REG - Essentra plc - RESULTS FOR THE FULL YEAR ENDED 31 DECEMBER 2014 <Origin Href="QuoteRef">ESNT.L</Origin> - Part 2

EssentraAnnouncement

20/02/2015 07:00

- Part 2: For the preceding part double click  ID:nRST4171Fa 

loans                                         (3.8)      -        
 Proceeds from short-term loans                                         -          0.2      
 Repayments of long-term loans                                          (158.1)    -        
 Proceeds from long-term loans                                          -          37.5     
 Purchase of employee trust shares                                      (12.3)     (16.3)   
 Proceeds from sale of employee trust shares                            4.3        4.7      
 Net cash (outflow)/inflow from financing activities                    (49.4)     125.6    
                                                                                            
 Net increase in cash and cash equivalents                        10    1.9        3.5      
                                                                                            
 Net cash and cash equivalents at the beginning of the year             44.1       41.4     
 Net increase in cash and cash equivalents                              1.9        3.5      
 Net effect of currency translation on cash and cash equivalents        -          (0.8)    
 Net cash and cash equivalents at the end of the year             10    46.0       44.1     
 
 
1.       Basis of preparation 
 
The consolidated financial statements have been prepared and approved by the Directors in accordance with International
Financial Reporting Standards as adopted by the European Union ("EU") in accordance with EU law (IAS Regulation EC
1606/2002) ("adopted IFRS") and International Financial Reporting Standards as issued by the International Accounting
Standards Board, and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. 
 
The financial statements are prepared under the historical cost convention except for derivatives which are stated at fair
value and retirement benefit obligations which are valued in accordance with IAS 19 Employee Benefits. 
 
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31
December 2014 or 2013 but is derived from those accounts. Statutory accounts for 2013 have been delivered to the registrar
of companies, and those for 2014 will be delivered in due course. The auditor has reported on those accounts; their reports
were (i) unqualified (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis
without qualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act
2006. 
 
Changes in accounting policies 
 
In the current financial year, Essentra adopted the following accounting pronouncements.  Otherwise, the accounting
policies and presentation in this set of financial statements are consistent with those applied in the prior years. The
adoption of these pronouncements did not have an impact on the Group in relation to measurement, recognition and
presentation. 
 
Amendments to IAS 32 Offsetting Financial Assets and Financial Liabilities provide clarification on the application of
offsetting rules. 
 
IFRS 10 Consolidated Financial Statementsreplaces the guidance of control and consolidation in IAS 27 and SIC 12
Consolidation - Special Purpose Entities. The core principle that a consolidated entity presents a parent and its
subsidiaries as if they were a single entity remains unchanged, as do the mechanics of consolidation. 
 
IFRS 11Joint Arrangementsrequires joint arrangements to be accounted for as a joint operation or as a joint venture
depending on the rights and obligations of each party to the arrangement. Proportionate consolidation for joint ventures
has been eliminated and equity accounting has become mandatory. 
 
IFRS 12 Disclosure of Interests in Other Entities requires enhanced disclosures of the nature, risks and financial effects
associated with the Group's interests in subsidiaries, associates, joint arrangements and unconsolidated structured
entities. 
 
IAS 27 (Revised) Separate Financial Statements makes revisions to the requirements for separate financial statements
prepared by a parent or an investor in a joint venture or associate. 
 
IAS 28 (Revised) Associates and Joint Ventures includes consequential amendments resulting from the introduction of IFRS
11. 
 
Amendments to IAS 39 Novation of Derivatives and Continuation of Hedge Accounting provide relief from discontinuing hedge
accounting when novation of a derivative designated as a hedging instrument meets certain criteria and retrospective
application is required. 
 
IFRIC 21 Levies clarifies that an entity recognises a liability for a levy when the activity that triggers payment, as
identified by the relevant legislation, occurs. 
 
2.             Segment analysis 
 
In accordance with IFRS 8, Essentra has determined its operating segments based upon the information reported to the Group
Management Committee. These segments are as follows: 
 
Component & Protection Solutions consists of a Component Distribution business and a Pipe Protection Technologies business.
 Component Distribution is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip
moulded, and metal items.  The Pipe Protection Technologies business specialises in the manufacture of high performance
innovative products from commodity resins to engineering-grade thermoplastics and polymer alloys. 
 
Porous Technologies is a global market leading developer and manufacturer of custom fluid handling components, engineered
from a portfolio of technologies that includes bonded and non-woven fibre, polyurethane foam, and porous plastic. 
 
Packaging & Securing Solutions is a global market leading provider of packaging and securing solutions through a range of
cartons, tapes, leaflets, foils and labels for the healthcare, consumer and specialist packaging, point of sale and paper &
board industries.  The division is also a leading supplier of authentication technologies and identity solutions. 
 
Filter Products is an independent cigarette filter manufacturer supplying a wide range of value adding high quality
innovative filters, packaging solutions to the roll your own sector and analytical laboratory services for ingredient
measurement for the industry. 
 
Otherrepresents Extrusion which is a leading custom profile extruder located in The Netherlands offering a complete design
and production service. 
 
