Cookson half yearly 2012 report - dividend declared

COOKSON GROUP PLC 2012 HALF YEAR FINANCIAL REPORT HIGHLIGHTS

Satisfactory overall performance in H1 2012 (versus H1 2011)

• Revenue of £1,300m, down 4% on underlying basis
• Trading profit of £141.2m, down £4.7m (3%)
• Return on sales of 10.9% (H1 2011: 10.3%)

Good trading profit improvement in the Performance Materials and Precious Metals Processing divisions; Engineered Ceramics division (excluding Fused Silica) marginally ahead; £4m adverse foreign exchange translation impact

Fused Silica H1 2012 loss of £5m (H1 2011: trading profit of £8m); Czech Republic Solar Crucible™ production closed on 1 July 2012

Continued progress towards our return on sales margin target of 12% by 2013 (assuming constant metals prices) - H1 2012: 11.3% 

Interim dividend declared of 7.50p per share (2011: interim - 7.25p; final - 14.50p)

Strong financial position with net debt of £451m giving a leverage ratio (net debt to EBITDA) of 1.3 times

Further de-risking of the UK pension plan through pension insurance buy-in agreement with Pension Insurance Corporation covering c.60% of total UK liabilities

'Bolt-on' acquisition of Metallurgica completed on 29 March 2012; disposal of the US operations of the Precious Metals Processing division completed on 1 May 2012

Strategic review announced on 17 May 2012 is proceeding as planned. The Board expects to update shareholders on the outcome before year end