TIDMESNT
RNS Number : 2393W
Essentra plc
17 August 2022
ESSENTRA PLC
("Essentra" or the "Company")
A leading global provider of essential components and
solutions
RESULTS FOR THE HALF YEARED 30 JUNE 2022
A strong H1 2022 performance with strategic progress
-- Significant first step taken to reposition Essentra as a
pure-play Components business with the sale of Packaging to
Mayr-Melnhof ("MM") Group announced in June, expected to complete
in Q4 2022
-- The Filters strategic review continues to progress, and the
Company expects to provide an update by the end of Q3
-- After completion, we expect the sale of Packaging to enhance
Essentra's balance sheet leaving the continuing Group with a small
net cash balance, excluding lease liabilities. This position will
be reviewed after the conclusion of the Filters strategic review.
The Board intends to return a portion of Packaging proceeds to
shareholders after the conclusion of both strategic reviews
-- Strong performance across the continuing(1) Group in H1 2022.
Revenue up 14.0% on a like-for-like(2) ("LFL") constant currency
basis and adjusted(3) operating profit up 43.8%
-- Components delivered a strong performance with revenue growth
of 18.6% (12.7% LFL) on a constant currency basis, with growth
driven through price and volume. Adjusted operating profit
increased to GBP35.9m and adjusted operating margins expanded to
20.4% (H1 2021: 18.1% on a constant currency basis)
-- Filters revenue grew 15.4% on a constant currency basis,
underpinned by growth of outsourcing contract wins and an increase
in China JV volumes. Adjusted operating profit increased to
GBP15.1m with operating margins expanding to 9.2% (H1 2021: 8.3%,
on a constant currency basis)
-- Adjusted(3) operating cash flow of GBP15.9m in H1 2022 (H1
2021: GBP17.7m), a reduction due to working capital investment to
support growth
-- Group net debt of GBP248.9m (H1 2021: GBP159.1m), with net
debt / EBITDA at 1.9x (including lease liabilities 2.1x). The
increase includes adjusting items related to the strategic reviews,
increased levels of working capital and higher interest expense ,
led by USD forex and a one-off revaluation of the US private
placement loan notes to be repaid in association with the disposal
of the Packaging business
-- Discontinued operations made a post-tax loss of GBP182.8m
after incurring adjusting items of GBP193.6m (including a non-cash
GBP181.6m impairment of goodwill for the Packaging business)
-- Given the continuing Group's strong performance and aligned
with our progressive dividend policy, the Board has recommended an
interim dividend of 2.3p per share, +15% compared to H1 2021
(1 Continuing Operations excludes the Packaging division, which
has been reported under IFRS 5 as a discontinued operation at the
HY 2022 results)
(2 Excludes the impact of acquisitions, disposals and foreign
exchange)
(3 Before amortisation of acquired intangible assets and
adjusting items. Further details can be found in Note 3 of the
condensed consolidated interim financial statements)
Commenting on today's results, Paul Forman, Chief Executive,
said:
"We have made significant progress on our journey to reposition
Essentra as a leading manufacturer and distributor of components,
with the announced sale of Packaging to MM Group. This transaction
will further strengthen our balance sheet and give Components the
flexibility to accelerate investment in growth opportunities.
The strategic review of Filters is progressing well, and the
Board remains focused on maximising shareholder value. We will
provide a further update towards the end of Q3 2022. The Company
has delivered a strong first half; the Components and Filters
divisions have delivered double digit H1 growth, including margin
expansion and we continue to see strength in our order book,
providing encouragement as we move into the second half.
Whilst we are mindful of the wider macroeconomic uncertainty,
the Group remains well positioned with organic and inorganic growth
opportunities, strong order books and a robust balance sheet. We
expect to deliver adjusted operating profit in line with the
Board's expectations."
Results at a glance:
HY 2022 HY 2021 % change % change
(restated) Actual FX Constant
(4) FX
------------ ------------ -----------
Continuing operations
Revenue GBP340.8m GBP287.9m +18 +17
Adjusted(1) operating
profit GBP35.3m GBP24.6m +44 +44
Adjusted(1) pre-tax profit GBP23.4m GBP18.1m +29 +27
Adjusted(1) net income(2) GBP17.2m GBP16.5m +4 +2
Adjusted(1) basic earnings
per share 5.3p 5.2p +2 (1)
Free cash flow(3) GBP9.3m GBP1.1m n/a n/a
Continuing operations
Reported operating profit GBP11.0m GBP17.6m (38) (37)
Reported pre-tax (loss) GBP(0.9)m GBP11.1m n/a n/a
/ profit
Reported net (loss) / GBP(4.6)m GBP11.4m n/a n/a
income(2)
Reported (loss) / basic
earnings per share (1.9)p 3.6p n/a n/a
Reported net cash inflow GBP6.2m GBP7.9m n/a n/a
from operating activities
Discontinued operations
Post-tax (loss) / profit GBP(182.8)m GBP5.2m n/a n/a
Total Group
Dividend per share 2.3p 2.0p +15 n/a
Net debt (including lease GBP309.9m GBP212.2m +46 n/a
liabilities)
Net debt (excluding lease GBP248.9m GBP159.1m +56 n/a
liabilities)
Net debt to adjusted EBITDA(5)
(including lease liabilities) 2.1x 1.7x n/a n/a
Net debt to adjusted EBITDA(5)
(excluding lease liabilities) 1.9x 1.5x n/a n/a
Group Reported pre-tax GBP(194.7)m GBP18.0m n/a n/a
(loss) / profit
Group Reported net (loss) GBP(187.4)m GBP16.6m n/a n/a
/ income(2)
Group Reported basic earnings
per share (62.7)p 5.3p n/a n/a
-------------------------------- ------------ ------------ ----------- ----------
(1 Before amortisation of acquired intangible assets and
adjusting items.) (Further details can be found in Note 3 of the
condensed consolidated interim financial statements)
2 Net income is defined as profit / (loss) after tax, before
non-controlling interests 3 A reconciliation of free cash flow is
set out in the Financial Review
(4 The results of the Packaging division are presented as
results from a discontinued operation and the comparative
information has been restated accordingly. See n) (ote 1 and 16 of
the condensed consolidated interim financial statements for further
details of restatements)
5 EBITDA is defined as operating profit before depreciation (and
other amounts written off property, plant and equipment), share
option expense, intangible amortisation and adjusting items
Statutory to Adjusted Reconciliation: Continuing operations
30 June Amortisation
2022 of acquired
intangible Adjusting LFL /
Reported Acquisitions assets items Tax on adjustments FX Adjusted(1)
--------- ------------- ------------- ----------- ------------------- ---
Revenue GBP341m GBP(9)m - - - - GBP332m
Operating GBP11m - GBP5m GBP19m - - GBP35m
profit
Pre-tax GBP(1)m - GBP5m GBP19m - - GBP23m
(loss)
/ profit
Net (loss) GBP(5)m - GBP5m GBP19m GBP(2)m - GBP17m
/ income
----------- --------- ------------- ------------- ----------- ------------------- --- -------------
30 June Amortisation
2021 of acquired Adjusting LFL /
Reported intangible items Tax on adjustments Adjusted(1,2)
(restated) Acquisitions assets (restated) (restated) FX (restated)
------------ ------------- ------------- ------------- ------------------- ------
Revenue GBP288m - - - - GBP3m GBP291m
Operating GBP18m - GBP4m GBP3m - - GBP25m
profit
Pre-tax GBP11m - GBP4m GBP3m - - GBP18m
profit
Net income GBP11m - GBP4m GBP3m GBP(2)m - GBP16m
----------- ------------ ------------- ------------- ------------- ------------------- ------ ---------------
(1) (Adjusted operating profit, adjusted pre-tax profit and
adjusted net income relate to continuing operations)
(2 The results of the Packaging division are presented as
results from a discontinued operation and the comparative
information has been restated accordingly. See n) (ote 16 of the
condensed consolidated interim financial statements)
Strategic Review of Filters Business
In Q4 2021, Essentra set out its strategic goal to become a
pure-play Components business, maximising shareholder value and the
potential of each business. The strategic reviews of Packaging and
Filters ran in parallel, and in June 2022, the Company announced
the sale of Packaging to MM Group, which is expected to complete in
Q4 2022.
The Board remains focused on maximising shareholder value with
the strategic review of Filters. The strategic review is
progressing well, and a further update is expected in Q3 2022.
IFRS 5: Packaging Discontinued Operations and IAS 36: Impairment
of Assets
The disposal of the Packaging business has a material impact on
the presentation of the Group's condensed consolidated financial
statements for the six months ended 30 June 2022. See note 1 and
note 16 for further details.
Packaging has met the International Financial Reporting
Standards ("IFRS") criteria to be classified as held for sale in
the half year results. Operations have therefore been classified as
discontinued. Components and Filters businesses represent the
continuing operations of Essentra, together with central services.
The comparative period financial statements have been restated.
As a result of meeting the IFRS 5 (non-current assets held for
sale and discontinued operations) definition as held for sale, the
Company has measured the Packaging business at the lower of its
carrying amount and fair value less costs to sell, consequently
recognising a discontinued operations impairment charge of
GBP181.6m as an adjusting item.
Given the challenging business and macroeconomic backdrop that
the business currently faces, and the level of interest the sale of
the Packaging business received, the Board believes MM Group's
offer is attractive, and in the best interest of shareholders,
unlocking value today. Furthermore, the Board believes its decision
to transform the Group into a pure-play Components business will
present significant opportunities to accelerate growth and expand
market share.
The sale of Packaging is expected to complete in Q4 2022 and, as
further explained in the Class 1 Circular for the transaction
(which was approved by the Company's shareholders on 8 August
2022), the Board intends to use the proceeds to reduce the
Company's debt and contribute GBP5m to Essentra's defined benefit
pension schemes. Following the conclusion of the Filters strategic
review, the Board intends to return a proportion of the residual
net transaction proceeds to shareholders, after allowing for
sufficient flexibility of the Components business to pursue value
creating opportunities. The timing, quantum and method of return
will be subject to the Board's consideration at the appropriate
time.
IAS 29: Turkey Hyperinflation
International Accounting Standards ("IAS") 29, Financial
Reporting in Hyperinflationary Economies, has been applied to the
Components business in Turkey. There has been more than a 100%
increase in the consumer price index in Turkey between 2019 and
2022. As a result of IAS 29, an increase in net assets of c.GBP18m
and a c.GBP2m increase in profit before tax has been recognised
within the half year results. The Components business in Turkey
contributes c.3% revenue to the continuing Group.
Alternative Performance Measures
Constant foreign exchange rates. Movements in exchange rates
relative to sterling affect actual results as reported. The
constant exchange rate basis ("constant currency") adjusts the
comparative to exclude such movements, to show the underlying
performance of the Company.
The principal exchange rates for Essentra were:
-------- Average -------- -------- Closing --------
HY 2022 HY 2021 HY 2022 HY 2021
--------- --------------------- -------------------- -------------------- --------------------
US$:GBP 1.29 1.39 1.21 1.38
EUR:GBP 1.18 1.15 1.16 1.17
--------- --------------------- -------------------- -------------------- --------------------
Re-translating at HY 2022 average exchange rates increases the
prior year revenue and adjusted operating profit on a continuing
operations basis by GBP3.3m and GBPnil respectively.
Like-for-like ("LFL"). The term "like-for-like" describes the
performance of the continuing business on a comparable basis,
adjusting for the impact of acquisitions, disposals and foreign
exchange. The HY 2022 LFL results are adjusted for the acquisition
of Jiangxi Hengzhu Electrical Cabinet Lock Co., Ltd ("Hengzhu") on
2 August 2021.
Adjusted basis. The term "adjusted" excludes the impact of
amortisation of acquired intangible assets and adjusting items,
less any associated tax impact. On a continuing basis, H1 2022
amortisation of acquired intangible assets was GBP5.0m (2021:
GBP4.2m), and there was a pre-tax charge for adjusting items of
GBP19.3m (2021: GBP2.8m). This included reorganisation of the
remaining Group (GBP13.1m) and investment in major Software as a
Service ("SaaS") projects (GBP6.2m).
Discontinued operations amortisation of intangible assets
totalled GBP6.6m and there were adjusting item expenses of
GBP193.6m, driven by impairment of goodwill GBP181.6m, separation
costs in relation to Packaging (GBP9.6m) and other impairments and
reorganisation expenses (GBP2.4m). For more information on the
performance of discontinued operations, see note 16 to the
condensed consolidated interim financial statements.
Adjusted operating cash flow. Adjusted operating cash flow is
net cash flow from operating activities, excluding income tax paid,
pensions adjustments, and cash flows relating to adjusting items,
less net capital expenditure. It is a measure of the underlying
cash generation of the business. Net capital expenditure is
included in this measure as management regard investment in
operational assets (tangible and intangible) as integral to the
underlying cash generation capability of the Company.
Constant currency, LFL and adjusted measures are provided to
reflect the underlying financial performance of Essentra. For
further details on the performance metrics used by Essentra, please
refer to pages 20 to 23 of the 2021 Annual Report.
Operating Review
On a continuing operations basis, the H1 2022 result was strong,
with double digit revenue growth and margin expansion in the
Filters and Components divisions. H1 2022 revenue increased by
18.4% (17.0% at constant currency) to GBP340.8m, whilst on a LFL
constant currency basis, revenue increased by 14.0% compared to H1
2021.
On an adjusted basis, continuing operating profit was up 43.5%
(43.8% at constant currency) to GBP35.3m, which has been driven by
increased trading volumes, effective management of supply chain
disruption and cost inflation through focused pricing activities,
as well as cost saving programmes. Adjusted operating margin
improved 190bps to 10.4% on a constant currency basis (8.5% H1
2021).
Including amortisation of acquired intangible assets of GBP5.0m
and a pre-tax charge from adjusting items of GBP19.3m, continuing
operating profit was GBP11.0m (2021: GBP17.6m).
The Group has discontinued operations as a result of Packaging
sale to MM, which had revenue of GBP205.6m and adjusted operating
profit of GBP6.7m (GBP3.9m after allocating central costs). The
operating loss as reported was GBP193.5m, a result of an impairment
charge of GBP181.6m and other adjusting items of GBP12.0m.
Net finance expense for continuing operations was higher than
the prior year at GBP11.9m (2021: GBP6.5m). This increase was
driven by a one-off revaluation of the US loan notes associated
with the disposal of the Packaging business.
The effective tax rate on continuing underlying profit before
tax (before adjusting items) was 26.5% (2021: 8.7%). The increase
in the tax rate is driven by the one-off non-cash benefit on the
remeasurement of deferred tax assets in 2021 as a result of the
enacted change in UK Corporation Tax rates and significant
reductions in central tax provisions in 2021.
The underlying effective tax rate for the continuing Group is
adversely impacted by the accounting treatment for consolidation
adjustments between the continuing and discontinued operations, net
of a favourable impact of IAS29 (hyperinflation accounting).
