Contents. Interim Management Report 1. Unaudited Condensed Consolidated Interim Financial Information 8. Condensed Group Income Statement 9

Transcription

1 Interim Report For the six month period ended 30 June 2016

2 Contents Interim Management Report 1 Unaudited Condensed Consolidated Interim Financial Information 8 Condensed Group Income Statement 9 Condensed Group Statement of Other Comprehensive Income 10 Condensed Consolidated Statement of Financial Position 11 Condensed Group Statement of Changes in Equity for the six month period ended 30 June Condensed Group Statement of Changes in Equity for the six month period ended 27 June Condensed Group Statement of Changes in Equity for the year ended 31 December Condensed Consolidated Statement of Cash Flows 15 Notes to the Condensed Consolidated Financial Statements 16

3 Interim Management Report For the six months ended 30 June 2016 Key Financial Performance Measures The Group uses a number of key performance metrics to assess its financial performance for the six month period ended 30 June Group revenue m EBITDA m Adjusted diluted EPS (cents) Shareholders equity m Six month period ended June 2016 Six month period ended June (restated) Change m m % Group revenue % EBITDA % EBIT % Profit before tax, exceptional items and share of associate profits % Profit for the period (62.1%) Adjusted diluted EPS (cents) % EBITDA interest cover (times) (53.5%) Total assets % Shareholders equity (5.2%) Net debt 6 (excluding convertible loan notes) % 1 EBITDA represents earnings before interest, tax, depreciation, amortisation, exceptional items, non-recurring items and the Group s share of profits from its equity-accounted investee. Management believes that EBITDA, while not defined under IFRSs, provides a fair reflection of the underlying trading performance of the Group. Further detail in relation to exceptional and non-recurring items is contained in note 3 of the interim financial information. 2 EBIT is EBITDA less depreciation and amortisation. 3 Profit for the period includes 3.4 million (2015: 18.4 million), being the Group s share of the profits from its equity-accounted investee. 4 Adjusted Diluted Earnings per Share is calculated by dividing the adjusted profit attributable to ordinary shareholders (which excludes exceptional and non-recurring items, and their tax effects and the Group s share of after tax profits of its equity-accounted investee) by the weighted average number of Ordinary Shares outstanding, as adjusted for the effects of all Ordinary Shares and options with a dilutive effect (see reconciliation to IAS 33 Earnings per share calculation in note 13). 5 EBITDA interest cover based on the six month period (see reconciliation to Income Statement in note 2). 6 Comparative total equity and net debt as at 31 December The restatement in respect of the comparative 27 June 2015 financial information arises from the change in accounting policy with regard to how the Group accounts for its investment in Altas Investments plc, formerly NTR plc. This is explained in notes 1 and 8. 1

4 Interim Management Report For the six months ended 30 June 2016 (continued) Interim Highlights The financial and operational highlights for the first six months of 2016 were as follows: Group revenue increased by 51.0% at million (2015: million), due primarily to a strong performance in the Plastics division, driven by a 94.6 million contribution during the period from IPL Inc. ( IPL ), which was acquired on 23 July 2015; Group EBITDA showed an increase from 13.3 million in 2015 to 27.2 million in The six months results include the contribution of 15.6 million from IPL; the successful integration of the IPL business since acquisition, evidenced by the strong demand for its plastics products in Canada and the United States. IPL has delivered a strong performance in the period and has outperformed expectations. A significant capital investment plan has been developed, to commence during H2 2016, that will substantially increase IPL s production capacity in certain production areas so as to enable it to meet its organic growth requirements; Group EBIT increased by 94.4% to 15.6 million in The six months results include a contribution of 9.3 million from IPL; the profit for the period before tax, exceptional items and the Group s share of profits from its equity-accounted investee amounted to 11.3 million (2015: 8.2 million); the profit for the period after tax and exceptional items amounted to 8.9 million (2015 restated: 23.5 million). This includes after tax profit from Altas Investments plc ( Altas ), formerly NTR plc, of 3.4 million (2015: 18.4 million); total equity amounted to million at 30 June 2016 compared to million at 31 December 2015, the decrease driven primarily by unfavourable sterling pound exchange rate movements and an increase in the Put Liability in respect of the IPL non-controlling interest shareholding; net debt (excluding Convertible Loan Notes) increased during the period since 31 December 2015 by 26.5 million to million at period end (31 December 2015: million), the increase driven by the drawdown of funding for the new acquisitions outlined below and various capital and other projects; the Group commissioned a state of the art food grade packaging manufacturing facility located at OnePlastics Group ( OPG ) in Cork, Ireland. The facility will become operational during H and will enable the design and manufacture of innovative plastic packaging products to support the Irish food industry and will facilitate cross sharing of both R&D and products between IPL and OPG; the re-configuration of an OPG UK operation to provide a broader product offering to a wider range of customers in the UK rigid plastic packaging market that will commence production in 2017; the Group acquired H&T Labour and Vacuumation Services Limited ( H&T ) on 31 January 2016 and the business and assets of Bale Group Limited ( Bale ) on 20 May Both acquisitions were in the Specialist Environmental Services ( SES ) division and are UK headquartered. They further increase the Group s presence in the SES sector in the UK, following on from the acquisition of Greenway Environmental Services Limited s business and assets in September 2015; and the Group invested in a refrigeration recycling facility, utilising best in class technology, in Northern Ireland capable of servicing the island of Ireland. 2

