The Essentra PLC Board of Directors has approved an interim dividend of 2.0 pence per 25 pence ordinary share (HY 2020: nil). The interim dividend will be paid on 29 October 2021 to equity holders on the share register on 24 September 2021: the ex-dividend date will be 23 September 2021. Essentra operates a Dividend Re-Investment Programme ("DRIP"), details of which are available from the Company's Registrars, Computershare Investor Services PLC: the final date for DRIP elections will be 8 October 2021.
Other financial highlights include:
The Company delivered an encouraging H1 2021 results performance, demonstrating a continuously improving rebound from COVID-19 ("the pandemic"), driven by Essentra's strong market positions, balanced portfolio and agile operations
Revenue increase of 7.5% vs H1 2020 on a like-for-like (LFL) basis, with continued positive momentum resulting in a return to quarterly growth
o Compared to H1 2019, H1 2021 revenue is down 1.9% on a LFL basis
o Adjusted operating profit up 34.0% vs H1 2020 (at constant FX) to £35.7m
o Reported operating profit of £30.1m versus £15.6m in H1 2020
o Adjusted basic EPS higher by 39.9% (at constant FX) at 7.7p (H1 2020: 6.2p)
o Reported basic EPS of 6.6p compares to 2.3p in H1 2020
o Adjusted operating cash flow of £22.4m in H1 2021
o Reported net cash inflow from operating activities of £26.1m in H1 2021
Well positioned for sustained growth in all divisions with clear and successful strategies based on innovation, sustainability and strong customer partnerships
o Components - improving trend since the onset of the pandemic has led to a strong H1 2021 performance
o Packaging - whilst the impact to the underlying market continued to affect H1 2021, customer relationships continue to strengthen and we are expecting to see the market return to moderate growth in H2 2021
o Filters - strong performance seen in H1 2021, led by outsourcing contracts won
Margin expansion in Q2 (vs Q2 2020 and Q1 2021) across all Divisions driven by self-help actions and operational leverage, despite cost inflation
o Price increases being implemented to offset the impact of inflationary cost pressures
o Progress made on strategic initiatives, underpinning future profitability and providing the platform for industry average margin delivery in Packaging towards the end of the year
Value enhancing and strategic acquisition of Hengzhu announced in Components, 3C! integration on plan in Packaging
Strong balance sheet maintained, providing strategic optionality
o Net debt of £212.2m (H1 2020: £297.0m), with net debt / EBITDA at 1.7x (excluding lease liabilities, net debt / EBITDA ratio is 1.5x)
Issue of $250m private placement debt in July, securing more long term funding
