Highlights
- Improving sales momentum with Group organic sales exit rate down 5% for November and December (versus down 26% H1 2020 and down 15% four months to October 2020), following the impact of Covid earlier in the year.
- Continued share gains in Apparel & Footwear and customer wins in Performance Materials as customers’ priorities pivot to reliability, speed and flexibility during Covid.
- Continued Innovation focus despite Covid disruption; 22 new products launched in the year, generating $13 million of incremental revenue, and with a rich pipeline of opportunities.
- Adjusted operating profit of $111 million, ahead of previous expectations, with solid recovery in H2; ability to significantly flex cost base leading to resilient margins of 12.2% in H2 (6.4% H1).
- Further advancement on Sustainability agenda; increased demand for EcoVerde product range with revenues up 6x year-on-year; signed up to Science Based Targets initiative, specifically to achieving Net-Zero emissions by 2050.
- Net debt (excl. IFRS 16) of $181 million, 1.2x leverage1; committed facility headroom of $330 million.
- Proposed final dividend of 1.30 cents per share as a result of the strength of the balance sheet, the encouraging recovery, and the Board’s confidence in the strategy and outlook for the Group.
Commenting on the Full Year Results Rajiv Sharma, Group Chief Executive, said:
‘During a turbulent year, which saw the emergence of Covid globally, we focused on four key priorities: the health and safety of our employees and their families, cash management, supporting our customers and maintaining the critical elements of our supply chain. We have delivered a strong operational performance despite a very difficult global backdrop. Our pace of innovation has not wavered, and we launched 22 new products in 2020. I am delighted that we have also continued to further our Sustainability agenda and, in particular, that we have committed to set science-based emissions reductions targets across the entire value chain.
‘Throughout 2020 the Group moved quickly and prudently to put in place measures to underpin our future success and, through 2021, we will continue to invest in order to win the Covid recovery. We have a strong balance sheet, which provides strategic optionality and positions us well to navigate the ongoing challenging environment.
‘We remain cautious around the recovery profile of our various global end markets and will be vigilant regarding inflationary pressures within the supply chain. Notwithstanding this uncertainty we are encouraged by our improved trading performance towards the end of last year as well as in the first two months of this year, and the Board expects to see continued recovery through 2021.’
1. Leverage calculated on a frozen GAAP basis, and therefore excludes the impact of IFRS 16 on both adjusted EBITDA and net debt.
