Interim Management Report
7 August 2008
Fiberweb plc
(“Fiberweb”, “the Group” or “the Company”)
Interim Management Report
Fiberweb plc, the leading international nonwoven fabrics producer, announces its interim results for the six months ended 30 June 2008.
Highlights
- Steady performance improvement despite challenging macroeconomic environment
- Total revenue increase of 10% to £260.0 million (H1 2007: £236.7 million) – up 2.6% at constant currency
- Underlying(1) operating profit increase of 38% to £8.8 million (H1 2007: £6.4 million)
- Underlying(1) operating profit margin increase of 0.7 points to 3.4% (H1 2007: 2.7%)
- Net operating cash inflow increase of 25% to £26.2 million (H1 2007: £20.9 million)
- Debt reduced again by £18.7 million to £118.9 million through successful disposals and further working capital reduction
- Further cost reductions by the end of 2009 with annual benefits of at least £5 million on a full year basis
- Interim dividend maintained at 1.7 pence
- New medium-term target for debt of 2x EBITDA
Key Financials
|
£ million (except where otherwise indicated)
|
2008
|
2007
|
|
|
(unaudited)
|
(unaudited)
|
|
Results from continuing underlying(1) operations:
|
|
|
|
Revenue
|
260.0
|
236.7
|
|
Underlying1 Operating Profit
|
8.8
|
6.4
|
|
Underlying1 Profit before Tax
|
4.4
|
0.5
|
|
Adjusted1 Earnings per Share (pence)
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2.4
|
0.3
|
|
|
|
|
|
Results after restructuring and other non-recurring items:
|
|
|
Operating Profit/(Loss) from Continuing Operations
|
6.2
|
(30.2)
|
|
Profit/(Loss) before Tax from Continuing Operations
|
1.8
|
(36.1)
|
|
Basic Earnings/(Loss) per Share from Continuing Operations (pence)
|
1.9
|
(28.1)
|
|
Net Operating Cash Flow
|
26.2
|
20.9
|
|
Net Debt
|
118.9
|
125.0
|
|
Proposed Interim Dividend per Share (pence)
|
1.7
|
1.7
|
1 Underlying operating profit, underlying profit before tax and adjusted earnings per share from continuing operations are stated before restructuring costs and other non-recurring items.
Commenting on the results, Daniel Dayan, Chief Executive Officer, said:
“Fiberweb has delivered a solid half-year of continuing margin recovery and debt reduction against a challenging economic backdrop. The benefits of on-going simplification and investment are clearly evident. Hygiene has benefited from strong sales growth in developing markets, while Industrial has seen higher margins from portfolio rationalisation and efficiency improvements. Management actions to increase efficiencies and reduce costs further are expected to benefit the second half, mitigating an uncertain macroeconomic environment and volatility in raw material prices. The Board continues to anticipate progress in the Group’s turnaround for the year as a whole.”
-ENDS-
Contacts
Fiberweb plc
Daniel Dayan, Chief Executive 0208 439 8594
Daniel Abrams, Chief Financial Officer
Weber Shandwick Financial 0207 067 0700
Ian Bailey/ Nick Dibden/ James White
Notes to Editors
Fiberweb is a leading international manufacturer of speciality nonwoven materials, with a total of 16 plants operating in eight countries across Europe, North America and Asia. The Group comprises businesses supplying tailored solutions to Industrial and Hygiene nonwovens markets. The Industrial businesses focus on growing niche markets in filtration, speciality construction and agriculture, with technologically differentiated products and strong brands. The Hygiene businesses focus on supplying leading producers of diapers, feminine hygiene and adult incontinence products with value-added and reliable nonwoven components.
Group management will present their results to shareholders and analysts at 09.00am this morning at the offices of RBS, 250 Bishopsgate, London. The presentation will be broadcast and made available later today on the Group’s website: www.fiberweb.com
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial information differs from legislation in other jurisdictions.