Cover
Cover | 6 Months Ended |
Jul. 02, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jul. 02, 2023 |
Document Transition Report | false |
Entity File Number | 001-35370 |
Entity Registrant Name | Luxfer Holdings PLC |
Entity Incorporation, State or Country Code | X0 |
Entity Tax Identification Number | 98-1024030 |
Entity Address, Address Line One | 8989 North Port Washington Road, Suite 211 |
Entity Address, City or Town | Milwaukee |
Entity Address, State or Province | WI |
Entity Address, Postal Zip Code | 53217 |
Country Region | +1 |
City Area Code | 414 |
Local Phone Number | 269-2419 |
Title of 12(b) Security | Ordinary Shares, nominal value £0.50 each |
Trading Symbol | LXFR |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding (in shares) | 26,922,342 |
Entity Central Index Key | 0001096056 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Address, Country | GB |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |||||
Income Statement [Abstract] | ||||||||
Net sales | $ 110.4 | $ 109.5 | $ 211.7 | $ 206.5 | ||||
Cost of goods sold | (86.2) | (83.8) | (166.4) | (156.6) | ||||
Gross profit | 24.2 | 25.7 | 45.3 | 49.9 | ||||
Selling, general and administrative expenses | (12.8) | (11.5) | (25.3) | (22.2) | ||||
Research and development | (1) | (1.2) | (2.2) | (2.5) | ||||
Restructuring charges | (2.5) | (0.3) | (2.8) | (1.7) | ||||
Acquisition and disposal related costs | 0 | (0.1) | 0 | (0.3) | ||||
Operating income | 7.9 | 12.6 | 15 | 23.2 | ||||
Net interest expense | (1.8) | (0.9) | (3.1) | (1.7) | ||||
Defined benefit pension credit / (charge) | 0.6 | 0.3 | (8.3) | 0.7 | ||||
Income before income taxes | 6.7 | 12 | 3.6 | 22.2 | ||||
(Provision) / credit for income taxes | (1.8) | (2.4) | 1.8 | (4.9) | ||||
Net income from continuing operations | 4.9 | 9.6 | 5.4 | 17.3 | ||||
Loss from discontinued operations, net of tax | (0.2) | (0.3) | (0.2) | (0.4) | ||||
Net loss from discontinued operations | (0.2) | (0.3) | (0.2) | (0.4) | ||||
Net income | $ 4.7 | $ 9.3 | $ 5.2 | $ 16.9 | ||||
Earnings / (loss) per share | ||||||||
Basic from continuing operations (usd per share) | [1] | $ 0.18 | $ 0.35 | $ 0.20 | $ 0.63 | |||
Basic from discontinued operations (usd per share) | [1] | (0.01) | (0.01) | [2] | (0.01) | [2] | (0.01) | [2] |
Basic (usd per share) | [1] | 0.17 | 0.34 | 0.19 | 0.62 | |||
Diluted from continuing operations (usd per share) | [1] | 0.18 | 0.35 | 0.20 | 0.62 | |||
Diluted from discontinued operations (usd per share) | [1],[2] | (0.01) | (0.01) | (0.01) | (0.01) | |||
Diluted (usd per share) | [1] | $ 0.17 | $ 0.34 | $ 0.19 | $ 0.61 | |||
Weighted average ordinary shares outstanding | ||||||||
Basic (in shares) | 26,923,804 | 27,428,579 | 26,922,528 | 27,458,980 | ||||
Diluted (in shares) | 27,065,338 | 27,703,217 | 27,083,986 | 27,720,065 | ||||
[1]The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total.[2] The loss per share for discontinued operations has not been diluted, since the incremental shares included in the weighted-average number of shares outstanding would have been anti-dilutive. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4.7 | $ 9.3 | $ 5.2 | $ 16.9 |
Other comprehensive income / (loss) | ||||
Net change in foreign currency translation adjustment, net of tax | 3.4 | (8.2) | 6.8 | (10) |
Pension and post-retirement actuarial gains, net of $0.1, $0.1, $5.0 and $0.2 tax, respectively | 0.2 | 0.3 | 7 | 0.7 |
Other comprehensive income / (loss), net of tax | 3.6 | (7.9) | 13.8 | (9.3) |
Total comprehensive income | $ 8.3 | $ 1.4 | $ 19 | $ 7.6 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax on other comprehensive income | $ 0.1 | $ 0.1 | $ 5 | $ 0.2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jul. 02, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 7.9 | $ 12.6 |
Restricted cash | 0.3 | 0.3 |
Accounts and other receivables, net of allowances of $0.7 and $0.4, respectively | 72 | 67.8 |
Inventories | 119.3 | 111.1 |
Current assets held-for-sale | 7.8 | 9.3 |
Total current assets | 207.3 | 201.1 |
Non-current assets | ||
Property, plant and equipment, net | 76.7 | 77.7 |
Right-of-use assets from operating leases | 18.3 | 19.8 |
Goodwill | 67.5 | 65.6 |
Intangibles, net | 12.3 | 12.5 |
Deferred tax assets | 3 | 3 |
Investments and loans to joint ventures and other affiliates | 0.3 | 0.4 |
Pensions and other retirement benefits | 29.8 | 27 |
Total assets | 415.2 | 407.1 |
Current liabilities | ||
Short-term debt | 0 | 25 |
Accounts payable | 35.9 | 37.8 |
Accrued liabilities | 24.4 | 29.4 |
Taxes on income | 1.1 | 1.8 |
Current liabilities held-for-sale | 3.5 | 5 |
Other current liabilities | 13.2 | 11.2 |
Total current liabilities | 78.1 | 110.2 |
Non-current liabilities | ||
Long-term debt | 92.4 | 56.2 |
Pensions and other retirement benefits | 0 | 4.5 |
Deferred tax liabilities | 11.4 | 9.9 |
Other non-current liabilities | 18.1 | 19 |
Total liabilities | 200 | 199.8 |
Commitments and contingencies (Note 14) | ||
Shareholders' equity | ||
Ordinary shares of £0.50 par value; authorized 40,000,000 shares for 2023 and 2022; issued and outstanding 28,944,000 for 2023 and 2022 | 26.5 | 26.5 |
Additional paid-in capital | 222.1 | 221.4 |
Treasury shares | (21.8) | (20.4) |
Company shares held by ESOP | (0.9) | (1) |
Retained earnings | 114.9 | 120.2 |
Accumulated other comprehensive loss | (125.6) | (139.4) |
Total shareholders' equity | 215.2 | 207.3 |
Total liabilities and shareholders' equity | $ 415.2 | $ 407.1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) $ in Millions | Jul. 02, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares |
Statement of Financial Position [Abstract] | ||
Accounts and other receivables, net of allowance | $ | $ 0.7 | $ 0.4 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 28,944,000 | |
Common stock, shares outstanding (in shares) | 28,944,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2023 | Jun. 26, 2022 | |
Operating activities | ||
Net income | $ 5.2 | $ 16.9 |
Net loss from discontinued operations | 0.2 | 0.4 |
Net income from continuing operations | 5.4 | 17.3 |
Adjustments to reconcile net income to net cash provided / (used) by operating activities | ||
Depreciation | 6.2 | 6.7 |
Amortization of purchased intangible assets | 0.4 | 0.4 |
Amortization of debt issuance costs | 0.2 | 0.3 |
Share-based compensation charges | 1.3 | 0.9 |
Deferred income taxes | 1.5 | 0.3 |
Gain on disposal of property, plant and equipment | 0 | (0.2) |
Asset impairments | 2.3 | 0 |
Defined benefit pension charge / (credit) | 8.3 | (0.7) |
Defined benefit pension contributions | (2.1) | 0 |
Changes in assets and liabilities | ||
Accounts and other receivables | 3.8 | (19.8) |
Inventories | (6.4) | (18) |
Current assets held-for-sale | 1.2 | (3.2) |
Accounts payable | (9.1) | 5.5 |
Accrued liabilities | (5.9) | 1.5 |
Current liabilities held-for-sale | (1.5) | 3.3 |
Other current liabilities | (7.4) | 0.7 |
Other non-current assets and liabilities | 0.5 | (1.8) |
Net cash used by operating activities - continuing | (1.3) | (6.8) |
Net cash provided by operating activities - discontinued | 0.1 | 0 |
Net cash used by operating activities | (1.2) | (6.8) |
Investing activities | ||
Capital expenditures | (4.9) | (2.9) |
Proceeds from sale of property, plant and equipment | 0 | 3.7 |
Net cash (used) / provided by investing activities - continuing | (4.9) | 0.8 |
Net cash used by investing activities - discontinued | (0.1) | 0 |
Net cash (used) / provided by investing activities | (5) | 0.8 |
Financing activities | ||
Net repayment of short-term borrowings | (25) | 0 |
Net drawdown of long-term borrowings | 35.1 | 18.1 |
Repurchase of own shares | (1.6) | (3.7) |
Share-based compensation cash paid | (0.3) | (1.4) |
Dividends paid | (7) | (7) |
Net cash provided by financing activities | 1.2 | 6 |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | (0.9) |
Net decrease | (4.7) | (0.9) |
Cash, cash equivalents and restricted cash; beginning of year | 12.9 | 6.4 |
Cash, cash equivalents and restricted cash; end of the Second Quarter | 8.2 | 5.5 |
Supplemental cash flow information: | ||
Interest payments | 2.8 | 1.7 |
Income tax payments, net | $ 2.8 | $ 0.3 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Additional paid-in capital | Treasury stock | Own shares held by ESOP | Retained earnings | Accumulated other comprehensive loss | Ordinary shares Common stock | Deferred shares Common stock |
Beginning balance at Dec. 31, 2021 | $ 209.1 | $ 70.9 | $ (9.6) | $ (1.1) | $ 107.5 | $ (135) | $ 26.5 | $ 149.9 |
Beginning balance (in shares) at Dec. 31, 2021 | (0.6) | (0.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 7.6 | 7.6 | ||||||
Other comprehensive (loss) / income, net of tax | (1.4) | (1.4) | ||||||
Dividends declared | (7) | (7) | ||||||
Share based compensation | 0.2 | 0.2 | ||||||
Share buyback (in shares) | (0.1) | |||||||
Share buyback/Purchase of own shares | (1.5) | $ (1.5) | ||||||
Utilization of shares from ESOP to satisfy share based compensation | (0.4) | (0.4) | ||||||
Ending balance at Mar. 27, 2022 | 206.6 | 70.7 | $ (11.1) | $ (1.1) | 108.1 | (136.4) | 26.5 | 149.9 |