5 Accounting policies and basis of preparation The Group s 2016 interim financial information is prepared in accordance with International Accounting Standard 34, Interim Financial Reporting ( IAS 34 ) as adopted by the European Union. Details of the basis of preparation of the interim financial information is included in note 1 on page 16. Details of the Group s significant accounting policies are included in note 1 to the 2015 Annual Report. As set out in note 1 to the 2015 Annual Report, the Group changed its accounting policy as to how it accounts for its investment in Altas Investments plc, formerly NTR plc. Previously, the Group applied IAS 39 Financial Instruments: Recognition and Measurement to the accounting for this investment and had departed from the requirements of IAS 28 Investments in Associates and Joint Ventures and IFRS 12 Disclosure of Interests in other Entities. The Group is now applying the requirements of IAS 28 and IFRS 12 in relation to this investment and this resulted in a prior period adjustment to the 27 June 2015 financial information. The impact on the comparatives is set out in note 20. Forward-looking statements This report contains some forward-looking statements that represent One51 s expectations for its business, based on current expectations about future events, which by their nature involve risks and uncertainties. One51 believes that its expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve risks and uncertainties which are in some cases beyond One51 s control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements. FINANCIAL REVIEW Revenue Group revenue increased by 51.0% to million in 2016 (2015: million) analysed as follows: m m IPL Inc* OnePlastics Group ClearCircle Environmental *IPL Inc. acquired on 23 July 2015 EBITDA Group EBITDA increased by 104.9% to 27.2 million in 2016 (2015: 13.3 million) analysed as follows: m m IPL Inc OnePlastics Group ClearCircle Environmental Other reconciling items (2.8) (3.1) The increase in Group EBITDA includes the six month contribution from IPL ( 15.6 million) which was acquired in July Other reconciling items includes central costs not allocated to operating segments. A detailed business review is included on pages 5 to 7 of this interim management report. Exceptional and Non-Recurring Items The table below summarises the exceptional and non-recurring items which have impacted on the interim financial results during the current and prior periods m m Non-recurring items - (credit) (0.3) (1.2) Total included in operating profit before exceptional items - (credit) (0.3) (1.2) Restructuring and other costs Transaction related costs (Gain)/loss arising in respect of previously disposed subsidiary undertakings (0.2) 0.9 Total included as exceptional items charge Total net charge to income statement for non-recurring and exceptional items Further detail on the nature of these exceptional and non-recurring items is included in note 3 of the interim financial information. Included in the 3.1 million charge in respect of transaction related costs is 2.7 million relating to the deferred IPO process in the period. 3

