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Fiberweb: financial results for 2010 very encouraging
03 Mar '11
4 min read
Fiberweb continues to position its businesses for top-line and bottom-line growth and to broaden its product range to address the needs of customers in its core business areas.
Overall, the financial results for 2010 are very encouraging. Against a background of increasing raw material costs, the continuing severe recessions in many of the Group's construction markets and the high degree of economic uncertainty prevailing for much of the year, continuing sales of £463.2 million (2009: £454.2 million) increased like-for-like by £41.2 million (9.8%) at constant currency. This reflects 3.6% like-for-like volume growth, mix improvement aided by the launch of new products and the effect of higher raw material costs on sales prices.
Continuing underlying operating profit of £29.0 million increased by 25.5% from £23.1 million, largely from the impact of higher sales, but also reduced overhead costs and the contribution from the strong performance of the first full-year of Fiberweb's 50% stake in the FitesaFiberweb joint venture. Underlying operating margin increased by 117 basis points to 6.3%, with the 6.6% achieved in the second half, representing the seventh consecutive half-year of improving margins.
Net cash flow from operating activities before non-recurring items cash costs was again strong at £44.6 million (2009: £59.3 million) as a result of improved margins. In recent years, reductions in working capital have contributed significantly to operating cash flow. In 2010, due to increases in raw material costs and significant sales growth, working capital increased slightly by £4.3 million, but at 14.6% achieved the Group target of 15% of sales.
Overall, the financial results for 2010 are very encouraging. Against a background of increasing raw material costs, the continuing severe recessions in many of the Group's construction markets and the high degree of economic uncertainty prevailing for much of the year, continuing sales of £463.2 million (2009: £454.2 million) increased like-for-like by £41.2 million (9.8%) at constant currency. This reflects 3.6% like-for-like volume growth, mix improvement aided by the launch of new products and the effect of higher raw material costs on sales prices.
Continuing underlying operating profit of £29.0 million increased by 25.5% from £23.1 million, largely from the impact of higher sales, but also reduced overhead costs and the contribution from the strong performance of the first full-year of Fiberweb's 50% stake in the FitesaFiberweb joint venture. Underlying operating margin increased by 117 basis points to 6.3%, with the 6.6% achieved in the second half, representing the seventh consecutive half-year of improving margins.
Net cash flow from operating activities before non-recurring items cash costs was again strong at £44.6 million (2009: £59.3 million) as a result of improved margins. In recent years, reductions in working capital have contributed significantly to operating cash flow. In 2010, due to increases in raw material costs and significant sales growth, working capital increased slightly by £4.3 million, but at 14.6% achieved the Group target of 15% of sales.
Fiberweb
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