Results for the Full Year Ended 31 December 2023

About this update from Essentra Plc

[{"type":"text","content":"\n \n ESSENTRA PLC \n(\"Essentra\", the \"Group\" or the \"Company\") \n RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER 2023 \n A resilient FY 2023 performance, progressing towards medium-term targets \n   \n Financial highlights \n \n \n \n \n   \n \n \n  2023   £m \n \n \n 2022 2     £m \n \n \n change Actual FX \n \n \n change Constant FX \n \n \n \n \n Revenue \n \n \n 316.3 \n \n \n 337.9 \n \n \n -6.4% \n \n \n -4.4% \n \n \n \n \n Adjusted 1 operating profit \n \n \n 43.2 \n \n \n 25.1 \n \n \n +72.1% \n \n \n +85.3% \n \n \n \n \n Adjusted 1 operating margin \n \n \n 13.7% \n \n \n 7.4% \n \n \n +630bps \n \n \n +660bps \n \n \n \n \n Adjusted 1 pre-tax profit \n \n \n 40.7 \n \n \n 7.3 \n \n \n >100% \n \n \n >100% \n \n \n \n \n Adjusted 1 basic earnings per share \n \n \n 10.6p \n \n \n 1.9p \n \n \n >100% \n \n \n >100% \n \n \n \n \n Adjusted 1 net cash flow from operating activities \n \n \n 48.2 \n \n \n 20.2 \n \n \n >100% \n \n \n >100% \n \n \n \n \n Reported operating profit / (loss) \n \n \n 10.9 \n \n \n (11.3) \n \n \n - \n \n \n - \n \n \n \n \n Reported pre-tax profit / (loss) \n \n \n 8.4 \n \n \n (29.1) \n \n \n - \n \n \n - \n \n \n \n \n Reported net profit / (loss) \n \n \n 5.8 \n \n \n (31.1) \n \n \n - \n \n \n - \n \n \n \n \n Reported profit / (loss) per share \n \n \n 2.0p \n \n \n (10.3)p \n \n \n - \n \n \n - \n \n \n \n \n Dividend per share \n \n \n 3.6p \n \n \n 3.3p \n \n \n +9.1% \n \n \n - \n \n \n \n \n Reported net cash inflow from operating activities 3 \n \n \n 33.3 \n \n \n 4.3 \n \n \n >100% \n \n \n >100% \n \n \n \n \n Free cash flow 3 \n \n \n 37.3 \n \n \n 5.7 \n \n \n >100% \n \n \n >100% \n \n \n \n \n Net debt / (funding surplus) 4 \n \n \n 62.5 \n \n \n (113.8) \n \n \n - \n \n \n - \n \n \n \n \n Net debt / (funding surplus) to adjusted EBITDA 4,5 \n \n \n 1.0x \n \n \n (2.3)x \n \n \n - \n \n \n - \n \n \n \n \n Presented on a continuing operations basis \n   \n \n Financial and operational resilience \n ·      FY 2023 adjusted 1 operating profit in line with expectations \n ·      Revenue of £316.3m (2022: £337.9m); 4.4% decline at constant currency \n ·      Adjusted 1 operating profit increased to £43.2m (2022: £25.1m) \n ·      Adjusted 1 operating margin expansion to 13.7% (2022: 7.4%) \n ·      Strong pricing sustained, offsetting inflation \n ·      Pro-active approach to cost management across the Group \n ·      Central corporate costs re-sized, in line with the c.£13m run rate previously guided \n ·      Strategically aligned bolt-on acquisition of BMP TAPPI, completed in October 2023, demonstrating continued momentum of Essentra's inorganic strategy \n Strong balance sheet and cash generation, enabling investment in growth \n ·      Excellent adjusted 1 net cash flow from operating activities of £48.2m; conversion of 111.6% (2022: 80.5%) \n ·      Reported net cash inflow from operating activities of £33.3m (2022: £4.3m) \n ·      Net debt of £62.5m, representing leverage of 1.0x adjusted EBITDA 4 (incl. IFRS 16 lease liabilities of £30.9m) \n ·      Healthy bolt-on acquisition pipeline; Management remains disciplined in the current environment \n ·      Delivering on the commitment to return £150m to shareholders. £89.8m special dividend paid in April 2023, and 40% of the £60m share buyback programme completed as of 31 December 2023 \n ·     Recommended final ordinary dividend of 2.4p per share, resulting in a full year dividend of 3.6p per share, representing dividend cover in the order of 3.0x earnings \n Confidence in delivering medium-term guidance \n ·      2024 performance to date is in line with expectations \n ·      Essentra remains focussed on enhancing its hassle-free customer proposition, delivering strong profit margins and cash conversion, and continues to invest in growth initiatives, whilst delivering on its sustainability goals \n ·      The business is well positioned for when volume growth returns to normalised levels. Management anticipates 2024 performance will be weighted towards a recovery in the second half \n ·      The Group remains confident of making further progress towards its medium-term targets in 2024 \n 1 On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items. Further details can be found in Note 3 of the Condensed Consolidated Financial Statements. \n 2 Prior year has been re-presented to remove the disposed Packaging and Filters businesses. See Note 1 to the Condensed Consolidated Financial Statements. \n 3 A reconciliation of free cash flow and net cash inflow from operating is set out in the Financial Review section. \n 4 Adjusted 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. \n 5 Presented including lease liabilities. \n   \n Commenting on the Full Year results, Scott Fawcett, Chief Executive, said: \n \"2023 saw the delivery of Essentra's first year as a pure-play components business. The Group navigated challenges within the external demand environment, and achieved a resilient financial and operational performance. These results demonstrate the strength of our business model, our agile approach to operations and pro-active cost control, whilst making strategic progress, highlighting the strength of our people in managing the business through economic cycles. \n The Group is making progress towards its medium-term targets. In 2023, we delivered good margin progression, organic and M&A investment and right-sized the corporate cost base. Our cash conversion is in excess of 100%, and the balance sheet remains strong. We continue to focus on our hassle-free service for our customers, and continue to demonstrate the link between employee engagement and customer satisfaction. Our NPS score increased by 6 points to 40, and I am very pleased to see employee engagement at industry leading levels of 82%. \n The business has taken steps in 2023 to ensure it is well positioned to benefit from a recovery in our end-markets.  Trading to date is in line with our expectations, and is showing greater stability. We have seen momentum in new order intake trends, and anticipate an improvement in volumes in the second half of the year. Management remain confident in making further progress towards our medium-term targets in 2024.\" \n   \n Enquiries \n \n \n \n \n Essentra plc \n Jack Clarke, Chief Financial Officer \n Claire Goodman, Investor Relations Manager \n Emma Reid, Company Secretary \n Tel: +44 (0)1908 359100 \n \n \n \n \n \n \n FTI Consulting \n Richard Mountain \n Ariadna Peretz \n [email protected] \n Tel: +44 (0)20 3727 1340 \n \n \n \n \n \n \n \n \n \n   \n Presentation \n A copy of these results is available on   www.essentraplc.com \n There will be a presentation to analysts and investors starting at 09:00am (UK time, registration from 08:30am) on Tuesday 19 March 2024 at Deutsche Numis, 45 Gresham St, London EC2V 7BF. \n There are two options for participating in the event: \n 1.   To attend in person, please e-mail your details to   [email protected] \n 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 \n A recording of the webcast will be made available on the Company's website later in the day.  \n Notes to Editors \n About Essentra plc \n Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions, focusing on the manufacture and distribution of plastic injection moulded, vinyl dip moulded and metal items. \n Headquartered in the United Kingdom, Essentra's global network extends to 28 countries worldwide and includes c.3,000 employees, 14 manufacturing facilities, 24 distribution centres and 33 sales & service centres serving c.69,000 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, medical and renewable energy. \n For further information, please visit www.essentraplc.com \n Cautionary forward-looking statement \n 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. \n   \n \n   \n \n CEO Review \n \n A resilient performance. \n The Group delivered revenues of £316.3m in 2023, a reduction of 6.4% compared to the previous year (4.4% decline on a constant currency basis). Organic sales reduced by 8.2% year on year reflecting wider macro-environment trends, partly offset from a contribution to revenue of 3.8% from the acquisitions of the Wixroyd Group (\"Wixroyd\") and BMP s.r.l (\"BMP TAPPI\"). \n In its first year as a pure-play Components business, Essentra demonstrated financial resilience. Adjusted operating margins significantly expanded to 13.7% (2022: 7.4%) and adjusted operating profit grew to £43.2m, from £25.1m in 2022. Strong pricing delivery through the year enabled the business to offset cost inflation and mitigate a portion of the volume reductions driven by the wider macro-environment. \n The Group completed a review of corporate costs during the year, and successfully right-sized the central and corporate functional costs. £11.6m of central corporate costs were recognised in the period compared to £23.1m in the previous year and the ongoing run rate cost is in line with guidance of c.£13m. A one-off cost of £1.3m was incurred relating to the restructuring of the business and has been reported within adjusting items. \n In 2023 the Group responded to changes in the macro-environment by adjusting capacity to match demand and maintaining its agile approach to operations and costs, demonstrating the strength of its unique business proposition. Essentra's global manufacturing and distribution footprint provides the flexibility to adjust demand where appropriate, and the Group remains well positioned for when volume growth returns to normalised levels. \n The Group is extremely pleased that the focus on improving the service to its customers is reflected in the 2023 On Time In Full (\"OTIF\") metric which increased to 82.2% (2022: 78.2%) and the 2023 Net Promoter Score (\"NPS\") which increased to 40 (2022: 34). Closely linked to customer satisfaction, employee engagement remains above benchmark levels at 82% (2022: 83%). \n In 2023, Essentra maintained momentum with its inorganic strategy. Following the successful acquisition and integration of Wixroyd in December 2022, Essentra announced the completion of the acquisition of BMP TAPPI in October 2023. BMP TAPPI is a complementary and strategically aligned bolt-on acquisition that will strengthen and enhance the Group's existing core product range, further expand the Group's manufacturing footprint in Europe, and deliver attractive cost and revenue synergies. This acquisition demonstrates Essentra's disciplined approach to deal rationale with focus on bolt-on acquisitions, targeting new product capabilities that can be cross-sold, including existing suppliers of sourced products. We continue to actively monitor t he b olt-on acquisition pipeline, and Management remain disciplined in the current environment. \n The balance sheet remains strong and is supported by excellent cash flow of £48.2m equating to conversion of 111.6% (2022: 80.5%). Adjusted EBITDA to net debt leverage of 1.0x including IFRS 16 lease liabilities is within the previously guided medium-term target range of 0x - 1.5x, and Essentra remains well positioned to support future organic growth opportunities and drive further value-enhancing investment with bolt-on M&A. \n   \n Group strategy and medium-term targets. \n Essentra continues