6 Interim Management Report For the six months ended 30 June 2016 (continued) Finance Costs Interest payable increased by 3.6 million to 4.6 million in 2016 (2015: 1.0 million) primarily as a result of an increase in the Group s debt levels arising from the IPL acquisition financing in July Taxation The total tax charge for the period was 2.2 million (2015: 1.2 million), the increase driven by higher profitability in higher tax rate jurisdictions such as Canada and the United States. Other Comprehensive Income Other comprehensive income in the period was a charge of 16.8 million (2015 restated: credit of 12.3 million). The key components of other comprehensive income are a charge of 7.2 million associated with increases in the Put Liability relating to the 33.3% shareholding in IPL, not owned by the Group (2015: Nil). Also included is a charge of 8.1 million (2015: credit of 8.6 million) relating to currency translation of foreign operations and 1.5 million of a charge (2015 restated: credit of 3.8 million) relating to the Group s share of Altas other comprehensive income. Foreign exchange impact Currency can impact the Group s reported financial information. Were the current period EBITDA to be presented on a constant currency basis applying the average rates used for the 6 month period ended 27 June 2015 financial information, the current period EBITDA would be 0.9 million higher. Adjusted Earnings per Share Management believe that Adjusted Earnings Per Share provides a fair reflection of the underlying trading performance of the Group before taking into account the impact of exceptional and non-recurring items, and their tax effects and the Group s share of after tax profits of its equity-accounted investee. Adjusted earnings per share and adjusted fully diluted earnings per share is calculated by dividing the adjusted profit attributable to ordinary shareholders (which excludes exceptional and non-recurring items, and their tax effects and the Group s share of after tax profits of its equityaccounted investee) by the weighted average number of Ordinary Shares outstanding. In the case of adjusted fully diluted earnings per share, the number of outstanding Ordinary Shares is adjusted for the effects of all Ordinary Shares and options with a dilutive effect. In the six month period, the adjusted basic earnings per share was 5.79 cent (2015: 3.57 cent). The adjusted diluted earnings per share was 5.58 cent (2015: 3.44 cent). Further details on earnings per share are included in note 13 of the interim financial information. Cash flows in the period The Condensed Consolidated Statement of Cash Flows for the period ended 30 June 2016 is set out on page 15. The analysis below sets out a reconciliation from EBITDA for the period to net cash flow from operating activities before tax and then to the Group s free cash flow, as defined below. Free Cash Flow Free cash flow represents cash generated by Group activities during the reporting period (or in the case of cash outflow, used by Group activities during the reporting period) and available for reinvestment elsewhere, including the early repayment of debt. Free cash flow for the first six months of 2016 was an inflow of 0.4 million (2015: outflow of 10.0 million) and this includes a net cash outflow of 2.1 million (2015: net cash inflow of 0.1 million) in respect of exceptional and non-recurring items. Net cash inflow from operating activities (before tax) was 12.4 million (2015: net cash outflow of 3.3 million) and this was used to fund maintenance capital expenditure of 5.0 million, finance costs of 4.7 million and income tax payments of 2.3 million m m EBITDA before exceptional and non-recurring items Foreign exchange gains (0.1) (1.9) Exceptional and non-recurring items with cash effect (2.1) 0.1 Working capital movements 2 (11.0) (14.5) Other (1.6) (0.3) Net cash inflow/(outflow) from operating activities (before tax) 12.4 (3.3) Maintenance capital expenditure 4 (5.0) (4.6) Finance costs paid (net) (4.7) (1.5) Income tax paid (2.3) (0.6) Free cash flow (10.0) 1 The comparative information excludes IPL, which was acquired in 23 July Excludes 0.9 million of working capital funding post acquisitions. 3 Free cash flow as shown above is before development capital expenditure, debt repayments and the settlement of certain other long term non-operating items. 4 Maintenance capital expenditure is the necessary capital expenditure required to keep existing operations running at their existing production/output levels. Capital expenditure Capital expenditure in the first six months of 2016 of 17.2 million (2015: 7.4 million) was inclusive of development capital expenditure of 12.2 million (2015: 2.8 million). Additions in the period amounted to 16.9 million (2015: 9.2 million). Included in this number is 8.6 million relating to assets under construction or capital deposits paid. These assets have not yet been commissioned for use in production and are therefore not yet contributing to the Group s EBITDA. Net debt * m m Cash and cash equivalents Bank loans relating to IPL (74.6) (76.2) Bank loans (non IPL) (65.1) (38.9) Other loans relating to IPL (includes subordinated term borrowings) (32.1) (30.7) Net debt (146.8) (120.3) * At 31 December 2015 The definition of net debt is defined by the Group as cash at hand and in bank less bank overdrafts and loans, less other borrowings and finance lease obligations. The definition of net debt excludes Convertible Loan Notes. Bank and other loans relating to IPL (includes subordinated term borrowings) included above are different from those amounts included in the statement of financial position as the above amounts reflect the actual balances due to the lenders at the reporting period end. The amounts included within the statement of financial position are calculated under the effective interest rate method as prescribed by IAS 39 Financial Instruments: Recognition and Measurement. 4

7 BUSINESS REVIEW IPL Inc m m Revenue EBITDA On 23 July 2015, the Group acquired a 67% shareholding in IPL, a Canadian headquartered group with operations in Canada and the United States. IPL is a leading North American manufacturer of injected moulded plastics products. From three manufacturing plants in Saint Damien (Canada), Edmundston (Canada) and Missouri (USA), the group manufactures waste carts, bulk packaging, retail packaging and material handling containers. It comprises two constituent divisions, namely Retail Packaging and Bulk & Environment ( B&E ). The former has two production facilities: Edmundston in New Brunswick which manufacturers thin-wall containers for a regional market; and Lee s Summit, Missouri, which services a national market for retail lids and over-caps. The B&E division has a single production facility in Saint Damien, Canada, which produces waste, bulk packaging and material handling containers. IPL occupies approximately 850,000 square feet of manufacturing and warehousing space and employs c. 700 people. The first six month period of 2016 has seen a very strong performance from IPL, following its successful integration into the Group. Both divisions were ahead of expectation with total EBITDA generated of 15.6 million from revenue of 94.6 million, due to strong demand for IPL s product offerings in both the US and Canadian markets. As part of the overall integration plan regarding IPL, several new personnel have been appointed to the senior management team, including the redeployment of some from the Group s existing OPG structure. This, along with a well diversified underlying business, a skilled workforce and a high quality asset base, has resulted in the very good performance in the period. OnePlastics Group m m Revenue EBITDA OPG operates from five separate sites across Ireland, the UK and China occupying approximately 400,000 square feet of manufacturing and warehousing space and employing c. 500 people. Like IPL, OPG is engaged in the supply and distribution of manufactured products across three primary business categories, being Environmental Containers, Packaging and Industrial Products. In Ireland, OPG supplies a range of containers to the agricultural and decorative coatings industries and also manufactures bespoke products for multinational companies serving the nutrition, pharmaceutical and computer storage sectors. Its manufacturing plant in China supports the Irish operation by producing bespoke products for the computer storage sector which allows it to support the global supply chain of its customers. In the UK, MGB Plastics and Straight manufacture and supply wheeled refuse bins and other recycling containers to the UK market. OPG is the largest supplier of wheeled bins and recycling containers in the UK market, with customers in both the public and private sectors. In addition, the AAC business manufactures a product range including construction products, school chairs and trays for a number of blue-chip customers. As well as supplying paint containers to the decorative coatings industry in the UK, Protech Plastics Containers ( PPC ) has expanded its product portfolio and now supplies plastic pail containers to a range of industries such as the fencing and adhesive markets. OPG has an increasing number of high-profile multinational customers in Ireland and the UK and has developed plastic products in partnership with a number of blue chip international companies. The OPG management team actively manages these relationships while continuously exploring opportunities to better serve the ever changing requirements of customers. On 22 January 2016, OPG announced its plan to invest 8 million in the development of a state of the art food grade manufacturing facility at Protech s Cork site. The investment is targeted at enabling Protech to produce innovative packaging products to support the growing Irish food industry. This represents a significant opportunity for the business to partner with a blue chip Irish agri-food customer base through the provision of Irish produced packaging. This project completed in early August with the facility now commissioned and operational. The facility is expected to increase its production gradually over the second half of the year with a view to being fully operational from the beginning of Revenue for the period was 67.4 million (2015: 66.7 million) while EBITDA was 9.8 million (2015: 10.9 million). The decrease in EBITDA has been caused by unfavourable currency movements driven by a weakening pound sterling during the period (unfavourable impact of 0.6 million on a constant currency basis), the comparative period result also included one significant higher margin contract and by costs incurred in relation to the re-configuration of certain production processes at one of our UK operations. These costs were incurred so as to align that business as it transitions its operations to service a broader range of customers in the UK packaging marketplace. ClearCircle Environmental * m m Revenue EBITDA * Includes the results of the Metals North UK business, which was discontinued from July ClearCircle is the umbrella brand for the Group s SES activities and the Metals and Materials Recycling activities which are located in Ireland and the UK. The businesses within the division provide a range of environmental services including hazardous waste management activities and services involved in the recovery of resources for recycling and reuse in a sustainable manner. The division generated revenue of 52.2 million during the financial period (2015: 75.2 million) and EBITDA of 4.5 million (2015: 5.5 million). The comparative numbers include 20.7 million of revenue and 0.3 million of EBITDA in respect of the Metals North UK business, which was discontinued from July The EBITDA decrease is primarily driven by the Metals and Materials recovery business where EBITDA declined by 1.7 million from prior period. Offsetting this was an increase in SES EBITDA 5