Ending balance (in shares) at Mar. 27, 2022 | (0.7) | (0.8) | ||||||
Beginning balance at Dec. 31, 2021 | 209.1 | 70.9 | $ (9.6) | $ (1.1) | 107.5 | (135) | 26.5 | 149.9 |
Beginning balance (in shares) at Dec. 31, 2021 | (0.6) | (0.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 16.9 | |||||||
Other comprehensive (loss) / income, net of tax | (9.3) | |||||||
Ending balance at Jun. 26, 2022 | 205.5 | 70 | $ (13) | $ (1) | 117.4 | (144.3) | 26.5 | 149.9 |
Ending balance (in shares) at Jun. 26, 2022 | (0.8) | (0.8) | ||||||
Beginning balance at Mar. 27, 2022 | 206.6 | 70.7 | $ (11.1) | $ (1.1) | 108.1 | (136.4) | 26.5 | 149.9 |
Beginning balance (in shares) at Mar. 27, 2022 | (0.7) | (0.8) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 9.3 | 9.3 | ||||||
Other comprehensive (loss) / income, net of tax | (7.9) | (7.9) | ||||||
Share based compensation | 0.7 | 0.7 | ||||||
Share buyback (in shares) | (0.1) | |||||||
Share buyback/Purchase of own shares | (2.2) | $ (2.2) | ||||||
Utilization of shares from ESOP to satisfy share based compensation | 0.4 | 0.1 | 0.3 | |||||
Utilization of shares from ESOP to satisfy share based compensation | (1.4) | (1.5) | $ 0.1 | |||||
Ending balance at Jun. 26, 2022 | 205.5 | 70 | $ (13) | $ (1) | 117.4 | (144.3) | 26.5 | $ 149.9 |
Ending balance (in shares) at Jun. 26, 2022 | (0.8) | (0.8) | ||||||
Beginning balance at Dec. 31, 2022 | 207.3 | 221.4 | $ (20.4) | $ (1) | 120.2 | (139.4) | 26.5 | |
Beginning balance (in shares) at Dec. 31, 2022 | (1.3) | (0.7) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 0.5 | 0.5 | ||||||
Other comprehensive (loss) / income, net of tax | 10.2 | 10.2 | ||||||
Dividends declared | (3.5) | (3.5) | ||||||
Share based compensation | 0.6 | 0.6 | ||||||
Share buyback (in shares) | (0.1) | |||||||
Share buyback/Purchase of own shares | (0.8) | $ (0.8) | ||||||
Utilization of shares from ESOP to satisfy share based compensation | (0.3) | (0.3) | ||||||
Ending balance at Apr. 02, 2023 | 214 | 221.7 | $ (21.2) | $ (1) | 117.2 | (129.2) | 26.5 | |
Ending balance (in shares) at Apr. 02, 2023 | (1.4) | (0.7) | ||||||
Beginning balance at Dec. 31, 2022 | 207.3 | 221.4 | $ (20.4) | $ (1) | 120.2 | (139.4) | 26.5 | |
Beginning balance (in shares) at Dec. 31, 2022 | (1.3) | (0.7) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 5.2 | |||||||
Other comprehensive (loss) / income, net of tax | 13.8 | |||||||
Ending balance at Jul. 02, 2023 | 215.2 | 222.1 | $ (21.8) | $ (0.9) | 114.9 | (125.6) | 26.5 | |
Ending balance (in shares) at Jul. 02, 2023 | (1.4) | (0.6) | ||||||
Beginning balance at Apr. 02, 2023 | 214 | 221.7 | $ (21.2) | $ (1) | 117.2 | (129.2) | 26.5 | |
Beginning balance (in shares) at Apr. 02, 2023 | (1.4) | (0.7) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4.7 | 4.7 | ||||||
Other comprehensive (loss) / income, net of tax | 3.6 | 3.6 | ||||||
Dividends declared | (7) | (7) | ||||||
Share based compensation | 0.7 | 0.7 | ||||||
Share buyback/Purchase of own shares | (0.8) | $ (0.8) | ||||||
Utilization of shares from ESOP to satisfy share based compensation | (0.1) | (0.3) | 0.2 | |||||
Utilization of shares from ESOP to satisfy share based compensation (in shares) | 0.1 | |||||||
Utilization of shares from ESOP to satisfy share based compensation | 0.1 | $ 0.1 | ||||||
Ending balance at Jul. 02, 2023 | $ 215.2 | $ 222.1 | $ (21.8) | $ (0.9) | $ 114.9 | $ (125.6) | $ 26.5 | |
Ending balance (in shares) at Jul. 02, 2023 | (1.4) | (0.6) |
Basis of Presentation and Respo
Basis of Presentation and Responsibility for interim Financial Statements | 6 Months Ended |
Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and responsibility for interim financial statements | Basis of Presentation and Responsibility for interim Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements of Luxfer Holdings PLC and all wholly-owned, majority owned or otherwise controlled subsidiaries on the same basis as our annual audited financial statements. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Our quarterly financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022. As used in this report, the terms "we," "us," "our," "Luxfer" and "the Company" mean Luxfer Holdings PLC and its subsidiaries, unless the context indicates another meaning. In the opinion of management, our financial statements reflect all adjustments, which are only of a normal recurring nature, necessary for the fair statement of financial statements for interim periods in accordance with U.S. GAAP and with the instructions to Form 10-Q in Article 10 of Securities and Exchange Commission (SEC) Regulation S-X. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and any such differences may be material to our financial statements. Our fiscal year ends on December 31. We report our interim quarterly periods on a 13-week quarter basis, ending on a Sunday. The Second Quarter 2023, ended on July 2, 2023, and the Second Quarter 2022, ended on June 26, 2022. Accounting standards issued but not yet effective None that will be material to the Company. |
Earnings per share
Earnings per share | 6 Months Ended |
Jul. 02, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share are computed by dividing net income or loss for the period by the weighted-average number of ordinary shares outstanding, net of treasury shares and shares held in ESOP. Diluted earnings per share are computed by dividing net income for the period by the weighted average number of ordinary shares outstanding and the dilutive ordinary shares equivalents. Basic and diluted earnings per share were calculated as follows: Second Quarter Year-to-date In millions except share and per-share data 2023 2022 2023 2022 Basic earnings: Net income from continuing operations $ 4.9 $ 9.6 $ 5.4 $ 17.3 Net loss from discontinued operations (0.2) (0.3) (0.2) (0.4) Net income $ 4.7 $ 9.3 $ 5.2 $ 16.9 Weighted average number of £0.50 ordinary shares: For basic earnings per share 26,923,804 27,428,579 26,922,528 27,458,980 Dilutive effect of potential common stock 141,534 274,638 161,458 261,085 For diluted earnings per share 27,065,338 27,703,217 27,083,986 27,720,065 Earnings / (loss) per share using weighted average number of ordinary shares outstanding (1) : Basic earnings per ordinary share for continuing operations $ 0.18 $ 0.35 $ 0.20 $ 0.63 Basic loss per ordinary share for discontinued operations (0.01) (0.01) (0.01) (0.01) Basic earnings per ordinary share $ 0.17 $ 0.34 $ 0.19 $ 0.62 Diluted earnings per ordinary share for continuing operations $ 0.18 $ 0.35 $ 0.20 $ 0.62 Diluted loss per ordinary share for discontinued operations (0.01) (0.01) (0.01) (0.01) Diluted earnings per ordinary share $ 0.17 $ 0.34 $ 0.19 $ 0.61 (1) The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total Basic average shares outstanding and diluted average shares outstanding were the same for discontinued operations because the effect of potential shares of common stock was anti-dilutive since the Company generated a net loss from discontinued operations. |
Net Sales
Net Sales | 6 Months Ended |
Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales | Net Sales Disaggregated sales disclosures for the quarter and year-to-date ended July 2, 2023, and June 26, 2022, are included below and in Note 13, Segmental Information. Second Quarter 2023 2022 In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total Defense, First Response & Healthcare $ 20.9 $ 26.8 $ 47.7 $ 18.7 $ 15.0 $ 33.7 Transportation 18.6 12.9 31.5 19.1 16.2 35.3 General industrial 9.0 22.2 31.2 8.3 32.2 40.5 $ 48.5 $ 61.9 $ 110.4 $ 46.1 $ 63.4 $ 109.5 Year-to-date 2023 2022 In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total Defense, First Response & Healthcare $ 39.0 $ 50.9 $ 89.9 $ 35.8 $ 29.8 $ 65.6 Transportation 32.5 25.7 58.2 36.0 29.1 65.1 General industrial 18.5 45.1 63.6 16.7 59.1 75.8 $ 90.0 $ 121.7 $ 211.7 $ 88.5 $ 118.0 $ 206.5 |
Restructuring
Restructuring | 6 Months Ended |
Jul. 02, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The $2.5 million and $2.8 million restructuring charge in the second quarter and first half, respectively, of 2023 relates predominantly to asset impairments in relation to rationalization of our North American Gas Cylinders businesses to reduce our fixed cost base. This amounted to $2.3 million in both the second quarter and first half of the year respectively. There was an additional $0.1 million and $0.4 million of other expenses in the second quarter and first half respectively, in relation to the aforementioned rationalization. The $0.3 million and $1.7 million restructuring charge in the second quarter and first half, respectively, of 2022 includes $0.2 million in the second quarter relating to one-time employee termination benefits in the Elektron Division in relation to the consolidation of production facilities in the Magnesium Powders operations. The remaining $0.1 million and $1.4 million for the second quarter and first half, respectively, relates to costs associated with the closure of Luxfer Gas Cylinders France, which ceased operations in 2019. Restructuring-related costs by reportable segment were as follows: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Severance and other costs Gas Cylinders $ 0.2 $ 0.1 $ 0.5 $ 1.5 Elektron — 0.2 — 0.2 $ 0.2 $ 0.3 0.5 1.7 Asset impairments Gas Cylinders $ 2.3 $ — $ 2.3 $ — Total restructuring charges $ 2.5 $ 0.3 $ 2.8 $ 1.7 4. Restructuring (continued) Activity related to restructuring, recorded in Other current liabilities in the consolidated balance sheets is summarized as follows: In millions 2023 Balance at January 1, $ 3.7 Costs incurred 0.5 Cash payments and other (0.9) Balance at July 2, $ 3.3 |