to be well positioned, with a unique business model in a highly fragmented market combining manufacturing and distribution, enabling breadth and depth of product offer alongside a hassle-free customer offering. The business is diversified, with a high margin and scope to expand through scale and operational effectiveness. With strong returns, and cash conversion, the business is able to further drive growth through value enhancing M&A and has a disciplined approach to acquisitions, integrating eleven acquisitions in the previous thirteen years. \n In November 2022, Management presented a clear strategy to drive organic growth and market share gains. The ambition of the business is to double the revenue and triple operating profits in the medium-term, with clear metrics to achieve our strategy, supported by: \n ·      A clear strategy to drive market share gains, supported by a leading market position in a highly fragmented market \n ·      Margin expansion from scale, operating efficiencies, and pricing initiatives \n ·     A highly cash generative business with continued focus on working capital management and a strong balance sheet \n ·      A clear capital framework to drive further shareholder returns. \n   \n In 2023, the Group demonstrated progress towards this strategy, and the medium-term target set. The medium-term financial targets are: \n   \n \n \n \n \n  Metric \n \n \n Medium-Term Target \n \n \n FY23 Actual \n \n \n \n \n Organic revenue \n \n \n  >5% CAGR \n \n \n -8.2% \n \n \n \n \n Inorganic revenue \n \n \n >5% CAGR \n \n \n +3.8% \n \n \n \n \n Adjusted operating margin \n \n \n c.18% \n \n \n 13.7% \n \n \n \n \n Operating cash conversion \n \n \n >85% \n \n \n 111.6% \n \n \n \n \n Net debt to adjusted EBITDA \n \n \n 0x - 1.5x \n \n \n 1.0x \n \n \n \n \n ROIC \n \n \n >15.0% \n \n \n 12.4% \n \n \n \n \n Dividend \n \n \n Maintain dividend cover in the order of 3.0x earnings \n \n \n 3.6p 2.9x cover \n \n \n \n \n   \n ERP implementation progress. The business continues to roll out the ERP programme and Management focus is on fully implementing in Europe, which is our largest region. In January 2024 the new ERP was deployed across all five Eastern European operations, including the distribution hub in Lodz, Poland. This latest implementation benefitted from the learnings of previous roll outs, and the existing live sites were able to benefit from operational improvements.  Progress in 2024 will focus on further implementation in European markets in a measured manner, shaped to capture benefits efficiently. The costs in 2023 were £10.8m and in 2024 will be c.£10m. This more measured approach over a longer time period will provide greater delivery assurance and same projected benefits. \n   \n Board Changes. As announced separately today, Jack Clarke has informed the Board of his decision to retire as Chief Financial Officer and Executive Director of the Company. Jack joined Essentra in April 2022 and during his tenure has completed the strategic reviews and transitional arrangements that led to the successful sale of the Company's Packaging and Filters businesses, and the subsequent launch of Essentra as a pure-play components business. Jack will continue in his role until a successor is in place to ensure a smooth transfer of responsibilities. \n   \n Strengthened Group Executive team. Following its first year as a pure-play components business, the Group has made changes in 2024 to the Group Executive Committee (\"GEC\") to support the continued progress towards its medium-term targets. \n Richard Sederman has been appointed as APAC Managing Director, effective from January 2024. Richard has worked with Essentra for more than 20 years and has been pivotal in the Components division acquisitions, including the recent acquisitions of BMP TAPPI and Wixroyd in EMEA, as well as the acquisition of Henzghu in China, and supported the integration of the Abric security seals business in 2014. Chris Brooks has been appointed as President of the Americas effective from February 2024. Chris was previously President of X-Rite, a former Danaher operating company, and brings a wealth of experience with a diverse industrial manufacturing background. He has more than 20 years of experience as a general manager of global operations and holds various functional enterprise expertise. \n \n Shareholder returns. The Board announced a £60m share buyback programme in February 2023, funded through the residual net transaction proceeds from the disposals of its Filters and Packaging businesses, which completed in Q4 2022. During 2023, a total of 13.36m shares were purchased, at an average purchase price of 179.5 pence per share, totalling £24.0m. As at 31 December 2023, the programme was c.40% complete. Of the shares purchased, 4.14m were transferred into treasury, and 9.22m have subsequently been cancelled, which represented 3.1% of the issued share capital of the Company (excluding treasury shares) when the programme commenced. \n The Board remains committed to the share buyback programme. The finalisation of the programme will be flexible and is dependent on the Group's capital allocation opportunities and priorities, notably acquisitions. It is now anticipated that the buyback will remain in place beyond the current financial year. \n As previously announced, and financed through the net proceeds arising from the disposal of the Filters and Packaging businesses, on 27 April 2023, the Company paid a special dividend of £89.8m to shareholders, representing approximately 29.8 pence per ordinary share. \n   \n Ordinary Dividend . The Board of Directors is recommending a final ordinary dividend of 2.4p per share, resulting in a 9% increase in total dividend for FY 2023 to 3.6p (2022: 1.0p final; 3.3p total). The full year dividend is in line with the Board's commitment to a progressive dividend policy, maintaining dividend cover in the order of three times earnings. \n The final dividend will be paid on 5 July 2024 to shareholders on the share register at the record date, being 17 May 2024. The ex-dividend date will be 16 May 2024. 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 14 June 2024. \n   \n Outlook \n Trading at the start of 2024 is in line with expectations. The business is seeing greater stability and is encouraged by orderbook momentum in all three regions. The business has taken steps in 2023 to ensure it is well positioned in 2024 to benefit from a recovery in our end-markets, with a right-sized cost base and robust operations to deliver operating leverage. Management anticipate performance to be second half weighted given the short-term market environment. \n Whilst EMEA is seeing a soft macro-economic environment as previously guided and a strong Q1 2023 comparative performance, quarter on quarter trends continue to improve sequentially. The Americas region is seeing a more notable improvement in trading performance, consistent with the trend seen towards the end of Q4 2023 and distributor destocking behaviour is stabilising. APAC continues to recover at a gradual pace. \n Management remains confident that Essentra's robust and differentiated business model will support further progress towards its medium-term targets in 2024. It's global manufacturing and distribution footprint, market-leading positions and focus on delivering excellent customer service will support ongoing organic growth and profitability, whilst the continued strength of the balance sheet will drive investment in value enhancing growth initiatives, and disciplined bolt-on M&A. \n   \n Regional Review \n EMEA \n \n \n \n \n \n \n \n 2023 \n £m \n \n \n % growth \n Actual FX \n \n \n % growth \n Constant FX \n \n \n \n \n Revenue \n \n \n 170.8 \n \n \n +2.3 \n \n \n +4.8 \n \n \n \n \n Gross profit \n \n \n 87.5 \n \n \n +3.6 \n \n \n +5.3 \n \n \n \n \n Gross margin \n \n \n 51.2% \n \n \n +60bps \n \n \n +20bps \n \n \n \n \n   \n Revenue for the full year was £170.8m, a 4.8% increase on a constant currency basis, compared to the prior year. EMEA reported a broadly flat revenue performance in the first half, with a 0.1% decline on a constant currency basis compared to H1 2022. Whilst there has been evidence of softening market trends since the end of Q2 2023, in line with the wider macro-economic environment, comparatives eased through the second half reporting 10.9% growth compared to H2 2022. On a LFL basis, after adjusting for the acquisition of Wixroyd and BMP TAPPI, the region reported a decline of 2.9%. \n Western Europe and Germany in particular saw lower volumes in line with wider industrial production trends, whilst Turkey and Middle East and North Africa have continued their growth trajectory. Eastern Europe including the Nordics region remained robust. EMEA as a whole continues to invest in high growth markets, with particular focus on operations in Turkey. The electrification end-market trends continued to gain momentum, benefiting access hardware product categories. Power generators, data servers and renewable energy remain the fastest growing markets. \n The region benefitted from two acquisitions in a thirteen-month period. Wixroyd, acquired in December 2022, performed in line with Management expectations, with cross-sell building traction in Europe. Integration plans for BMP TAPPI, acquired in October 2023, are on track and will further strengthen Essentra's product portfolio, enhancing the Group's manufacturing footprint in Europe. \n Enhancing customer service remained a focus throughout the year, and the region has placed greater emphasis on stock availability. The region is pleased to see an NPS improvement of 4 points to 40, and an OTIF improvement of 120bps to 83.5% year on year. \n Gross margins remained strong at 51.2% for the full year. The region as a whole remained dynamic by adjusting capacity at regional manufacturing and distribution facilities to meet demand, improving operational efficiency. Whilst energy prices and labour costs remained high throughout the year, customer pricing offset inflation and pro-active cost control supported the mitigation of volume declines. \n   \n   \n AMERICAS \n \n \n \n \n \n \n \n 2023 \n £m \n \n \n % growth \n Actual FX \n \n \n % growth \n Constant FX \n \n \n \n \n Revenue \n \n \n 106.2 \n \n \n -13.9 \n \n \n -13.4 \n \n \n \n \n Gross profit \n \n \n 40.3 \n \n \n -14.6 \n \n \n -13.4 \n \n \n \n \n Gross margin \n \n \n 37.9% \n \n \n -30bps \n \n \n -10bps \n \n \n \n \n   \n Revenue for the full year was £106.2m, a 13.4% reduction on a constant currency basis compared to the prior year. As described at the half year and in recent trading updates, distributors experienced destocking in the first six months of the year, which led to a 12.6% decline in H1 on a constant currency basis. Throughout H2 the region focused on the normalisation of distributor volumes, and whilst H2 saw a decline of 14.4% on a constant currency basis, the general industrial environment showed signs of stability in Q4 with some customers returning to normalised levels of ordering patterns at the end of the year. \n Whilst electronics industries continued to be subdued, automotive demand remained stable in the second half, as supply chains recovered from previous component shortages. The region continued to focus on driving new business across the customer base, including