8 Interim Management Report For the six months ended 30 June 2016 (continued) of 0.8 million, the results of which include those of the newly acquired businesses during the period and in the second half of Adverse currency movements due to the weakening pound sterling, negatively impacted the results by 0.3 million. SES ClearCircle s Irish SES business, Rilta Environmental Limited ( Rilta ) is licensed by the Environmental Protection Agency and has ISO 9001 and accreditations. The key activities of Rilta include waste brokerage, contaminated soil disposal, waste oil collection and recycling, industrial services, waste treatment, recycling waste packaging, recycling transformers, asbestos disposal and lead acid battery collection and disposal. A market leader within many of its chosen service segments, Rilta continues to be well positioned to benefit from the upturn in domestic economic activity. Rilta remains focused on customer service, providing innovative solutions and adapting to new market opportunities. ClearCircle s UK SES business is Future Industrial Services Limited ( Future ). Future holds permits issued by the UK Environmental Agency and holds ISO 9001 and accreditations. The business provides hazardous waste management and industrial services from three locations, Kirkby, Newport and Berwick-upon-Tweed with four additional locations in Rugby, Portsmouth, Plymouth and Exeter from the acquisitions detailed below. A significant capital expenditure programme has been undertaken in recent years to develop the Kirkby and Berwick sites and through the acquisition of the business and assets of Greenway Environmental Services Limited ( GES ) in September This programme has been further enhanced by the acquisitions of H&T in January 2016 and the business and assets of Bale in May Both businesses provide specialist industrial and other hazardous waste management services in the UK and are in the process of being integrated with Future. Revenue in the SES businesses increased by 43.8% to 25.3 million (2015: 17.6 million) primarily as a result of an increase in project related work in Ireland (including waste management, soils and asbestos related activities) and the UK acquisitions outlined above. EBITDA for the business increased by 42% to 2.7 million (2015: 1.9 million). The current period result is enhanced by the H&T acquisition in January 2016, the GES acquisition in September 2015 and, to a lesser extent, the Bale acquisition in May The acquisitions of H&T and Bale is consistent with One51 s strategy to develop its ClearCircle business across niche areas of the environmental services sector in Ireland and the UK. Metals and Materials Recovery ClearCircle s Metal Recycling business in Ireland operates four sites in Cork, Galway, Limerick and Mountmellick. These operations are engaged in scrap metal processing, end of life vehicle processing and ferrous/nonferrous metals trading. In the UK, a further two facilities are operated in the South East of England. The common theme between these businesses is the collection and processing of end of life ferrous and non-ferrous material for resale. Two further materials recovery facilities are located in Northern Ireland which are engaged in the remediation of end of life white goods (principally refrigerators) and glass recycling. Management are in the process of consolidating these activities into one site. Revenue in the Metals and Materials recovery business decreased from 57.7 million in 2015 to 26.9 million in The 2015 number includes 20.7 million relating to the Metals North UK operations, discontinued in July EBITDA for the businesses decreased from 3.6 million in 2015 to 1.9 million in The 2015 number includes 0.3 million in respect of Metals North UK. The period comparisons are significantly impacted by the decline in global commodity prices which took significant effect from the middle of the 2015 financial year onwards. Notwithstanding that overall performance is below prior period, both Irish and UK metals operations have performed ahead of expectation in the period, given the economic conditions in the marketplace. The materials recovery business in Northern Ireland has performed below expectation but is forecast to improve its performance in the second half of the year. Investments Altas Investments plc (formerly NTR plc) One51 continues to hold a 23.6% interest in Altas Investments plc ( Altas ), formerly NTR plc, at period end. In FY2015, the Group changed its policy as to how it accounts for this investment to an equity-accounted investee as opposed to that of an available-for-sale financial asset carried at fair value. The previous accounting policy was applied in the six month period ended 27 June 2015 previously published and therefore the comparative numbers are restated in this document. The Group s share of Altas profits in the period amounted to 3.4 million (2015 restated: 18.4 million) and the Group s share of Altas other comprehensive income was a charge of 1.5 million (2015 restated: credit of 3.8 million). The Group s 23.6% interest in Altas is carried at 3.4 million at 30 June 2016 (31 December 2015: 1.5 million). Pioneer Green Energy LLC One51 continues to hold its 13.7% stake in Pioneer Green Energy LLC ( Pioneer ). Pioneer is a US wind and solar energy development company and continued to make progress during the period in its construction ready projects with various partners. The Group originally invested 1.4 million in Pioneer. During the period, the Group recouped 0.6 million (2015: 1.3 million) from Pioneer and it is anticipated that further value will be extracted over the medium term. The fair value of our investment as at 30 June 2016 is 1.2 million (31 December 2015: 1.2 million). 6

