Filtrona grows margins and revenues

The plastic and fibre specialist, Filtrona, saw revenues grow across all divisions in 2011 even as it passed on cost increases to its customers.Turnover for full year 2011 at £540.7m was up 10% versus £489.6m in 2010. With the effects of currency movements stripped out the rise was 11%, while also stripping out the effects of acquisitions, organic revenue growth was 8.0%.Adjusted profit before tax rose 18% (10% using constant exchange rates, or CER) to £76.2m from £64.6m while adjusted earnings per share jumped 20% (CER:21%) to 25.1p from 21.0p the year before. On the back of the increased earnings, Filtrona's dividend has been increased by 16.7% to 10.5p per share.The gross margin rose by eight-tenths of a percentage point during the year to 35.7%, as the company pushed through price increases, boosted operational efficiency and sold more higher margin products. The company's best performing division was Protection and Finishing Products which boosted its revenues by 26.3%. The weakest division was Filter Products which increased just 3.6%.Net debt at the end of the reporting period was £144.9m, an increase of £54.1m from January 1st, 2011, with strong cash flow generation being offset by higher dividend payments and the acquisitions of Reid and Richco during the year."Filtrona is well-positioned to deliver further balanced growth in 2012 and to continue to make progress towards its Vision 2015 objectives of at least mid single-digit like-for-like revenue growth and double-digit adjusted EPS [earnings per share] growth at constant exchange," the company statement said.The company also announced a £6m acquisition of Securit World, which distributes desktop personal identification card systems. The transaction will be funded from existing credit facilities and is intended to enhance the capabilities of Filtrona's own "Payne Security" personal ID products business .Filtrona's shares had gained 0.25% by 8:29. Over the last 12 months the stock has increased in value by 34%.BS