cross-sell and new customer acquisition. The region is encouraged by new customer growth within the seals product range, with re-negotiated contracts maintaining positive momentum into 2024. \n The region expanded its operational footprint in 2023. Near-shoring opportunities were accelerated, enabled by the opening of the manufacturing facility in Monterrey, Mexico which commenced operations in H2, building manufacturing presence to support wider growth plans, and bringing production closer to customer demand. The region also invested in manufacturing capabilities in Brazil, with new dip-moulding machinery that will service customer demand in South America, improving Essentra's presence in the region. \n Americas delivered improvements that increased service to our customers throughout the year. The 2023 NPS scores improved by 12 points to 47, and the region recorded a marked improvement in OTIF to 75.8% (2022: 65.6%). Improvements to our customer hassle-free proposition have been supported by an investment in inventory levels of standard parts and enhanced sample availability. \n A proactive and controlled approach to cost management was taken throughout the year partly offsetting sales volume declines. Gross margins reduced by 30bps to 37.9% as slower market conditions have resulted in reduced operational leverage in 2023. \n   \n   \n   \n APAC \n \n \n \n \n \n \n \n 2023 \n £m \n \n \n % growth \n Actual FX \n \n \n % growth \n Constant FX \n \n \n \n \n Revenue \n \n \n 39.3 \n \n \n -17.3 \n \n \n -13.1 \n \n \n \n \n Gross profit \n \n \n 14.0 \n \n \n -15.2 \n \n \n -11.1 \n \n \n \n \n Gross margin \n \n \n 35.6% \n \n \n +90bps \n \n \n +90bps \n \n \n \n \n The APAC region delivered revenue of £39.3m in 2023, a reduction of 13.1% on a constant currency basis compared to the prior year. In keeping with the previous trading updates, performance was driven by the market dynamics in China (c.68% of APAC revenue; c.8.5% of Group revenue) with gradual recovery initially seen from the end of the first quarter of 2023. First half reported sales saw a decline of 18.3% which improved to a year on year decline of 7.0% in the second half. \n There continues to be increased levels of customers interest in product categories that support faster growing industries and infrastructure development. The region continues to invest in these high growth markets including renewable energy, telecommunication and data networks. In 2023, the region reviewed its commercial and operational footprint, including the investment in countries outside of China. In Q2 2023 the distribution centre and operations in Perth, Australia, were moved to the existing facility in Sydney. In June, Essentra entered the Vietnamese market, establishing a commercial presence. \n The APAC region has placed greater emphasis on improving inventory availability, and achieved a reduction in lead times to better meet the needs of customers. The region saw an improvement in NPS in 2023, with an increase of 8 points in China to 51 and an increase of 23 in the Rest of Asia. \n In 2021, Essentra acquired Jiangxi Hengzhu Electrical Cabinet Lock Co. Ltd (\"Hengzhu\"). Given previous pandemic related restrictions in China, 2023 was the first year following the acquisition that integration activities could be accelerated. The focus in 2023 was on investing in upgrades to manufacturing equipment, ensuring there was a safe operating environment, and exploring opportunities to develop the access hardware product range across the rest of Asia. \n The region remained focussed on cost management and operational efficiency in 2023 to deliver robust profit margins as markets gradually recovered. Full year gross margin of 35.6% saw a 90bps improvement compared to 2022. \n   \n   \n Sustainability progress and refreshed targets. In 2023, the Company delivered significant progress across the areas of environment, social and governance (\"ESG\"). Essentra's ESG strategy, launched in 2022, is set out against five pillars: our planet, our components, our customers, our culture and our communities. These pillars are aligned to the UN sustainable development goals, with nine goals having a direct link to how Essentra operates. \n The Science Based Targets initiative (\"SBTi\") approved Essentra's near- and long-term science-based emissions reduction targets including verification of Essentra's net-zero science-based target by 2050, a key milestone in the Company's sustainability strategy as previously announced on 21 February 2024. Essentra has committed to an overall Net-Zero Target to reach net-zero greenhouse gas emissions across the value chain by 2050. In the near-term, Essentra commits to reducing absolute scope 1 and 2 GHG emissions by 50% by 2030 from a 2019 base year. Essentra also commits to reducing scope 3 GHG emissions from purchased goods and services and upstream transportation and distribution by 55% per GBP of value added by 2030 from a 2022 base year. In the long-term, Essentra commits to reduce absolute scope 1 and 2 GHG emissions by 90% by 2040 from a 2019 base year. Essentra also commits to reduce absolute scope 3 emissions by 90% by 2050 from a 2022 base year. \n The Group is making good progress against these targets. Since 2019, total scope 1 and 2 CO2e emissions have reduced by 38%, and when indexed to revenue, emissions intensity has declined by 41% as we continue to transition to renewable electricity and focus on energy management programmes. Renewable electricity is now 44% of total electricity usage, an increase of 13% compared to 2022. 2023 saw our first on-site solar project begin generating power in Thailand, followed by our second site in China at the end of the year. In 2023, our scope 3 near-term emissions intensity has reduced by 30% compared to the 2022 baseline. \n Essentra continues to make progress towards its goal of having all sites achieve zero waste to landfill status by 2030. 14 sites across Essentra's global footprint achieved zero waste to landfill (2022: 12 sites), and 94% of waste is now diverted from landfill (2022: 76%). \n The use of post-consumer recycled content materials has also increased positively. 21% of materials are now obtained from sustainable sources across our manufactured polymer ranges, two years ahead of our target of meeting 20% by 2025. Essentra continues to innovate and build relationships with its customers to recognise further opportunities, and in 2023 launched a Centre of Excellence to accelerate the testing of recycled and bio based materials, with the extended target of reaching 50% of materials from sustainable sources by 2030 across our manufactured polymer ranges as well as the additional target of ensuring 100% of packaging is reusable, recyclable or compostable by 2030. We continue to increase the number of products introduced with sustainability criteria, and now have 7,981 products across our ranges that have sustainability attributes, of which 750 were introduced in 2023. \n   \n \n Financial Review \n \n Constant currency, Like-for-like (\"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 20-21 and 36-37 of the 2022 Annual Report. \n Constant foreign exchange rates. The constant exchange rate basis adjusts the comparative to exclude the effect of currency movements, to show the underlying performance of the Company. The principal exchange rates for Essentra were: \n \n \n \n \n   \n \n \n -------- Average -------- \n \n \n -------- Closing -------- \n \n \n \n \n   \n \n \n 2023 \n \n \n 2022 \n \n \n 2023 \n \n \n 2022 \n \n \n \n \n US$:£ \n \n \n 1.25 \n \n \n 1.24 \n \n \n 1.27 \n \n \n 1.20 \n \n \n \n \n €:£ \n \n \n 1.15 \n \n \n 1.17 \n \n \n 1.15 \n \n \n 1.13 \n \n \n \n \n Re-translating the full year 2022 actual results at 2023 average exchange rates reduces the prior year revenue by c.£7m and reduces prior year operating profit by c.£2m. \n 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 2023 LFL results are adjusted for the acquisition of Wixroyd on 1 December 2022, and the acquisition of BMP TAPPI on 26 October 2023. The 2022 results have been adjusted for the completion of the Packaging business disposal previously announced on 3 October 2022 and the completion of the Filters business disposal previously announced on 5 December 2022. \n Discontinued Operations. Discontinued operations recognised a £0.4m post-tax loss (2022: £152.7m loss), as reported in the Condensed Consolidated Income Statement. Refer to Note 17 in the Condensed Consolidated Financial Statements for further information. \n Adjusted basis. The term \"adjusted\" excludes the impact of amortisation of acquired intangible assets and adjusting items, less any associated tax impact. In 2023, amortisation of acquired intangible assets was £11.3m (2022: £10.4m), and there was a pre-tax charge for adjusting items of £21.0m (2022: £26.0m). 2023 adjusting items include £10.8m customisation and configuration costs of significant 'software-as-a-service' (\"SaaS\") arrangements in line with previous guidance. A net credit of £1.0m has been incurred for gains/losses and transaction costs relating to acquisitions of businesses and £3.4m cost has been incurred relating to impairment of non-current assets held in China. \n   \n Also reported within adjusting items are £7.8m of costs related to legacy items within the Group including £1.3m restructuring activities following the disposal of Filters and Packaging divisions, £0.2m of costs associated with the capital reduction completed in 2023, and recurring costs of £1.8m relating to legacy pension schemes. In addition £3.7m has been reported relating to a write-down of investment property to market value and £0.8m in respect of indemnity provisions raised for claims. Further details on adjusting items are shown in Note 3 to the Condensed Consolidated Financial Statements. \n   \n Adjusted operating cash flow. Adjusted operating cash flow is net cash flow from operating activities, excluding income tax paid, contributions to legacy pension schemes 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. \n A full reconciliation of the Group's adjusted profit measures can be found in Note 20 to the Condensed Consolidated Financial Statements. \n IAS 29: Turkey Hyperinflation. International Accounting Standard (\"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 2023. For the year ended 31 December 2023 a monetary gain of £1.3m (2022: £3.2m gain) was included within net finance expense, and an increase in net assets in the year of £0.7m (2022: £18m increase) has been recognised as a result of IAS 29. \n Net finance expense. Net finance expense of £2.5m compared to £17.8m in the prior year period. The reduction in net finance expense is led by the previously communicated changes to the Company's main sources of funding after the strategic review process. In January 2023 the Group reduced the US private placement (\"USPP\") debt, using a portion of the disposal proceeds to repay $247m of the $350m USPP notes initially held contributing to a £9.9m reduction in interest on loans and overdrafts  £6.0m (2022: £15.9m). \n Tax. The effective tax on underlying profit before tax (before adjusting items and amortisation of acquired intangible assets) was 23.6% (2022: 21.5%). The underlying effective tax rate for 2023 is within the forecast tax rate range of 23% to 25%. Consistent