Acquisition and disposal relate
Acquisition and disposal related costs | 6 Months Ended |
Jul. 02, 2023 | |
Business Combinations [Abstract] | |
Acquisition and disposal related costs | Acquisition and disposal related costsAcquisition-related costs of $0.3 million in the first half of 2022 represent professional fees incurred in relation to the SCI acquisition. |
Supplementary balance sheet inf
Supplementary balance sheet information | 6 Months Ended |
Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary balance sheet information | Supplementary balance sheet information July 2, December 31, In millions 2023 2022 Accounts and other receivables Trade receivables $ 62.6 $ 56.4 Related parties 0.1 0.1 Prepayments and accrued income 4.4 6.6 Derivative financial instruments 0.3 0.7 Other receivables 4.6 4.0 Total accounts and other receivables $ 72.0 $ 67.8 Inventories Raw materials and supplies $ 44.6 $ 42.7 Work-in-process 43.9 44.0 Finished goods 30.8 24.4 Total inventories $ 119.3 $ 111.1 Property, plant and equipment, net Land, buildings and leasehold improvements $ 61.8 $ 58.9 Machinery and equipment 263.6 254.9 Construction in progress 11.4 9.8 Total property, plant and equipment 336.8 323.6 Accumulated depreciation and impairment (260.1) (245.9) Total property, plant and equipment, net $ 76.7 $ 77.7 Other current liabilities Restructuring provision $ 3.3 $ 3.7 Short term provision — 0.1 Derivative financial instruments 0.1 0.4 Operating lease liability 5.0 4.7 Dividend payable 3.5 — Advance payments 1.3 2.3 Total other current liabilities $ 13.2 $ 11.2 Other non-current liabilities Contingent liabilities $ 1.5 $ 0.7 Operating lease liability 16.5 18.2 Other non-current liabilities 0.1 0.1 Total other non-current liabilities $ 18.1 $ 19.0 |
Goodwill and other identifiable
Goodwill and other identifiable intangible assets | 6 Months Ended |
Jul. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other identifiable intangible assets | Goodwill and other identifiable intangible assets Changes in goodwill during the first half ended July 2, 2023, were as follows: In millions Gas Cylinders Elektron Total At January 1, 2023 $ 25.0 $ 40.6 $ 65.6 Exchange difference 1.2 0.7 1.9 Net balance at July 2, 2023 $ 26.2 $ 41.3 $ 67.5 Accumulated goodwill impairment losses in relation to continuing activities were $8.0 million as of July 2, 2023 and December 31, 2022. Identifiable intangible assets consisted of the following: In millions Customer relationships Technology and trading related Total Cost: At January 1, 2023 $ 15.2 $ 7.4 $ 22.6 Exchange movements — 0.4 0.4 At July 2, 2023 $ 15.2 $ 7.8 $ 23.0 Accumulated amortization: At January 1, 2023 $ 6.1 $ 4.0 $ 10.1 Charge 0.2 0.2 0.4 Exchange movements — 0.2 0.2 At July 2, 2023 $ 6.3 $ 4.4 $ 10.7 Net book values: At January 1, 2023 $ 9.1 $ 3.4 $ 12.5 At July 2, 2023 $ 8.9 $ 3.4 $ 12.3 Identifiable intangible asset amortization expense was $0.4 million and $0.4 million for the first half of 2023 and 2022 respectively. Intangible asset amortization expense in 2023 and each of the following four years is expected to be approximately $0.8 million per year. |
Debt
Debt | 6 Months Ended |
Jul. 02, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt outstanding was as follows: July 2, December 31, In millions 2023 2022 4.88% Loan Notes due 2023 $ — $ 25.0 4.94% Loan Notes due 2026 25.0 25.0 Revolving credit facility 68.1 31.9 Unamortized debt issuance costs (0.7) (0.7) Total debt 92.4 81.2 Less current portion — (25.0) Non-current debt $ 92.4 $ 56.2 The revolving credit facility is due to mature in 2026. The weighted-average interest rate on the revolving credit facility was 6.80% for the Second Quarter of 2023 and 3.80% for the full-year 2022. 8. Debt (continued) Loan notes due and shelf facility The Note Purchase Agreement and Private Shelf Agreement requires us to maintain compliance with a minimum interest coverage ratio and a leverage ratio. We have been in compliance with the covenants under the Note Purchase and Private Shelf Agreement throughout all of the quarterly measurement dates from and including September 30, 2014, to July 2, 2023. The Loan Notes due 2026, the Shelf Facility and the Note Purchase and Private Shelf Agreement are governed by the law of the State of New York. The Loan Notes due 2023 were settled in the Second Quarter of 2023. Senior Facilities Agreement During the first half of 2023, we drew down net $35.1 million on the Revolving Credit Facility and the balance outstanding at July 2, 2023, was $68.1 million, and at December 31, 2022, was $31.9 million, with $56.9 million undrawn at July 2, 2023. We have been in compliance with the covenants under the Senior Facilities Agreement throughout all of the quarterly measurement dates from and including September 30, 2011, to July 2, 2023. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jul. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Our Superform aluminum superplastic forming business operating in the U.S. was historically included in the Gas Cylinders segment. As a result of our decision to exit non-strategic aluminum product lines, we have reflected the results of operations of this business as discontinued operations in the Condensed Consolidated Statements of Income for all periods presented. We expect the sale of our Superform business to occur within the next 12 months. The assets and liabilities of the Superform business have been presented within assets held-for-sale and liabilities held-for-sale in the consolidated balance sheets for 2023 and 2022. Results of discontinued operations in the first half of 2023 and 2022 were as follows: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Net sales $ 1.9 $ 2.0 $ 4.2 $ 3.7 Cost of goods sold (1.7) (1.6) (3.6) (3.2) Gross profit 0.2 0.4 0.6 0.5 Selling, general and administrative expenses (0.4) (0.2) (0.7) (0.4) Restructuring charges (0.1) (0.3) (0.2) (0.3) Acquisition and disposal related costs — (0.2) — (0.2) Operating loss (0.3) (0.3) (0.3) (0.4) Tax credit 0.1 — 0.1 — Net loss $ (0.2) $ (0.3) $ (0.2) $ (0.4) 9. Discontinued Operations (continued) The assets and liabilities classified as held-for-sale related to discontinued operations were as follows: Held-for-sale assets July 2, December 31, In millions 2023 2022 Inventory $ 2.6 $ 2.7 Accounts and other receivables 1.5 2.7 Current assets 4.1 5.4 Right-of-use-assets 2.5 2.7 Held-for-sale assets $ 6.6 $ 8.1 Held-for-sale liabilities Accounts payable $ 0.5 $ 0.8 Accrued liabilities 0.3 0.2 Other liabilities — 1.0 Operating lease liability 2.7 3.0 Held-for-sale liabilities $ 3.5 $ 5.0 Also included within assets held-for-sale in 2023 and 2022 are land and buildings valued at $1.2 million, within our Elektron Segment. There was no depreciation and amortization, capital expenditures and significant non-cash items. Cash balances are swept into the treasury entities at the end of each day, these sweeps are recorded within operating cash flows in the statements of cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We manage our affairs so that we are centrally managed and controlled in the United Kingdom (“U.K.”) and therefore have our tax residency in the U.K. The provision for income taxes consists of provisions for the U.K. and international income taxes. We operate in an international environment with operations in various locations outside the U.K. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates. The effective income tax rate on continuing operations for the first half ended July 2, 2023, was a 50.0%, tax credit compared to a 22.1% charge for the first half ended June 26, 2022. The rate was impacted by non-deductible expenses, asset impairment charges and a deferred tax credit, primarily in relation to the U.S. pension buyout. |
Share Plans
Share Plans | 6 Months Ended |
