Devro plc announced unaudited consolidated earnings results for the six months ended June 30, 2017. For the period, the company reported revenue was GBP 125.2 million against GBP 112.9 million a year ago. Operating profit was GBP 15.0 million against GBP 4.6 million a year ago. Profit before tax was GBP 10.0 million against GBP 0.3 million a year ago. Profit for the period attributable to owners of the parent was GBP 9.3 million or 5.5 pence per basic and diluted share against loss for the period attributable to owners of the parent of GBP 1.2 million or 0.7 pence per basic and diluted share a year ago. Net cash generated from operating activities was GBP 12.8 million against GBP 7.3 million a year ago. Purchase of property, plant and equipment was GBP 4.8 million against GBP 11.3 million a year ago. Purchase of intangible assets was GBP 0.3 million against GBP 0.4 million a year ago. EBITDA was GBP 27.7 million against GBP 14.3 million a year ago. Net debt at June 2017 was GBP 151.9 million (or GBP 152.1 million including derivative liabilities), which was a reduction from the net debt reported at December 2016 of GBP 153.6 million (or GBP 156.2 million including derivative liabilities). 

The board's expectations for the full year remain unchanged and the business continues to generate strong cash flow from the underlying operations, which will enable net debt covenant ratios to be returned to historic levels over time.  The group expects a full year underlying effective tax rate of approximately 24% for 2017, which is broadly in line with the 2016 full year rate of 23% Whilst capital expenditure will increase in second half of 2017, including the final capital retention payments of GBP 3 million related to the new plants, full year spend is expected to remain in line with historic levels of maintenance capital expenditure of GBP 10 million to GBP 15 million.  For 2017 the business intends to include the additional Devro 100 programme capital expenditure within the maintenance capital range. Other cash outflows in the second half will include the pension deficit payment for the UK scheme of GBP 2.5 million. Both net debt and the covenant net debt /underlying EBITDA ratio for December 2017 are expected to be below those reported at December 2016.