with the disclosure of tax rates at FY 2022, this increased tax rate compared to the prior year is primarily driven by the previously announced increase of the UK corporation tax rate from 19% to 25% with effect from 1 April 2023. The overall tax position for the Group has reported a net tax credit as a result of prior year adjustments related to discontinued operations. \n Net working capital. Net working capital is defined as Inventories plus Trade and other receivables less Trade and other payables, adjusted to exclude deferred contingent consideration payable, interest accruals and capital payables (\"Adjustments\"). \n \n \n \n \n   \n \n \n 2023 \n \n \n 2022 \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n \n \n Inventories \n \n \n 64.7 \n \n \n 65.0 \n \n \n \n \n Trade and other receivables \n \n \n 61.5 \n \n \n 66.4 \n \n \n \n \n Trade and other payables \n \n \n (60.7) \n \n \n (91.5) \n \n \n \n \n Adjustments \n \n \n (7.7) \n \n \n 4.3 \n \n \n \n \n Net working capital \n \n \n 57.8 \n \n \n 44.2 \n \n \n \n \n The increase in net working capital is predominately due to a reduction in Trade and other payables as a result of re-sizing the cost base in the current year, as well as £9.1m included in the prior year associated with the cost of disposals. This is partly offset by a reduction in receivables, as well as inventory rebalancing, after an initial inventory build in the prior year period. Adjustments include deferred contingent consideration receivable, accruals for interest and capital expenditure payable. \n Adjusted operating cash flow from continuing operations. Adjusted operating cash flow from continuing operations of £48.2m equated to an operating cash conversion of 111.6% (2022: 80.5%). Free cash flow increased year on year to £37.3m (2022: £5.7m). \n \n \n \n \n   \n \n \n 2023 \n \n \n 2022 \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n \n \n Adjusted operating profit \n \n \n 43.2 \n \n \n 25.1 \n \n \n \n \n Depreciation and amortisation of non-acquired intangible assets \n \n \n 14.0 \n \n \n 16.6 \n \n \n \n \n    Right-of-use asset depreciation \n \n \n 5.9 \n \n \n 5.6 \n \n \n \n \n    Share option expense / other movements \n \n \n 0.9 \n \n \n (0.1) \n \n \n \n \n    Change in working capital \n \n \n (2.6) \n \n \n (14.2) \n \n \n \n \n Net capital expenditure (excluding disposal proceeds relating to adjusting items) \n \n \n (13.2) \n \n \n (12.8) \n \n \n \n \n Adjusted operating cash flow from continuing operations \n \n \n 48.2 \n \n \n 20.2 \n \n \n \n \n    Tax 1 \n \n \n (4.5) \n \n \n 1.7 \n \n \n \n \n    Cash outflow in respect of adjusting items 1,2 \n \n \n (23.6) \n \n \n (30.4) \n \n \n \n \n Add back: net capital expenditure \n \n \n 13.2 \n \n \n 12.8 \n \n \n \n \n Net cash inflow from operating activities 3 \n \n \n 33.3 \n \n \n 4.3 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Adjusted operating cash flow from continuing operations \n \n \n 48.2 \n \n \n 20.2 \n \n \n \n \n    Tax 1 \n \n \n (4.5) \n \n \n 1.7 \n \n \n \n \n    Net interest paid \n \n \n (6.4) \n \n \n (16.2) \n \n \n \n \n Free cash flow \n \n \n 37.3 \n \n \n 5.7 \n \n \n \n \n 1 In 2022 tax paid excludes the tax paid/received in relation to adjusting items and discontinued operations. In 2022 this is included within the cash outflow in respect of adjusting items and discontinued operations. \n 2 Pension contribution of £3.7m in 2023 for legacy pension schemes has been included within cash outflow in respect of adjusting items (2022: £0.7m). \n 3 Statutory cash flows from operating activities can be found in the Condensed Consolidated Financial Statements. \n Net funding surplus / debt. Net debt at the end of the period was £62.5m compared to a net funding surplus of £113.8m at 31 December 2022 (including lease liabilities). The overall increase in net debt was mainly driven by shareholder capital returns previously communicated at the FY 2022 results, offset by free cash flow generated in the period less cash paid for the acquisition of BMP TAPPI. \n The Group's financial ratios remain healthy. Net debt to adjusted EBITDA including lease liabilities was 1.0x (2022: net funding surplus of 2.3x on a continuing basis). The ratio of net debt to adjusted EBITDA excluding lease liabilities was 0.5x (2022: net funding surplus 3.3x on a continuing basis). \n \n \n \n \n   \n \n \n 2023 \n \n \n \n \n   \n \n \n £m \n \n \n \n \n Net funding surplus as at 1 January 2023 \n \n \n (113.8) \n \n \n \n \n    Free cash flow \n \n \n (37.3) \n \n \n \n \n    Cash flow from discontinued businesses including disposal costs \n \n \n  21.6 \n \n \n \n \n    Cash outflow in respect of adjusting items \n \n \n 23.6 \n \n \n \n \n    Special dividend to equity holders \n \n \n 89.8 \n \n \n \n \n    Ordinary dividend to equity holders \n \n \n 6.5 \n \n \n \n \n    Share buyback \n \n \n 24.0 \n \n \n \n \n    Acquisitions less cash acquired \n \n \n 33.3 \n \n \n \n \n    Lease liability movements \n \n \n 14.0 \n \n \n \n \n    Movement in loan hedging derivatives \n \n \n 0.3 \n \n \n \n \n    Foreign exchange \n \n \n 0.5 \n \n \n \n \n Net debt as at 31 December 2023 \n \n \n 62.5 \n \n \n \n \n   \n Banking facilities. One of the main sources of funding for the Company is a Revolving Credit Facility (\"RCF\") provided by a group of six highly rated banks totalling £200.0m. As at 31 December 2023, £15.2m was drawn. The Company also holds $102.5m of long dated US Private Placement debt (\"USPP\") at an average coupon rate of 3.8%. \n \n \n \n \n Type \n \n \n Amount \n \n \n Interest Rate \n \n \n Maturity \n \n \n \n \n RCF \n \n \n £200.00m \n \n \n Floating \n \n \n October 2026 \n \n \n \n \n USPP \n \n \n $32.80m \n \n \n 3.62% \n \n \n July 2028 \n \n \n \n \n USPP \n \n \n $34.85m \n \n \n 3.91% \n \n \n July 2031 \n \n \n \n \n USPP \n \n \n $34.85m \n \n \n 4.00% \n \n \n July 2033 \n \n \n \n \n   \n 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. The Company intends to use derivatives to manage foreign currency and interest rate risk arising from underlying business activities. Whilst some transactions may be of a more speculative nature, they are in place with a view to manage exchange rate risk only. 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. \n 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. 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 derivatives to hedge its exposure to movements in the exchange rates on its highly probable forecast foreign currency sales and purchases over a period of up to 18 months. \n   \n \n   \n 2023 FULL YEAR RISK DISCLOSURE \n The Company has established a risk and internal control framework designed to manage the delivery of its strategic objectives. The objectives of this framework are to: \n ·      identify the Company's Principal and Emerging Risks and appropriate mitigating actions \n ·      formulate the risk appetite and ensure that our business profile and plans are consistent with it \n ·      develop plans to bring any exposures that are outside agreed appetite in line with it \n ·      ensure that growth plans are properly supported by an effective risk management process \n ·      help management teams to improve the control and co-ordination of risk-taking across the Company. \n   \n The risk framework, along with the Company's Principal and Emerging risks , wil l be described in detail in the \"Risk Management Report\" section of the Company's Annual Report and Accounts for the year ended 31 December 2023, available on 28 March 2024 on the Company website: www.essentraplc.com \n   \n   \n   \n   \n   \n   \n Condensed Consolidated Financial Statements \n   \n Condensed Consolidated Income Statement \n For the year ended 31 December 2023 \n \n \n \n \n \n \n \n Note \n \n \n 2023 \n£m \n \n \n 2022 \n£m \n \n \n \n \n Revenue \n \n \n 2 \n \n \n 316.3 \n \n \n 337.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit \n \n \n 2 \n \n \n 141.8 \n \n \n 148.2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Operating profit/(loss) 1 \n \n \n 2 \n \n \n 10.9 \n \n \n (11.3) \n \n \n \n \n Finance income \n \n \n 4 \n \n \n 11.0 \n \n \n 7.1 \n \n \n \n \n Finance expense \n \n \n 4 \n \n \n (13.5) \n \n \n (24.9) \n \n \n \n \n Profit/(loss) before tax \n \n \n \n \n \n 8.4 \n \n \n (29.1) \n \n \n \n \n Income tax expense \n \n \n \n \n \n (2.6) \n \n \n (2.0) \n \n \n \n \n Profit/(loss) for the year from continuing operations \n \n \n \n \n \n 5.8 \n \n \n (31.1) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss from discontinued operations \n \n \n 17 \n \n \n (0.4) \n \n \n (152.7) \n \n \n \n \n Profit/(loss) for the year \n \n \n \n \n \n 5.4 \n \n \n (183.8) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity holders of Essentra plc \n \n \n \n \n \n 5.4 \n \n \n (188.0) \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n - \n \n \n 4.2 \n \n \n \n \n Profit/(loss) for the year \n \n \n \n \n \n 5.4 \n \n \n (183.8) \n \n \n \n \n   \n \n \n \n \n Earnings per share attributable to equity holders of Essentra plc: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic \n \n \n 5 \n \n \n 1.8p \n \n \n (62.4)p \n \n \n \n \n Diluted \n \n \n 5 \n \n \n 1.8p \n \n \n (62.4)p \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n Earnings per share from continuing operations attributable to equity holders of Essentra plc: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic \n \n \n 5 \n \n \n 2.0p \n \n \n (10.3)p \n \n \n \n \n Diluted \n \n \n 5 \n \n \n 2.0p \n \n \n (10.3)p \n \n \n \n \n   \n \n \n \n \n \n \n \n Adjusted profit measure: continuing operations \n \n \n Note \n \n \n 2023 \n£m \n \n \n 2022 \n£m \n \n \n \n \n \n \n \n \n \n \n Operating profit/(loss) \n \n \n \n \n \n 10.9 \n \n \n (11.3) \n \n \n \n \n \n \n \n \n \n \n Amortisation of acquired intangible assets \n \n \n 2 \n \n \n 11.3 \n \n \n 10.4 \n \n \n \n \n \n \n \n \n \n \n Adjusting items \n \n \n 3 \n \n \n 21.0 \n \n \n 26.0 \n \n \n \n \n \n \n \n \n \n \n Adjusted operating profit 2 \n \n \n \n \n \n 43.2 \n \n \n 25.1 \n \n \n \n \n \n \n \n Notes: \n 1.         Includes impairment charge on trade receivables of £0.4m (2022: £0.8m). \n 2.         