Jul. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share Plans | Share Plans Total share-based compensation expense for the quarters ended July 2, 2023, and June 26 2022, was as follows: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Total share-based compensation charges $ 0.7 $ 0.7 $ 1.3 $ 0.9 In March 2023, we issued our annual share-based compensation grants under the Luxfer Holdings PLC LongTerm Umbrella Incentive Plan. The total number of awards issued was approximately 126,600 and the weighted average fair value of options granted in 2023 was estimated to be $17.94 per share. Also in March 2023, approximately 10,000 awards were granted based on the achievement of total shareholder return targets from the period January 1, 2020 to December 31, 2022. 50% of these awards vested immediately upon grant, with the remaining 50% vesting in March 2024. In June 2023, we issued our annual share-based compensation grants under the Luxfer Holdings PLC Non-Executive Directors' Equity Incentive Plan. The total number of awards issued was 31,028 and the weighted-average fair value of options granted was estimated to be $14.71 per share. The following table illustrates the assumptions used in deriving the fair value of share options granted during 2023 and the year-ended December 31, 2022: 2023 2022 Dividend yield (%) 2.75 - 3.41 2.75 - 3.41 Expected volatility range (%) 36.11 - 49.43 36.11 - 49.43 Risk-free interest rate (%) 1.28 - 2.99 1.28 - 2.99 Expected life of share options range (years) 0.50 - 4.00 0.50 - 4.00 Forfeiture rate (%) 5.00 5.00 Weighted average exercise price ($) $1.00 $1.00 Model used Black-Scholes & Monte-Carlo Black-Scholes & Monte-Carlo The expected life of the share options is based on historical data and current expectations, and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jul. 02, 2023 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders' Equity Dividends paid and proposed Second Quarter Year-to-date In millions 2023 2022 2023 2022 Dividends declared and paid / accrued during the year: Interim dividend declared January 4 2022, and paid February 2, 2022 ($0.125 per ordinary share) $ — $ — $ — $ — $ 3.4 Interim dividend declared March 10 2022, and paid May 4, 2022 ($0.130) per ordinary share) — — — 3.6 Interim dividend declared January 3 2023, and paid February 1, 2023 ($0.130 per ordinary share) — — 3.5 — — Interim dividend declared April 3 2023, and paid May 3, 2023 ($0.130) per ordinary share) 3.5 — 3.5 — Interim dividend declared June 29 2023, and to be paid August 2, 2023 ($0.130) per ordinary share) 3.5 — 3.5 — $ 7.0 $ — $ 10.5 $ 7.0 In millions 2023 2022 Dividends declared and paid after the quarter end (not recognized as a liability at the quarter end): Interim dividend declared July 5 2022, and paid August 3, 2022 ($0.130) per ordinary share) $ — $ 3.6 $ — $ 3.6 In July 2022 the Company made a payment of $0.1 million to cancel the entirety of deferred shares held, $149.8 million was reallocated to additional paid-in capital to reflect the capital reduction in deferred shares. |
Segmental Information
Segmental Information | 6 Months Ended |
Jul. 02, 2023 | |
Segment Reporting [Abstract] | |
Segmental Information | Segmental Information We classify our operations into two core business segments, Gas Cylinders and Elektron, based primarily on shared economic characteristics for the nature of the products and services; the nature of the production processes; the type or class of customer for their products and services; the methods used to distribute their products or provide their services; and the nature of the regulatory environment. The Company has four identified business units, which aggregate into the two reportable segments. Luxfer Gas Cylinders forms the Gas Cylinders segment, and Luxfer MEL Technologies, Luxfer Magtech and Luxfer Graphic Arts aggregate into the Elektron segment. The Superform business unit used to aggregate into the Gas Cylinders segment, but is now recognized as discontinued operations. A summary of the operations of the segments is provided below: Gas Cylinders segment Our Gas Cylinders segment manufactures and markets specialized products using composites and aluminum, including pressurized cylinders for use in various applications including self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen and other medical gases for healthcare, alternative fuel vehicles, and general industrial. Elektron segment Our Elektron segment focuses on specialty materials based primarily on magnesium and zirconium, with key product lines including advanced lightweight magnesium alloys with a variety of uses across a variety of industries; magnesium powders for use in countermeasure flares, as well as heater meals; photoengraving plates for graphic arts; and high-performance zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, and many other performance products. Other Other primarily represents unallocated corporate expense and includes non-service related defined benefit pension cost / credit. Management monitors the operating results of its reportable segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated by the chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments as the CEO, using adjusted EBITA (1) and adjusted EBITDA, which we defined as segment income and are based on operating income adjusted for share based compensation charges; loss on disposal of property, plant and equipment; restructuring charges; impairment charges; acquisition and disposal related gains and costs; depreciation and amortization. 1 Adjusted EBITA is adjusted EBITDA less depreciation Unallocated assets and liabilities include those which are held on behalf of the Company and cannot be allocated to a segment, such as taxation, investments, cash, retirement benefits obligations, bank and other loans and holding company assets and liabilities. Financial information by reportable segment for the Second Quarter and first half ended July 2, 2023, and June 26, 2022, is included in the following summary: Net sales Adjusted EBITDA Second Quarter Year-to-date Second Quarter Year-to-date In millions 2023 2022 2023 2022 2023 2022 2023 2022 Gas Cylinders segment $ 48.5 $ 46.1 $ 90.0 $ 88.5 $ 4.9 $ 3.7 $ 7.4 $ 6.4 Elektron segment 61.9 63.4 121.7 118.0 9.5 13.2 18.3 26.6 Consolidated $ 110.4 $ 109.5 $ 211.7 $ 206.5 $ 14.4 $ 16.9 $ 25.7 $ 33.0 Depreciation and amortization Restructuring charges Second Quarter Year-to-date Second Quarter Year-to-date In millions 2023 2022 2023 2022 2023 2022 2023 2022 Gas Cylinders segment $ 1.0 $ 1.2 $ 2.1 $ 2.6 $ 2.5 $ 0.1 $ 2.8 $ 1.5 Elektron segment 2.3 2.2 4.5 4.5 — 0.2 — 0.2 Consolidated $ 3.3 $ 3.4 $ 6.6 $ 7.1 $ 2.5 $ 0.3 $ 2.8 $ 1.7 13. Segmental Information (continued) Total assets Capital expenditures July 2, December 31, Second Quarter Year-to-date In millions 2023 2022 2023 2022 2023 2022 Gas Cylinders segment $ 139.6 $ 133.1 $ 0.3 $ 0.2 $ 0.6 $ 0.4 Elektron segment 223.9 216.4 2.7 1.8 4.4 2.6 Other 45.1 49.5 — — — — Discontinued operations 6.6 8.1 0.2 — 0.1 — Consolidated $ 415.2 $ 407.1 $ 3.2 $ 2.0 $ 5.1 $ 3.0 Property, plant and equipment, net July 2, December 31, In millions 2023 2022 U.S. $ 39.3 $ 41.6 United Kingdom 34.0 32.0 Canada 2.0 2.8 Rest of Europe 1.0 1.0 Asia Pacific 0.4 0.3 $ 76.7 $ 77.7 The following table presents a reconciliation of Adjusted EBITDA to net income from continuing operations: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Adjusted EBITDA $ 14.4 $ 16.9 $ 25.7 $ 33.0 Other share-based compensation charges (0.7) (0.7) (1.3) (0.9) Depreciation and amortization (3.3) (3.4) (6.6) (7.1) Gain on disposal of property, plant and equipment — 0.2 — 0.2 Restructuring charges (2.5) (0.3) (2.8) (1.7) Acquisition and disposal related costs — (0.1) — (0.3) Defined benefits pension credit / (charge) 0.6 0.3 (8.3) 0.7 Interest expense, net (1.8) (0.9) (3.1) (1.7) Net income before income taxes from continuing operations $ 6.7 $ 12.0 $ 3.6 $ 22.2 The following tables present certain geographic information by geographic region for the Second Quarter and First Half of the year ended July 2, 2023, and June 26, 2022: Net Sales (1) Second Quarter Year-to-date 2023 2022 2023 2022 $M Percent $M Percent $M Percent $M Percent United States $ 67.8 61.5 % $ 61.7 56.3 % $ 125.5 59.3 % $ 117.0 56.7 % U.K. 5.2 4.7 % 6.0 5.5 % 10.8 5.1 % 11.4 5.5 % Japan 6.3 5.7 % 4.1 3.7 % 10.8 5.1 % 7.5 3.6 % Germany 3.8 3.4 % 6.4 5.8 % 10.1 4.8 % 10.9 5.3 % Italy 2.1 1.9 % 2.4 2.2 % 5.4 2.6 % 5.9 2.9 % Top five countries 85.2 77.2 % 80.6 73.6 % 162.6 76.9 % 152.7 74.0 % Rest of Europe 9.6 8.7 % 8.8 8.0 % 19.3 9.0 % 17.8 8.6 % Asia Pacific 8.3 7.5 % 12.2 11.1 % 17.3 8.2 % 21.1 10.2 % Other (2) 7.3 6.6 % 7.9 7.2 % 12.5 5.9 % 14.9 7.2 % $ 110.4 $ 109.5 $ 211.7 $ 206.5 (1) Net sales are based on the geographic destination of sale. (2) Other includes Canada, South America, Latin America and Africa. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and Contingencies Committed and uncommitted banking facilities The Company had committed banking facilities of $125.0 million at July 2, 2023 and $100.0 million at December 31, 2022. Of these committed facilities, $68.1 million was drawn at July 2, 2023 and $31.9 million at December 31, 2022. The Company also had an additional $25.0 million of uncommitted facilities through an accordion provision at July 2, 2023 and $50.0 million at December 31, 2022. Uncommitted Facilities July 2, 2023 December 31, 2022 Facility Drawn Facility Drawn Bond and Guarantees $ 0.6 $ 0.2 $ 0.6 $ 0.2 Letters of Credit 3.0 1.6 2.0 1.5 Overdraft 3.7 — 4.0 — $ 7.3 $ 1.8 $ 6.6 $ 1.7 Contingencies |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2023 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent EventsPost quarter end, the Board approved $12 million of funding for the potential discretionary repurchase of the Company's stock. The Company has not yet implemented this buyback program and as such no shares have been purchased since the quarter end reporting date. |