Excluding these significant impacts the continuing Group's
underlying effective tax rate would be 21.4% which is within our
forecast tax rate range of 21% to 22% (on a continuing operations
basis). The previously disclosed forecast tax range including the
Packaging division was 19%-20% with the movement a result of some
lower tax jurisdictions in the Packaging division.
On a continuing adjusted basis, net income of GBP17.2m was up
4.2% (2.2% at constant currency) and adjusted basic earnings per
share was 5.3p. On a continuing reported basis, net loss of GBP4.6m
and basic earnings per share of 1.9p loss compared to a net gain of
GBP11.4m and earnings per share of 3.6p respectively in 2021.
Continuing adjusted operating cash flow was GBP15.9m (H1 2021:
GBP17.7m), equating to a cash conversion of 45% compared to 72% in
H1 2021. This includes an outflow of net working capital for the
year of GBP24.0m (H1 2021: GBP10.7m). The increase in net working
capital on continuing operations to GBP115.1m (H1 2021: GBP82.1m)
was predominately due to higher inventory and receivables levels,
supporting growth and increased trading volumes. Our average net
working capital to sales ratio increased to 15.3% compared to 14.8%
on a continuing operations basis in 2021.
Outlook Statement
Essentra has made a strong start to the year, with sales and
order book ahead of 2021. Whilst the macroeconomic environment
remains uncertain, Essentra continues to manage cost inflation and
supply chain challenges. We are proactively protecting margins
through pricing actions and cost mitigation activities.
We expect Components to take market share due to its enhanced
digital customer experience and cross-selling activities. Filters
should see strong growth from the ramp up of the China JV entering
its second year of production, as well as continued outsourcing
contract wins.
The Packaging sale to MM Group is expected to complete in Q4
2022, and we will provide an update on the strategic review of
Filters towards the end of Q3 2022. After the completion of
Packaging, we expect to hold a small net cash position (excluding
lease liabilities) and will review this position moving forward
after both strategic reviews have concluded.
The continuing Group expects to deliver adjusted operating
profit in line with the Board's expectations.
Business Review
Summary growth in revenue by Division
% growth LFL Acquisitions Foreign Total
Exchange
------ ------------- ----------
Components +12.7 +5.9 (0.1) +18.5
Filters +15.4 - +2.8 +18.2
Continuing Operations +14.0 +3.0 +1.4 +18.4
Discontinued Operations +9.5 - +0.4 +9.9
------------------------- ------ ------------- ---------- ------
The following review is given at constant currency exchange
rates and on an adjusted basis, unless otherwise stated.
Components
2022 % growth % growth
GBPm Actual FX Constant FX
------ -----------
Revenue 175.9 +18.5 +18.6
Adjusted(1) operating
profit 35.9 +33.0 +33.7
Adjusted(1) operating 20.4% +220bps +230bps
margin
----------------------- ------ ----------- -------------
(1) (Before amortisation of acquired intangible assets,
adjusting items and includes an allocation of certain functional
costs)
Components has delivered strong growth and margin expansion in
H1 alongside a backdrop of headwinds including inflationary cost
pressures and the return of temporary local lockdowns in China. In
response to increased inflationary pressures (materials, labour and
freight), and to protect our margins, the division has passed
through price increases to customers. The business continues to
monitor and review price increases through H2.
Revenue for the year increased by 18.6% to GBP175.9m on a
constant currency basis (LFL 12.7%). LFL revenue per trading day
adjusted growth of 15.9% in Q1 and 9.3% in Q2.
Adjusted operating profit increased by 33.7% to GBP35.9m,
equating to a margin of 20.4% (2021: 18.2%). The 230bps improvement
(at constant currency) reflects the improved trading volumes and
success in implementing price increases to offset inflation.
As noted previously, Turkey has experienced an accelerated rate
of inflation. We are mindful of the needs of our people and have
responded by adjusting wage inflation at our manufacturing facility
in Istanbul. We have reviewed our domestic pricing regularly to
mitigate cost increases, and continue to ensure that pricing within
the export market for goods manufactured in Turkey remains
competitive. Our actions to date have ensured underlying operating
margins in Turkey remain stable.
We are pleased to see positive progress in customer service
levels through H1. Whilst we continue to face supply chain
challenges across the division, our backlog, which peaked in August
2021, has shown substantial improvement in the first six months of
the year. A reduction of c.70% of the exceptional backlog levels,
indicates a return to normalised levels of order book backlog. In
2022, the business is supported by a strong new order intake, and
closing order book. Our on time in full ("OTIF") metric is also
recovering since the start of the year, as we continue to drive
service improvements.
The division continues to deliver progress on its digital
journey, consistent with the commitment to provide customers with a
"hassle-free" experience. The division has taken further steps to
digitise the customer experience journey in 2022 and we continue to
see increased engagements with the websites that have been
deployed. Developments this year include the launch of our website
in Turkey as we move our focus to enhancements and improvements.
The integration of Artificial Intelligence activities in our sales
and marketing teams has continued and we are driving commercial
effectiveness through the deployment of predictive marketing
programmes. Furthermore, we have recently established a new Digital
Hub in Istanbul, where we are focusing the recruitment of new
digital talent.
We continue to review the approach taken with Business Process
Redesign ("BPR"), and recognise an initial delay in H1 as we
continue to stabilise and re-develop the programme with a pure-play
Components model in mind. With support from the new programme team
that were put in place towards the end of 2021, we will recommence
the roll out in EMEA in H2 as well as commencing the implementation
and planning stages in AMERS, as we look towards a Q1 2023 roll out
in this region.
The Components division continues to make excellent progress
towards meeting its sustainability targets. Our investment in
research and development continues, and we are pleased to share
that our Kidlington, Oxford facility has achieved a 50/50 balance
of virgin and post-consumer recycled plastics within its
Low-Density Polyethylene ("LDPE") product range. Across the whole
division we continue to take steps towards achieving the target of
using 20% recycled or renewable polymer raw materials by 2025,
finishing Q2 2022 with an exit run rate of recycled material
consumption of c.11% of total material (c.10% end of Q4 2021).
Filters
2022 % growth % growth
GBPm Actual FX Constant FX
------ -----------
Revenue 164.9 +18.2 +15.4
Adjusted(1) operating
profit 15.1 +31.3 +27.2
Adjusted(1) operating 9.2% +100bps +90bps
margin
----------------------- ------ ----------- -------------
(1) (Before amortisation of acquired intangible assets,
adjusting items and includes an allocation of certain functional
costs)
The Filters division saw revenue growth of 15.4% compared to the
prior year on a constant currency basis. The core Filters business
(excluding Tapes business) was up by 16.5%.
The division has continued to see strong growth momentum in
2022. Q1 was up by 15.9% and Q2 14.9% on a constant currency basis.
The growth has been driven by increased outsourcing contract
business, as well as supporting our multi-national companies
("MNCs") with their business continuity plans ("BCP"), supporting
optionality as supply and demand adjusted to events such as
Russia's invasion of Ukraine as well as the pandemic. Sales into
the Chinese market have grown, with the support of the Joint
Venture which has now been operational for twelve months
contributing c.6% to the sales growth in H1. Prices have been
reviewed and adjusted, supporting in the protection of margin
against cost inflation (raw materials and freight).
In relation to the division's 'game changers', the pipeline of
outsourcing contract opportunities built in 2021 has continued to
support growth in 2022. Significant investment has led to the
securing of new outsourcing contracts across the range of our
customer base (MNC, Monopoly and Independents), primarily for
manufacture in EMEA and Asia, leading to contracted business growth
of 19.0% in H1 2022 compared to the prior year.
The China JV production volumes have continued to increase
through 2022, with the JV reaching profitability in June 2022, a
major milestone twelve months after production officially
commenced, and continues to operate in line with expectations. The
JV is a great platform to capture opportunities available in the
world's largest tobacco market, which is also shifting towards
speciality products, and will be further enhanced by future
investment in the China Development Centre.
Our pipeline of ECO and next generation products ("NGP")
continues to gain commercial interest, with a further three new
commercial contracts gained in H1 2022 for ECO products. The
division remains uniquely positioned to be a key global player in
the outsourced filter market using strong technological knowledge.
We remain pleased with the increased levels of interest the market
is showing towards these new products which are intended to meet EU
Single Use Plastics Directive initiatives for plastic-free and
biodegradable products.
The Tapes business has continued to develop its key account
management structure, growing a deeper understanding of customer
needs, and supporting development of relevant value propositions in
paper and board. For the first time, the Tapes business has over
50% of business in non-tobacco.
As well as strong financial performance, and commercial progress
in H1 2022, the division as a whole has maintained world class
service and quality metrics, strengthening customer relationships,
driving agility through the supply chain.
Adjusted operating profit increased 27.2% to GBP15.1m, equating
to an operating margin of 9.2% (90bps improvement at constant
currency), largely driven by the volume gearing effect from the
revenue increase and favourable mix of outsourcing and BCP volumes,
whilst pricing actions are successfully mitigating inflationary
pressures.
Discontinued Operations - Packaging
2022 % growth % growth
GBPm Actual FX Constant FX
------ -----------
Revenue 205.6 +9.9 +9.5
Adjusted(1) operating profit 3.9 (59.4) (59.4)
Adjusted(1) operating margin 1.9% (320)bps (320)bps
------------------------------ ------ ----------- -------------
(1) (Before amortisation of acquired intangible assets,
adjusting items and includes an allocation of certain functional
costs)
Packaging divisional revenue was 9.5% up on the prior year at
constant currency. Growth in H1 continues to be driven by
underlying market recovery, as seen towards the end of 2021.
Adjusted operating margins reduced in H1 by 320bps to 1.9%
compared to H1 2021. The business faced inflationary cost pressures
at the start of 2022 and incurred a delay in passing through cost
inflation to customers. During Q2, cost inflation was fully passed
through to customers supporting the recovery of operating
margins.
Further information relating to financial performance of
discontinued operations can be found in note 16 to the condensed
consolidated interim financial statements.
Financial Review
Net finance expense. Net finance expense from continuing
operations of GBP11.9m was GBP5.4m above the prior year
comparative. The Group incurred a one-off interest expense of
GBP6.1m relating to the revaluation of the US private placement
notes to be repaid in association with the disposal of the
Packaging business. The Group also incurred an increase in net
interest charged on net debt due to higher market interest rates
during the period.
GBPm
-------- -------------------
HY 2022 HY 2021 (restated)
------------------------------------------------ -------- -------------------
Net interest charged on net debt 6.1 3.3
Amortisation of bank fees 0.8 0.5
Net IAS 19 pension finance charge - 0.3
Interest on leases 1.1 1.0
Gains / (losses) on forex movements (1.0) 0.3
Net other finance expense 1.0 1.1
Monetary gain on hyperinflation economies (2.2) -
Loan revaluations associated with discontinued 6.1 -
activity
Net finance expense from continuing operations 11.9 6.5
Interest on discontinued leases and other
discontinued finance charges/gains 0.3 0.5
Total Group net finance expense 12.2 7.0
------------------------------------------------ -------- -------------------
Net working capital. Net working capital is defined as
Inventories plus Trade & Other Receivables less Trade &
Other Payables, adjusted to exclude Deferred Consideration
Receivable / Payable, Interest Accruals and Capital Payables
("Adjustments").
GBPm HY 2022 HY 2021
(restated)
---------
Inventories 117.5 82.1
Trade & other receivables 143.4 118.6
Trade & other payables (151.5) (122.5)
Adjustments 5.7 3.9
Net working capital - continued operations 115.1 82.1
Net working capital - discontinued
operations 63.0 37.8
Total Group working capital 178.1 119.9
-------------------------------------------- --------- -------------
The increase in net working capital was predominately due to
higher inventory and receivables levels, which were driven by
enhanced trading volumes combined with a build-up of inventory, to
mitigate supply chain disruption, protecting service levels
supporting sales growth. Moving through the second half, working
capital levels are expected to unwind, and reduce.
Cash flow. Adjusted operating cash flow is net cash flow from
operating activities, excluding income tax paid, pensions
adjustments, and cash flows relating to adjusting items, less net
capital expenditure. It is a measure of the underlying cash
generation of the business and is presented below to exclude cash
flow on discontinued operations. Net capital expenditure is
included in this measure as management regard investment in
operational assets (tangible and intangible) as integral to the
underlying cash generation capability of the Company.
Adjusted operating cash flow on continuing operations was 10%
lower than the previous year at GBP15.9m (2021: GBP17.7m), which
equated to an operating cash conversion of 45% in the year (2021:
72%). Free cash flow was GBP9.3m compared to GBP1.1m in 2021. The
improvement in free cash flow was due to lower pension
contributions and lower underlying tax payments.
In H1 2022, for the total Group there was a GBP11.5m net
increase in cash and cash equivalents to GBP153.6m (2021: decrease
of GBP0.4m to GBP132.5m).
Continuing operations HY 2022 HY 2021
GBPm (restated)
--------
Adjusted operating profit 35.3 24.6
Depreciation and amortisation of non-acquired
intangible assets 14.1 12.4
Lease right-of-use asset depreciation 4.3 3.7
Share option expense / other movements 0.8 (1.5)
Change in working capital (24.0) (10.7)
Operating cashflow due to hyperinflation (1.7) -
Net capital expenditure (excluding disposal
proceeds relating to adjusting items) (12.9) (10.8)
Adjusted operating cash flow 15.9 17.7
Tax(1) 0.4 (6.7)
Cash outflow in respect of adjusting items (23.4) (9.7)
Pension obligations 0.4 (4.2)
Add back: net capital expenditure (excluding
disposal proceeds relating to adjusting
items) 12.9 10.8
Net cash inflow from operating activities 6.2 7.9
Adjusted operating cash flow 15.9 17.7
Tax(1) 0.4 (6.7)
Net interest paid (7.4) (5.7)
Pension obligations 0.4 (4.2)
Free cash flow 9.3 1.1
Net increase in cash & cash equivalents
(Total Group) 11.8 (0.4)
------------------------------------------------- -------- ------------
(1 Tax excludes the tax paid/received in relation to adjusting
items. This is included within the cash outflow in respect of
adjusting items)
Net debt. Net debt at the end of the period was GBP309.9m, a
GBP75.2m increase from 1 January 2022 (including lease
liabilities). The overall increase was driven by foreign exchange
movement on USPP loan notes, adjusting items linked to strategic
review activity, dividend payments and working capital outflows to
support revenue growth.
The Group's financial ratios remain within an acceptable range.
The ratio of net debt to EBITDA including lease liabilities was
2.1x (30 June 2021: 1.7x). Net debt to EBITDA excluding lease
liabilities was 1.9x (30 June 2021: 1.5x). Interest cover was 4.3x
(30 June 2021: 4.9x).
The Company has a commitment to repay a portion of USPP loans 60
days after receipt of funds and completion of the Packaging sale.