See Note 20 for further details of the adjusted profit measure. \n   \n   \n   \n   \n   \n   \n   \n   \n Condensed Consolidated Statement of Comprehensive Income \n For the year ended 31 December 2023 \n \n \n \n \n \n \n \n Note \n \n \n 2023 \n£m \n \n \n 2022 \n£m \n \n \n \n \n Profit/(loss) for the year \n \n \n \n \n \n 5.4 \n \n \n (183.8) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other comprehensive (expense)/income: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that will not be reclassified to profit or loss in subsequent periods: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Remeasurement of defined benefit pension schemes \n \n \n 12 \n \n \n (1.3) \n \n \n (20.5) \n \n \n \n \n Deferred tax on remeasurement of defined benefit pension schemes \n \n \n \n \n \n 0.3 \n \n \n 5.1 \n \n \n \n \n \n \n \n \n \n \n (1.0) \n \n \n (15.4) \n \n \n \n \n Items that may be reclassified to profit or loss in subsequent periods: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Effective portion of changes in fair value of cash flow hedges: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net change in fair value of cash flow hedges transferred to the income statement \n \n \n \n \n \n 2.4 \n \n \n (16.4) \n \n \n \n \n Ineffective portion of changes in fair value of cash flow hedges transferred to the income statement \n \n \n \n \n \n - \n \n \n 1.0 \n \n \n \n \n Effective portion of changes in fair value of cash flow hedges \n \n \n \n \n \n (1.8) \n \n \n 16.1 \n \n \n \n \n Foreign exchange translation differences: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Attributable to equity holders of Essentra plc: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Arising on translation of foreign operations \n \n \n \n \n \n (19.4) \n \n \n 54.6 \n \n \n \n \n Recycling of foreign currency translation reserve \n \n \n \n \n \n - \n \n \n (38.7) \n \n \n \n \n Arising on effective net investment hedges \n \n \n \n \n \n 0.7 \n \n \n (21.7) \n \n \n \n \n Net income tax credit \n \n \n \n \n \n 0.6 \n \n \n 0.9 \n \n \n \n \n Attributable to non-controlling interests \n \n \n \n \n \n - \n \n \n (0.1) \n \n \n \n \n \n \n \n \n \n \n (17.5) \n \n \n (4.3) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total other comprehensive expense for the year, net of tax \n \n \n \n \n \n (18.5) \n \n \n (19.7) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive expense for the year \n \n \n \n \n \n (13.1) \n \n \n (203.5) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity holders of Essentra plc \n \n \n \n \n \n (13.1) \n \n \n (207.6) \n \n \n \n \n Non-controlling interests \n \n \n \n \n \n - \n \n \n 4.1 \n \n \n \n \n Total comprehensive expense for the year \n \n \n \n \n \n (13.1) \n \n \n (203.5) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n (12.7) \n \n \n (12.1) \n \n \n \n \n Discontinued operations \n \n \n \n \n \n (0.4) \n \n \n (191.4) \n \n \n \n \n Total comprehensive expense for the year \n \n \n \n \n \n (13.1) \n \n \n (203.5) \n \n \n \n \n   \n   \n   \n \n Condensed Consolidated Balance Sheet \n At 31 December 2023 \n \n \n \n \n \n \n \n Note \n \n \n 31 December \n 2023 \n £m \n \n \n 31 December \n 2022 \n £m \n \n \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Property, plant and equipment \n \n \n 6 \n \n \n 68.1 \n \n \n 65.2 \n \n \n \n \n Lease right-of-use asset \n \n \n 8 \n \n \n 27.9 \n \n \n 21.0 \n \n \n \n \n Investment properties \n \n \n 6 \n \n \n 3.3 \n \n \n 7.0 \n \n \n \n \n Intangible assets \n \n \n 7 \n \n \n 215.0 \n \n \n 206.6 \n \n \n \n \n Long-term receivables \n \n \n \n \n \n 10.1 \n \n \n 11.6 \n \n \n \n \n Derivative assets \n \n \n \n \n \n 4.2 \n \n \n 8.3 \n \n \n \n \n Deferred tax assets \n \n \n \n \n \n 12.2 \n \n \n 11.7 \n \n \n \n \n Retirement benefit assets \n \n \n 12 \n \n \n 7.9 \n \n \n 7.9 \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 348.7 \n \n \n 339.3 \n \n \n \n \n Inventories \n \n \n 9 \n \n \n 64.7 \n \n \n 65.0 \n \n \n \n \n Income tax receivable \n \n \n \n \n \n 1.4 \n \n \n 1.1 \n \n \n \n \n Trade and other receivables \n \n \n 10 \n \n \n 61.5 \n \n \n 66.4 \n \n \n \n \n Derivative assets \n \n \n \n \n \n - \n \n \n 0.2 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 59.7 \n \n \n 421.4 \n \n \n \n \n Total current assets \n \n \n \n \n \n 187.3 \n \n \n 554.1 \n \n \n \n \n Total assets \n \n \n \n \n \n 536.0 \n \n \n 893.4 \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issued share capital \n \n \n 14 \n \n \n 73.3 \n \n \n 75.6 \n \n \n \n \n Merger reserve \n \n \n 14 \n \n \n - \n \n \n 385.2 \n \n \n \n \n Capital redemption reserve \n \n \n 14 \n \n \n 2.4 \n \n \n 0.1 \n \n \n \n \n Other reserve \n \n \n \n \n \n (132.8) \n \n \n (132.8) \n \n \n \n \n Cash flow hedging reserve \n \n \n \n \n \n (0.2) \n \n \n (0.8) \n \n \n \n \n Translation reserve \n \n \n \n \n \n (70.5) \n \n \n (52.4) \n \n \n \n \n Retained earnings \n \n \n \n \n \n 401.0 \n \n \n 129.2 \n \n \n \n \n Attributable to equity holders of Essentra plc \n \n \n \n \n \n 273.2 \n \n \n 404.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total equity \n \n \n \n \n \n 273.2 \n \n \n 404.1 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest bearing loans and borrowings \n \n \n \n \n \n 95.5 \n \n \n 85.0 \n \n \n \n \n Lease liabilities \n \n \n \n \n \n 23.8 \n \n \n 18.0 \n \n \n \n \n Retirement benefit obligations \n \n \n \n \n \n 17.5 \n \n \n 18.5 \n \n \n \n \n Provisions \n \n \n \n \n \n 0.2 \n \n \n 1.1 \n \n \n \n \n Other financial liabilities \n \n \n \n \n \n - \n \n \n 2.4 \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n 12.4 \n \n \n 7.6 \n \n \n \n \n Total non-current liabilities \n \n \n \n \n \n 149.4 \n \n \n 132.6 \n \n \n \n \n Interest bearing loans and borrowings \n \n \n \n \n \n - \n \n \n 208.0 \n \n \n \n \n Lease liabilities \n \n \n \n \n \n 7.1 \n \n \n 4.9 \n \n \n \n \n Derivative liabilities \n \n \n \n \n \n - \n \n \n 1.3 \n \n \n \n \n Income tax payable \n \n \n \n \n \n 12.0 \n \n \n 16.2 \n \n \n \n \n Trade and other payables \n \n \n 11 \n \n \n 60.7 \n \n \n 91.5 \n \n \n \n \n Other financial liabilities \n \n \n \n \n \n 28.0 \n \n \n 24.1 \n \n \n \n \n Provisions \n \n \n \n \n \n 5.6 \n \n \n 10.7 \n \n \n \n \n Total current liabilities \n \n \n \n \n \n 113.4 \n \n \n 356.7 \n \n \n \n \n Total liabilities \n \n \n \n \n \n 262.8 \n \n \n 489.3 \n \n \n \n \n Total equity and liabilities \n \n \n \n \n \n 536.0 \n \n \n 893.4 \n \n \n \n \n \n \n Condensed Consolidated Statement of Changes in Equity \n For the year ended 31 December 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n Issued \ncapital \n £m \n \n \n Merger \nreserve \n £m \n \n \n Capital \nredemption \nreserve \n £m \n \n \n Other \nreserve \n £m \n \n \n Cash flow \nhedging and \n cost of \nhedging \nreserves \n £m \n \n \n Translation \nreserve \n £m \n \n \n Retained \nearnings \n £m \n \n \n Non- \ncontrolling \ninterests \n £m \n \n \n Total \nequity \n £m \n \n \n \n \n At 1 January 2023 \n \n \n \n \n \n 75.6 \n \n \n 385.2 \n \n \n 0.1 \n \n \n (132.8) \n \n \n (0.8) \n \n \n (52.4) \n \n \n 129.2 \n \n \n - \n \n \n 404.1 \n \n \n \n \n Profit for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 5.4 \n \n \n - \n \n \n 5.4 \n \n \n \n \n Other comprehensive (expense)/income \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.6 \n \n \n (18.1) \n \n \n (1.0) \n \n \n - \n \n \n (18.5) \n \n \n \n \n Total comprehensive (expense)/income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.6 \n \n \n (18.1) \n \n \n 4.4 \n \n \n - \n \n \n (13.1) \n \n \n \n \n Share option expense \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.4 \n \n \n - \n \n \n 1.4 \n \n \n \n \n Tax relating to share-based incentives \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (0.3) \n \n \n - \n \n \n (0.3) \n \n \n \n \n Net impact of hyperinflation 1 \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.4 \n \n \n - \n \n \n 1.4 \n \n \n \n \n Purchase of own shares \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (24.0) \n \n \n - \n \n \n (24.0) \n \n \n \n \n Cancellation of shares \n \n \n \n \n \n (2.3) \n \n \n - \n \n \n 2.3 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Reduction of capital \n \n \n \n \n \n - \n \n \n (385.2) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 385.2 \n \n \n - \n \n \n - \n \n \n \n \n Dividends paid \n \n \n 18 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (96.3) \n \n \n - \n \n \n (96.3) \n \n \n \n \n At 31 December 2023 \n \n \n \n \n \n 73.3 \n \n \n - \n \n \n 2.4 \n \n \n (132.8) \n \n \n (0.2) \n \n \n (70.5) \n \n \n 401.0 \n \n \n - \n \n \n 273.2 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n \n Note \n \n \n Issued \ncapital \n £m \n \n \n Merger \nreserve \n £m \n \n \n Capital \nredemption \nreserve \n £m \n \n \n Other \nreserve \n £m \n \n \n Cash flow \nhedging and \n cost of \nhedging \nreserves \n £m \n \n \n Translation \nreserve \n £m \n \n \n Retained \nearnings \n £m \n \n \n Non- \ncontrolling \ninterests \n £m \n \n \n Total \nequity \n £m \n \n \n \n \n At 1 January 2022 \n \n \n \n \n \n 75.6 \n \n \n 385.2 \n \n \n 0.1 \n \n \n (132.8) \n \n \n (1.5) \n \n \n (47.5) \n \n \n 333.6 \n \n \n 16.2 \n \n \n 628.9 \n \n \n \n \n Loss for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (188.0) \n \n \n 4.2 \n \n \n (183.8) \n \n \n \n \n Other comprehensive (expense)/income \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.7 \n \n \n (4.9) \n \n \n (15.4) \n \n \n (0.1) \n \n \n (19.7) \n \n \n \n \n Total comprehensive (expense)/income for the year \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.7 \n \n \n (4.9) \n \n \n (203.4) \n \n \n 4.1 \n \n \n (203.5) \n \n \n \n \n Recycling of non-controlling interest \n \n \n 17 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (18.4) \n \n \n (18.4) \n \n \n \n \n Share option expense \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 3.1 \n \n \n - \n \n \n 3.1 \n \n \n \n \n Tax relating to share-based incentives \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (0.6) \n \n \n - \n \n \n (0.6) \n \n \n \n \n Net impact of hyperinflation 1 \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 15.5 \n \n \n - \n \n \n 15.5 \n \n \n \n \n Dividends paid \n \n \n 18 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (19.0) \n \n \n (1.9) \n \n \n (20.9) \n \n \n \n \n At 31 December 2022 \n \n \n \n \n \n 75.6 \n \n \n 385.2 \n \n \n 0.1 \n \n \n (132.8) \n \n \n (0.8) \n \n \n (52.4) \n \n \n 129.2 \n \n \n - \n \n \n 404.1 \n \n \n \n \n Condensed Consolidated Statement of Cash Flows \n For the year ended 31 December 2023 \n \n \n \n \n \n \n \n Note \n \n \n 2023 \n £m \n \n \n 2022 \n £m \n \n \n \n \n \n \n Operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit/(loss) for the year from: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n 5.8 \n \n \n (31.1) \n \n \n \n \n Discontinued operations \n \n \n \n \n \n (0.4) \n \n \n (152.7) \n \n \n \n \n Profit/(loss) for the year \n \n \n \n \n \n 5.4 \n \n \n (183.8) \n \n \n \n \n Adjustments for: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Income tax credit \n \n \n \n \n \n (1.1) \n \n \n (2.0) \n \n \n \n \n Net finance expense \n \n \n 4 \n \n \n 2.5 \n \n \n 18.4 \n \n \n \n \n Intangible amortisation \n \n \n 7 \n \n \n 14.2 \n \n \n 19.6 \n \n \n \n \n Adjusting items \n \n \n 3 \n \n \n 13.9 \n \n \n 26.0 \n \n \n \n \n Loss on business disposals \n \n \n 17 \n \n \n 3.7 \n \n \n 19.0 \n \n \n \n \n Impairment of acquired intangible assets on discontinued operations \n \n \n \n \n \n - \n \n \n 182.7 \n \n \n \n \n Depreciation of property, plant and equipment \n \n \n 6 \n \n \n 11.1 \n \n \n 29.5 \n \n \n \n \n Lease right-of-use asset depreciation \n \n \n 8 \n \n \n 5.9 \n \n \n 10.1 \n \n \n \n \n Loss on disposal of right of use asset \n \n \n \n \n \n - \n \n \n 0.2 \n \n \n \n \n Loss on disposal of fixed assets \n \n \n \n \n \n - \n \n \n 0.3 \n \n \n \n \n Impairment of fixed assets \n \n \n 3 \n \n \n 7.1 \n \n \n 0.5 \n \n \n \n \n Share option expense \n \n \n \n \n \n 1.4 \n \n \n 2.6 \n \n \n \n \n Hedging activities and other movements \n \n \n \n \n \n (0.5) \n \n \n 0.8 \n \n \n \n \n Increase in inventories \n \n \n \n \n \n (3.1) \n \n \n (27.4) \n \n \n \n \n Decrease/(increase) in trade and other receivables \n \n \n \n \n \n 10.0 \n \n \n (35.5) \n \n \n \n \n (Decrease)/increase in trade and other