Given the Essentra's resilient performance, encouraging outlook and strong financial position, the Board recommends a resumption of dividend payments, with a FY 2020 final dividend of 3.3p per share. The dividend payment being proposed is to be funded in full from cash flows generated from the operations of the Company during 2020
Other financial highlights include:
FY 2020 results displayed a resilient performance, notwithstanding the impacts of COVID-19 (the 'pandemic'), demonstrating Essentra's strong market positions, balanced portfolio and agile operations
o Revenue decline of -6.3% on a like-for-like (LFL) basis, with steady improvement each quarter following the immediate impact of the pandemic (-9.8% in Q2, -6.7% in Q3 and -1.0% in Q4)
o Adjusted2 operating profit down 27.9% (at constant FX) to £62.0m
Business disposals completed in 2019 accounted for £5.0m of the £24.0m decline, with the remainder driven predominantly by the effect of volume gearing and temporary manufacturing inefficiencies linked to the pandemic, partially offset by continued successful pricing management and cost control actions
o Reported operating profit of £21.7m versus £80.0m in 2019; prior year included an overall adjusting items credit of £15.4m (mainly due to gains on business disposals), whilst 2020 has a total charge from adjusting items of £17.7m (mainly due to restructuring costs)
o Adjusted basic EPS lower by 37.2% (at constant FX) at 13.1p (FY 2019: 21.3p)
o Reported basic EPS of 1.7p compares to 14.7p in 2019
o Adjusted operating cash flow of £76.3m in 2020, giving a cash conversion of 123%