As a result, a reclassification of USPP 2017 and 2019 loan notes is
required, and a total c.GBP174m has been reclassified to current
liabilities for the interim period ended June 2022.
Linked to the early repayment of these loan notes, an
accelerated net finance charge for GBP6.1m has been recognised,
with the overall impact on net debt being GBP4.1m.
GBPm 2022
Net debt as at 1 January 2022 234.7
Free cash flow from continuing operations (9.3)
Cash outflow from discontinued operations 12.8
Cash outflow in respect of adjusting items 31.1
Foreign exchange 27.4
Dividends to equity holders 12.0
Loan revaluations 4.1
Derivative revaluations (10.7)
Lease liability movements 7.0
Amortisation of pre-paid facilities 0.8
Net debt as at 30 June 2022 309.9
---------------------------------------------- -------
Pensions. As at 30 June 2022, the Company's IAS 19 pension net
surplus was GBP0.2m (FY 2021: net surplus of GBP9.0m). During the
period the senior section of the pension scheme purchased a buy-in
policy, significantly de-risking a proportion of the UK pension
scheme against future funding deficits. An actuarial loss of
GBP7.1m was recognised through reserves.
Dividend . In keeping with the Company's progressive dividend
policy, the Board of Directors recommends an interim dividend of
2.3 pence per 25 pence ordinary share (HY 2021: 2.0p). The interim
dividend will be paid on 28 October 2022 to equity holders on the
share register on 23 September 2022, the ex-dividend date will be
22 September 2022. 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 7 October 2022. The Board
will review the dividend policy on completion of both strategic
reviews, ensuring that the policy is appropriate for the continuing
Group.
Board changes. As planned and previously communicated, Dupsy
Abiola was appointed as a Non-Executive Director in March 2022 and
Jack Clarke was appointed as Chief Financial Officer in April 2022,
and both successfully stood for election at the 2022 AGM.
Treasury policy and controls. Essentra has a centralised
treasury function to manage funding, liquidity and exposure to
interest rate and foreign exchange risk. Treasury policies are
approved by the Board and cover the nature of the exposure to be
hedged, the types of derivatives that may be employed and the
criteria for investing and borrowing cash. Essentra uses
derivatives only to manage currency and interest rate risk arising
from the underlying business activities. No transactions of a
speculative nature are undertaken. Underlying policy assumptions
and activities are reviewed by the Treasury Committee.
Controls over exposure changes and transaction authenticity are
in place, and dealings are restricted to those banks with the
relevant combination of geographical presence, expertise and
suitable credit rating.
Foreign exchange risk. The majority of Essentra's net assets are
in currencies other than sterling. The Company's normal policy is
to reduce the translation exposure and the resulting impact on
shareholders' funds through measures such as borrowing in those
currencies in which the Group has significant net assets. At 30
June 2022, Essentra's US dollar-denominated assets were
approximately 65% hedged by its US dollar-denominated
borrowings.
The majority of Essentra's transactions are carried out in the
functional currencies of its operations, and therefore transaction
exposure is limited. However, where such exposure does occur,
Essentra uses forward foreign currency contracts to hedge its
exposure to movements in exchange rates on its highly probable
forecast foreign currency sales and purchases over a period of up
to 18 months.
Management of principal risks. The Board considers risk
assessment, identification of mitigating actions and internal
controls to be fundamental to achieving Essentra's strategic
objectives. Our principal risks are detailed later in this
document.
Enquiries
Essentra plc Tulchan Communications LLP
Jack Clarke, Chief Financial Officer Olivia Peters
Claire Goodman, Group Investor Lisa Jarrett-Kerr
Relations Manager Tel: +44 (0)20 7353 4200
Tel: +44 (0)1908 359100
Presentation
A copy of these results is available on www.essentraplc.com
There will be a presentation to analysts and investors starting
at 09:00 (UK time, registration from 08:30) on Wednesday 17 August
2022 at Peel Hunt LLP, 7th Floor, 100 Liverpool St, London EC2M
2AT.
There are two options for participating in the event:
1. To attend in person, please e-mail your details to investorrelations@essentra.com
2. To join the l ive webcast of the presentation, please pre-register at: http://www.essentraplc.com/en/investors/company-information/webcasts-and-presentations
A recording of the webcast will be made available on the
Company's website later in the day.
Cautionary forward-looking statement
These results contain forward-looking statements based on
current expectations and assumptions. Various known and unknown
risks, uncertainties and other factors may cause actual results to
differ from future results or developments expressed or implied
from the forward-looking statements. Each forward-looking statement
speaks only as of the date of this document. The Company accepts no
obligation to revise or update these forward-looking statements
publicly or adjust them to future events of developments, whether
as a result of new information, future events or otherwise, except
to the extent legally required.
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider
of essential components and solutions. Organised into three global
divisions, Essentra focuses on the light manufacture and
distribution of high volume, enabling components which serve
customers in a wide variety of end-markets and geographies.
Headquartered in the United Kingdom, Essentra's global network
extends to 34 countries and includes 8,327 employees, 47 principal
manufacturing facilities, 28 sales & distribution operations
and two research & development centres. For further
information, please visit www.essentraplc.com.
Essentra Components
Essentra Components is a global market leading manufacturer and
distributor of plastic injection moulded, vinyl dip moulded and
metal items. Operating in 25 countries worldwide, 1 digital
innovation centre, 13 manufacturing facilities 23 sales &
distribution centres serve more than 79,000 customers with a rapid
supply of low cost but essential products for a variety of
applications in industries such as equipment manufacturing,
automotive, fabrication, electronics and construction. The division
also includes the Reid Supply business, which provides a wide range
of branded hardware supplies to a broad base of industrial
customers, largely located in the US Mid-West.
Essentra Packaging
Essentra Packaging is one of only two multicontinental suppliers
of a full secondary packaging range to the health and personal care
sectors, with 23 facilities across three geographic regions. The
division's innovative products include cartons, leaflets,
self-adhesive labels and printed foils used in blister packs, which
help customers to meet the rapidly-changing requirements of these
end-markets and can also be combined with Essentra's authentication
solutions to help the fight against counterfeiting.
Essentra Filters
Essentra Filters is the only global independent cigarette filter
supplier. Currently headquartered in Singapore, the division has 12
sites across nine countries, including two innovation centres,
providing a flexible infrastructure strategically positioned to
serve the tobacco sector. The business supplies a wide range of
value-adding high-quality innovative filters, packaging solutions
to the roll your own segment and analytical laboratory services for
ingredient measurement to the industry: Essentra's offering also
includes Heat Not Burn and e-cigarette solutions to the rapidly
evolving market for Next Generation Products. The division also
includes the Tear Tapes business, which is globally recognised as
the leading manufacturer and supplier of pressure-sensitive tear
tapes, that are largely used in the tobacco, e-commerce, food and
beverage and specialist packaging sectors.
Risk Report
Our risk management activities aim to drive performance aligned
to our purpose, encourage growth through innovation and support the
achievement of our strategic objectives. In doing this we take a
balanced approach that puts risk management at the core of the
senior management agenda. We are committed to managing risks in a
proactive and effective manner to protect and enhance value and
provide assurance to the Board and our stakeholders.
A refreshed risk management framework has been developed for
identifying and managing risk within defined appetite levels, at
both a strategic and an operational level. This framework was
designed to provide the Group Risk Committee ("GRC") and the Board
with a clear line of sight over risk, to enable informed
decision-making and to deliver improved resilience. We continue
making significant progress in evolving our risk management
processes as we continue to ensure our risk management processes
are aligned with FTSE 250 upper quartile practice.
Risk can present itself in many forms and has the potential to
impact: health, safety and wellbeing; the environment; our
communities; our reputation; regulatory compliance; market and
financial performance and, therefore, the achievement of our
corporate purpose. By understanding and managing risk, we provide
greater certainty and confidence to our shareholders, workforce,
customers, suppliers, and the communities in which we operate.
The Board confirms its risk appetite biannually by mapping its
Principal Risks against a scale from "risk-averse" to "risk
neutral" to "risk tolerant" and this informs the development of
mitigating actions for each of the Principal Risks.
At a strategic level, our risk management objectives are
to:-
-- identify the Company's significant risks and appropriate mitigating actions
-- formulate the risk appetite and ensure that our business
profile and plans are consistent with it
-- ensure that growth plans are properly supported by an effective risk infrastructure
-- help management teams to improve the control and
co-ordination of risk-taking across the Company.
Responding to continued disruption in 2022
Whilst 2020 was the year in which we first experienced the
disruption caused by the COVID-19 pandemic, 2021 and the first half
of 2022 presented a different range of risks and challenges to
which we needed to react and adapt. The Company now faces differing
forms of disruption from supply chain constraints to rapidly
changing workforce availability and escalating geopolitical
tensions.
The risk management lessons we learnt over the past two years
have resulted in us being well placed to manage our responses to
these events quickly and robustly. They also resulted in a review
and revision of our risk management framework to allow us to better
consider risk at both a strategic and an operational level with a
view to improving business resilience over the short to long
term.
Looking forward, we anticipate that certain pandemic related
risks will remain in some of our operational sites and end-markets,
at least for the short to medium term; however, the work put in to
our risk management processes and practices over the past two years
means we are well placed to continue to deal with them efficiently
and effectively. Additionally, as the strategic reviews progress we
continue to analyse and assess the Emerging Risk landscape, with
particular focus on the Components division's processes, to ensure
the Group's risk management practices continue not only to protect
stakeholder value but to support its creation in line with our
strategic growth objectives.
It remains critical for us to continue to scan the horizon for
additional new, emerging or disruptive risks which could
significantly affect our ability to meet our strategic growth
objectives. Despite the focus on mitigating the impacts of an
increasing range of disruptive risks, we have during the year paid
close attention to the increasing momentum associated with the risk
agendas for ESG and climate change along with the potential impacts
of the evolving economic and global geopolitical situation.
Principal Risks
The GRC has responsibility for enabling the identification and
management of Essentra's Principal Risks. Through the GRC, an
assessment has been undertaken to consider the appropriateness and
adequacy of our Principal Risks. This assessment required each GRC
risk owner to provide analysis of material changes in the risk they
manage and whether they consider it to have more or less impact
during the course of the year on achievement of our strategic
objectives. The responses from this assessment were considered by
both the GRC and the Audit & Risk Committee (ARC).
The Board believes the Principal Risks are specific to Essentra
and reflect the risk profile of the Company at the current time.
All Principal Risks are managed within their individual risk
appetite.
Since our 2021 Annual Report and Accounts, one Principal Risk -
Failure to Achieve Acceptable Returns from the Packaging Division -
has been removed following the announcement of the sale of the
Packaging Division, which is anticipated to complete in Q4 2022. We
have not identified any new Principal or Emerging risks in the
first half of the year. The table below sets out movements in our
Principal Risks.
Principal Movement Description
Risk from 2021
PR 1 Tobacco Unchanged The Filters division supplies filter products
Industry Dynamics and packaging solutions to manufacturers
in the tobacco industry. Changes in the
(Managing Director, traditional tobacco market present both
Filters) opportunities and risks for the division,
notably from our ability to supply sustainable
filters.
Whilst we have a strong market position,
the future growth opportunities may be
affected by the longer-term dynamics of
the tobacco industry. These include declining
combustible markets, a shift towards Next
Generation Products (NGP) and other tobacco
substitutes. The focus of stakeholders
on the environmental and sustainability
elements of tobacco markets, notably around
the use of single-use plastics, provides
an additional area of risk and opportunity
for the business.
The social pressures and the evolving regulatory
environment continue to move towards reducing
the prevalence of smoking worldwide and
also minimising its environmental impact.
This
presents an opportunity for growth through
our existing sustainable product portfolio
and new innovations.
The continuing changing trends in global
consumption and end-markets for our products
requires increased oversight of where our
products are used and a robust framework
to ensure regulatory compliance. Tobacco-related
litigation could also affect Essentra;
however, there is no history of the Company
being involved in such a claim.
There has been no change to the overall
assessment of this risk.
----------- -------------------------------------------------------
PR 2 Delivery Unchanged Our success is dependent, in part, on our
of Strategic ability to deliver key strategic projects
Projects on time and within budget to realise their
full potential. We invest in, and deliver,
(Company Secretary significant strategic, operational and
and General capital expenditure projects in order to
Counsel) drive the business forward, in particular,
our ongoing Business Process Redesign implementation.
Additionally, over recent years we have
actively reviewed our portfolio of businesses,
engaging in acquisitions and disposals
as appropriate. Failure to deliver such
key projects effectively and efficiently
could result in significantly increased
project costs and impede our ability to
execute our strategic plans.
Over the past two years, our ability to
deliver complex projects has been affected
by some of the restrictions and other disruptions
relating to the COVID-19 pandemic. This
resulted in an enhanced capability to deliver
projects in a complex and dynamic environment
and now, as restrictions on travel are
relaxed, we are well placed to manage this
risk.
We continue to focus on the project governance
arrangements and resources to accelerate
delivery of the Business Process Redesign
programme delivery plan.
There has been no change to the overall
assessment of this risk.
----------- -------------------------------------------------------
PR 3 Regulatory Unchanged The Company operates across many international
Governance jurisdictions and engages with a wide range
of stakeholders, including a diverse workforce,
(Company Secretary customer and supplier base. Some of our
and General locations are considered higher risk from
Counsel) a regulatory perspective. We are required
to comply with multiple areas of legislation
and regulation across an increasingly broad
range of areas including: Anti-Trust, Anti-
Bribery, Sanctions, Privacy and Environmental,
Social & Governance (ESG). Our operations
are subject to an external environment
which is seeing an increasing breadth of
emerging regulation and greater levels
of scrutiny and oversight from regulators
and enforcement agencies, with heightened
political tensions internationally.
Failure to manage effectively the scrutiny
and oversight and/or comply with laws and
regulations could result in significant
fines, costs or reputational damage to
the Company and might adversely affect
our ability to operate in certain jurisdictions.
Whilst the external environment is generating
additional compliance demands, the Company
continues to drive continuous improvements
in its approach to managing regulatory
and legislative requirements. Whilst the
strategic reviews slightly heighten this
risk, there is robust mitigation in place
and overall, the level of risk to the Company
has remained the same.
----------- -------------------------------------------------------
PR 4 Cyber Unchanged The Company is dependent on its internal
Event and external IT systems for day-to-day
operations. Should the Company, or its
(Group IT Director) key cloud service suppliers, be affected
by a cyber event (denial of service, data
breach, compromise) resulting from an external
or internal threat, this could result in
suspension of critical business services
and loss of data. Subsequently, the Company
could receive fines, suffer reputational
damage and be unable to meet customer expectations
(leading to a loss of customer confidence).
Prolonged outages could further erode trust
in the business resulting in long-term
reputational damage.
