Filtrona plc, the international, market leading, speciality plastic and fibre products supplier, today announces its preliminary results for the year ended 31 December 2007. Following the disposal of Globalpack, the Brazilian consumer packaging business, in June 2007 the results from continuing operations are shown below:

• Operating profit before intangible amortisation and restructuring costs 14.2% ahead to £64.4m at constant exchange rates, with good progress in both Plastic Technologies and Fibre Technologies
• Operating profit margin before intangible amortisation and restructuring costs improved to 13.0% (2006: 11.4%), driven by stronger performances in higher margin businesses and operational efficiencies
• Revenue flat at constant exchange rates, due to previously announced revenue reductions in the Cigarette Filters business. Excluding Cigarette Filters, revenue growth was up 5.1%
• Profit before tax excluding intangible amortisation and restructuring costs up 14.8% at constant exchange rates to £58.2m
• Profit before tax £51.7m (2006: £52.2m) down 1% after charging £5m of restructuring costs (2006: £nil)
• Cash inflow from operating activities was again strong at £84.9m (2006: £77.2m) up 10.0% due to improved margins and working capital management
• Adjusted earnings per share up 15.4% at constant exchange rates, and 10.3% at actual exchange rates, to 17.2p (2006: 15.6p)
• Total dividend increased by 10.1% to 7.6p (2006: 6.9p)
• Net debt of £135.2m (2006: £98.8m)

Commenting on today's announcement, Mark Harper, Chief Executive of Filtrona, said:

“Filtrona has continued to develop well in 2007, with strong margin improvement, building on the organic growth momentum established in previous years, and supplemented by the successful acquisition of Duraco.

We will continue our strategy of building strong positions in target markets, driving productivity improvements in our existing businesses, and seeking acquisitions which are in line with our strategic focus on high volume, low unit cost, essential products. Overall, despite uncertain economic conditions, the Board believes that Filtrona will continue to make progress and that the Company remains well placed to deliver long-term growth.”