Smoking results from Filtrona

Speciality plastic supplier Filtrona (FLTR) reported a bumper set of results as acquisitions and overseas growth meant revenues, profits and dividends all saw double digit increases. Chief executive Colin Day said he is confident of beating conservative like-for-like revenue growth targets of mid single digits in the year ahead. Filtrona announced a bolt-on acquisition in the Nordic region and a joint venture in the Middle East alongside the results.

Splitting out acquisitions and currency impacts, like-for-like revenue increased by 11 per cent and, reflecting a tight rein on costs, gross margin edged up, too. All divisions reported growth but the stand out performer was filter products thanks to robust cigarette demand, boosting underlying revenues by 17 per cent to £234m and lifting operating profits by 23 per cent to £28.9m. Mr Day said most of the growth came from China and India combined with signs of a recovery in North America, while Europe "held its own".

Acquisitions and increased capital spending caused free cash flow to dip by £9m to £44.4m, but in reflection of an upbeat trading outlook the final dividend was raised by almost 20 per cent. Broker Canaccord Genuity forecasts current year adjusted pre-tax profits of £106.5m and EPS of 35.9p (from £95.8m and 31.7p in 2012).

visible-status-Standard story-url-Filtrona_FYResults_21022013.xml