Pension Settlement
Pension Settlement | 6 Months Ended |
Jul. 02, 2023 | |
Retirement Benefits [Abstract] | |
Pension settlement | Pension Settlement In the first quarter of 2023, there was a $9.2 million charge in relation to the sale of the U.S. pension plan liability to an insurer, which included $2.3 million cash and $6.9 million in relation to the derecognition of the U.S. pension liability and reallocation of accumulated actuarial losses from other comprehensive income. In the second quarter of 2023, we received a $0.2 million contribution refund, resulting in a net cash outflow of $2.1 million and a half year charge of $9.0 million. There was also a $0.4 million and $0.7 million defined benefit credit on the U.K pension plan for the second quarter and first half of 2023 respectively, consistent with the $0.3 million and $0.7 million for the second quarter and first half of 2022. |
Basis of Presentation and Res_2
Basis of Presentation and Responsibility for interim Financial Statements (Policies) | 6 Months Ended |
Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of Presentation and Responsibility for interim Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements of Luxfer Holdings PLC and all wholly-owned, majority owned or otherwise controlled subsidiaries on the same basis as our annual audited financial statements. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Our quarterly financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2022. As used in this report, the terms "we," "us," "our," "Luxfer" and "the Company" mean Luxfer Holdings PLC and its subsidiaries, unless the context indicates another meaning. In the opinion of management, our financial statements reflect all adjustments, which are only of a normal recurring nature, necessary for the fair statement of financial statements for interim periods in accordance with U.S. GAAP and with the instructions to Form 10-Q in Article 10 of Securities and Exchange Commission (SEC) Regulation S-X. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and any such differences may be material to our financial statements. |
Fiscal year | Our fiscal year ends on December 31. We report our interim quarterly periods on a 13-week quarter basis, ending on a Sunday. The Second Quarter 2023, ended on July 2, 2023, and the Second Quarter 2022, ended on June 26, 2022. |
Accounting standards issued but not yet effective | Accounting standards issued but not yet effective None that will be material to the Company. |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Basic and diluted earnings per share were calculated as follows: Second Quarter Year-to-date In millions except share and per-share data 2023 2022 2023 2022 Basic earnings: Net income from continuing operations $ 4.9 $ 9.6 $ 5.4 $ 17.3 Net loss from discontinued operations (0.2) (0.3) (0.2) (0.4) Net income $ 4.7 $ 9.3 $ 5.2 $ 16.9 Weighted average number of £0.50 ordinary shares: For basic earnings per share 26,923,804 27,428,579 26,922,528 27,458,980 Dilutive effect of potential common stock 141,534 274,638 161,458 261,085 For diluted earnings per share 27,065,338 27,703,217 27,083,986 27,720,065 Earnings / (loss) per share using weighted average number of ordinary shares outstanding (1) : Basic earnings per ordinary share for continuing operations $ 0.18 $ 0.35 $ 0.20 $ 0.63 Basic loss per ordinary share for discontinued operations (0.01) (0.01) (0.01) (0.01) Basic earnings per ordinary share $ 0.17 $ 0.34 $ 0.19 $ 0.62 Diluted earnings per ordinary share for continuing operations $ 0.18 $ 0.35 $ 0.20 $ 0.62 Diluted loss per ordinary share for discontinued operations (0.01) (0.01) (0.01) (0.01) Diluted earnings per ordinary share $ 0.17 $ 0.34 $ 0.19 $ 0.61 (1) The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total |
Net Sales (Tables)
Net Sales (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | Disaggregated sales disclosures for the quarter and year-to-date ended July 2, 2023, and June 26, 2022, are included below and in Note 13, Segmental Information. Second Quarter 2023 2022 In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total Defense, First Response & Healthcare $ 20.9 $ 26.8 $ 47.7 $ 18.7 $ 15.0 $ 33.7 Transportation 18.6 12.9 31.5 19.1 16.2 35.3 General industrial 9.0 22.2 31.2 8.3 32.2 40.5 $ 48.5 $ 61.9 $ 110.4 $ 46.1 $ 63.4 $ 109.5 Year-to-date 2023 2022 In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total Defense, First Response & Healthcare $ 39.0 $ 50.9 $ 89.9 $ 35.8 $ 29.8 $ 65.6 Transportation 32.5 25.7 58.2 36.0 29.1 65.1 General industrial 18.5 45.1 63.6 16.7 59.1 75.8 $ 90.0 $ 121.7 $ 211.7 $ 88.5 $ 118.0 $ 206.5 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | Restructuring-related costs by reportable segment were as follows: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Severance and other costs Gas Cylinders $ 0.2 $ 0.1 $ 0.5 $ 1.5 Elektron — 0.2 — 0.2 $ 0.2 $ 0.3 0.5 1.7 Asset impairments Gas Cylinders $ 2.3 $ — $ 2.3 $ — Total restructuring charges $ 2.5 $ 0.3 $ 2.8 $ 1.7 |
Schedule of restructuring reserve | Activity related to restructuring, recorded in Other current liabilities in the consolidated balance sheets is summarized as follows: In millions 2023 Balance at January 1, $ 3.7 Costs incurred 0.5 Cash payments and other (0.9) Balance at July 2, $ 3.3 |
Supplementary balance sheet i_2
Supplementary balance sheet information (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed balance sheet | Supplementary balance sheet information July 2, December 31, In millions 2023 2022 Accounts and other receivables Trade receivables $ 62.6 $ 56.4 Related parties 0.1 0.1 Prepayments and accrued income 4.4 6.6 Derivative financial instruments 0.3 0.7 Other receivables 4.6 4.0 Total accounts and other receivables $ 72.0 $ 67.8 Inventories Raw materials and supplies $ 44.6 $ 42.7 Work-in-process 43.9 44.0 Finished goods 30.8 24.4 Total inventories $ 119.3 $ 111.1 Property, plant and equipment, net Land, buildings and leasehold improvements $ 61.8 $ 58.9 Machinery and equipment 263.6 254.9 Construction in progress 11.4 9.8 Total property, plant and equipment 336.8 323.6 Accumulated depreciation and impairment (260.1) (245.9) Total property, plant and equipment, net $ 76.7 $ 77.7 Other current liabilities Restructuring provision $ 3.3 $ 3.7 Short term provision — 0.1 Derivative financial instruments 0.1 0.4 Operating lease liability 5.0 4.7 Dividend payable 3.5 — Advance payments 1.3 2.3 Total other current liabilities $ 13.2 $ 11.2 Other non-current liabilities Contingent liabilities $ 1.5 $ 0.7 Operating lease liability 16.5 18.2 Other non-current liabilities 0.1 0.1 Total other non-current liabilities $ 18.1 $ 19.0 |
Goodwill and other identifiab_2
Goodwill and other identifiable intangible assets (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in goodwill during the first half ended July 2, 2023, were as follows: In millions Gas Cylinders Elektron Total At January 1, 2023 $ 25.0 $ 40.6 $ 65.6 Exchange difference 1.2 0.7 1.9 Net balance at July 2, 2023 $ 26.2 $ 41.3 $ 67.5 |
Schedule of Intangible Assets | Identifiable intangible assets consisted of the following: In millions Customer relationships Technology and trading related Total Cost: At January 1, 2023 $ 15.2 $ 7.4 $ 22.6 Exchange movements — 0.4 0.4 At July 2, 2023 $ 15.2 $ 7.8 $ 23.0 Accumulated amortization: At January 1, 2023 $ 6.1 $ 4.0 $ 10.1 Charge 0.2 0.2 0.4 Exchange movements — 0.2 0.2 At July 2, 2023 $ 6.3 $ 4.4 $ 10.7 Net book values: At January 1, 2023 $ 9.1 $ 3.4 $ 12.5 At July 2, 2023 $ 8.9 $ 3.4 $ 12.3 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt outstanding was as follows: July 2, December 31, In millions 2023 2022 4.88% Loan Notes due 2023 $ — $ 25.0 4.94% Loan Notes due 2026 25.0 25.0 Revolving credit facility 68.1 31.9 Unamortized debt issuance costs (0.7) (0.7) Total debt 92.4 81.2 Less current portion — (25.0) Non-current debt $ 92.4 $ 56.2 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Results of Discontinued Operations | Results of discontinued operations in the first half of 2023 and 2022 were as follows: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Net sales $ 1.9 $ 2.0 $ 4.2 $ 3.7 Cost of goods sold (1.7) (1.6) (3.6) (3.2) Gross profit 0.2 0.4 0.6 0.5 Selling, general and administrative expenses (0.4) (0.2) (0.7) (0.4) Restructuring charges (0.1) (0.3) (0.2) (0.3) Acquisition and disposal related costs — (0.2) — (0.2) Operating loss (0.3) (0.3) (0.3) (0.4) Tax credit 0.1 — 0.1 — Net loss $ (0.2) $ (0.3) $ (0.2) $ (0.4) The assets and liabilities classified as held-for-sale related to discontinued operations were as follows: Held-for-sale assets July 2, December 31, In millions 2023 2022 Inventory $ 2.6 $ 2.7 Accounts and other receivables 1.5 2.7 Current assets 4.1 5.4 Right-of-use-assets 2.5 2.7 Held-for-sale assets $ 6.6 $ 8.1 Held-for-sale liabilities Accounts payable $ 0.5 $ 0.8 Accrued liabilities 0.3 0.2 Other liabilities — 1.0 Operating lease liability 2.7 3.0 Held-for-sale liabilities $ 3.5 $ 5.0 |