The risk in relation to remote working
during the pandemic still affects the business,
with ransomware attacks currently becoming
increasingly prevalent, however this is
reducing as some of the workforce returns
to the office. During the pandemic, the
Company invested in improvements to protection
of mobile devices and remote access to
mitigate the risks associated with remote
working.
The strategic reviews introduce a number
of new elements to this risk in relation
to staff turnover and the potential delivery
of transitional services agreements.
Disruptive cyber events remain a serious
threat to the smooth running of our business.
We continue to invest in our cyber security
programme which includes mitigation and
risk reduction activities across people,
process and technology. Following an increase
in the risk level highlighted in the Annual
Report and Accounts, there has been no
further change.
----------- -------------------------------------------------------
PR 5 Operational Unchanged We operate a diverse, global operational
and Supply footprint and supply chain across each
Chain Disruption of our divisions. Ensuring these operations
and supply chains are resilient is a fundamental
(Company Secretary part of maintaining our customer service
and General levels by giving options and alternatives,
Counsel) to minimise the impact of disruption.
Disruptive events could be focused on particular
locations, driven by single points of failure
in our operations or supply chain, be localised
natural events or result from political
conflict. Here, our global footprint provides
risk diversification, through alternative
manufacturing options elsewhere in the
Group. Equally, disruptive events might
be broader in nature and impact a number
of sites simultaneously, for example via
the COVID-19 pandemic, or climate change
related issues in the longer term. In this
situation, our global footprint may expose
us to a broader set of potential disruption
risks than more focused businesses.
Robust business continuity planning and
management practices are required to minimize
the impact on production capability, supply
chain management, customer relationships,
reputation, revenue and profit.
The Company is increasingly reliant on
the digital ecosystem within its supply
chain. Some elements are addressed in our
management of our Cyber Event risk and
others more broadly by the continuity planning
activities described below.
There has been no change to the overall
assessment of this risk.
----------- -------------------------------------------------------
PR 6 Exposure Increasing The Components division serves a broad
to the Cyclical range of industrial customers and, as such,
Industrial is exposed to overall industrial production
Market trends. Global industrial production has
tended to be cyclical in nature with major
(Managing Director, economic downturns leading to a downturn
Components) in industrial production. From the global
financial crisis in 2008-2009 to the COVID-19
pandemic, economic cycles have affected
demand in these broad industrial markets.
The Components division sells to a broad
base of end-markets including automotive,
capital goods and electronics. This market
breadth provides a degree of risk diversification;
however, future downturns in industrial
production are almost certain to happen,
albeit with an uncertain timeframe.
The Components division seeks to operate
a flexible model whereby changes to its
cost base can be quickly made to maintain
operating margins against fluctuations
in demand. The risk is that the business
is not able to execute such changes, or
they are not robust enough to minimise
the impact on operating margins.
Additionally, the division, given its end-markets,
supply chains and operating model, has
a specific exposure to the Operational
& Supply Chain Disruption Principal Risk.
At present, this risk continues to be broadly
managed through the M&A pipeline. However,
additional focus on this risk will be given
following the conclusion of the strategic
reviews.
Whilst prevailing economic conditions indicate
potential recession in many of our end
markets, the mitigations that the Company
has in place remain appropriate.
Following the removal of the Principal
Risk relating to the Packaging division
our assessment is that the Company is increasingly
exposed to this risk.
----------- -------------------------------------------------------
PR 7 Environmental, Unchanged Environmental, Social and Governance (ESG)
Social Governance issues are increasingly fundamental for
(ESG) all companies and stakeholders. Essentra
has specific exposure to tobacco-related
(Company Secretary regulation, potential changes in relation
and General to the regulation of single-use plastics,
Counsel) climate change and multiple other topics.
Failure to meet stakeholder expectations
on increasing environmental and/or social
governance obligations could lead to reputational
or commercial risk for the Company. This
includes risks arising from changing investor
attitudes, developing customer expectations,
changing supply chain dynamics, social
attitudes towards the environmental impact
of our products (which may impact on our
ability to market them), along with ability
to attract and retain talent, given increasing
workforce focus on ESG.
The Components division is exposed to ESG
risks around the reduction in single use
plastics, but also in relation, in the
longer term, to climate change given the
breadth of its operational footprint. The
division is actively working to incorporate
more sustainable materials and believes
it has the innovation capabilities to enable
future growth opportunities with the use
of these materials. Similarly, Filters
is exposed to single use plastic legislation
and is actively developing new innovative
products including the recently launched
"ECO" range of biodegradable filters.
There has been no change to the overall
assessment of this risk since the Annual
Report & Accounts.
----------- -------------------------------------------------------
PR 8 Internal Unchanged Processes and controls play an important
Processes and part in our ability to prevent and detect
Control errors in our management information and
also inappropriate and unethical behaviour
(Chief Financial . This might include fraud, deliberate
Officer) or accidental financial misstatement or
improper accounting practices. If the design,
operation or the assurance over these controls
is ineffective, ownership is not defined
or controls are overridden, there is a
greater risk of operational loss and reputational
damage.
The changes in ways of working as a result
of the COVID-19 pandemic resulted in a
greater adoption of remote working arrangements.
In the short term, this created an increased
risk around our capability to maintain
a robust system of internal control. However,
during the first half of the year we were
able to operate our processes and controls
consistently with this more flexible working
environment.
The continuing implementation of Microsoft
Dynamics 365 in the Components division
along with an increasing focus on the Company's
internal controls over financial reporting
will help to reduce this risk over time.
There has been no change to the impact
of this risk, however the probability has
slightly increased as a result of key resources
being focused on the execution of the strategic
reviews.
----------- -------------------------------------------------------
PR 9 Safety, Unchanged The safety, health and wellbeing of our
Health & Wellbeing workforce remains one of our highest priorities.
Essentra has many manufacturing, distribution
(Group Human and administrative facilities across the
Resources Director) world, along with internationally mobile
employees. Manufacturing and distribution
can be inherently risky given the use of
industrial machinery and high-speed manufacturing
processes. In addition, the Company must
comply with national safety regulation
in multiple jurisdictions.
Should a serious incident occur involving
members of our workforce or visitors, or
should there be any breach of safety regulation,
there is a risk of prosecution and considerable
reputational damage as well as potentially
significant financial costs.
Increasingly, given the changes and ways
of working resulting from the COVID-19
pandemic along with the uncertainty associated
with the strategic reviews, the emotional
wellbeing of our leaders, managers and
workforce has an increased focus.
There has been no change to the assessment
of this risk.
----------- -------------------------------------------------------
PR 10 Talent Increasing Failure to acquire, retain, develop and
and Workforce motivate the required management and leadership
management necessary to evolve our business, develop
our culture and meet future customer needs.
(Group Human The change agenda, including the recently
Resources Director) announced strategic reviews, coupled with
workforce and labour market dynamics, requires
us to continue our focus on retention of
key talent, avoiding burn-out and presenteeism.
Additionally, we must continue to grow
the agile skills required to support and
build on our future strategic direction.
The experience of the past two and a half
years has clearly indicated the effect
major health events, be they global, regional
or country specific, can have on the availability
of resources. There remains a risk that
future major health events could result
in further labour disruption.
There has been no change to the overall
assessment of impact, but the probability
of this risk is increasing as strategic
review related reorganisations are finalised.
----------- -------------------------------------------------------
PR 11 Strategic Unchanged In October and November 2021, the Company
Reviews announced strategic reviews of both the
Filters and Packaging divisions. These
(Company Secretary reviews have a view to maximising shareholder
and General value through focusing on the growth potential
Counsel) of pure-play global components business
whilst Filters and Packaging benefit from
new ownership structures.
Whilst the strategic reviews create significant
opportunities for the respective businesses
and our people, the uncertainty, both internal
and external, caused by these announcements
creates a number of potential risks. These
include but are not limited to:
-- a lack of focus on 'business-as-usual'
activities
-- poor execution of the review and any
resulting decisions
-- talent flight
-- customer, supplier and competitor behaviours,
compliance issues
-- adverse investor feedback.
The reviews comprise a number of complex
projects with significant interdependencies;
however, Essentra is well placed to deliver
them and external/temporary resource has
been identified where there are known capacity
and capability gaps.
There has been no change to the assessment
of this risk.
----------- -------------------------------------------------------
Emerging Risks
The Group's risks are continually reviewed and reassessed
through a bottom up and top down process as well as input from
external sources with escalation and reporting to the Board. The
process fully considers all relevant internal and external factors
and captures those risks which are current but have not yet fully
crystallised, as well as those which are expected to crystallise in
future periods.
The Emerging Risk remains broadly unchanged to those set out in
the 2021 Annual Report and Accounts. Further detail is set out in
the table below:
Risk (Owner) Risk Description
ER1 Technology The risk that Essentra does not manage its response
disruptors to evolving technologies effectively. This may
include losing competitive advantage as rivals
(Divisional Managing deploy advanced manufacturing technologies, artificial
Directors) intelligence and robotics to strengthen product
development, marketing, production, distribution
and support functions.
We continue to monitor and review developments
in the external market through our networks. This
includes innovation and futures sessions with
existing suppliers. We are also involved in a
range of external technical focus groups to support
the identification of future technology trends.
--------------------------------------------------------
Further detail on these risks and how they are managed is
available in the 2021 Annual Report and Accounts.
Condensed consolidated income statement
(restated)* (restated)*
Six months Six months Year
ended ended ended
Note 30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
--------------------------------------------- ---- ---------- ----------- -----------
Revenue 2 340.8 287.9 597.3
Operating profit 11.0 17.6 43.3
Finance income 4.3 1.1 2.8
Finance expense (16.2) (7.6) (18.4)
--------------------------------------------- ---- ---------- ----------- -----------
(Loss)/profit before tax (0.9) 11.1 27.7
Income tax (charge)/credit (3.7) 0.3 (1.4)
--------------------------------------------- ---- ---------- ----------- -----------
(Loss)/profit for the period from continuing
operations (4.6) 11.4 26.3
--------------------------------------------- ---- ---------- ----------- -----------
(Loss)/profit from discontinued operations 16 (182.8) 5.2 2.0
--------------------------------------------- ---- ---------- ----------- -----------
(Loss)/profit for the period (187.4) 16.6 28.3
--------------------------------------------- ---- ---------- ----------- -----------
Attributable to:
Equity holders of Essentra plc (188.6) 15.9 26.9
Non-controlling interests 1.2 0.7 1.4
--------------------------------------------- ---- ---------- ----------- -----------
(Loss)/profit for the period (187.4) 16.6 28.3
--------------------------------------------- ---- ---------- ----------- -----------
* The prior periods have been restated for discontinued operations.
See basis of preparation in note 1 for further details of prior
period restatements.
(Loss)/earnings per share attributable
to equity holders of Essentra plc:
Basic 5 (62.7)p 5.3p 8.9p
--------------------------------------------- ---- ---------- ----------- -----------
Diluted 5 (62.7)p 5.2p 8.9p
--------------------------------------------- ---- ---------- ----------- -----------
(Loss)/earnings per share from continuing
operations attributable to equity holders
of Essentra plc:
Basic 5 (1.9)p 3.6p 8.3p
--------------------------------------------- ---- ---------- ----------- -----------
Diluted 5 (1.9)p 3.5p 8.2p
--------------------------------------------- ---- ---------- ----------- -----------
Adjusted profit measure: continuing
operations
Operating profit 11.0 17.6 43.3
Amortisation of acquired intangible assets 5.0 4.2 8.6
Adjusting items 3,16 19.3 2.8 13.8
--------------------------------------------- ---- ---------- ----------- -----------
Adjusted operating profit 35.3 24.6 65.7
--------------------------------------------- ---- ---------- ----------- -----------
See note 3 for further details of the
adjusted profit measure.
--------------------------------------------- ---- ---------- ----------- -----------
Condensed consolidated statement of comprehensive income
(restated)*
Six months Six months Year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
---------------------------------------------------- ---------- ----------- ------
(Loss)/profit for the period (187.4) 16.6 28.3
Other comprehensive income:
Items that will not be reclassified to
profit or loss:
Remeasurement of defined benefit pension
schemes (6.0) 11.9 28.5
Deferred tax on remeasurement of defined
benefit pension schemes 1.4 (3.8) (7.9)
----------------------------------------------------- ---------- ----------- ------
(4.6) 8.1 20.6
Items that may be reclassified subsequently
to profit or loss:
Changes attributable to cash flow hedges:
Net change in fair value of cash flow
hedges transferred to the income statement (12.6) (0.2) (1.8)
Ineffective portion of changes in fair
value of cash flow hedges transferred
to the income statement 2.6 - (0.5)
Effective portion of changes in fair
value of cash flow hedges 9.7 0.3 0.9
Foreign exchange translation differences:
Attributable to equity holders of Essentra
plc:
Arising on translation of foreign operations 47.0 (19.3) (23.4)
Arising on effective net investment
hedges (17.9) 3.2 (0.4)
Income tax (expense)/credit (2.5) 0.1 0.4
Attributable to non-controlling interests 0.8 (0.7) (0.1)
----------------------------------------------------- ---------- ----------- ------
27.1 (16.6) (24.9)
Other comprehensive income for the period,
net of tax 22.5 (8.5) (4.3)
Total comprehensive income for the period (164.9) 8.1 24.0
----------------------------------------------------- ---------- ----------- ------
Attributable to:
Equity holders of Essentra plc (166.9) 8.1 22.7
Non-controlling interests 2.0 - 1.3
----------------------------------------------------- ---------- ----------- ------
Total comprehensive income for the period (164.9) 8.1 24.0
----------------------------------------------------- ---------- ----------- ------
* See basis of preparation in note 1 for further details of the
prior period restatement .