9 Principal Risks and Uncertainties The Board of One51 is responsible for the Group s risk management and internal control systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group s strategic and business objectives. The Board has approved a Risk Management Policy which sets out delegated responsibilities and procedures for the management of risk across the Group. The principal risks and uncertainties facing the Group in the short to medium term, as set out in the Directors report and note 35 of the 2015 Annual Report (together with the principal mitigation measures), continue to be the principal risks and uncertainties facing the Group for the remaining six months of the financial year. In addition to these risks, the uncertainties arising from the UK s decision to exit the European Union remain difficult to ascertain and even more difficult to quantify. One impact to date has been a further weakening of pound sterling in the period since the UK s decision to exit the EU. Other potential effects such as commercial and regulatory impacts are currently being assessed by the Group and it is anticipated that there will be more clarity in relation to these matters as the UK moves closer to its actual leave date. Whilst those matters noted in the 2015 Annual Report do not represent an exhaustive statement of all relevant risks and uncertainties, matters which are not currently known to the Board or events which the Board considers to be of low likelihood could emerge and give rise to material consequences. The mitigation measures that are maintained in relation to the Group s risks are designed to provide a reasonable and not an absolute level of protection against the impact of the events in question. Capital Resources and Going Concern The Group is financed principally through a combination of equity, bank and other borrowings and free cash flow generated from operations. The efficient management of assets and working capital form a key part of the Group s financial structure. The Group has appropriate financial resources and operates in established business sectors across different geographical areas and industries. Taking into consideration the future financial requirements of the Group, the existing Irish bank facilities which mature in January 2019 and the ring-fenced IPL Canadian bank facilities which mature in July 2019, the Directors have determined that the Group as a whole has adequate resources to continue in operational existence for the foreseeable future. At the period end, the Group held 25.0 million of cash s (31 December 2015: 25.5 million) and had bank and other loans in its Statement of Financial Position, as indicated in note 9 of the interim financial information, of million (31 December 2015: million). The Group s combined committed facilities at the period end total million. The Group also has available to it, other uncommitted bank facilities. Following the deferral of the IPO process, the Group continues to assess its arrangements with regard to how its future organic and acquisitive growth opportunities can be optimally funded. In addition, efficiently organising our business operations, streamlining certain activities, driving operational and margin improvements and maintaining an appropriate capital structure, including having access to adequate and alternative forms of capital, are all areas of key focus as we move the Group to its next phase of development. The performance in the first half of 2016 has been encouraging with good organic growth in the IPL business. Plastics accounted for 85% of EBITDA for the period. The SES business, which has been enhanced by the bolt-on acquisitions during the period, and the OPG business have both performed solidly during the period, while the metals and materials recovery businesses have experienced a challenging first half of the year, notwithstanding being ahead of expectation. The second half of the year has started satisfactorily across all divisions. Despite the satisfactory start and following the UK s decision to exit the EU, there are concerns around the outlook for the UK economy and, in addition, the pound sterling has depreciated significantly against the euro. Other potential impacts of Brexit are difficult to assess currently but should become clearer as the UK moves closer to its actual leave date. Notwithstanding the above uncertainties, the Group expects to perform in line with market expectations for the remainder of About One51 One51 comprises two operating businesses focused on Plastics and Environmental services. One51 employs c. 1,700 people in Ireland, the UK, Canada, the United States and China. The Group is headquartered in Dublin, Ireland. Investor Enquiries Alan Walsh Chief Executive Officer Pat Dalton Chief Financial Officer Robert Burns Group Head of Corporate Development Outlook The Group continues to pursue a clear strategy based on the development and growth of the Group s core operating businesses, Plastics and ClearCircle. The Group has available to it a number of significant and exciting organic and acquisitive led growth opportunities. In evaluating these opportunities, the Group will seek to continue to allocate its available capital resources to those activities which provide the best opportunity for the highest return on invested capital. 7