Share Plans (Tables)
Share Plans (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | Total share-based compensation expense for the quarters ended July 2, 2023, and June 26 2022, was as follows: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Total share-based compensation charges $ 0.7 $ 0.7 $ 1.3 $ 0.9 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table illustrates the assumptions used in deriving the fair value of share options granted during 2023 and the year-ended December 31, 2022: 2023 2022 Dividend yield (%) 2.75 - 3.41 2.75 - 3.41 Expected volatility range (%) 36.11 - 49.43 36.11 - 49.43 Risk-free interest rate (%) 1.28 - 2.99 1.28 - 2.99 Expected life of share options range (years) 0.50 - 4.00 0.50 - 4.00 Forfeiture rate (%) 5.00 5.00 Weighted average exercise price ($) $1.00 $1.00 Model used Black-Scholes & Monte-Carlo Black-Scholes & Monte-Carlo |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Equity [Abstract] | |
Schedule of Dividends Paid and Proposed | Second Quarter Year-to-date In millions 2023 2022 2023 2022 Dividends declared and paid / accrued during the year: Interim dividend declared January 4 2022, and paid February 2, 2022 ($0.125 per ordinary share) $ — $ — $ — $ — $ 3.4 Interim dividend declared March 10 2022, and paid May 4, 2022 ($0.130) per ordinary share) — — — 3.6 Interim dividend declared January 3 2023, and paid February 1, 2023 ($0.130 per ordinary share) — — 3.5 — — Interim dividend declared April 3 2023, and paid May 3, 2023 ($0.130) per ordinary share) 3.5 — 3.5 — Interim dividend declared June 29 2023, and to be paid August 2, 2023 ($0.130) per ordinary share) 3.5 — 3.5 — $ 7.0 $ — $ 10.5 $ 7.0 In millions 2023 2022 Dividends declared and paid after the quarter end (not recognized as a liability at the quarter end): Interim dividend declared July 5 2022, and paid August 3, 2022 ($0.130) per ordinary share) $ — $ 3.6 $ — $ 3.6 |
Segmental Information (Tables)
Segmental Information (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by reportable segment for the Second Quarter and first half ended July 2, 2023, and June 26, 2022, is included in the following summary: Net sales Adjusted EBITDA Second Quarter Year-to-date Second Quarter Year-to-date In millions 2023 2022 2023 2022 2023 2022 2023 2022 Gas Cylinders segment $ 48.5 $ 46.1 $ 90.0 $ 88.5 $ 4.9 $ 3.7 $ 7.4 $ 6.4 Elektron segment 61.9 63.4 121.7 118.0 9.5 13.2 18.3 26.6 Consolidated $ 110.4 $ 109.5 $ 211.7 $ 206.5 $ 14.4 $ 16.9 $ 25.7 $ 33.0 Depreciation and amortization Restructuring charges Second Quarter Year-to-date Second Quarter Year-to-date In millions 2023 2022 2023 2022 2023 2022 2023 2022 Gas Cylinders segment $ 1.0 $ 1.2 $ 2.1 $ 2.6 $ 2.5 $ 0.1 $ 2.8 $ 1.5 Elektron segment 2.3 2.2 4.5 4.5 — 0.2 — 0.2 Consolidated $ 3.3 $ 3.4 $ 6.6 $ 7.1 $ 2.5 $ 0.3 $ 2.8 $ 1.7 13. Segmental Information (continued) Total assets Capital expenditures July 2, December 31, Second Quarter Year-to-date In millions 2023 2022 2023 2022 2023 2022 Gas Cylinders segment $ 139.6 $ 133.1 $ 0.3 $ 0.2 $ 0.6 $ 0.4 Elektron segment 223.9 216.4 2.7 1.8 4.4 2.6 Other 45.1 49.5 — — — — Discontinued operations 6.6 8.1 0.2 — 0.1 — Consolidated $ 415.2 $ 407.1 $ 3.2 $ 2.0 $ 5.1 $ 3.0 |
Property, Plant and Equipment, Net by Geographic Region | Property, plant and equipment, net July 2, December 31, In millions 2023 2022 U.S. $ 39.3 $ 41.6 United Kingdom 34.0 32.0 Canada 2.0 2.8 Rest of Europe 1.0 1.0 Asia Pacific 0.4 0.3 $ 76.7 $ 77.7 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of Adjusted EBITDA to net income from continuing operations: Second Quarter Year-to-date In millions 2023 2022 2023 2022 Adjusted EBITDA $ 14.4 $ 16.9 $ 25.7 $ 33.0 Other share-based compensation charges (0.7) (0.7) (1.3) (0.9) Depreciation and amortization (3.3) (3.4) (6.6) (7.1) Gain on disposal of property, plant and equipment — 0.2 — 0.2 Restructuring charges (2.5) (0.3) (2.8) (1.7) Acquisition and disposal related costs — (0.1) — (0.3) Defined benefits pension credit / (charge) 0.6 0.3 (8.3) 0.7 Interest expense, net (1.8) (0.9) (3.1) (1.7) Net income before income taxes from continuing operations $ 6.7 $ 12.0 $ 3.6 $ 22.2 |
Revenue from External Customers and Long-term Assets by Geographic Areas | The following tables present certain geographic information by geographic region for the Second Quarter and First Half of the year ended July 2, 2023, and June 26, 2022: Net Sales (1) Second Quarter Year-to-date 2023 2022 2023 2022 $M Percent $M Percent $M Percent $M Percent United States $ 67.8 61.5 % $ 61.7 56.3 % $ 125.5 59.3 % $ 117.0 56.7 % U.K. 5.2 4.7 % 6.0 5.5 % 10.8 5.1 % 11.4 5.5 % Japan 6.3 5.7 % 4.1 3.7 % 10.8 5.1 % 7.5 3.6 % Germany 3.8 3.4 % 6.4 5.8 % 10.1 4.8 % 10.9 5.3 % Italy 2.1 1.9 % 2.4 2.2 % 5.4 2.6 % 5.9 2.9 % Top five countries 85.2 77.2 % 80.6 73.6 % 162.6 76.9 % 152.7 74.0 % Rest of Europe 9.6 8.7 % 8.8 8.0 % 19.3 9.0 % 17.8 8.6 % Asia Pacific 8.3 7.5 % 12.2 11.1 % 17.3 8.2 % 21.1 10.2 % Other (2) 7.3 6.6 % 7.9 7.2 % 12.5 5.9 % 14.9 7.2 % $ 110.4 $ 109.5 $ 211.7 $ 206.5 (1) Net sales are based on the geographic destination of sale. (2) Other includes Canada, South America, Latin America and Africa. |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jul. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Uncommitted Facilities | Uncommitted Facilities July 2, 2023 December 31, 2022 Facility Drawn Facility Drawn Bond and Guarantees $ 0.6 $ 0.2 $ 0.6 $ 0.2 Letters of Credit 3.0 1.6 2.0 1.5 Overdraft 3.7 — 4.0 — $ 7.3 $ 1.8 $ 6.6 $ 1.7 |
Earnings per share (Details)
Earnings per share (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||||
Jul. 02, 2023 USD ($) $ / shares shares | Apr. 02, 2023 USD ($) | Jun. 26, 2022 USD ($) $ / shares shares | Mar. 27, 2022 USD ($) | Jul. 02, 2023 USD ($) $ / shares shares | Jun. 26, 2022 USD ($) $ / shares shares | Jul. 02, 2023 £ / shares | Dec. 31, 2022 £ / shares | |||||
Basic earnings: | ||||||||||||
Net income from continuing operations | $ | $ 4.9 | $ 9.6 | $ 5.4 | $ 17.3 | ||||||||
Net loss from discontinued operations | $ | (0.2) | (0.3) | (0.2) | (0.4) | ||||||||
Net income | $ | $ 4.7 | $ 0.5 | $ 9.3 | $ 7.6 | $ 5.2 | $ 16.9 | ||||||
Common stock, par value (in EUR per share) | £ / shares | £ 0.50 | £ 0.50 | ||||||||||
Weighted average number of £0.50 ordinary shares: | ||||||||||||
For basic earnings per share (in shares) | shares | 26,923,804 | 27,428,579 | 26,922,528 | 27,458,980 | ||||||||
Dilutive effect of potential common stock (in shares) | shares | 141,534 | 274,638 | 161,458 | 261,085 | ||||||||
For diluted earnings per share (in shares) | shares | 27,065,338 | 27,703,217 | 27,083,986 | 27,720,065 | ||||||||
Earnings / (loss) per share using weighted average number of ordinary shares outstanding | ||||||||||||
Basic earnings per ordinary share for continuing operations (usd per share) | [1] | $ 0.18 | $ 0.35 | $ 0.20 | $ 0.63 | |||||||
Basic (loss)/earnings per ordinary share for discontinued operations (usd per share) | [1] | (0.01) | (0.01) | [2] | (0.01) | [2] | (0.01) | [2] | ||||
Basic (usd per share) | [1] | 0.17 | 0.34 | 0.19 | 0.62 | |||||||
Diluted earnings per ordinary share for continuing operations (usd per share) | [1] | 0.18 | 0.35 | 0.20 | 0.62 | |||||||
Diluted (loss)/earnings per ordinary share for discontinued operations (usd per share) | [1],[2] | (0.01) | (0.01) | (0.01) | (0.01) | |||||||
Diluted (usd per share) | [1] | 0.17 | 0.34 | 0.19 | 0.61 | |||||||
Ordinary shares | ||||||||||||
Basic earnings: | ||||||||||||
Common stock, par value (in EUR per share) | $ 0.50 | $ 0.50 | $ 0.50 | $ 0.50 | ||||||||
[1]The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total.[2] The loss per share for discontinued operations has not been diluted, since the incremental shares included in the weighted-average number of shares outstanding would have been anti-dilutive. |
Net Sales - Disaggregation of R
Net Sales - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 110.4 | $ 109.5 | $ 211.7 | $ 206.5 |
General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 31.2 | 40.5 | 63.6 | 75.8 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 31.5 | 35.3 | 58.2 | 65.1 |
Defense, First Response & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 47.7 | 33.7 | 89.9 | 65.6 |
Gas Cylinders | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 48.5 | 46.1 | 90 | 88.5 |
Gas Cylinders | General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 9 | 8.3 | 18.5 | 16.7 |
Gas Cylinders | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 18.6 | 19.1 | 32.5 | 36 |
Gas Cylinders | Defense, First Response & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 20.9 | 18.7 | 39 | 35.8 |
Elektron | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 61.9 | 63.4 | 121.7 | 118 |
Elektron | General industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 22.2 | 32.2 | 45.1 | 59.1 |
Elektron | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12.9 | 16.2 | 25.7 | 29.1 |
