acquisition fees	-	-	-	-	(1.3)	-	(1.3)	-	-	(1.3)
Operating profit/(loss)	25.1	9.9	19.6	8.9	(10.0)	-	53.5	7.8	-	61.3
Finance income							11.5	-		11.5
Finance expense							(18.3)	-		(18.3)
Profit before tax							46.7	7.8		54.5
Income tax expense							(15.3)	(3.1)		(18.4)
Profit after tax							31.4	4.7		36.1
Minority interests							(1.1)	-		(1.1)
Profit attributable to equity holders of Filtrona plc							30.3	4.7		35.0
Basic eps							14.8p	2.3p		17.1p
Adjusted eps							16.1p	2.3p		18.4p

Enquiries:

Filtrona plc                                                                 FD

Mark Harper, Chief Executive                                      Andrew Lorenz

Steve Crummett, Group Finance Director                  Sophie Kernon

Tel: [phone]                                                      Tel: [phone]

 

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