Condensed consolidated balance sheet
(restated)*
Note 30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
------------------------------------------- ---- ------- ----------- -------
Assets
Property, plant and equipment 6 159.7 249.9 254.3
7,
Lease right-of-use asset 16 38.7 45.9 50.4
Intangible assets 8 206.4 481.7 483.5
Long-term receivables 2.8 4.6 5.2
Derivative assets 14 10.7 - 0.7
Deferred tax assets 8.8 19.3 11.6
Retirement benefit assets 9 22.9 18.3 34.1
------------------------------------------- ---- ------- ----------- -------
Total non-current assets 450.0 819.7 839.8
Inventories 117.5 110.3 128.7
Income tax receivable 1.2 3.9 1.5
Trade and other receivables 143.4 185.0 175.2
Derivative assets 14 0.1 0.3 0.5
10,
Cash and cash equivalents 16 143.3 132.5 136.3
Total current assets 405.5 432.0 442.2
Assets in disposal group held for sale 16 409.0 - -
------------------------------------------- ---- ------- ----------- -------
Total assets 1,264.5 1,251.7 1,282.0
------------------------------------------- ---- ------- ----------- -------
Equity
Issued share capital 75.6 75.6 75.6
Merger relief reserve 385.2 385.2 385.2
Capital redemption reserve 0.1 0.1 0.1
Other reserve (132.8) (132.8) (132.8)
Cash flow hedging reserve (1.8) - (1.5)
Translation reserve (20.9) (40.1) (47.5)
Retained earnings 145.3 315.8 333.6
------------------------------------------- ---- ------- ----------- -------
Attributable to equity holders of Essentra
plc 450.7 603.8 612.7
Non-controlling interests 18.2 16.4 16.2
------------------------------------------- ---- ------- ----------- -------
Total equity 468.9 620.2 628.9
------------------------------------------- ---- ------- ----------- -------
Liabilities
Interest bearing loans and borrowings 10 142.7 291.6 313.3
10,
Lease liabilities 16 33.8 42.7 46.1
Retirement benefit obligations 9 22.1 25.7 25.1
Provisions 1.1 2.5 2.5
Other financial liabilities 14 1.3 1.2 5.6
Other payables - 1.1 -
Deferred tax liabilities 17.5 44.2 45.3
------------------------------------------- ---- ------- ----------- -------
Total non-current liabilities 218.5 409.0 437.9
Interest bearing loans and borrowings 10 270.5 - -
10,
Lease liabilities 16 6.9 10.4 11.6
Derivative liabilities 14 0.4 0.1 0.1
Income tax payable 19.7 28.2 21.5
Other financial liabilities 14 4.6 - -
Trade and other payables 151.5 179.9 180.9
Provisions - 3.9 1.1
------------------------------------------- ---- ------- ----------- -------
Total current liabilities 453.6 222.5 215.2
Liabilities in disposal group held for
sale 16 123.5 - -
------------------------------------------- ---- ------- ----------- -------
Total liabilities 795.6 631.5 653.1
------------------------------------------- ---- ------- ----------- -------
Total equity and liabilities 1,264.5 1,251.7 1,282.0
------------------------------------------- ---- ------- ----------- -------
* See basis of preparation in note 1 for further details of the
prior period restatement.
Condensed consolidated statement of changes in equity
Six months ended 30 June
2022
---------------- ------- ------- ---------- ------- ----------- -------------------------------------------
Cash
flow
hedging
Merger Capital and cost Non-
Issued relief redemption Other of hedging Translation Retained controlling Total
capital reserve reserve reserve reserves(2) reserve earnings interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
At 1 January
2022 75.6 385.2 0.1 (132.8) (1.5) (47.5) 333.6 16.2 628.9
(Loss)/profit
for the period (188.6) 1.2 (187.4)
Other
comprehensive
income (0.3) 26.6 (4.6) 0.8 22.5
----------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
Total
comprehensive
income for the
period - - - - (0.3) 26.6 (193.2) 2.0 (164.9)
Share option
credit 1.6 - 1.6
Tax relating
to share- based
incentives (0.6) - (0.6)
Net impact of
IAS 29(3) 15.9 - 15.9
Dividends paid (12.0) - (12.0)
----------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
At 30 June 2022 75.6 385.2 0.1 (132.8) (1.8) (20.9) 145.3 18.2 468.9
----------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
Six months ended 30 June
2021 (restated)(1)
---------------- ------- ------- ---------- ------- ----------- -------------------------------------------
Cash
flow
hedging
Merger Capital and cost Non-
Issued relief redemption Other of hedging Translation Retained controlling Total
capital reserve reserve reserve reserves reserve earnings interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
At 1 January
2021 75.6 385.2 0.1 (132.8) (0.1) (24.1) 300.8 13.3 618.0
Profit for the
period
(restated)(1) 15.9 0.7 16.6
Other
comprehensive
income 0.1 (16.0) 8.1 (0.7) (8.5)
----------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
Total
comprehensive
income for the
period - - - - 0.1 (16.0) 24.0 - 8.1
Equity issue
to
non-controlling
interest - 3.1 3.1
Share option
expense (0.5) - (0.5)
Tax relating
to share-based
incentives 1.4 - 1.4
Dividends paid (9.9) - (9.9)
----------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
At 30 June 2021 75.6 385.2 0.1 (132.8) - (40.1) 315.8 16.4 620.2
----------------- ------- ------- ---------- ------- ----------- ----------- -------- ----------- -------
Condensed consolidated statement of changes in equity (continued)
Year ended 31 December 2021
---- ---------------- ------- ------- ---------- ------- -------- -----------------------------------------------
Cash
flow
hedging
and cost
Merger Capital of Non-
Issued relief redemption Other hedging Translation Retained controlling Total
capital reserve reserve reserve reserves reserve earnings interests equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---- ---------------- ------- ------- ---------- ------- -------- ----------- ---------- ----------- ---------
At 1 January 2021 75.6 385.2 0.1 (132.8) (0.1) (24.1) 300.8 13.3 618.0
Profit for the
period 26.9 1.4 28.3
Other comprehensive
income (1.4) (23.4) 20.6 (0.1) (4.3)
-------------------- --- ------- ------- ---------- ------- -------- ----------- ---------- ----------- ---------
Total comprehensive
income for the
period - - - - (1.4) (23.4) 47.5 1.3 24.0
Equity issue to
non-controlling
interest 3.1 3.1
Share option credit 0.8 - 0.8
Tax relating to
share-based
incentives 0.5 - 0.5
Dividends paid (16.0) (1.5) (17.5)
-------------------- --- ------- ------- ---------- ------- -------- ----------- ---------- ----------- ---------
At 31 December
2021 75.6 385.2 0.1 (132.8) (1.5) (47.5) 333.6 16.2 628.9
-------------------- --- ------- ------- ---------- ------- -------- ----------- ---------- ----------- ---------
1 See basis of preparation in note 1 for further details
of the prior period restatement.
2 See note 14 for details of hedging reserve movements in relation to derivatives.
3 See note 1 for details on the net impact on retained earnings as a result
of the index-based adjustments in Turkey under IAS 29 'Financial Reporting
in Hyperinflationary Economies'.
Condensed consolidated statement of cash flows
(restated)*
Six months Six months Year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
---------------------------------------------- ------ ---------- ----------- -------
Operating activities
(Loss)/profit from continuing operations (4.6) 11.4 26.3
(Loss)/profit from discontinued operations (182.8) 5.2 2.0
---------------------------------------------- ------ ---------- ----------- -------
(Loss)/profit for the period (187.4) 16.6 28.3
Adjustments for:
Income tax (credit)/expense (7.3) 1.4 4.9
Net finance expense 12.2 7.0 16.5
Intangible amortisation 12.9 12.3 25.0
Adjusting items 212.9 (0.2) 11.8
Depreciation of property, plant and
equipment 19.7 18.2 36.6
Lease right-of-use asset depreciation 6.1 5.8 12.0
Profit on disposal of fixed assets (0.1) (0.1) -
Impairment of fixed assets - 0.2 0.5
Share option expense/(credit) 1.6 (0.5) 0.8
Hedging activities and other movements - (0.7) (0.5)
Increase in inventories (22.6) (10.9) (28.3)
Increase in trade and other receivables (50.8) (35.5) (27.9)
Increase in trade and other payables 32.1 31.3 26.3
Cash outflow in respect of adjusting
items (24.6) (12.7) (25.6)
Adjustment for pension contributions 0.4 (4.2) (4.8)
Movement in provisions (0.2) 0.1 (0.2)
Movement due to hyperinflation (1.7) - -
---------------------------------------------- ------ ---------- ----------- -------
Cash inflow from operating activities 3.2 28.1 75.4
Income tax paid (6.3) (7.3) (12.2)
---------------------------------------------- ------ ---------- ----------- -------
Net cash (outflow)/inflow from operating
activities (3.1) 20.8 63.2
---------------------------------------------- ------ ---------- ----------- -------
Investing activities
Interest received 0.4 1.0 0.4
Acquisition of property, plant and
equipment (22.8) (16.1) (38.5)
Proceeds from sale of property, plant
and equipment 0.2 8.5 8.9
Payments for intangible assets (1.2) (1.4) (3.2)
Acquisition of businesses net of cash
acquired - (1.9) (14.6)
Movement due to hyperinflation 0.2 - -
---------------------------------------------- ------ ---------- ----------- -------
Net cash outflow from investing activities (23.2) (9.9) (47.0)
---------------------------------------------- ------ ---------- ----------- -------
Financing activities
Interest paid (8.1) (7.2) (11.0)
Dividends paid to equity holders (12.0) (9.9) (16.0)
Dividends paid to non-controlling interests - - (1.5)
Arrangement fee paid for financing
facilities - - (4.4)
Prepaid facility fees - (1.0) -
Repayments of long-term loans - - (182.5)
Proceeds from long-term loans 65.0 10.0 211.4
Lease liability payments (6.8) (6.3) (12.8)
Proceeds from equity issue to non-controlling
interest - 3.1 3.1
Net cash inflow/(outflow) from financing
activities 38.1 (11.3) (13.7)
---------------------------------------------- ------ ---------- ----------- -------
Net increase/(decrease) in cash and
cash equivalents 11.8 (0.4) 2.5
---------------------------------------------- ------ ---------- ----------- -------
Net cash and cash equivalents at the
beginning of the period 136.3 135.8 135.8
Net increase/(decrease) in cash and
cash equivalents 11.8 (0.4) 2.5
Net effect of currency translation
on cash and cash equivalents 5.5 (2.9) (2.0)
---------------------------------------------- ------ ---------- ----------- -------
Net cash and cash equivalents at the
end of the period 10, 16 153.6 132.5 136.3
---------------------------------------------- ------ ---------- ----------- -------
* See basis of preparation in note 1 for further details of the
prior period restatement.
1. Basis of preparation
The condensed consolidated interim financial statements of the
Group have been prepared in accordance with UK-adopted IAS 34
Interim Financial Reporting and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority. For the purposes of the condensed consolidated
interim financial statements 'Essentra' or 'the Group' means
Essentra plc and its subsidiaries.
On 31 December 2020, IFRS as adopted by the European Union at
that date was brought into UK law and became UK-adopted
international accounting standards, with future changes being
subject to endorsement by the UK Endorsement Board. Essentra plc
("the Company") transitioned to UK-adopted international accounting
standards in its consolidated financial statements on 1 January
2021. There was no impact or changes in accounting policies from
the transition.
Except as described below, the accounting policies applied in
these condensed consolidated interim financial statements are the
same as those applied in the Group's consolidated financial
statements as at 30 June 2021 and for the year ended 31 December
2021 which has been prepared in accordance with UK-adopted
International Accounting Standards and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those
standards.
The condensed consolidated interim financial statements do not
include all the notes of the type normally included in an annual
financial report. Accordingly, this report is to be read in
conjunction with the annual report for the year ended 31 December
2021 and any public announcements made by Essentra plc during the
interim reporting period.
The comparative figures for the financial year ended 31 December
2021 are not the Company's statutory accounts for that financial
year. Those accounts have been reported on by the Company's auditor
and delivered to the Registrar of Companies. The report of the
auditor was (i) unqualified, (ii) did not include a reference to
any matters to which the auditor drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a
statement under Section 498(2) or (3) of the Companies Act 2006.
These condensed consolidated interim financial statements have been
reviewed but not audited.
The preparation of the condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reporting amounts of revenues, expenses, assets and
liabilities at 30 June 2022. If in the future such estimates and
assumptions, which are based on management's best judgement at the
date of the condensed consolidated interim financial statements,
deviate from the actual circumstances, the original estimates and
assumptions will be modified as appropriate in the period in which
the circumstances change.
Income tax expense is recognised based upon the best estimate of
the weighted average income tax rate on profit before tax expected
for the full financial year, taking into account the weighted
average rate for each jurisdiction.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised and future periods if
relevant.
On 24 June 2022, Essentra entered into a sale and purchase
agreement with Mayr-Melnhof Group to dispose of the Group's
operations in Packaging. The transaction is expected to complete in
the fourth quarter of 2022. The results of Packaging are presented
as results from a discontinued operation in the consolidated income
statement, and the comparative information has been re-presented
accordingly. The assets and liabilities of Packaging have also been
presented as held for sale on the balance sheet as at 30 June
2022.
As part of the announcement made on 24 June 2022, it was noted
that the Group's Indian packaging operations would not form part
Mayr-Melnhof Group. The results of the Packaging India business,
which are not material to the Group, are presented as part of
discontinued operations and the assets and liabilities are included
within held for sale within the Condensed consolidated balance
sheet.
The accounting policies used in the presentation of the
condensed consolidated interim financial statements are detailed
below. These policies have been consistently applied to all periods
presented.
Application of IAS 29 Financial Reporting in Hyperinflationary
Economies
During the six month period, the Group held trade and assets
denominated in Turkish Lira where IAS 29 has been applied for the
first time. The Components division's business in Turkey holds
property, plant and equipment, intangible assets, right-of-use
assets and inventory that are classed as non-monetary and, along
with any associated deferred tax, must be adjusted for the effect
of inflation every reporting period. The income statement must be
adjusted for the Consumer Price Index since the date of the
transaction.
The application of the standard has a material impact on the
condensed consolidated interim financial statements which includes
the results and financial position of its Turkey operations
restated to the measuring unit current at the end of the period. A
summary of the impact is shown below:
Impact on the consolidated balance sheet:
As at 30 June 2022
GBPm
Goodwill 9.5
Intangibles 3.7
Property, plant and equipment 3.2
Lease right-of-use asset 2.0
Inventories 1.8
Deferred tax liabilities (2.3)
Impact on net assets 17.9
------------------------------ ------------------
Impact on income statement 2.0
Impact on equity 15.9
------------------------------ ------------------
Total equity 17.9
------------------------------ ------------------
For the six months ended 30 June 2022 a monetary gain of GBP2.2m
was included within net finance expense. Comparative amounts
presented in the c ondensed consolidated interim financial
statements were not restated. When applying IAS29 on an ongoing
basis, comparatives in a stable currency are not restated and the
effect of inflating opening balances to the measuring unit current
at the end of the reporting period is presented in equity.
Software as a service ('SaaS') arrangements
Details on the impact of the change in accounting policy
relating to software as a service arrangements can be found in the
Essentra Annual Report 2021 on page 149. Prior periods were
restated for this change in policy and accordingly, the balance
sheet as at 30 June 2021 and consolidated income statement period
ended 30 June 2021 have now also been restated in accordance with
IAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors.
The table below show the impact of the change in accounting
policy on previously reported financial results and position.