payables \n \n \n \n \n \n (10.1) \n \n \n 41.2 \n \n \n \n \n Cash outflow in respect of adjusting items \n \n \n 20 \n \n \n (23.6) \n \n \n (23.7) \n \n \n \n \n Movement in provisions \n \n \n \n \n \n (2.8) \n \n \n 1.0 \n \n \n \n \n Adjustment for pension contributions \n \n \n \n \n \n - \n \n \n 0.2 \n \n \n \n \n Movement due to hyperinflation \n \n \n \n \n \n - \n \n \n (3.2) \n \n \n \n \n Cash inflow from operating activities \n \n \n \n \n \n 34.0 \n \n \n 76.5 \n \n \n \n \n Income tax paid \n \n \n \n \n \n (4.5) \n \n \n (12.5) \n \n \n \n \n Net cash inflow from operating activities \n \n \n \n \n \n 29.5 \n \n \n 64.0 \n \n \n \n \n Investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest received \n \n \n \n \n \n 3.5 \n \n \n 2.3 \n \n \n \n \n Acquisition of property, plant and equipment 3 \n \n \n \n \n \n (12.4) \n \n \n (39.7) \n \n \n \n \n Proceeds from sale of property, plant and equipment \n \n \n \n \n \n - \n \n \n 0.5 \n \n \n \n \n Payments for intangible assets \n \n \n \n \n \n (0.8) \n \n \n (1.0) \n \n \n \n \n Acquisition of businesses net of cash acquired 1 \n \n \n 16 \n \n \n (33.3) \n \n \n (27.9) \n \n \n \n \n Proceeds from sale of businesses net of cash disposed 2 \n \n \n 17 \n \n \n - \n \n \n 416.9 \n \n \n \n \n Cash outflow from cost of business disposals \n \n \n 17 \n \n \n (17.8) \n \n \n (31.5) \n \n \n \n \n Net cash (outflow)/inflow from investing activities \n \n \n \n \n \n (60.8) \n \n \n 319.6 \n \n \n \n \n Financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest paid \n \n \n \n \n \n (9.9) \n \n \n (19.5) \n \n \n \n \n Dividends paid to equity holders \n \n \n 18 \n \n \n (96.3) \n \n \n (19.0) \n \n \n \n \n Dividends paid to non-controlling interests \n \n \n \n \n \n - \n \n \n (1.9) \n \n \n \n \n Repayment of short-term loans \n \n \n \n \n \n (208.0) \n \n \n - \n \n \n \n \n Repayments of long-term loans \n \n \n \n \n \n (46.9) \n \n \n (124.2) \n \n \n \n \n Proceeds from long-term loans \n \n \n \n \n \n 61.8 \n \n \n 65.0 \n \n \n \n \n Proceeds from early settlement of derivative contracts \n \n \n \n \n \n - \n \n \n 6.5 \n \n \n \n \n Lease liability principal repayments \n \n \n \n \n \n (5.4) \n \n \n (11.5) \n \n \n \n \n Purchase of own shares \n \n \n \n \n \n (24.0) \n \n \n - \n \n \n \n \n Net cash outflow from financing activities \n \n \n \n \n \n (328.7) \n \n \n (104.6) \n \n \n \n \n Net (decrease)/increase in cash and cash equivalents \n \n \n \n \n \n (360.0) \n \n \n 279.0 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net cash and cash equivalents at the beginning of the year \n \n \n \n \n \n 421.4 \n \n \n 136.3 \n \n \n \n \n Net (decrease)/increase in cash and cash equivalents \n \n \n \n \n \n (360.0) \n \n \n 279.0 \n \n \n \n \n Net effect of currency translation on cash and cash equivalents \n \n \n \n \n \n (1.7) \n \n \n 6.1 \n \n \n \n \n Net cash and cash equivalents at the end of the year \n \n \n 15 \n \n \n 59.7 \n \n \n 421.4 \n \n \n \n \n Notes: \n 1.         Acquisition of businesses is net of cash acquired of £5.3m (2022: £3.5m).  See Note 16. \n 2.         In 2022 proceeds from sale of businesses is net of cash disposed of £45.7m. See Note 17. \n 3.         Acquisition of property, plant and equipment includes capex accrual movements of £nil (2022: £0.4m). \n   \n   \n Notes to the Condensed Consolidated Financial Statements \n   \n 1.  Basis of preparation \n The financial information set out in this document does not constitute statutory accounts for Essentra plc for the year ended 31 December 2023 but is extracted from the 2023 Annual Report. \n The Annual Report for 2023 will be delivered to the Registrar of Companies in due course. The auditors' report on those accounts are unqualified and neither drew attention to any matters by way of emphasis nor contained a statement under either section 498(2) of Companies Act 2006 (accounting records or returns inadequate or accounts not agreeing with records and returns), or section 483(2) on 498(3) of Companies Act 2006 (failure to obtain necessary information and explanations). \n The Group's condensed consolidated financial statements for the year ended 31 December 2023 have been prepared in accordance with UK-adopted International Accounting Standards and comply with the requirements of the Companies Act 2006. \n These condensed consolidated financial statements are prepared under the historical cost convention unless otherwise stated. The preparation of financial statements that conform with adopted IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results may ultimately differ from those estimates. \n 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. For the purposes of these financial statements \"Essentra\" or \"the Group\" means Essentra plc (the \"Company\") and its subsidiaries. \n The principal accounting policies used in the preparation of the condensed consolidated financial statements for the year ended 31 December 2023 are detailed below. These policies, except those set out below under the heading 'Changes in accounting policies' adopted during the year, have been consistently applied to all periods presented. \n In preparing the condensed consolidated financial statements, management have taken into account the potential effects of climate changes, including medium- to longer-term transitional risks resulting from the relative uncertainty created by the global shift towards a more sustainable, net-zero economy, which include regulatory, geopolitical and social pressures that may impact the operations of the business in future. Management have considered the potential effects of climate related changes in its assessment of going concern, and longer term viability of the business, in preparing the Group's future cash flow forecasts underpinning impairment testing, and in its assessment of the residual values of property, plant and equipment. Management have determined that, other than the expected capital expenditure due to the future spend on machine replacement and efficiency upgrades factored into the Group's cash flow forecasts, there is no material impact on these financial statements. \n   \n Going concern \n The Directors have prepared the condensed consolidated financial statements for the year ended 31 December 2023 on a going concern basis. In adopting the going concern basis, the Directors have considered the Group's balance sheet position, forecast earnings and cash flows for a period of 18 months from the date of approval of these condensed consolidated financial statements. \n At 31 December 2023, the Group's external financing arrangements amounted to £280.7m, comprising United States Private Placement Loan Notes (\"USPP\") of US$102.5m (with a range of expiry dates from July 2028 to July 2033) and a multi-currency revolving credit facility (\"RCF\") of £200.0m (expiring in October 2026). \n £15.2m was drawn under the RCF as at 31 December 2023, with the available undrawn balance amounting to £184.8m. The facility is subject to two covenants, which are tested semi-annually: net debt to EBITDA (leverage) and EBITA to net finance charges. Despite the significant economic and operational challenges in the recent years, the Group has not sought to change either of the two covenants. 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 borrowing facilities, including the available liquidity, have a reasonable expectation that the Group has adequate resources to continue in operational existence for the next 18 months following the date of approval of the financial statements, and no breaches of covenants are expected. \n As part of the going concern assessment, the Board has considered a downside scenario that includes severe, but reasonably plausible changes in macro-economic conditions. The results of this scenario show that there is sufficient liquidity in the business for a period of 18 months from the date of approval of these financial statements, and does not indicate any covenant breach during the test period. The downside scenario assumes a period of prolonged revenue decline in 2024, and subsequently delays in market recovery to 2025. The downside scenario also assumes a higher inflationary cost environment, the impacts of which are not fully offset by price increases and also includes transition risks associated with a \"middle of the road scenario\" without the inclusion of any opportunities from the climate change quantitative analysis. The financial impact of the severe but plausible downside scenario in 2024 and 2025 is a reduction in adjusted operating profits by 24.5% and 19.0%, respectively, compared to the Group strategic plan. \n The overall level of liquidity (defined as available undrawn borrowing facility plus cash and cash equivalent) at 31 December 2023 was £244.5m. Adjusting for share repurchases of £36.0m under the remainder of the buyback programme of £60.0m, this still leaves overall liquidity at £208.5m. Capital expenditure, sales and general overhead, and working capital will continue to be managed closely to ensure sufficient liquidity. \n The scenarios do 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 Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, and accordingly, have adopted the going concern basis in preparing the condensed consolidated financial statements. This disclosure has been prepared in accordance with the Financial Reporting Council's UK Corporate Governance Code. \n Changes in accounting policies \n Other pronouncements \n The Group adopted the following new pronouncements during 2023, which did not have a material impact on the Group's financial statements: \n ·      Amendments to IAS 12 - Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction; \n ·      Amendments to IAS1 - Disclosure of Accounting Policies; and \n ·      Amendments to IAS 8 - Definition of Accounting Estimates . \n The following standards and amendments, issued before 31 December 2023 with an effective date on or after 1 January 2024, have not been early adopted by the Group, they do not have a material impact on the Group's financial statements: \n ·      Amendment to IFRS 16 - Leases on sale and leaseback ; \n ·      Amendment to IAS 1 - Non-current liabilities with covenants ; \n ·      Amendment to IAS 7 and IFRS 7 - Supplier finance ; \n ·      Amendments to IAS 21 - Lack of Exchangeability . \n   \n 2.  