Elektron | Defense, First Response & Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 26.8 | $ 15 | $ 50.9 | $ 29.8 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 2.5 | $ 0.3 | $ 2.8 | $ 1.7 |
Asset impairments | 2.3 | 0 | ||
Severance and other costs | 0.2 | 0.3 | 0.5 | 1.7 |
Gas Cylinders | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset impairments | 2.3 | 0 | 2.3 | 0 |
Severance and other costs | 0.2 | 0.1 | 0.5 | 1.5 |
Elektron | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other costs | 0 | 0.2 | 0 | 0.2 |
California | Gas Cylinders | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other costs | $ 0.1 | $ 0.4 | ||
France | Gas Cylinders | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other costs | $ 0.1 | $ 1.4 |
Restructuring - Charges (Detail
Restructuring - Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other costs | $ 0.2 | $ 0.3 | $ 0.5 | $ 1.7 |
Asset impairments | 2.3 | 0 | ||
Total restructuring charges | 2.5 | 0.3 | 2.8 | 1.7 |
Gas Cylinders | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other costs | 0.2 | 0.1 | 0.5 | 1.5 |
Asset impairments | 2.3 | 0 | 2.3 | 0 |
Elektron | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance and other costs | $ 0 | $ 0.2 | $ 0 | $ 0.2 |
Restructuring - Reserve (Detail
Restructuring - Reserve (Details) $ in Millions | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 3.7 |
Costs incurred | 0.5 |
Cash payments and other | (0.9) |
Ending balance | $ 3.3 |
Acquisition and disposal rela_2
Acquisition and disposal related costs - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 26, 2022 USD ($) | |
Business Combinations [Abstract] | |
Acquisition-related costs | $ 0.3 |
Supplementary balance sheet i_3
Supplementary balance sheet information - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Millions | Jul. 02, 2023 | Dec. 31, 2022 |
Accounts and other receivables | ||
Trade receivables | $ 62.6 | $ 56.4 |
Prepayments and accrued income | 4.4 | 6.6 |
Derivative financial instruments | 0.3 | 0.7 |
Accounts and other receivables, net of allowances of $0.7 and $0.4, respectively | 72 | 67.8 |
Inventories | ||
Raw materials and supplies | 44.6 | 42.7 |
Work-in-process | 43.9 | 44 |
Finished goods | 30.8 | 24.4 |
Total inventories | 119.3 | 111.1 |
Property, plant and equipment, net | ||
Total property, plant and equipment | 336.8 | 323.6 |
Accumulated depreciation and impairment | (260.1) | (245.9) |
Total property, plant and equipment, net | 76.7 | 77.7 |
Other current liabilities | ||
Restructuring provision | 3.3 | 3.7 |
Short term provision | 0 | 0.1 |
Derivative financial instruments | 0.1 | 0.4 |
Operating lease liability | 5 | 4.7 |
Dividend payable | 3.5 | 0 |
Advance payments | 1.3 | 2.3 |
Total other current liabilities | $ 13.2 | $ 11.2 |
Operating lease, liability, current, statement of financial position [extensible enumeration] | Total other current liabilities | Total other current liabilities |
Other non-current liabilities | ||
Contingent liabilities | $ 1.5 | $ 0.7 |
Operating lease liability | 16.5 | 18.2 |
Other non-current liabilities | 0.1 | 0.1 |
Total other non-current liabilities | $ 18.1 | $ 19 |
Operating lease, liability, noncurrent, statement of financial position [extensible enumeration] | Total other non-current liabilities | Total other non-current liabilities |
Related party | ||
Accounts and other receivables | ||
Other receivables | $ 0.1 | $ 0.1 |
Nonrelated party | ||
Accounts and other receivables | ||
Other receivables | 4.6 | 4 |
Land, buildings and leasehold improvements | ||
Property, plant and equipment, net | ||
Total property, plant and equipment | 61.8 | 58.9 |
Machinery and equipment | ||
Property, plant and equipment, net | ||
Total property, plant and equipment | 263.6 | 254.9 |
Construction in progress | ||
Property, plant and equipment, net | ||
Total property, plant and equipment | $ 11.4 | $ 9.8 |
Goodwill and other identifiab_3
Goodwill and other identifiable intangible assets - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jul. 02, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 65.6 |
Exchange difference | 1.9 |
Ending balance | 67.5 |
Gas Cylinders | |
Goodwill [Roll Forward] | |
Beginning balance | 25 |
Exchange difference | 1.2 |
Ending balance | 26.2 |
Elektron | |
Goodwill [Roll Forward] | |
Beginning balance | 40.6 |
Exchange difference | 0.7 |
Ending balance | $ 41.3 |
Goodwill and other identifiab_4
Goodwill and other identifiable intangible assets - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Accumulated goodwill impairment losses | $ 8 | $ 8 | |
Amortization of intangible assets | $ 0.4 | $ 0.4 | |
Useful life | 4 years | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
Amortization, remainder of fiscal year | $ 0.8 | ||
Amortization, year one | 0.8 | ||
Amortization, year two | 0.8 | ||
Amortization, year three | 0.8 | ||
Amortization, year four | $ 0.8 |
Goodwill and other identifiab_5
Goodwill and other identifiable intangible assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Dec. 31, 2022 | |
Cost: | |||
Finite-Lived Intangible Assets, Gross | $ 23 | $ 22.6 | |
Finite-Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0.4 | ||
Accumulated amortization: | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 10.7 | 10.1 | |
Amortization of purchased intangible assets | 0.4 | $ 0.4 | |
Exchange movements | 0.2 | ||
Net book values: | 12.3 | 12.5 | |
Customer relationships | |||
Cost: | |||
Finite-Lived Intangible Assets, Gross | 15.2 | 15.2 | |
Finite-Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0 | ||
Accumulated amortization: | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 6.3 | 6.1 | |
Amortization of purchased intangible assets | 0.2 | ||
Exchange movements | 0 | ||
Net book values: | 8.9 | 9.1 | |
Technology and trading related | |||
Cost: | |||
Finite-Lived Intangible Assets, Gross | 7.8 | 7.4 | |
Finite-Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | 0.4 | ||
Accumulated amortization: | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 4.4 | 4 | |
Amortization of purchased intangible assets | 0.2 | ||
Exchange movements | 0.2 | ||
Net book values: | $ 3.4 | $ 3.4 |
Debt - Schedule of Debt Outstan
Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Millions | Jul. 02, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (0.7) | $ (0.7) |
Total debt | 92.4 | 81.2 |
Less current portion | 0 | (25) |
Non-current debt | 92.4 | 56.2 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Drawn | $ 68.1 | 31.9 |
Loan Notes | 4.88% Loan Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 4.88% | |
Drawn | $ 0 | 25 |
Loan Notes | 4.94% Loan Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate | 4.94% | |
Drawn | $ 25 | $ 25 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jul. 02, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Amount drew down during the period, on line of credit | $ 35.1 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt, weighted average interest rate | 6.80% | 3.80% |
Drawn | $ 68.1 | $ 31.9 |
Borrowing capacity | $ 56.9 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net loss | $ (0.2) | $ (0.3) | $ (0.2) | $ (0.4) |
Discontinued Operations, Held-for-sale | Superform Aluminum Superplastic | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 1.9 | 2 | 4.2 | 3.7 |
Cost of goods sold | (1.7) | (1.6) | (3.6) | (3.2) |
Gross profit | 0.2 | 0.4 | 0.6 | 0.5 |
Selling, general and administrative expenses | (0.4) | (0.2) | (0.7) | (0.4) |
Restructuring charges | (0.1) | (0.3) | (0.2) | (0.3) |
Acquisition and disposal related costs | 0 | (0.2) | 0 | (0.2) |
Operating loss | (0.3) | (0.3) | (0.3) | (0.4) |
Tax credit | 0.1 | 0 | 0.1 | 0 |
Net loss | $ (0.2) | $ (0.3) | $ (0.2) | $ (0.4) |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 02, 2023 | Dec. 31, 2022 |
Held-for-sale assets | ||
Current assets | $ 7.8 | $ 9.3 |
Held-for-sale liabilities | ||
Held-for-sale liabilities | 3.5 | 5 |
Discontinued operations | Superform Aluminum Superplastic | ||
Held-for-sale assets | ||
Inventory | 2.6 | 2.7 |
Accounts and other receivables | 1.5 | 2.7 |
Current assets | 4.1 | 5.4 |
Right-of-use-assets | 2.5 | 2.7 |
Held-for-sale assets | 6.6 | 8.1 |
Held-for-sale liabilities | ||
Accounts payable | 0.5 | 0.8 |
Accrued liabilities | 0.3 | 0.2 |
Other liabilities | 0 | 1 |
Operating lease liability | 2.7 | 3 |
Held-for-sale liabilities | $ 3.5 | $ 5 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) $ in Millions | Jul. 02, 2023 USD ($) |
Held-for-sale | Building | Elektron | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Amount of property disposed | $ 1.2 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 6 Months Ended | |
Jul. 02, 2023 | Jun. 26, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 50% | 22.10% |
Share Plans - Schedule of Share
Share Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Total share-based compensation charges | $ 0.7 | $ 0.7 | $ 1.3 | $ 0.9 |
Share Plans - Additional Inform
