Devro plc announced unaudited consolidated earnings results for the six months ended 30 June 2018. For the period, the company reported revenue of £120.2 million against £125.2 million a year ago. Operating profit was £16.2 million against £15.0 million a year ago. Profit before tax was £10.9 million against £10.0 million a year ago. Profit for the period attributable to owners of the parent was £7.9 million or 4.7 pence per basic and diluted share against £9.3 million or 5.5 pence per basic and diluted share a year ago. Net cash generated from operating activities was £7.2 million against £12.8 million a year ago. Purchase of property, plant and equipment was £4.6 million against £4.8 million a year ago. Purchase of intangible assets was £0.4 million against £0.3 million a year ago. Net debt was £147.3 million compared to £151.9 million a year ago. Underlying EBITDA was £31.1 million against £30.8 million a year ago. Underlying operating profit was £18.4 million against £18.1 million a year ago. Underlying basic earnings per share were 6.6 pence against 6.6 pence a year ago. Basic earnings per share decreased due to a lower exceptional tax credit, compared with first half 2017. Underlying profit before tax was £14.3 million against £14.5 million a year ago. Underlying profit after tax was £11.0 million against £11.1 million a year ago. EBITDA was £28.9 million against £27.7 million a year ago.

The group expects a full year underlying effective tax rate of 22% - 25%. Capital expenditure was broadly unchanged in first half of 2018 compared with prior year, but is expected to increase in second half due to investments related to delivering the Devro 100 savings. As previously guided, Devro 100 capital expenditure is expected to be £5 million - £6 million in 2018, which is in addition to the normal levels of maintenance spend. Both net debt and the covenant net debt /underlying EBITDA ratio for December 2018 are expected to be in line with December 2017.