                                                                                                                           2014                  
                                                                                         Component & Protection Solutions  Porous Techno-logies  Packaging & Securing Solutions  Filter Products  Other  Elimin-ations  Central Services1  Continuing operations  Discontinued operations  Total   
                                                                                         £m                                £m                    £m                              £m               £m     £m             £m                 £m                     £m                       £m      
 External revenue                                                                        243.4                             89.7                  215.5                           291.4            25.7   -              -                  865.7                  -                        865.7   
 Intersegment revenue                                                                    0.2                               0.1                   0.8                             0.1              -      (1.2)          -                  -                      -                        -         
 Total revenue                                                                           243.6                             89.8                  216.3                           291.5            25.7   (1.2)          -                  865.7                  -                        865.7     
 Operating profit/(loss) before intangible amortisation and exceptional operating items  58.9                              15.8                  38.3                            43.9             1.6    -              (16.0)             142.5                  -                        142.5   
 Intangible amortisation                                                                 (6.6)                             (2.1)                 (8.8)                           -                -      -              -                  (17.5)                 -                        (17.5)  
 Exceptional operating items                                                             (4.0)                             (0.2)                 (11.6)                          (0.4)            -      -              -                  (16.2)                 -                        (16.2)  
 Operating profit/(loss)                                                                 48.3                              13.5                  17.9                            43.5             1.6    -              (16.0)             108.8                  -                        108.8   
 Segment assets                                                                          148.8                             59.8                  120.8                           133.6            13.8   -              5.1                481.9                  -                        481.9   
 Intangible assets                                                                       156.3                             46.2                  197.5                           -                6.4    -              -                  406.4                  -                        406.4   
 Unallocated items                                                                       -                                 -                     -                               -                -      -              92.6               92.6                   -                        92.6    
 Total assets                                                                            305.1                             106.0                 318.3                           133.6            20.2   -              97.7               980.9                  -                        980.9   
 Segment liabilities                                                                     44.4                              10.7                  41.8                            38.8             2.7    -              27.0               165.4                  2.5                      167.9   
 Unallocated items                                                                       -                                 -                     -                               -                -      -              215.2              215.2                  -                        215.2   
 Total liabilities                                                                       44.4                              10.7                  41.8                            38.8             2.7    -              242.2              380.6                  2.5                      383.1   
 Other segment items                                                                                                                                                                                                                                                                               
 Capital expenditure                                                                     10.7                              2.8                   11.6                            9.3              2.0    -              1.7                38.1                   -                        38.1    
 Depreciation                                                                            7.1                               3.3                   6.5                             8.5              1.4    -              0.4                27.2                   -                        27.2    
 Average number of employees                                                             1,697                             557                   1,517                           1,732            214    -              109                5,826                  -                        5,826   
                                                                                                                                                                                                                                                                                                             
 
 
1Central Services includes group finance, tax, treasury, legal, group assurance, human resources, information technology,
corporate development, corporate affairs and other services provided centrally to support the operating segments 
 
2.             Segment analysis continued 
 
                                                                                                                           2013                  
                                                                                         Component & Protection Solutions  Porous Techno-logies  Packaging & Securing Solutions  Filter Products  Other  Elimin-ations  Central Services1  Continuing operations  Discontinued operations  Total   
                                                                                         £m                                £m                    £m                              £m               £m     £m             £m                 £m                     £m                       £m      
 External revenue                                                                        223.4                             98.7                  181.3                           269.9            24.8   -              -                  798.1                  -                        798.1   
 Intersegment revenue                                                                    0.3                               1.3                   0.5                             -                -      (2.1)          -                  -                      -                        -         
 Total revenue                                                                           223.7                             100.0                 181.8                           269.9            24.8   (2.1)          -                  798.1                  -                        798.1     
 Operating profit/(loss) before intangible amortisation and exceptional operating items  52.6                              23.5                  30.2                            40.1             1.5    -              (17.5)             130.4                  -                        130.4   
 Intangible amortisation                                                                 (5.2)                             (2.2)                 (6.8)                           -                -      -              -                  (14.2)                 -                        (14.2)  
 Exceptional operating items                                                             (2.8)                             (0.9)                 (13.8)                          (0.2)            (0.3)  -              (1.2)              (19.2)                 -                        (19.2)  
 Operating profit/(loss)                                                                 44.6                              20.4                  9.6                             39.9             1.2                   (18.7)             97.0                   -                        97.0    
 Segment assets                                                                          120.8                             65.0                  113.5                           115.4            13.5   -              1.7                429.9                  -                        429.9   
 Intangible assets                                                                       136.7                             46.0                  207.2                           -                6.8    -              -                  396.7                  -                        396.7   
 Unallocated items                                                                       -                                 -                     -                               -                -      -              76.6               76.6                   -                        76.6    
 Total assets                                                                            257.5                             111.0                 320.7                           115.4            20.3   -              78.3               903.2                  -                        903.2   
 Segment liabilities                                                                     39.6                              10.5                  40.5                            39.7             2.5    -              20.8               153.6                  2.3                      155.9   
 Unallocated items                                                                       -                                 -                     -                               -                -      -              344.3              344.3                  -                        344.3   
 Total liabilities                                                                       39.6                              10.5                  40.5                            39.7             2.5                   365.1              497.9                  2.3                      500.2   
 Other segment items                                                                                                                                                                                                                                                                               
 Capital expenditure                                                                     12.3                              2.7                   5.0                             21.6             1.7    -              0.8                44.1                   -                        44.1    
 Depreciation                                                                            7.1                               3.2                   5.9                             8.9              1.4