The advanced materials and paper products group, is pleased to announce its
Half year results to 26 September 2020
|
|
Half year to 26 September 2020 |
Half year to 28 September 2019 |
Full year to |
|
|
£m |
£m |
£m |
|
Revenue |
34.0 |
52.8 |
104.7 |
|
Adjusted operating (loss) / profit * |
(1.2) |
2.8 |
7.2 |
|
Operating profit |
0.4 |
2.6 |
6.6 |
|
Adjusted (loss) / profit before tax * |
(1.4) |
2.6 |
6.7 |
|
Impact of IAS 19 |
(0.3) |
(0.6) |
(1.2) |
|
Impact of exceptional items |
1.7 |
– |
– |
|
Profit before tax |
0.0 |
2.0 |
5.5 |
|
Earnings per share – basic and diluted |
(0.2p) |
17.0p |
50.6p |
|
Dividend per share declared |
nil |
2.5p |
2.5p |
|
|
|
|
|
|
Net borrowings |
(5.2) |
(15.3) |
(11.1) |
|
Equity shareholders' funds |
27.3 |
21.9 |
34.4 |
|
Gearing % – before IAS 19 deficit |
12% |
38% |
26% |
|
Gearing % – after IAS 19 deficit |
19% |
70% |
32% |
|
Capital expenditure |
1.4 |
3.3 |
9.2 |
* excludes the impact of IAS 19 and exceptional items (per note 9)
Highlights
· The key priority remains the safety and wellbeing of employees
· Rapid response to Covid 19 to reduce costs, optimise cash flow and protect liquidity
· Group revenues down 36% on prior year mainly within the Paper division
· Colourform revenues up 17% on prior year
· The downturn in TFP sales, particularly in the aerospace sector mitigated by growth in medical and renewable energy sectors
· Restructuring costs nearing completion with a net cost of £0.2m projected for the year and £2m savings pa thereafter.
· Company has liquidity of over £14m including cash and available overdraft facilities.
· Capital investments for future growth to restart in the second half
· To protect liquidity, no interim dividend declared.
Mark Cropper, Chairman, commented:
“Our immediate key priority is to maintain the safety and wellbeing of our employees and customers. Each division is seeing signs of recovery with most markets trending back to normality. The restructuring plans are nearing completion with a small net cost anticipated for the year but anticipated savings of £2m p.a. in future years. The restructuring has affected less than 10% of the workforce but will result in a leaner, stronger Group. Capital investment was suspended during the first half of the year and is planned to resume in the second half.”
“The Group has weathered a major challenge during the period. The actions of our employees to meet and overcome the challenge has been exceptional across the Group. I am proud of their actions and commitment as ever and would like to thank them all for their continued efforts to protect themselves, their fellow employees and the business as we plan to come out of this pandemic a stronger, fitter Group and continue our plans for growth.”