Segment analysis \n   \n The Group has determined its operating segments based upon the information reported to the Board of Directors (\"Board\"), which is the Group's Chief Operating Decision Maker. Segment information is reported on a geographical basis consistent with the basis upon which the Group manages its operations, allocates resources, and assesses performance. Central corporate costs include executive and non-executive management, investor relations, corporate development, corporate reward, governance, risk and assurance, group finance, tax, treasury and related information technology costs. \n Following the disposal of the Packaging and Filters businesses during the year ended 31 December 2022, the Group has changed the way its information is reported to the Board. Previously performance was reported on a divisional basis. Performance is now managed on a geographical basis with Gross profit introduced as an additional segment profit measure. Central corporate costs (previously disclosed as Central Services) now exclude certain costs that are now regarded as attributable to the operating segments. \n   \n   \n \n \n \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n EMEA \n £m \n \n \n Americas \n £m \n \n \n APAC \n £m \n \n \n Unallocated \n  items 1 \n £m \n \n \n Continuing \noperations \n £m \n \n \n Discontinued \n operations 3 \n £m \n \n \n Total \n £m \n \n \n \n \n Income statement information \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n External revenue \n \n \n 170.8 \n \n \n 106.2 \n \n \n 39.3 \n \n \n - \n \n \n 316.3 \n \n \n - \n \n \n 316.3 \n \n \n \n \n Gross profit \n \n \n 87.5 \n \n \n 40.3 \n \n \n 14.0 \n \n \n - \n \n \n 141.8 \n \n \n - \n \n \n 141.8 \n \n \n \n \n Adjusted operating profit/(loss) before corporate costs \n \n \n 53.9 \n \n \n 19.5 \n \n \n 3.5 \n \n \n (22.1) \n \n \n 54.8 \n \n \n (0.4) \n \n \n 54.4 \n \n \n \n \n Central corporate costs 2 \n \n \n \n \n \n \n \n \n \n \n \n (11.6) \n \n \n (11.6) \n \n \n - \n \n \n (11.6) \n \n \n \n \n Adjusted operating profit/(loss) \n \n \n 53.9 \n \n \n 19.5 \n \n \n 3.5 \n \n \n (33.7) \n \n \n 43.2 \n \n \n (0.4) \n \n \n 42.8 \n \n \n \n \n Amortisation of acquired intangible assets \n \n \n (4.0) \n \n \n (5.5) \n \n \n (1.8) \n \n \n - \n \n \n (11.3) \n \n \n - \n \n \n (11.3) \n \n \n \n \n Adjusting items \n \n \n 0.8 \n \n \n (1.5) \n \n \n (3.4) \n \n \n (16.9) \n \n \n (21.0) \n \n \n - \n \n \n (21.0) \n \n \n \n \n Operating profit/(loss) \n \n \n 50.7 \n \n \n 12.5 \n \n \n (1.7) \n \n \n (50.6) \n \n \n 10.9 \n \n \n (0.4) \n \n \n 10.5 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Balance sheet information \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Segment assets \n \n \n 110.8 \n \n \n 70.2 \n \n \n 25.8 \n \n \n 28.8 \n \n \n 235.6 \n \n \n - \n \n \n 235.6 \n \n \n \n \n Intangible assets \n \n \n 147.0 \n \n \n 53.3 \n \n \n 9.0 \n \n \n 5.7 \n \n \n 215.0 \n \n \n - \n \n \n 215.0 \n \n \n \n \n Unallocated items 4 \n \n \n \n \n \n \n \n \n \n \n \n 85.4 \n \n \n 85.4 \n \n \n - \n \n \n 85.4 \n \n \n \n \n Total assets \n \n \n 257.8 \n \n \n 123.5 \n \n \n 34.8 \n \n \n 119.9 \n \n \n 536.0 \n \n \n - \n \n \n 536.0 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n - \n \n \n \n \n \n \n \n Segment liabilities \n \n \n 44.2 \n \n \n 27.9 \n \n \n 7.7 \n \n \n 45.6 \n \n \n 125.4 \n \n \n - \n \n \n 125.4 \n \n \n \n \n Unallocated items 4 \n \n \n \n \n \n \n \n \n \n \n \n 137.4 \n \n \n 137.4 \n \n \n - \n \n \n 137.4 \n \n \n \n \n Total liabilities \n \n \n 44.2 \n \n \n 27.9 \n \n \n 7.7 \n \n \n 183.0 \n \n \n 262.8 \n \n \n - \n \n \n 262.8 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other segment information \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Capital expenditure (cash spend) \n \n \n 3.7 \n \n \n 6.3 \n \n \n 1.7 \n \n \n 1.5 \n \n \n 13.2 \n \n \n - \n \n \n 13.2 \n \n \n \n \n Depreciation of plant, property and equipment \n \n \n 4.3 \n \n \n 2.8 \n \n \n 1.9 \n \n \n 2.1 \n \n \n 11.1 \n \n \n - \n \n \n 11.1 \n \n \n \n \n Average number of employees \n \n \n 1,180 \n \n \n 727 \n \n \n 950 \n \n \n 194 \n \n \n 3,051 \n \n \n - \n \n \n 3,051 \n \n \n \n \n   \n \n \n \n \n \n \n \n  (re-presented) 2022 \n \n \n \n \n \n \n \n EMEA \n £m \n \n \n Americas \n £m \n \n \n APAC \n £m \n \n \n Unallocated \nitems 1 \n £m \n \n \n Continuing \noperations \n £m \n \n \n Discontinued \noperations 3 \n £m \n \n \n Total \n £m \n \n \n \n \n Income statement information \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n External revenue \n \n \n 167.0 \n \n \n 123.4 \n \n \n 47.5 \n \n \n - \n \n \n 337.9 \n \n \n 653.9 \n \n \n 991.8 \n \n \n \n \n Gross profit \n \n \n 84.5 \n \n \n 47.2 \n \n \n 16.5 \n \n \n - \n \n \n 148.2 \n \n \n 116.9 \n \n \n 265.1 \n \n \n \n \n Adjusted operating profit/(loss) before corporate costs \n \n \n 51.3 \n \n \n 25.3 \n \n \n 5.8 \n \n \n (20.5) \n \n \n 61.9 \n \n \n 38.4 \n \n \n 100.3 \n \n \n \n \n Central corporate costs 2 \n \n \n \n \n \n \n \n \n \n \n \n (23.1) \n \n \n (23.1) \n \n \n - \n \n \n (23.1) \n \n \n \n \n Adjusted operating profit/(loss) after allocation of central costs to discontinued operations 5 \n \n \n 51.3 \n \n \n 25.3 \n \n \n 5.8 \n \n \n (43.6) \n \n \n 38.8 \n \n \n 38.4 \n \n \n 77.2 \n \n \n \n \n Operating expenses allocated to discontinued operations \n \n \n - \n \n \n - \n \n \n - \n \n \n (13.7) \n \n \n (13.7) \n \n \n 13.7 \n \n \n - \n \n \n \n \n Adjusted operating profit/(loss) \n \n \n 51.3 \n \n \n 25.3 \n \n \n 5.8 \n \n \n (57.3) \n \n \n 25.1 \n \n \n 52.1 \n \n \n 77.2 \n \n \n \n \n Amortisation and impairment of acquired intangible assets \n \n \n (2.6) \n \n \n (5.9) \n \n \n (1.9) \n \n \n - \n \n \n (10.4) \n \n \n (189.2) \n \n \n (199.6) \n \n \n \n \n Adjusting items \n \n \n (1.4) \n \n \n (0.5) \n \n \n - \n \n \n (24.1) \n \n \n (26.0) \n \n \n - \n \n \n (26.0) \n \n \n \n \n Operating profit/(loss) \n \n \n 47.3 \n \n \n 18.9 \n \n \n 3.9 \n \n \n (81.4) \n \n \n (11.3) \n \n \n (137.1) \n \n \n (148.4) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Balance sheet information \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Segment assets \n \n \n 103.0 \n \n \n 63.3 \n \n \n 32.9 \n \n \n 37.0 \n \n \n 236.2 \n \n \n - \n \n \n 236.2 \n \n \n \n \n Intangible assets \n \n \n 122.7 \n \n \n 61.9 \n \n \n 14.3 \n \n \n 7.7 \n \n \n 206.6 \n \n \n - \n \n \n 206.6 \n \n \n \n \n Unallocated items 4 \n \n \n \n \n \n \n \n \n \n \n \n 450.6 \n \n \n 450.6 \n \n \n - \n \n \n 450.6 \n \n \n \n \n Total assets \n \n \n 225.7 \n \n \n 125.2 \n \n \n 47.2 \n \n \n 495.3 \n \n \n 893.4 \n \n \n - \n \n \n 893.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n \n \n \n \n \n Segment liabilities \n \n \n 40.9 \n \n \n 18.7 \n \n \n 15.9 \n \n \n 77.2 \n \n \n 152.7 \n \n \n - \n \n \n 152.7 \n \n \n \n \n Unallocated items 4 \n \n \n \n \n \n \n \n \n \n \n \n 336.6 \n \n \n 336.6 \n \n \n - \n \n \n 336.6 \n \n \n \n \n Total liabilities \n \n \n 40.9 \n \n \n 18.7 \n \n \n 15.9 \n \n \n 413.8 \n \n \n 489.3 \n \n \n - \n \n \n 489.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other segment information \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Capital expenditure (cash spend) \n \n \n 5.5 \n \n \n 3.4 \n \n \n 2.1 \n \n \n 2.5 \n \n \n 13.5 \n \n \n 27.5 \n \n \n 41.0 \n \n \n \n \n Depreciation of plant, property and equipment \n \n \n 3.6 \n \n \n 2.8 \n \n \n 2.1 \n \n \n 5.4 \n \n \n 13.9 \n \n \n 15.6 \n \n \n 29.5 \n \n \n \n \n Average number of employees \n \n \n 1,211 \n \n \n 821 \n \n \n 1,011 \n \n \n 305 \n \n \n 3,348 \n \n \n 4,067 \n \n \n 7,415 \n \n \n \n \n Notes: \n 1.       Unallocated items include operating expenses related to the regions that are managed at a total trading level rather than by individual segment. Assets, liabilities and employees also managed at a total trading level are presented within Unallocated operating expenses.  Segment assets of £28.8m (2022: £37.0m) includes investment property of £3.3m (2022: £7.0m). \n 2.       Central corporate costs (previously disclosed as Central Services) include executive and non-executive management, investor relations, corporate development, governance, risk and assurance, group finance, tax, treasury, and related information technology costs. The comparative numbers have been re-presented to exclude certain costs that, following the completion of the strategic review, are now regarded as attributable to the operating segments. The effect of this change is to reallocate £1.8m of costs previously included within Central Services in 2022, to Operating expenses.  \n 3.       Operating loss from discontinued operations (see Note 17) excludes the loss on disposal of £3.7m (2022: £19.0m). \n 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. \n 5.       Adjusted operating profit of £38.8m in 2022 includes costs that would have otherwise been allocated to the Packaging and Filters businesses had those businesses not been disposed. Had those additional costs been adjusted for the adjusted operating profit would have been £43.0m. \n   \n On a continuing basis, no customer accounted for more than 10% of revenue in either 2023 or 2022.  Non-current assets in the UK (the Company's country of domicile) total £93.6m (2022: £91.1m), with the other significant location being the USA with £106.2m (2022: £114.2m).  Total Group net finance expense of £2.5m (2022: £18.4m) and total Group income tax credit of £1.1m (2022: £2.0m) cannot be meaningfully allocated by segment.  The Group revenue does not include any variable consideration which is constrained. \n Disaggregation of revenue \n \n \n \n \n % of Total Continuing External Revenue \n \n \n 2023 \n \n \n 2022 \n \n \n \n \n Revenue by channel \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n End users \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 78% \n \n \n 79% \n \n \n \n \n Distributors \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 22% \n \n \n 21% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue by offer type \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Standard \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 63% \n \n \n 64% \n \n \n \n \n Configured \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 31% \n \n \n 28% \n \n \n \n \n Custom \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 6% \n \n \n 8% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Revenue by customer segment \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Industrial manufacturers \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 71% \n \n \n 72% \n \n \n \n \n Large consumer manufacturers \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 20% \n \n \n 21% \n \n \n \n \n SME consumers \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 9% \n \n \n 7% \n \n \n \n \n   \n Revenue by geographical location \n External revenue presented in the table below, on a continuing basis, by location of the Group operation where the sales originated. \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 2023 \n £m \n \n \n 2022 \n £m \n \n \n \n \n UK (country of domicile) \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 30.2 \n \n \n 22.1 \n \n \n \n \n US \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 94.6 \n \n \n 111.1 \n \n \n \n \n China \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 26.9 \n \n \n 32.6 \n \n \n \n \n Turkey \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 23.6 \n \n \n 21.6 \n \n \n \n \n Germany \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 22.4 \n \n \n 23.7 \n \n \n \n \n Italy \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 14.8 \n \n \n 14.4 \n \n \n \n \n France \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 15.1 \n \n \n 17.4 \n \n \n \n \n The Netherlands \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 13.8 \n \n \n 14.7 \n \n \n \n \n Spain \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 12.3 \n \n \n 12.3 \n \n \n \n \n Poland \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 10.9 \n \n \n 10.7 \n \n \n \n \n Rest of World \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 51.7 \n \n \n 57.3 \n \n \n \n \n Total continuing Group \n \n \n 316.3 \n \n \n 337.9 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n 3.  