10 Interim Financial Information For the six months ended 30 June 2016 Condensed Group Income Statement 9 Condensed Group Statement of Other Comprehensive Income 10 Condensed Consolidated Statement of Financial Position 11 Condensed Group Statement of Changes in Equity for the six month period ended 30 June Condensed Group Statement of Changes in Equity for the six month period ended 27 June Condensed Group Statement of Changes in Equity for the year ended 31 December Condensed Consolidated Statement of Cash Flows 15 Notes to the Condensed Consolidated Financial Statements 16 8

11 Condensed Group Income Statement for the six month period ended 30 June 2016 (unaudited) One51 Interim Report for the six month period ended 30 June Exceptional items Total 2015 (restated) Exceptional items Total (restated) Note Continuing operations Revenue 2 214, , , ,902 Cost of sales (164,981) - (164,981) (111,425) - (111,425) Gross profit 49,246-49,246 30,477-30,477 Operating expenses, net (including non-recurring costs/income) 3 (33,383) (3,553) (36,936) (21,220) (1,972) (23,192) Operating profit 15,863 (3,553) 12,310 9,257 (1,972) 7,285 Finance costs 4 (4,610) - (4,610) (1,045) - (1,045) Share of profit of equityaccounted investee 8 3,386-3,386 18,433-18,433 Profit before taxation 14,639 (3,553) 11,086 26,645 (1,972) 24,673 Income tax (expense)/credit 5 (1,965) (202) (2,167) (1,512) 356 (1,156) Profit for period: all attributable to equity holders of the parent 12,674 (3,755) 8,919 25,133 (1,616) 23,517 Earnings per share Basic earnings per share (cents) Diluted earnings per share (cents)

12 Condensed Group Statement of Other Comprehensive Income for the six month period ended 30 June 2016 (unaudited) (restated) Note Other comprehensive income Profit for the period 8,919 23,517 Items that are or may be reclassified to profit or loss Foreign operations foreign currency translation differences from non-euro entities (8,065) 8,562 Share of equity-accounted investee s other comprehensive income 8 (1,518) 3,757 Increase in fair value of Put liability 11 (5,615) - Foreign currency translation movement relating to Put Liability (1,592) - Other comprehensive income (16,790) 12,319 Total comprehensive income: all attributable to equity holders of the parent (7,871) 35,836 10

13 Condensed Consolidated Statement of Financial Position as at 30 June 2016 (unaudited) Unaudited 30 June December 2015 (see notes 1 and 17 (b)) Unaudited 27 June 2015 (restated) Note Assets Property, plant and equipment 6 171, ,929 72,562 Goodwill and intangible assets 7 142, ,712 52,735 Equity-accounted investees 8 3,395 1,527 45,316 Investment property 1,423 1,500 1,523 Available-for-sale financial assets 1,275 1,279 3,409 Trade and other receivables 4,421 4,106 - Deferred tax assets 5,635 5,811 1,350 Non-current assets 330, , ,895 Inventories 36,752 30,428 17,080 Trade and other receivables 91,891 67,901 50,977 Cash and cash equivalents 25,007 25,499 26,441 Assets held for sale 2,150 2,418 - Current assets 155, ,246 94,498 Total assets 486, , ,393 Equity Share capital 1,571 1,570 1,570 Share premium 88,587 88,577 88,566 Reserves (9,932) 5,344 15,661 Retained earnings 64,494 57,089 64,313 Total equity 144, , ,110 Liabilities Loans and borrowings 9 154, ,271 38,459 Trade and other payables 3,716 3,191 2,254 Deferred contingent consideration 11 39,894 32, Government grants 1,814 1,763 - Provisions Deferred tax liabilities 28,546 26,684 2,308 Non-current liabilities 228, ,601 44,515 Loans and borrowings 9 13,716 9, Trade and other payables 94,463 77,139 53,204 Deferred contingent consideration Government grants Provisions Corporation tax payable 3,403 4,583 3,010 Current liabilities 112,763 92,929 56,768 Total liabilities 341, , ,283 Total equity and liabilities 486, , ,393 11

14 Condensed Group Statement of Changes in Equity for the six month period ended 30 June 2016 (unaudited) Share capital Share premium Translation Share based payment Availablefor-sale Treasury share Convertible loan note Other equity Retained earnings Total Balance at 1 January ,570 88,577 6, ,240 (1,303) 78 (1,925) 57, ,580 Total comprehensive income Profit for the period ,919 8,919 Other comprehensive income Share of equity-accounted investee s other comprehensive income (1,518) (1,518) Increase in fair value of Put liability relating to acquired subsidiary undertaking (5,615) - (5,615) Translation movement in respect of Put liability relating to acquired subsidiary undertaking - - (1,592) (1,592) Translation differences - - (8,065) (8,065) Other comprehensive income - - (9,657) (5,615) (1,518) (16,790) Total comprehensive income - - (9,657) (5,615) 7,401 (7,871) Transactions with owners of the Company Issue of Ordinary Shares exercise of share options (4) Total transactions with owners of the Company (4) Balance at 30 June ,571 88,587 (3,111) 704 1,240 (1,303) 78 (7,540) 64, ,720 12