Impact on the consolidated balance sheet:
As at 30 June 2021
GBPm
Property, plant and equipment (0.9)
Intangibles (21.2)
Net deferred tax liabilities 4.9
Reduction in net assets (17.2)
------------------------------------------------------------- ------------------
Increase in adjusting items (reduction in continuing profit) (5.3)
Decrease in depreciation (increase in continuing profit) 0.2
Deferred tax credit 1.1
Impact on income statement (4.0)
------------------------------------------------------------- ------------------
Pronouncements
The Group adopted the following new pronouncements during the
period to 30 June 2022, which did not have a material impact on the
Group's condensed consolidated interim financial statements:
-- Amendments to IAS 16 Property Plant and Equipment: Proceeds before Intended Use
-- Amendments to IAS 37 Onerous Contracts: Cost of Fulfilling a Contract
-- Annual Improvements to IFRS Standards 2018 - 2020
-- Amendments to IFRS 3 Reference to the Conceptual Framework
Going concern
At 30 June 2022, the Group's financing arrangements amounted to
GBP564.3m, comprising United States Private Placement (USPP) of
US$350.0m (with a range of expiry dates from November 2024 to July
2033) and a revolving credit facility (RCF) of GBP275.0m
At 30 June 2022, GBP150.8m of the RCF facility was undrawn. The
facility is subject to two covenants, which are tested
semi-annually: net debt to EBITDA (leverage) and EBITA to net
finance charges. The Directors believe that the Group is well
placed to manage its business risks and, after making enquiries
including a review of forecasts and predictions, taking account of
reasonably possible changes in trading performances and considering
the existing banking facilities, including the available liquidity,
have a reasonable expectation that the Group has adequate resources
to continue in operational existence for at least the next 12
months following the date of approval of the financial statements,
and no breaches of covenants are expected.
On 24 June the Group announced an agreement to sell the
Packaging business for proceeds of GBP312m on a cash free debt free
basis.
As a consequence of this, Essentra's current intention is to
reduce the drawings under its RCF to nil (as of 30 June 2022, the
drawing on the RCF loan was GBP124.2m). The Company also intends to
prepay, with a make-whole premium the entirety of the $100m
outstanding notes issued under the Group's 2017 and 2019 note
purchase agreements. Furthermore, the Company also intends to repay
a proportion of the $250m loan notes issued in 2021. The amount to
be repaid for these is estimated to be $74m. These prepayments are
expected to result in an aggregate payment to the holders of notes
of USD174m in addition to any make whole payments. The loans have
been classified as current liabilities however their early
repayment is conditional on receipt of the proceeds from the sale
of the Packaging business. This classification as current
liabilities does not indicate a going concern problem.
As part of the going concern assessment, the Board has
considered a downside scenario in 2023 that reflects the current
uncertainty in the global economy and which management consider to
be severe but plausible. The results of this scenario show that
there is sufficient liquidity in the business for a period of at
least 12 months from the date of approval of these condensed
consolidated interim financial statements, and do not indicate any
covenant breach during the test period. The downside scenario in H2
2022 includes an assumption of a similar extent to disruptions as
seen in 2021, with no assumed increase in revenue or profit, as
well as modelling a further macro-economic decline in 2023,
especially for the Components business and a year on year decline
in sales of 10%. Set against this were mitigating actions including
tight management of capital expenditure, sales and general
overhead, and working capital control.
At 30 June 2022, the Group's liquidity position (defined as the
headroom available under the banking facilities plus cash
resources) amounted to GBP304.4m. Excluding amount attributable to
minority interests, the liquidity was GBP292.2m.
The severe but plausible scenario does not indicate a material
uncertainty which may cast significant doubt over the Company's and
Group's ability to continue as a going concern. The outcome of the
Packaging strategic review and uses of proceeds has been included
as a separate scenario as part of the going concern testing, given
the announcement of the sale on 24 June 2022. No breaches of
covenants and facility limits are anticipated in this event, which
has also been tested alongside the downside scenario. Therefore,
the Directors continue to adopt the going concern basis of
accounting in preparing the condensed consolidated interim
financial statements.
Further information on the Group's borrowing facilities, cash
resources and other financial instruments can be found in notes 10
and 14 to the financial statements.
Critical Accounting Judgements and Estimates
The following provides information on those policies that
management considers critical because of the level of judgement and
estimation required which often involves assumptions regarding
future events which can vary from what is anticipated. The
Directors believe that the financial statements reflect appropriate
judgements and estimates and provide a true and fair view of
Essentra's performance and financial position.
Accounting Estimates
i Business combinations and intangible assets
IFRS 3 requires the identification of acquired intangible assets
as part of a business combination. The methods used to value such
intangible assets require the use of estimates and judgements such
as customer attrition, cash flow generation from the existing
relationships with customers and returns on other assets. Future
results are impacted by the amortisation periods adopted and
changes to the estimated useful lives would result in different
effects on the income statement and balance sheet.
Goodwill is not amortised but is tested at least annually for
impairment, along with the finite-lived intangible assets and other
assets of the Group's cash generating units. Tests for impairment
are based on discounted cash flows and assumptions (including
discount rates, timing and growth prospects) which are inherently
subjective. Judgement is also required in identifying the events
which indicate potential impairment, and in assessing fair value of
individual assets when allocating an impairment loss in a
cash-generating unit or groups of cash-generating units. The Group
performs various sensitivity analyses in respect of the tests for
impairment.
The useful lives of the Group's finite-lived intangible assets
are reviewed following the tests for impairment at least
annually.
Judgement may also be required in determining the fair value of
other assets acquired and liabilities (including contingent
liabilities) assumed.
In preparing the condensed consolidated interim financial
statements the Group has considered the impact that climate change
may have on key accounting judgements and estimates including asset
useful economic lives and asset valuations and impairments. The
Group continues to introduce initiatives designed to reduce the
carbon emissions from its operations. As a result, the Group
considers the environmental assumptions embedded within the Group's
strategic business plan to support the key forward looking
accounting judgements and estimates.
ii Taxation
Liabilities for tax contingencies require management judgements
and estimates in respect of tax audit issues and exposures in each
of the jurisdictions in which it operates. Management is also
required to make an estimate of the current tax liability together
with an assessment of the temporary differences which arise as a
consequence of different accounting and tax treatments. Where
management conclude that a tax position is uncertain, a current tax
liability is held for anticipated taxes that are considered
probable based on the information available.
Included in the tax payable is a liability of GBP6.3m (31
December 2021: GBP7.4m) for transfer pricing matters and GBP12.3m
(31 December 2021: GBP12.3m) for other uncertain tax positions. The
movement is due to adjustments for current year transactions
including foreign exchange movements, expiry of statute of
limitations following the passage of time and agreement reached
with tax authorities on previous matters.
Management may engage with professional advisors in making their
assessment and, if appropriate, will liaise with the relevant
taxation authorities to resolve the matter. The tax liability is
reassessed in each period to reflect management's best estimate in
light of information available. If the final outcome of these
matters differs to the liability held in the financial statements,
the difference may impact the income tax expense/(credit) in the
year the matter is concluded.
iii Pensions
Essentra accounts for its defined benefit pension schemes in
accordance with IAS 19. The application of IAS 19 requires the
exercise of judgement in relation to the assumptions used and for
each assumption there is a range of possible outcomes. In
consultation with Essentra's actuaries, management decides the
point within those ranges that most appropriately reflects
Essentra's circumstances. Small changes to these assumptions can
have a significant impact on valuations. The Group performs a
sensitivity analysis for the significant assumptions used in
determining post-employment costs and liabilities, as detailed in
note 18 of the Essentra Annual Report 2021.
iv Assets held for sale - estimation of costs to sell
Where a business is classified as assets held for sale,
management is required to estimate certain future costs to sell the
business in order to calculate the net assets' fair value (being
proceeds less cost to sell). In determining the estimated costs to
sell, management considers all the information available to them at
the time and where appropriate may engage with external advisors to
provide support in making of these estimates.
Accounting Judgements
i Adjusting items
Judgement is required to determine whether items should be
included within adjusting items by virtue of their size or
incidence. Details of the items categorised as adjusting items are
disclosed in note 3.
As restructuring and reorganisation costs are recognised (for
instance with respect to site rationalisation initiatives),
estimates are often involved in relation to property-related costs
(such as restoration and dilapidation costs, recoverable amount of
lease right of use assets and potential sublet income) and asset
impairment charges (in assessing recoverable amount such as fair
value from potential sale of assets). Where appropriate and
possible, management may engage with professional advisors in
making these assessments.
ii Consolidation of subsidiary
Judgement is required to establish whether control exists over
an entity in which Essentra holds part of the share capital.
Essentra has a 49% shareholding in China Tobacco Essentra (Xiamen)
Filters Co., Ltd which has been consolidated as a subsidiary within
the condensed consolidated interim financial statements because
management have assessed that Essentra has control over the entity
to direct the relevant activities (including approval of budgets
and capital investments, and appointment of key management
personnel) that significantly affect the entity's returns and the
ability to use its power to affect those returns, through a
majority of membership in the entity's governing body (primarily
the board of directors). Subsidiaries are fully consolidated during
the period which the Group holds control.
iii Leases and lease right-of-use assets
A key judgement in determining the right-of-use asset and lease
liability is establishing whether it is reasonably certain that an
option to extend the lease will be exercised. Distinguishing
whether a lease will be extended or otherwise could have a material
impact on the value of the right-of-use assets and lease
liabilities recognised on the balance sheet, but may not have a
material impact on the income statement.
In determining the lease term, management considers all facts
and circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in
the lease term if the lease is reasonably certain to be extended
(or not terminated).
The assessment is reviewed if a significant event or a
significant change in circumstances occurs which affects this
assessment and that is within the control of the lessee.
iv Assets held for sale
Non-current assets, or disposal groups comprising assets and
liabilities, are classified as held for sale if it is highly
probable that they will be recovered primarily through sale rather
than through continuing use. Such assets, or disposal groups, are
generally measured at the lower of their carrying amount and fair
value less costs to sell. Impairment losses on initial
classification as held for sale and subsequent gains and losses on
remeasurement are recognised in profit or loss.
We assessed the status of the currently ongoing strategic review
for the Filters division, and considered the applicability of the
requirements in relation to assets held for sale. At present no
decision or commitment has been entered into by management.
Management therefore concluded that the business under strategic
review does not meet the requirements under IFRS 5 to be classified
as 'held for sale' as at 30 June 2022.
2. Segment analysis
In accordance with IFRS 8, Essentra has determined its operating
segments based upon the information reported to the Group
Management Committee.
The operating segments are as follows:
Components is a global market leading manufacturer and
distributor of plastic injection moulded, vinyl dip moulded and
metal items.
Filters is the only global independent supplier of innovative
cigarette filters and related solutions to the tobacco
industry.
Packaging is one of only two multi-continental suppliers of a
full secondary packaging range to the health and personal care
sectors. On 24 June 2022 the Group announced the sale of the
Packaging business and in accordance with IFRS 5 this segment has
been presented within discontinued operations. The Packaging
business will continue to operate until the sale is complete, which
is expected to be later this year.
The adjusted operating profit presented for each operating
segment includes the effect of allocation of certain functional
costs such as finance, human resources, legal and IT, as well as
costs relating to management of the divisions on an internal
management methodology.
Six months ended 30 June 2022
---------- ------- ----------------------------------------------------
Total
Central Continuing Discontinued
Components Filters Services(2) Operations Operations Total Group
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ---------- ------- ------------ ----------- ------------ -----------
External revenue 175.9 164.9 - 340.8 205.6 546.4
Total revenue 175.9 164.9 - 340.8 205.6 546.4
Adjusted operating
profit (3) 35.9 15.1 (12.9) 38.1 3.9 42.0
-------------------- ---------- ------- ------------ ----------- ------------ -----------
Segment assets 212.4 225.9 23.8 462.1 270.2 732.3
Intangible
assets 178.8 23.4 4.2 206.4 122.8 329.2
Unallocated
items (4) - - 187.0 187.0 16.0 203.0
-------------------- ---------- ------- ------------ ----------- ------------ -----------
Total assets 391.2 249.3 215.0 855.5 409.0 1,264.5
-------------------- ---------- ------- ------------ ----------- ------------ -----------
Segment liabilities 78.7 79.5 39.6 197.8 98.5 296.3
Unallocated
items (4) - - 472.9 472.9 26.4 499.3
-------------------- ---------- ------- ------------ ----------- ------------ -----------
Total liabilities 78.7 79.5 512.5 670.7 124.9 795.6
-------------------- ---------- ------- ------------ ----------- ------------ -----------
2. Segment analysis (continued)
(restated)(1)
Six months ended 30 June 2021
---------- ------- ------------------------------------------------------
Total
Central Continuing Discontinued
Components Filters Services(2) Operations Operations Total Group
Restated GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ---------- ------- ------------ ----------- ------------ -------------
External revenue 148.4 139.5 - 287.9 187.0 474.9
Total revenue 148.4 139.5 - 287.9 187.0 474.9
Adjusted operating
profit (3) 27.0 11.5 (12.2) 26.3 9.6 35.9
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Segment assets 163.8 191.4 23.3 378.5 217.1 595.6
Intangible assets 150.6 22.7 5.5 178.8 302.9 481.7
Unallocated items
(4) - - 174.4 174.4 - 174.4
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Total assets 314.4 214.1 203.2 731.7 520.0 1,251.7
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Segment liabilities 69.6 60.4 28.7 158.7 83.0 241.7
Unallocated items
(4) - - 389.8 389.8 - 389.8
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Total liabilities 69.6 60.4 418.5 548.5 83.0 631.5
-------------------- ---------- ------- ------------ ----------- ------------ -------------
(restated)(1)
Year ended 31 December 2021
---------- ------- ------------------------------------------------------
Total
Central Continuing Discontinued
Components Filters Services(2) Operations Operations Total Group
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ---------- ------- ------------ ----------- ------------ -------------
External revenue 301.7 295.6 - 597.3 362.4 959.7
Total revenue 301.7 295.6 - 597.3 362.4 959.7
Adjusted operating
profit (3) 56.9 28.2 (16.6) 68.5 15.4 83.9
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Segment assets 172.4 199.7 21.8 393.9 219.9 613.8
Intangible assets 158.9 23.0 4.5 186.4 297.1 483.5
Unallocated items
(4) - - 184.7 184.7 - 184.7
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Total assets 331.3 222.7 211.0 765.0 517.0 1,282.0
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Segment liabilities 74.2 66.7 29.2 170.1 77.7 247.8
Unallocated items
(4) - - 405.3 405.3 - 405.3
-------------------- ---------- ------- ------------ ----------- ------------ -------------
Total liabilities 74.2 66.7 434.5 575.4 77.7 653.1
-------------------- ---------- ------- ------------ ----------- ------------ -------------
(1) See basis of preparation in note 1 for further details of
the prior period restatements.
(2) Central Services includes executive and non-executive management,
group finance, tax, treasury, legal, group assurance, human resources,
information technology, corporate development, group operations,
corporate affairs and other services provided centrally to support
the operating segments.
(3) Operating profit before acquired intangible amortisation and
adjusting items. This also includes the allocation of certain costs
using an internal management methodology between continuing and
discontinued operations.
(4) The unallocated assets relate to income and deferred tax assets,
retirement benefit assets, derivatives, other financial assets
and cash and cash equivalents. The unallocated liabilities relate
to interest bearing loans and borrowings, retirement benefit obligations,
derivatives, deferred tax liabilities and income tax payable. Intersegment
transactions are carried out on an arm's length basis.