Adjusting items from continuing operations \n Adjusting items are separately presented from other items by virtue of their nature, size and/or incidence. 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 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 costs of major Software as a Service projects, items which are non-recurring or one-off in nature (such as the costs of fundamental strategic review and reorganisation), one-off impairments of non-current assets and charges relating to the Group's legacy defined benefit pension schemes, and the related tax effect. \n \n \n \n \n \n \n \n \n \n \n 2023 \n £m \n \n \n 2022 \n £m \n \n \n \n \n Costs relating to restructuring following disposals of businesses 1 \n \n \n \n \n \n 1.3 \n \n \n 10.4 \n \n \n \n \n (Gains)/losses and transaction costs relating to acquisitions of businesses 2 \n \n \n \n \n \n (1.0) \n \n \n 0.3 \n \n \n \n \n Acquisition integration and restructuring costs \n \n \n \n \n \n - \n \n \n 0.2 \n \n \n \n \n Customisation and configuration costs of significant software as a service (\"SaaS\") arrangements 3 \n \n \n \n \n \n 10.8 \n \n \n 12.4 \n \n \n \n \n Defined benefit pension scheme charges 4 \n \n \n \n \n \n 1.8 \n \n \n 2.0 \n \n \n \n \n Impairment of non-current assets 5 \n \n \n \n \n \n 7.1 \n \n \n - \n \n \n \n \n Other 6 \n \n \n \n \n \n 1.0 \n \n \n 0.7 \n \n \n \n \n Adjusting items before tax \n \n \n \n \n \n 21.0 \n \n \n 26.0 \n \n \n \n \n Tax \n \n \n \n \n \n (4.3) \n \n \n 2.8 \n \n \n \n \n Adjusting items after tax \n \n \n \n \n \n 16.7 \n \n \n 28.8 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 2023 \n £m \n \n \n 2022 \n £m \n \n \n \n \n Reconciliation of cash flows from adjusting items: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Adjusting items \n \n \n \n \n \n 21.0 \n \n \n 26.0 \n \n \n \n \n Non-cash charge in adjusting items \n \n \n \n \n \n (5.9) \n \n \n (2.0) \n \n \n \n \n Pension contribution adjustment \n \n \n \n \n \n 1.9 \n \n \n - \n \n \n \n \n Utilisation of prior year and acquired accruals and provisions \n \n \n \n \n \n 6.6 \n \n \n (0.3) \n \n \n \n \n Cash outflow from adjusting items \n \n \n \n \n \n 23.6 \n \n \n 23.7 \n \n \n \n \n Notes: \n 1.       Costs of £1.3m (2022: £9.9m), in relation to major restructuring activities to \"right size\" the continuing operations of the business following the disposal of the Filters and Packaging businesses; a charge of £nil (2022: £0.5m) in relation to the acceleration of share options in respect of certain senior management employees leaving the business following the completion of the strategic review. \n 2.       A credit of £1.0m (2022: £0.3m charge) relating to acquisitions, of which £0.6m cost relates to the acquisition of BMP TAPPI in October 2023, and a £1.6m credit (2022: £0.3m charge) relating to the acquisition of Wixroyd Group, acquired in December 2022, comprising costs of £0.6m and a credit of £2.2m for the reduction in contingent consideration payable. \n 3.       Costs of significant SaaS arrangements which, in the view of management, represents investment in upgrading the Group's technological capability, were expensed as adjusting items in accordance with the Group's accounting policies. In the current year, costs of £10.8m (2022: £12.4m) were attributable to major SaaS projects and relate primarily to the costs of implementing a new cloud-based enterprise resource planning (ERP) system within the Group. \n 4.       Costs of £1.8m (2022: £2.0m) were incurred in relation to defined benefit pension scheme charges which, following the outcome of the strategic review in 2022, no longer pertain to the continuing operations of the Group. \n 5.       Includes impairment loss of £3.7m relating to a write-down of investment property to market value and a £3.4m impairment loss in relation to non-current assets held within the APAC segment. \n 6.       Costs of £0.2m for professional fees relating to the capital reduction completed during 2023 and £0.8m provision relating to a historic indemnity claim. 2022 comprises a £0.6m write-down of centrally held IT assets following completion of the strategic review and £0.6m costs of restructuring activities within the continuing European and Americas businesses, offset by a £0.5m credit relating to adjustments to the carrying value of lease right-of-use assets. \n   \n   \n   \n 4.  Net finance expense from continuing operations \n \n \n \n \n \n \n \n Note \n \n \n 2023 \n £m \n \n \n 2022 \n £m \n \n \n \n \n Finance income \n \n \n \n \n \n \n \n \n \n \n \n \n \n Bank deposits \n \n \n \n \n \n 3.5 \n \n \n 1.4 \n \n \n \n \n Other finance income 1 \n \n \n \n \n \n 7.0 \n \n \n 5.1 \n \n \n \n \n Net interest on pension scheme assets \n \n \n 12 \n \n \n 0.5 \n \n \n 0.6 \n \n \n \n \n Total finance income \n \n \n \n \n \n 11.0 \n \n \n 7.1 \n \n \n \n \n Finance expense \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest on loans and overdrafts \n \n \n \n \n \n (6.0) \n \n \n (15.9) \n \n \n \n \n Amortisation of bank facility fees \n \n \n \n \n \n - \n \n \n (4.7) \n \n \n \n \n Other finance expense 2 \n \n \n \n \n \n (4.9) \n \n \n (2.2) \n \n \n \n \n Net interest on pension scheme liabilities \n \n \n 12 \n \n \n (0.8) \n \n \n (0.6) \n \n \n \n \n Interest on leases \n \n \n 8 \n \n \n (1.8) \n \n \n (1.5) \n \n \n \n \n Total finance expense \n \n \n \n \n \n (13.5) \n \n \n (24.9) \n \n \n \n \n Net finance expense \n \n \n \n \n \n (2.5) \n \n \n (17.8) \n \n \n \n \n Notes: \n 1.       Included within Other finance income is £5.7m (2022: £1.8m) relating to exchange gains on cash, borrowings and leases and £1.3m (2022: £3.2m) relating to monetary gains on Hyperinflationary economies. \n 2.       Included within Other finance expense is £2.3m (2022: £0.9m) relating to loss on derivative financial instruments, £nil (2022: £0.8m) of hedge ineffectiveness, and £2.6m (2022: £0.3m) relating to exchange losses on cash, borrowings and leases. \n   \n 5.  Earnings per share \n \n \n \n \n \n \n \n Note \n \n \n 2023 \n £m \n \n \n 2022 \n £m \n \n \n \n \n Earnings from continuing operations \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit/(loss) attributable to equity holders of the Company \n \n \n \n \n \n 5.8 \n \n \n (31.1) \n \n \n \n \n Adjustments: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Amortisation of acquired intangible assets \n \n \n \n \n \n 11.3 \n \n \n 10.4 \n \n \n \n \n Tax on amortisation of acquired intangible assets \n \n \n \n \n \n (2.7) \n \n \n (2.4) \n \n \n \n \n Adjusting items \n \n \n 3 \n \n \n 21.0 \n \n \n 26.0 \n \n \n \n \n Tax relief on adjustments \n \n \n 3 \n \n \n (4.3) \n \n \n 2.8 \n \n \n \n \n Adjusted earnings attributable to equity holders of the Company 1 \n \n \n \n \n \n 31.1 \n \n \n 5.7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings from discontinued operations \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings attributable to equity holders of Essentra plc \n \n \n \n \n \n (0.4) \n \n \n (156.9) \n \n \n \n \n Notes: \n 1.         Adjusted earnings per share from continuing operations is provided to reflect the underlying performance of the Group. \n   \n   \n \n \n \n \n \n \n \n 2023 \n   \n \n \n 2022 \n   \n \n \n \n \n Weighted average number of shares \n \n \n \n \n \n \n \n \n \n \n Basic weighted average number of ordinary shares outstanding (million) 1 \n \n \n 294.6 \n \n \n 301.1 \n \n \n \n \n Dilutive effect of employee share option plans (million) \n \n \n 2.4 \n \n \n 2.0 \n \n \n \n \n Diluted weighted average number of ordinary shares (million) \n \n \n 297.0 \n \n \n 303.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share from continuing operations (pence) \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share from continuing operations \n \n \n 2.0p \n \n \n (10.3)p \n \n \n \n \n Adjustment \n \n \n 8.6p \n \n \n 12.2p \n \n \n \n \n Basic adjusted earnings per share from continuing operations \n \n \n 10.6p \n \n \n 1.9p \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Diluted earnings per share from continuing operations \n \n \n 2.0p \n \n \n (10.3)p \n \n \n \n \n Adjustment \n \n \n 8.5p \n \n \n 12.2p \n \n \n \n \n Diluted adjusted earnings per share from continuing operations \n \n \n 10.5p \n \n \n 1.9p \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share from discontinued operations (pence) \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n (0.2)p \n \n \n (52.1)p \n \n \n \n \n Diluted earnings per share \n \n \n (0.2)p \n \n \n (52.1)p \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Total Earnings per share attributable to equity holders of the Company (pence) \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n 1.8p \n \n \n (62.4)p \n \n \n \n \n Diluted earnings per share \n \n \n 1.8p \n \n \n (62.4)p \n \n \n \n \n Notes: \n 1.       The basic weighted average number of ordinary shares in issue excludes shares held in treasury and shares held by the employee benefit trust. \n   \n 6.  Investment Properties, Property, plant and equipment \n \n \n \n \n \n \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 \n \n \n \n \n \n \n \n Note \n \n \n Total \nInvestment properties 5 \n £m \n \n \n \n \n \n Land and \nbuildings \n £m \n \n \n Plant and \nmachinery \n £m \n \n \n Fixtures, fittings \nand equipment \n £m \n \n \n Total \nProperty, \nplant and equipment \n £m \n \n \n \n \n Cost \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Beginning of year \n \n \n \n \n \n 7.0 \n \n \n \n \n \n 37.7 \n \n \n 125.6 \n \n \n 72.0 \n \n \n 235.3 \n \n \n \n \n Acquisitions 8 \n \n \n 16 \n \n \n - \n \n \n \n \n \n - \n \n \n 4.2 \n \n \n - \n \n \n 4.2 \n \n \n \n \n Additions \n \n \n \n \n \n - \n \n \n \n \n \n 1.3 \n \n \n 7.0 \n \n \n 4.1 \n \n \n 12.4 \n \n \n \n \n Disposals \n \n \n \n \n \n - \n \n \n \n \n \n (0.1) \n \n \n (14.1) \n \n \n (7.4) \n \n \n (21.6) \n \n \n \n \n Currency translation 3 \n \n \n \n \n \n - \n \n \n \n \n \n 0.1 \n \n \n (4.6) \n \n \n (0.2) \n \n \n (4.7) \n \n \n \n \n End of year \n \n \n \n \n \n 7.0 \n \n \n \n \n \n 39.0 \n \n \n 118.1 \n \n \n 68.5 \n \n \n 225.6 \n \n \n \n \n Accumulated depreciation and impairment \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Beginning of year \n \n \n \n \n \n - \n \n \n \n \n \n 14.2 \n \n \n 95.7 \n \n \n 60.2 \n \n \n 170.1 \n \n \n \n \n Charge in period 6 \n \n \n \n \n \n - \n \n \n \n \n \n 1.6 \n \n \n 5.6 \n \n \n 3.9 \n \n \n 11.1 \n \n \n \n \n Disposals \n \n \n \n \n \n - \n \n \n \n \n \n (0.1) \n \n \n (14.1) \n \n \n (7.3) \n \n \n (21.5) \n \n \n \n \n Impairment 4,5 \n \n \n \n \n \n 3.7 \n \n \n \n \n \n - \n \n \n 0.9 \n \n \n - \n \n \n 0.9 \n \n \n \n \n Currency translation 3 \n \n \n \n \n \n - \n \n \n \n \n \n 0.7 \n \n \n (3.6) \n \n \n (0.2) \n \n \n (3.1) \n \n \n \n \n End of year \n \n \n \n \n \n 3.7 \n \n \n \n \n \n 16.4 \n \n \n 84.5 \n \n \n 56.6 \n \n \n 157.5 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net book value at end of year 1 \n \n \n \n \n \n 3.3 \n \n \n \n \n \n 22.6 \n \n \n 33.6 \n \n \n 11.9 \n \n \n 68.1 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2022 \n \n \n \n \n \n \n \n \n \n \n Total \nInvestment \nproperties 5 \n £m \n \n \n \n \n \n Land and \...

View stock analysis, news, and events for Essentra Plc