15 Condensed Group Statement of Changes in Equity for the six month period ended 27 June 2015 (unaudited) Share capital Share premium Translation Share based payment Available -for-sale (restated) Treasury share Convertible loan note Retained earnings (restated) Total (restated) Balance at 1 January ,566 88,518 3,833 3,279 1,240 (1,303) 78 37, ,222 Total comprehensive income Profit for the period (restated) ,517 23,517 Other comprehensive income Share of equity-accounted investee s other comprehensive income (restated) ,757 3,757 Translation differences - - 8, ,562 Other comprehensive income - - 8, ,757 12,319 Total comprehensive income - - 8, ,274 35,836 Transactions with owners of the Company Issue of Ordinary Shares exercise of share options (28) Total transactions with owners of the Company (28) Balance at 27 June ,570 88,566 12,395 3,251 1,240 (1,303) 78 64, ,110 13

16 Condensed Group Statement of Changes in Equity for the year ended 31 December 2015 (audited) Share capital Share premium Translation Share based payment Available -for-sale Treasury share Convertible loan note Other equity Retained earnings Total Balance at 1 January ,566 88,518 3,833 3,279 1,240 (1,303) 78-37, ,222 Total comprehensive income Profit for the year ,399 18,399 Other comprehensive income Share of equity-accounted investee s other comprehensive income (1,256) (1,256) Translation differences - - (67) (67) Translation reclassification to Income Statement on discontinued operations Increase in fair value of Put liability relating to acquired subsidiary undertaking (1,925) - (1,925) Translation movement in respect of Put liability relating to acquired subsidiary undertaking - - 2, ,073 Other comprehensive income - - 2, (1,925) (1,256) (468) Total comprehensive income - - 2, (1,925) 17,143 17,931 Transactions with owners of the Company Reclassification from share based payment to retained earnings cancellation of deferred convertible shares - - (2,902) ,902 - Issue of Ordinary Shares - (26) (26) Equity-settled share based payments charge for year Issue of Ordinary Shares exercise of share options (33) Total transactions with owners of the Company (2,571) , Balance at 31 December ,570 88,577 6, ,240 (1,303) 78 (1,925) 57, ,580 14

17 Condensed Consolidated Statement of Cash Flows for the six month period ended 30 June 2016 (unaudited) Note Net cash flows from operating activities before working capital movements and exceptional items 23,720 11,087 Movements in working capital (13,343) (14,542) Net cash flows from operating activities 10,377 (3,455) Exceptional items paid (2,576) (457) Net cash flows from operating activities after exceptional items 12 7,801 (3,912) Cash flows from investing activities Proceeds from sale of property, plant and equipment & intangible assets 161 2,966 Proceeds received from sale of business undertaking Disposal/discontinuation of subsidiary undertaking (228) - Dividends received from available-for-sale assets 598 1,303 Acquisition of property, plant and equipment (17,234) (7,366) Acquisition of intangible assets (312) (185) Acquisition of subsidiary undertakings, including associated costs and net of cash acquired (8,123) - Deferred consideration paid (158) (141) Net cash used in investing activities (25,296) (3,060) Cash flows from financing activities Finance costs paid (4,736) (1,536) Drawdown/(repayment) of borrowings 21,430 (25,926) Payment of finance lease liabilities - (162) Net proceeds from equity issued 11 - Net cash from/(used in) financing activities 16,705 (27,624) Net decrease in cash and cash equivalents (790) (34,596) Cash and cash equivalents at 1 January 25,499 59,629 Effect of movements in exchange rates on cash held 298 1,408 Cash and cash equivalents at the reporting date 25,007 26,441 15