3. Adjusting items
(restated)* (restated)*
Six months Six months Year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
--- ------------------------------------------------ ---------- ----------- -----------
Losses/(gains) and transaction costs relating
to acquisitions and disposals of businesses(1) 192.6 (4.3) (2.9)
Customisation and configuration costs of
significant software as a service ("SaaS")
arrangements 6.2 5.3 11.8
Acquisition integration and restructuring
costs - 0.2 0.6
Other(2) 14.1 (1.4) 2.3
------------------------------------------------- ---------- ----------- -----------
Adjusting items in total Group 212.9 (0.2) 11.8
------------------------------------------------- ---------- ----------- -----------
Adjusting items in continuing operations 19.3 2.8 13.8
Adjusting items in discontinued operations 193.6 (3.0) (2.0)
------------------------------------------------- ---------- ----------- -----------
* Year ended 31 December 2021 has been restated to reallocate
GBP0.5m of separation fees relating to the sale of the Packaging
business to transaction costs relating to acquisitions and disposals.
See basis of preparation in note 1 for further details of the
prior year restatement due to SaaS arrangements.
Adjusting items are separately presented from other items by
virtue of their nature, size and/or incidence (considered for
each operating segment). They are identified separately in order
for the reader to obtain a clearer understanding of the underlying
results of the ongoing Group's operations, by excluding the impact
of items which, in management's view, do not form part of the
Group's underlying operating results, such as gains, losses or
costs arising from business acquisition and disposal activities,
significant restructuring and closure costs and other items which
are non-recurring or one-off in nature (such as the costs of
fundamental strategic review and reorganisation). Operating profit
before adjusting items and acquired intangible amortisation is
called adjusted operating profit, which forms the primary basis
of management's review and assessment of operational performance
of the Group's businesses.
1 Losses/gains and transaction costs relating to acquisitions and
disposals of businesses are made up of a GBP181.6m anticipated
loss on disposal of the packaging business due to an impairment
of goodwill, GBP0.3m impairment of property, plant and equipment
and GBP1.1m relating to intangible assets in India following
an impairment review triggered by the divestment of the Packaging
division. GBP9.6m relates to advisory costs in relation to the
separation of the Packaging division.
2 The other adjusting items of GBP14.1m for the six months ended
30 June 2022 relates to:
-- GBP9.7m of advisory costs in relation to the strategic review
of the Filters divisions.
-- GBP3.4m of advisory costs in relation to a strategic review of
the Group's operational structure and cost profile, and certain
redundancies in enabling functions made as part of the review.
-- GBP0.5m in relation to Filters restructuring, including rationalisation
of the division's R&D facilities in the US.
-- GBP1.0m restructuring costs in the Packaging division, involving
management restructuring and redundancies at various sites.
-- GBP0.5m net credit relating to Components restructuring, comprising
GBP0.2m costs in relation to restructuring activities, offset
by a GBP0.1m credit relating to the reversal of historical provisions
within the Components Europe and in the Americas businesses,
comprising GBP0.1m costs in relation to restructuring activities,
offset by a GBP0.7m credit relating to adjustment on the carrying
value of lease right-of-use assets.
4. Taxation
The taxation charges for the continuing operations for the six
months ended 30 June 2022 and 30 June 2021 are based on the
expected effective tax rate for the full year, including the impact
of prior period tax adjustments. The enacted tax rates and forecast
profits of the jurisdictions the Group operate in determines this
effective tax rate. The taxation charges for the discontinued
operations are based on the results for the period applying the
relevant tax rates by jurisdiction.
The Group's underlying effective rate has been affected by the
application of IAS 29 in respect of hyperinflation in Turkey and
accounting adjustments required for discontinued operations in
accordance with IFRS 5. The impact of these accounting standards is
an increase in the underlying effective tax rate of 5.2%.
5. Earnings per share
(restated)(*) (restated)(*)
Six months Six months Year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
--------------------------------------------------- --- ------------ ------------- -------------
Earnings: Continuing operations
(Loss)/earnings attributable to equity
holders of Essentra plc (5.8) 10.7 24.9
Adjustments
Amortisation of acquired intangible assets 5.0 4.2 8.6
Adjusting items 19.3 2.8 13.8
-------------------------------------------------------- ------------ ------------- -------------
24.3 7.0 22.4
Tax on adjustments (2.5) (1.9) (3.1)
Adjusted earnings 16.0 15.8 44.2
-------------------------------------------------------- ------------ ------------- -------------
Earnings: Discontinued operations
(Loss)/earnings attributable to equity
holders of Essentra plc (182.8) 5.2 2.0
Adjustments
Amortisation of acquired intangible assets 6.6 6.9 13.8
Adjusting items 193.6 (3.0) (2.0)
-------------------------------------------------------- ------------ ------------- -------------
200.2 3.9 11.8
Tax on adjustments (12.5) (1.5) (3.2)
-------------------------------------------------------- ------------ ------------- -------------
Adjusted earnings 4.9 7.6 10.6
-------------------------------------------------------- ------------ ------------- -------------
Weighted average number of shares
Basic weighted average ordinary shares
outstanding (million) 301.0 301.0 301.0
Dilutive effect of employee share option
plans (million) 2.2 1.2 1.3
-------------------------------------------------------- ------------ ------------- -------------
Diluted weighted average ordinary shares
(million) 303.2 302.2 302.3
-------------------------------------------------------- ------------ ------------- -------------
Earnings per share: Continuing operations
(pence)
Basic (loss)/earnings per share (1.9)p 3.6p 8.3p
Adjustment 7.2p 1.6p 6.4p
-------------------------------------------------------- ------------ ------------- -------------
Basic adjusted earnings per share 5.3p 5.2p 14.7p
-------------------------------------------------------- ------------ ------------- -------------
Diluted (loss)/earnings per share (1.9)p 3.5p 8.2p
Adjustment 7.2p 1.7p 6.4p
-------------------------------------------------------- ------------ ------------- -------------
Diluted adjusted earnings per share 5.3p 5.2p 14.6p
-------------------------------------------------------- ------------ ------------- -------------
Earnings per share: Discontinued operations
(pence)
Basic (loss)/earnings per share (60.7)p 1.7p 0.7p
Adjustment 62.3p 0.8p 2.8p
-------------------------------------------------------- ------------ ------------- -------------
Basic adjusted earnings per share 1.6p 2.5p 3.5p
-------------------------------------------------------- ------------ ------------- -------------
Diluted (loss)/earnings per share (60.7)p 1.7p 0.7p
-------------------------------------------------------- ------------ ------------- -------------
Diluted adjusted earnings per share 1.6p 2.5p 3.5p
-------------------------------------------------------- ------------ ------------- -------------
Earnings per share: Total Group (pence)
Basic (loss)/earnings per share (62.7)p 5.3p 8.9p
Adjustment 69.6p 2.4p 9.3p
-------------------------------------------------------- ------------ ------------- -------------
Basic adjusted earnings per share 6.9p 7.7p 18.2p
-------------------------------------------------------- ------------ ------------- -------------
Diluted (loss)/earnings per share (62.7)p 5.2p 8.9p
-------------------------------------------------------- ------------ ------------- -------------
Diluted adjusted earnings per share 6.9p 7.7p 18.1p
-------------------------------------------------------- ------------ ------------- -------------
* See basis of preparation in note 1 for
further details of the prior period restatements.
Adjusted earnings per share is provided to reflect the underlying
earnings performance of Essentra. The basic weighted average number
of ordinary shares in issue excludes shares held in treasury and
shares held by an employee benefit trust.
6. Property, plant and equipment
During the period, the additions of land and buildings, plant
and machinery and fixtures, fittings and equipment amounted to
GBP22.1m (six months ended 30 June 2021: GBP16.3m; year ended
31 December 2021: GBP38.8m) and there was an increase of GBP16.3m
(six months ended 30 June 2021: decrease of GBP6.1m; year ended
31 December 2021: decrease of GBP6.9m) in net book value due to
foreign exchange movements which includes the impact from the
application of IAS 29.
Land and buildings, plant and machinery and fixtures, fittings
and equipment with a net book value of GBP0.5m (six months ended
30 June 2021: GBP3.7m; year ended 31 December 2021: GBP4.8m) were
disposed of for proceeds of GBP0.2m (six months ended 30 June
2021: GBP8.5m; year ended 31 December 2021: GBP8.9m).
At 30 June 2022 property, plant and equipment with a net book
value of GBP159.7m excludes GBP112.8m which has been classified
within assets held for sale (see note 16).
The impact of IAS 29 'Financial Reporting in Hyperinflationary
Economies' on property, plant and equipment is shown within note
1.
7. Lease right-of-use assets
The Group's non-current assets include right-of-use assets from
asset leasing arrangements. Depreciation is charged to the income
statement so as to depreciate the right-of-use asset from the lease
commencement date to the earlier of the end of the useful life of
the right-of-use asset and the end of the lease term.
During the period, the additions to right-of-use assets amounted
to GBP7.0m (six months ended 30 June 2021: GBP1.0m; year ended 31
December 2021: GBP10.0m) and the depreciation of right-of-use
assets amounted to GBP6.1m (six months ended 30 June 2021: GBP5.8m;
year ended 31 December 2021: GBP12.0m).
During the period the right-of-use assets net book value
increased by GBP2.9m (six months ended 30 June 2021: decrease of
GBP1.6m; year ended 31 December 2021: decrease of GBP2.7m) due to
foreign exchange movements.
Right-of-use assets with a net book value of GBPnil (six months
ended 30 June 2021: GBPnil; year ended 31 December 2021: GBP2.0m)
were acquired through business combinations in the period (see note
16).
At 30 June 2022 lease right-of-use assets with a net book value
of GBP38.7m excludes GBP18.6m which has been classified within
assets held for sale (see note 16).
The impact of IAS 29 'Financial Reporting in Hyperinflationary
Economies' on lease right-of-use assets is shown within note 1.
8. Intangible assets
During the period, the additions of intangible assets (excluding
acquisitions) amounted to GBP1.2m (six months ended 30 June 2021:
GBP1.4m; year ended 31 December 2021: GBP3.2m) and there was an
intangible net book value increase of GBP28.4m (six months ended
30 June 2021: decrease of GBP10.0m; year ended 31 December 2021:
decrease of GBP9.9m) due to foreign exchange movements.
Included within intangibles were goodwill assets of GBP158.0m
(six months ended 30 June 2021: GBP322.4m; year ended 31 December
2021: GBP327.0m) and there was a goodwill net book value increase
of GBP16.7m (six months ended 30 June 2021: decrease of GBP5.8m;
year ended 31 December 2021: decrease of GBP5.7m) due to foreign
exchange movements.
Included in gross carrying amount of goodwill assets at 1 January
2022 was GBP354.9m and the accumulated impairment losses were
GBP27.9m. As at 30 June 2022 gross carrying amount was GBP382.2m
and accumulated losses were GBP210.8m. This includes goodwill
within assets held for sale.
As at 30 June 2022 intangible assets with a net book value of
GBP206.4m excludes GBP122.8m which has been classified within
assets held for sale (see note 16).
On 24 June 2022 the Group announced the sale of the Packaging
business to Mayr-Melnhof Group for a consideration of GBP312m
on a cash-free, debt-free basis. The sale is expected to complete
in Q4 2022 and in accordance with IFRS 5 the assets and liabilities
of the discontinued business has been presented as held for sale
on the balance sheet as at 30 June 2022. Further in accordance
with IFRS 5 an impairment expense is required if the net assets
are higher than the fair value (being the proceeds less estimated
cost to sell). As a consequence, the Group has recognised an expense
of GBP181.6m within discontinued operations for the six months
ended 30 June 2022.
For the Filters and Components businesses impairment tests for
goodwill and intangible assets are based on the Board approved
business plan (the "Plan"). Cash flow projections are over five
years using the approved annual budget for the first year and
subsequent years based on the Group and Divisional Strategic Plan.
Impairment test assumptions used by the Group can be found within
the Annual Report 2021 Financial Statements on page 170.
The impact of IAS 29 'Financial Reporting in Hyperinflationary
Economies' on intangible assets is shown within note 1.
9. Retirement benefit obligations
Movement in pension net assets/(liabilities) during the period
Six months Six months Year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
----------------------------------------------- ----------- ----------- ------
Movements
Beginning of period 9.0 (23.9) (23.9)
Current service cost and administrative
expense (1.1) (0.9) (1.8)
Employer contributions 0.7 5.1 6.4
Reduction on plan assets excluding amounts
in net finance income (73.8) (12.3) (0.6)
Actuarial gains arising from changes in
financial assumptions 57.6 23.1 18.8
Actuarial gains arising from change in
demographic assumptions 4.8 - 4.5
Actuarial gains arising from experience
adjustment 5.4 1.1 5.8
Net finance cost - (0.3) (0.6)
Curtailments - - 0.2
Currency translation (2.4) 0.7 0.2
------------------------------------------------ ----------- ----------- ------
End of period - total Group 0.2 (7.4) 9.0
------------------------------------------------ ----------- ----------- ------
End of period - continuing operations 0.8 (6.8) 9.6
End of period - liabilities held for sale (0.6) (0.6) (0.6)
------------------------------------------------ ----------- ----------- ------
The assets and liabilities of the principal defined benefit schemes
were reviewed by independent qualified actuaries as at 30 June
2022. The assets of the schemes have been updated to the balance
sheet date to take account of the investment returns achieved by
the schemes and the contributions made during the period. The liabilities
of the schemes at the balance sheet date have been updated to reflect
the latest discount rates and other assumptions as well as benefit
payments. The principal assumptions used by the independent qualified
actuaries were as follows:
Europe
30 Jun 30 Jun 31 Dec
2022 2021 2021
----------------------------------------------- ----------- ----------- ------
Rate of increase in pensions
At RPI capped at 5% 3.00% 3.00% 3.10%
At CPI capped at 5% 2.60% 2.50% 2.70%
At CPI minimum 3%, capped at 5% 3.20% 3.20% 3.30%
At CPI capped at 2.5% 2.10% 2.10% 2.20%
Discount rate 3.70% 1.90% 1.90%
Inflation rate - RPI 3.10% 3.10% 3.20%
Inflation rate - CPI 2.60% 2.50% 2.70%
------------------------------------------------ ----------- ----------- ------
US
30 Jun 30 Jun 31 Dec
2022 2021 2021
----------------------------------------------- ----------- ----------- ------
Discount rate 4.59% 2.78% 2.80%
------------------------------------------------ ----------- ----------- ------
Included within reduction on plan assets is an actuarial loss of
GBP7.1m relating to an investment decision to purchase a bulk purchase
annuity ('buy-in') contract. A premium of GBP38.2m was paid to
purchase buy-in to insure against liabilities within the UK defined
benefits scheme. The loss represented the difference between the
premium paid and the estimated present value of the obligations
and is included within other comprehensive income.