Share Plans - Additional Information (Details) - $ / shares | 1 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Jul. 02, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted during the period (in shares) | 10,000 | 31,028 |
Weighted average fair value of options granted (in USD per share) | $ 14.71 | |
Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 50% | |
Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 50% | |
Luxfer Holdings PLC Long-Term Umbrella Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards granted during the period (in shares) | 126,600 | |
Weighted average fair value of options granted (in USD per share) | $ 17.94 |
Share Plans - Share Options Fai
Share Plans - Share Options Fair Value Assumptions (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jul. 02, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility range (%), minimum | 36.11% | 36.11% |
Expected volatility range (%), maximum | 49.43% | 49.43% |
Risk-free interest rate (%), minimum | 1.28% | 1.28% |
Risk-free interest rate (%), maximum | 2.99% | 2.99% |
Forfeiture rate (%) | 5% | 5% |
Weighted average exercise price (in USD per share) | $ 1 | $ 1 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield (%) | 2.75% | 2.75% |
Expected life of share options range (years) | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield (%) | 3.41% | 3.41% |
Expected life of share options range (years) | 4 years | 4 years |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Dividend Paid and Proposed (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Aug. 02, 2023 | May 03, 2023 | Feb. 01, 2023 | Aug. 03, 2022 | May 04, 2022 | Feb. 02, 2022 | Jul. 02, 2023 | Jul. 02, 2023 | Jun. 26, 2022 | |
Class of Stock [Line Items] | |||||||||
Dividends paid (in USD per share) | $ 0.130 | $ 0.130 | $ 0.130 | $ 0.130 | $ 0.125 | ||||
Dividends paid | $ 3.5 | $ 3.5 | $ 3.6 | $ 3.6 | $ 3.4 | $ 7 | $ 7 | $ 7 | |
Dividends | $ 10.5 | ||||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends paid (in USD per share) | $ 0.130 | ||||||||
Dividends paid | $ 3.5 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - Deferred shares $ in Millions | 1 Months Ended |
Jul. 31, 2022 USD ($) | |
Class of Stock [Line Items] | |
Payment for cancellation of deferred shares | $ 0.1 |
Additional paid-in capital | |
Class of Stock [Line Items] | |
Payment for cancellation of deferred shares | $ 149.8 |
Segmental Information - Additio
Segmental Information - Additional Information (Details) | 6 Months Ended |
Jul. 02, 2023 segment division | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 2 |
Number of operating divisions | 4 |
Number of reportable segments | 2 |
Segmental Information - Financi
Segmental Information - Financial Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 110.4 | $ 109.5 | $ 211.7 | $ 206.5 | |
Adjusted EBITDA | 14.4 | 16.9 | 25.7 | 33 | |
Depreciation and amortization | 3.3 | 3.4 | 6.6 | 7.1 | |
Restructuring charges | 2.5 | 0.3 | 2.8 | 1.7 | |
Total assets | 415.2 | 415.2 | $ 407.1 | ||
Capital expenditures | 3.2 | 2 | 5.1 | 3 | |
Discontinued operations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 6.6 | 6.6 | 8.1 | ||
Capital expenditures | 0.2 | 0 | 0.1 | 0 | |
Gas Cylinders | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 48.5 | 46.1 | 90 | 88.5 | |
Elektron | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 61.9 | 63.4 | 121.7 | 118 | |
Operating Segments | Gas Cylinders | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 48.5 | 46.1 | 90 | 88.5 | |
Adjusted EBITDA | 4.9 | 3.7 | 7.4 | 6.4 | |
Depreciation and amortization | 1 | 1.2 | 2.1 | 2.6 | |
Restructuring charges | 2.5 | 0.1 | 2.8 | 1.5 | |
Total assets | 139.6 | 139.6 | 133.1 | ||
Capital expenditures | 0.3 | 0.2 | 0.6 | 0.4 | |
Operating Segments | Elektron | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 61.9 | 63.4 | 121.7 | 118 | |
Adjusted EBITDA | 9.5 | 13.2 | 18.3 | 26.6 | |
Depreciation and amortization | 2.3 | 2.2 | 4.5 | 4.5 | |
Restructuring charges | 0 | 0.2 | 0 | 0.2 | |
Total assets | 223.9 | 223.9 | 216.4 | ||
Capital expenditures | 2.7 | 1.8 | 4.4 | 2.6 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 45.1 | 45.1 | $ 49.5 | ||
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 |
Segmental Information - Geograp
Segmental Information - Geographic Information by Region (Details) - USD ($) $ in Millions | Jul. 02, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 76.7 | $ 77.7 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 39.3 | 41.6 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 34 | 32 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 2 | 2.8 |
Rest of Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 1 | 1 |
Asia Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 0.4 | $ 0.3 |
Segmental Information - Reconci
Segmental Information - Reconciliation of Consolidated Segment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Segment Reporting [Abstract] | ||||
Adjusted EBITDA | $ 14.4 | $ 16.9 | $ 25.7 | $ 33 |
Other share-based compensation charges | (0.7) | (0.7) | (1.3) | (0.9) |
Depreciation and amortization | (3.3) | (3.4) | (6.6) | (7.1) |
Gain on disposal of property, plant and equipment | 0 | 0.2 | 0 | 0.2 |
Restructuring charges | (2.5) | (0.3) | (2.8) | (1.7) |
Acquisition and disposal related costs | 0 | (0.1) | 0 | (0.3) |
Defined benefits pension credit / (charge) | 0.6 | 0.3 | (8.3) | 0.7 |
Interest expense, net | (1.8) | (0.9) | (3.1) | (1.7) |
Net income from continuing operations | $ 6.7 | $ 12 | $ 3.6 | $ 22.2 |
Segmental Information - Geogr_2
Segmental Information - Geographic Information by Region (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 110.4 | $ 109.5 | $ 211.7 | $ 206.5 |
Top five countries | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 85.2 | $ 80.6 | $ 162.6 | $ 152.7 |
Top five countries | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 77.20% | 73.60% | 76.90% | 74% |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 67.8 | $ 61.7 | $ 125.5 | $ 117 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 61.50% | 56.30% | 59.30% | 56.70% |
U.K. | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 5.2 | $ 6 | $ 10.8 | $ 11.4 |
U.K. | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 4.70% | 5.50% | 5.10% | 5.50% |
Japan | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 6.3 | $ 4.1 | $ 10.8 | $ 7.5 |
Japan | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 5.70% | 3.70% | 5.10% | 3.60% |
Germany | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 3.8 | $ 6.4 | $ 10.1 | $ 10.9 |
Germany | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 3.40% | 5.80% | 4.80% | 5.30% |
Italy | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 2.1 | $ 2.4 | $ 5.4 | $ 5.9 |
Italy | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 1.90% | 2.20% | 2.60% | 2.90% |
Rest of Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 9.6 | $ 8.8 | $ 19.3 | $ 17.8 |
Rest of Europe | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 8.70% | 8% | 9% | 8.60% |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 8.3 | $ 12.2 | $ 17.3 | $ 21.1 |
Asia Pacific | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 7.50% | 11.10% | 8.20% | 10.20% |
Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 7.3 | $ 7.9 | $ 12.5 | $ 14.9 |
Other | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 6.60% | 7.20% | 5.90% | 7.20% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended | |||
Nov. 30, 2020 lawsuit | Nov. 30, 2018 fatality | Jul. 02, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||
Number of fatalities | fatality | 1 | |||
Number of lawsuits | lawsuit | 3 | |||
Revolving credit facility | ||||
Loss Contingencies [Line Items] | ||||
Drawn | $ 68.1 | $ 31.9 | ||
Uncommitted accordion facility | 25 | 50 | ||
Committed Banking Facilities | ||||
Loss Contingencies [Line Items] | ||||
Facility | 125 | 100 | ||
Drawn | $ 68.1 | $ 31.9 |
Commitment and Contingencies -
Commitment and Contingencies - Schedule of Uncommitted Facilities (Details) - USD ($) $ in Millions | Jul. 02, 2023 | Dec. 31, 2022 |
Overdraft | ||
Loss Contingencies [Line Items] | ||
Facility | $ 3.7 | $ 4 |
Drawn | 0 | 0 |
Bond and Guarantees | ||
Loss Contingencies [Line Items] | ||
Facility | 0.6 | 0.6 |
Drawn | 0.2 | 0.2 |
Letters of Credit | ||
Loss Contingencies [Line Items] | ||
Facility | 3 | 2 |
Drawn | 1.6 | 1.5 |
Bonding facility for bank guarantees, letter of credit and bank overdrafts | ||
Loss Contingencies [Line Items] | ||
Facility | 7.3 | 6.6 |
Drawn | $ 1.8 | $ 1.7 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 25, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 12 |
Pension Settlement - Additional
Pension Settlement - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2023 | Apr. 02, 2023 | Jun. 26, 2022 | Jul. 02, 2023 | Jun. 26, 2022 | |
US | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension charge | $ (0.2) | $ 9.2 | $ 9 | ||
Pension charge, cash | 2.1 | 2.3 | |||
Derecognition of pension liability | 6.9 | ||||
Pension refund | 0.2 | $ (9.2) | (9) | ||
United Kingdom | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit pension credit | $ 0.4 | $ 0.3 | $ 0.7 | $ 0.7 |