18 Notes to the condensed consolidated financial statements 1. General Information, basis of preparation and use of judgements and estimates One Fifty One plc ( the Company ) and its subsidiaries (together One51 or the Group ) comprise two operating businesses focused on plastics and environmental services. Plastics consists of two sub-divisions, one being OPG and the other being IPL. Plastics supplies a broad range of customers in Ireland, the UK, North America and China. ClearCircle is the umbrella brand for the Group s Specialist Environmental Service activities and the Metals and Materials Recycling activities which are located in Ireland and the UK. The businesses within the division provide a range of environmental services including hazardous waste management activities and services involved in the recovery of resources for recycling and reuse in a sustainable manner. The Company is a public limited company, incorporated and tax resident in Ireland with registered office at Huguenot House, St Stephen s Green, Dublin 2, D02 NY63, Ireland, whose shares are traded on a grey market. The interim financial information included in this report has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting ( IAS 34 ) as adopted by the European Union. The audited Statement of Financial Position numbers as at 31 December 2015 have been adjusted to reflect final fair value adjustments in respect of the IPL acquisition. See note 17 (b) for details of these adjustments. As explained in note 1 and note 8 in the Group s 2015 Annual Report, during 2015 the Group changed its accounting policy as to how it accounts for its investment in Altas Investments plc (formerly NTR plc). Previously, the Group applied IAS 39 Financial Instruments: Recognition and Measurement to the accounting for this investment and had departed from the requirements of IAS 28 Investments in Associates and Joint Ventures and IFRS 12 Disclosure of investments in other entities. In the assessment period, as in the 2015 Annual Report, the Group has applied the requirements of IAS 28 and IFRS 12 in relation to this investment. The comparative (unaudited) amounts at 27 June 2015 and for the six month accounting period then ended have been restated. The impact of this policy on the comparative numbers is set out in note 20. This report should be read in conjunction with the consolidated financial statements for the year ended 31 December 2015 included in the Group s 2015 Annual Report which is available on the Group s website. The accounting policies, methods of computation and presentation including the associated basis of determination of judgements, estimates and assumptions as adopted in the preparation of the interim financial information are consistent with those described and applied in the Annual Report for the financial year ended 31 December 2015, except as described below: Taxes on income in the interim periods are accrued using the effective tax rate that would be applicable to expected annual earnings. Inputs to discounted cash flow model used to calculate the Put Liability (note 11) are updated to reflect actual year to date results for IPL. IFRSs issued and effective from 1 January 2016 do not have an effect on the interim financial information included in this report. The interim financial information includes all adjustments that management considers necessary for a fair presentation of such financial information. All such adjustments are of a normal recurring nature. Certain tables in this interim financial information may not add precisely due to rounding. The financial position of the Group, its cash generation, capital resources and liquidity continue to provide a stable financing platform. Having made enquiries, the Directors have a reasonable expectation that the Company, and the Group as a whole, have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the interim financial statements. In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. The significant judgements made by management in applying the Group s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December The principal non-euro currencies applicable to the Group are Pound Sterling, Canadian Dollar, Chinese Renminbi and US Dollar. The average and closing rate to the euro for these currencies were: Average rate Closing rate Pound Sterling Canadian Dollar* N/A N/A Chinese Renminbi US Dollar* N/A N/A *Both relevant to IPL only which was acquired on 23 July

19 1. General Information, basis of preparation and use of judgements and estimates (continued) The Group s auditors have not audited the interim financial information contained in this report. The interim financial information presented does not constitute full group accounts within the meaning of Regulation 40(1) of the European Communities (Companies: Group Accounts) Regulations, 1992 of Ireland insofar as such group accounts would have to comply with all of the disclosure and other requirements of those Regulations. Full Group accounts for the year ended 31 December 2015 have been filed with the Irish Registrar of Companies. The audit report on those Group accounts was unqualified. 2. Segmental analysis The Board of One51 plc is deemed the chief operating decision maker within the Group. The Group is organised into three strategic divisions, which are its reportable segments. These divisions offer different products and services, and are managed separately. The Board reviews internal management reports of each division at least monthly. During the year ended 31 December 2015, the Group changed its basis for reporting operating segments, the reasons for which are set out in the 2015 Annual Report. The comparative information for the six month period ended 27 June 2015 has been presented on a consistent basis to that in the 2015 Annual Report. The following summary describes the operations of each reportable segment. Reportable segment OnePlastics Group IPL Inc. ClearCircle Environmental Operations This segment is involved in the manufacture and sale of plastic components and instruments in Ireland, the UK and China. This segment is involved in the manufacture and sale of plastic components and instruments in Canada and the USA. This segment is involved with the collection and treatment of hazardous waste materials and the collection and processing of metals and materials in both Ireland and the UK. The sale of processed finished product is from Ireland and the UK. The chief operating decision maker monitors the results of each segment separately in order to allocate resources between them and assess performance. Performance is predominantly evaluated based on EBITDA and EBIT (before exceptional items). OnePlastics Group IPL Inc.* ClearCircle Environmental Other reconciling items Total (restated) External Revenues 67,427 66,650 94,588-52,212 75, , ,902 EBITDA 9,816 10,881 15,637-4,532 5,489 (2,828) (3,118) 27,157 13,252 Depreciation and amortisation (2,975) (2,902) (6,341) - (2,176) (2,284) (60) (39) (11,552) (5,225) EBIT 6,841 7,979 9,296-2,356 3,205 (2,888) (3,157) 15,605 8,027 Share of profit of equityaccounted investees (note 8) ,386 18,433 Non-recurring items (note 3) ,230 Exceptional items (note 3) (3,553) (1,972) Finance costs (note 4) (4,610) (1,045) Income tax expense (note 5) (2,167) (1,156) Profit for the period ,919 23,517 Other segment information Capital expenditure 9,377 4,356 3,602-4,148 2, ,234 7,366 Working capital balances 8,890 7,815 26,629-2,043 7,153 1,268 1,760 38,830 16,728 Other asset/(liability) amounts ,207 21,002 Total net current assets ,037 37,730 Total current assets ,800 94,498 Total current liabilities (112,763) (56,768) Total net current assets ,037 37,730 *IPL Inc. was acquired in July 2015 and therefore no comparative information is presented. 17