10. Analysis of net debt
30 Jun 31 Dec
2022 2021
GBPm GBPm
----------------------------------------------------------- -------- -------
Cash at bank and in hand 132.3 123.9
Short-term deposits and investments 21.3 12.4
------------------------------------------------------------ -------- -------
Cash and cash equivalents 153.6 136.3
Derivative financial instruments hedging placement
loans 10.7 -
Loans and borrowings due within one year (270.5) -
Loans and borrowings due after one year (142.7) (313.3)
Lease liabilities within one year (11.6) (11.6)
Lease liabilities after one year (49.4) (46.1)
------------------------------------------------------------ -------- -------
Net debt (309.9) (234.7)
------------------------------------------------------------ -------- -------
Lease liabilities are measured at the present value of future
lease payments, including variable lease payments and the exercise
price of purchase options where it is reasonably certain that
the option will be exercised, discounted using the interest rate
implicit in the lease, if readily determinable, or alternatively
the lessee's incremental borrowing rate.
At 30 June 2022, the Group's committed facilities primarily comprised
a series of US Private Placement Loan Notes from various financial
institutions totalling US$350.0m and a syndicated revolving credit
facilities of GBP275.0m from its banks. At 30 June 2022, the available
bank facilities totalled GBP275.0m (31 December 2021: GBP275.0m)
of which GBP124.2m (31 December 2021: GBP59.2m) has been drawn
down and GBP150.8m (31 December 2021: GBP215.8m) was undrawn.
The Group issued $250m of additional USPP loan notes on 27 July
2021 with terms of 7 ($80m), 10 ($85m) and 12 ($85m) years.
As a consequence of the commitment to sell the Packaging business
the business the Group has obtained lenders' consent under terms
which requires repayment of drawn down loan balances within 60
days of receiving the proceeds from the sale. For this reason,
loans of GBP124.2m have been classified as due within one year.
The requirement to pay within one year is conditional on the completion
of the sale of Packaging.
Furthermore, under the terms of US Private Placement Loan Notes,
the Group is required to make an offer for a proportion of its
loan notes. The portion of the notes offered to be repaid will
depend on the net proceeds from disposals received by Essentra
in the year up to the date of the disposal. The Company intends
to pay back the $100m 2017 and 2019 loan notes in full including
any make whole payments. For 2021 loan notes, it will be open
to each holder of notes issued under its purchase agreement to
elect whether or not to take up this offer. We estimate the total
loan note uptake to be $74.0m. The repayment of these $174m US
Loan Notes is also only conditional on the sale of Packaging completing.
The current liabilities for all loans recognised totalling GBP270.5m
will not become due within one year if the sale does not complete.
11. Acquisitions
Acquisition of Hengzhu
On 2 August 2021, Essentra acquired the majority of the share
capital of Jiangxi Hengzhu Electrical Cabinet Lock Co., Ltd ("Hengzhu"),
an access hardware manufacturer and distributor in China. Essentra
initially acquired 73% of the business for Yen103m (approximately
GBP11.8m), with the remaining 27% stake subject to put and call
options whereby Essentra may acquire the minority shareholding
for consideration determined by the future operating performance
of the business to 31 December 2022 and capped at a maximum of
Yen37.5m (approximately GBP4.2m) and are exercisable 18 months
after the acquisition. The capped consideration has not changed
since acquisition. The remaining 27% stake does not confer any
shareholder right (including voting right, entitlement to dividends
and right to transfer to other parties) to the vendor shareholder.
Therefore, it is concluded that the amount payable under the put
option in substance represents deferred consideration and is accounted
for as a financial liability. No non-controlling interest is recognised
in respect of this acquisition.
Acquisition of Micro Plastics
On 12 December 2017, Essentra acquired 100% of the share capital
of Micro Plastics Inc. The transaction was settled with cash consideration
of GBP19.7m and deferred consideration of GBP3.7m. As at 31 December
2021 GBP2.5m of deferred consideration was paid out to the vendor,
with the remainder to be paid in the future.
12. Dividends
Per share Total
---------- ---------- --------- ---------- ---------- ------
Six months Six months Year Six months Six months Year
ended ended ended ended ended ended
30 Jun 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec
2022 2021 2021 2022 2021 2021
p p p GBPm GBPm GBPm
------------------- ---------- ---------- --------- ---------- ---------- ------
2021 interim:
paid 29 October
2021 2.0 2.0 6.0 6.0
2021 final:
paid 1 June 2022 4.0 12.1
2022 interim:
payable 28 October
2022 2.3 6.9
------------------- ---------- ---------- --------- ---------- ---------- ------
2.3 2.0 6.0 6.9 6.0 18.1
------------------- ---------- ---------- --------- ---------- ---------- ------
The interim dividend for 2022 of 2.3p per 25p ordinary share will
be paid on 28 October 2022 to equity holders on the register of shares
on 23 September 2022.
In the table above, each dividend is shown in the period that it
is attributable to. For accounting purpose, dividends are recognised
in the period in which they are approved by the shareholders of the
Company (final dividend) or paid (interim dividend).
13. Related party transactions
Essentra has not entered into any material transactions with
related parties since the last Annual Report.
14. Financial instruments
Essentra held the following financial instruments at fair value at
30 June 2022. The only financial instrument with fair value determined
by reference to significant unobservable inputs, which is classified
as level 3 in the fair value hierarchy, are the deferred considerations
relating to the acquisitions of Micro Plastics and Hengzhu. The fair
value of the deferred considerations are estimated based on an assessment
of the likely outcome of the acquired business' financial performance,
and reflects management's expectation of the performance during the
earn out period. The other financial instruments included in the
table below are determined to be level 2 in the fair value hierarchy.
There have been no transfers between levels of the fair value hierarchy.
There are no non-recurring fair value measurements.
30 Jun 31 Dec
2022 2021
GBPm GBPm
------------------------------------------------------------- ------- -------
Financial assets
Derivatives - foreign exchange swaps 0.1 0.5
Derivatives - cross currency interest rate swaps
on USPP loan 10.7 0.7
Financial liabilities
Derivatives - foreign exchange swaps (0.4) (0.1)
Deferred consideration (5.9) (5.6)
Net assets/(liabilities) 4.5 (4.5)
-------------------------------------------------------------- ------- -------
Essentra had US dollar and euro denominated borrowings which it designated
as hedges of its net investments in subsidiary undertakings. The
euro borrowings were repaid in the second half of 2021. The exchange
losses of GBP17.6m (30 June 2021: GBP0.5m gain) on the US dollar
borrowings and the gain of GBPnil (30 June 2021: GBP2.6m gains) on
the euro borrowings were recognised in other comprehensive income.
At 30 June 2022, the carrying amount of the US Private Placement
Loan Notes were GBP289.3m with a fair value of GBP254.4m. At 30 June
2021, the carrying amount of the US Private Placement Loan Notes
were GBP72.5m with a fair value of GBP78.3m. For all other financial
instruments, the fair value approximates to the carrying amount.
Fair values of forward foreign exchange contracts and cross currency
swaps have been calculated at period end forward exchange rates compared
to contracted rates.
During the period, no fair value gain or loss (30 June 2021: GBPnil)
was recognised in respect of financial instruments at level 3 fair
value hierarchy, and GBPnil (30 June 2021: GBPnil) was settled in
cash.
15. Post balance sheet event
Further to an announcement on 15 July 2022 by Essentra plc
regarding the publication of a shareholder circular relating to the
proposed disposal of ESNT Packaging & Securing Solutions
Limited and Essentra Packaging US Inc and their respective
subsidiary companies to the Mayr-Melnhof Group (the "Disposal"), on
8 August 2022 an ordinary resolution to approve the Disposal was
duly passed by the Company's shareholders.
16. Discontinued operations
Disposal of Packaging business
On 24 June 2022, Essentra entered into a sale and purchase agreement
with Mayr-Melnhof Group to dispose of the Group's Packaging business.
The transaction is expected to complete in H2 2022. The results of
Packaging are presented as results from a discontinued operation in
the consolidated income statement, and the comparative information
has been re-presented accordingly. Assets and liabilities relating
to the Packaging business have been separately disclosed as items
held for sale.
The results of continuing and discontinued operations are as follows:
Six months ended 30 June
2022
Continuing Discontinued Total
Operations Operations Group
GBPm GBPm GBPm
---
External revenue 340.8 205.6 546.4
Adjusted operating profit 35.3 6.7 42.0
Amortisation of acquired intangible
assets (5.0) (6.6) (11.6)
Adjusting items* (19.3) (193.6) (212.9)
Operating profit/(loss) 11.0 (193.5) (182.5)
Finance income 4.3 0.1 4.4
Finance expense (16.2) (0.4) (16.6)
Loss before tax (0.9) (193.8) (194.7)
Income tax (expense)/credit (3.7) 11.0 7.3
Loss after tax (4.6) (182.8) (187.4)
* Adjusting items from discontinued operations includes
GBP181.6m of loss on disposal due to goodwill impairment.
Six months ended 30 June
2021
Continuing Discontinued Total
Operations Operations Group
GBPm GBPm GBPm
---
External revenue 287.9 187.0 474.9
Adjusted operating profit 24.6 11.3 35.9
Amortisation of acquired intangible
assets (4.2) (6.9) (11.1)
Adjusting items (2.8) 3.0 0.2
Operating profit 17.6 7.4 25.0
Finance income 1.1 - 1.1
Finance expense (7.6) (0.5) (8.1)
Profit before tax 11.1 6.9 18.0
Income tax credit/(expense) 0.3 (1.7) (1.4)
Profit after tax 11.4 5.2 16.6
16. Discontinued operations (continued)
Year ended 31 December 2021
Continuing Discontinued Total
Operations Operations Group
GBPm GBPm GBPm
External revenue 597.3 362.4 959.7
Adjusted operating profit 65.7 18.2 83.9
Amortisation of acquired intangible
assets (8.6) (13.8) (22.4)
Adjusting items (13.8) 2.0 (11.8)
Operating profit 43.3 6.4 49.7
Finance income 2.8 - 2.8
Finance expense (18.4) (0.9) (19.3)
Profit before tax 27.7 5.5 33.2
Income tax expense (1.4) (3.5) (4.9)
Profit after tax 26.3 2.0 28.3
The results from discontinued operations are attributable entirely to
the equity holders of Essentra plc. The earnings per share of discontinued
operations are disclosed in note 5.
16. Discontinued operations (continued)
Cash flows of discontinued operations are as follows:
Six months Six months Year
ended ended ended
30 Jun 30 Jun 31 Dec
2022 2021 2021
GBPm GBPm GBPm
Net cash outflow from operating activities (9.3) 12.9 17.9
Net cash inflow from investing activities (10.8) 1.8 (6.9)
Net cash inflow from financing activities (2.3) (3.0) (5.8)
Net cash flows for the period (22.4) 11.7 5.2
The assets and liabilities of the Packaging Business which were presented
as assets and liabilities in the disposal group held for sale, and
the assets and liabilities of the rest of the Group were as follows:
Rest of Held for Total
Group Sale Group
As at 30 June 2022 GBPm GBPm GBPm
Property, plant and equipment 159.7 112.8 272.5
Lease right-of-use asset 38.7 18.6 57.3
Intangible assets 206.4 122.8 329.2
Long-term receivables 2.8 1.7 4.5
Derivative assets 10.8 - 10.8
Income tax receivable 1.2 0.5 1.7
Deferred tax asset 8.8 5.2 14.0
Inventories 117.5 42.0 159.5
Trade and other receivables 143.4 95.1 238.5
Retirement benefit assets 22.9 - 22.9
Cash and cash equivalents 143.3 10.3 153.6
Total assets 855.5 409.0 1,264.5
Trade and other payables 151.5 74.8 226.3
Interest bearing loans and borrowings
due less than one year 270.5 - 270.5
Interest bearing loans and borrowings
due greater than one year 142.7 - 142.7
Lease liabilities due less than one
year 6.9 4.7 11.6
Lease liabilities due greater than one
year 33.8 15.6 49.4
Retirement benefit obligations 22.1 0.6 22.7
Other financial liabilities 5.9 - 5.9
Provisions 1.1 2.0 3.1
Deferred tax liabilities 17.5 24.6 42.1
Derivative liabilities 0.4 - 0.4
Income tax payable 19.7 1.2 20.9
Total liabilities 672.1 123.5 795.6
The cumulative income or expenses included in other comprehensive
income relating to the Packaging business included forex gains on
subsidiaries denominated in non-sterling currencies. On completion
of the disposal, these gains will then be recycled to loss on business
disposals.
Responsibility statement of the directors in respect of the
half-yearly financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with UK adopted International Accounting Standard 34,
'Interim Financial Reporting';
-- the interim management report includes a fair review of the
information required by the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. Legislation in the UK governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Paul Forman Jack Clarke
Chief Executive Officer Chief Financial Officer
16 August 2022
Independent review report to Essentra plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed Essentra plc's condensed consolidated interim
financial statements (the "interim financial statements") in the
Results for the Half Year Ended 30 June 2022 of Essentra plc for
the 6 month period ended 30 June 2022 (the "period").
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
-- the Condensed consolidated balance sheet as at 30 June 2022;
-- the Condensed consolidated income statement and Condensed
consolidated statement of comprehensive income for the period then
ended;
-- the Condensed consolidated statement of cash flows for the period then ended;
-- the Condensed consolidated statement of changes in equity for the period then ended; and
-- the explanatory notes to the interim financial statements.
The interim financial statements included in the Results for the
Half Year Ended 30 June 2022 of Essentra plc have been prepared in
accordance with UK adopted International Accounting Standard 34,
'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (UK) 2410, 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' issued by the Financial Reporting Council for use in the
United Kingdom. A review of interim financial information consists
of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review
procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and,
consequently, does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Results for
the Half Year Ended 30 June 2022 and considered whether it contains
any apparent misstatements or material inconsistencies with the
information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on
the review procedures performed in accordance with this ISRE.
However, future events or conditions may cause the group to cease
to continue as a going concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The Results for the Half Year Ended 30 June 2022, including the
interim financial statements, is the responsibility of, and has
been approved by the directors. The directors are responsible for
preparing the Results for the Half Year Ended 30 June 2022 in
accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority. In
preparing the Results for the Half Year Ended 30 June 2022,
including the interim financial statements, the directors are
responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim
financial statements in the Results for the Half Year Ended 30 June
2022 based on our review. Our conclusion, including our Conclusions
relating to going concern, is based on procedures that are less
extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the
purpose of complying with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct
Authority and for no other purpose. We do not, in giving this
conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent
in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Milton Keynes
16 August 2022
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR BRGDISUBDGDL
(END) Dow Jones Newswires
August 17, 2022 02:00 ET (06:00 GMT)
Essentra (LSE:ESNT)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024
Essentra (LSE:ESNT)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024