UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~September 25, 2022~~July 2, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-35370

Luxfer Holdings PLC

(Exact Name of Registrant as Specified in Its Charter)


England and Wales						98-1024030
State or Other Jurisdiction of Incorporation or Organization						I.R.S. Employer Identification No.

8989 North Port Washington Road, Suite 211,

Milwaukee, WI, 53217

Address of principal executive offices

Registrant’s telephone number, including area code: +1 414-269-2419

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary Shares, nominal value £0.50 each	LXFR	New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definition of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.:


Large accelerated filer	o	Accelerated Filer	x
Non-accelerated filer	o	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No x

The number of shares outstanding of Registrant’s only class of ordinary stock on ~~September 25, 2022,~~July 2, 2023, was ~~27,208,641.~~26,922,342.


TABLE OF CONTENTS

Page

PART I FINANCIAL INFORMATION

Item 1.

Condensed Consolidated Financial Statements (unaudited)

Condensed Consolidated Statements of Income (unaudited)

Condensed Consolidated Statements of Comprehensive Income (unaudited)

Condensed Consolidated Balance Sheets (unaudited)

Condensed Consolidated Statements of Cash Flows (unaudited)

Condensed Consolidated Statements of Changes in Equity (unaudited)

Notes to Condensed Consolidated Financial Statements (unaudited)

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

PART II OTHER INFORMATION

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 6.

Exhibits

3332

Signatures

3433

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (unaudited)

LUXFER HOLDINGS PLC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Third Quarter Year-to-date
In millions, except share and per-share data 2022 2021 2022 2021
Net sales $ 100.2 $ 91.2 $ 306.7 $ 275.4
Cost of goods sold (77.0) (70.1) (233.6) (203.2)
Gross profit 23.2 21.1 73.1 72.2
Selling, general and administrative expenses (10.3) (10.6) (32.5) (33.9)
Research and development (1.0) (1.3) (3.5) (2.9)
Restructuring charges (0.3) (0.5) (2.0) (2.1)
Acquisition and disposal related costs — (0.6) (0.3) (1.5)
Other charges — — — (1.1)
Operating income 11.6 8.1 34.8 30.7
Interest expense (1.0) (0.8) (2.7) (2.4)
Defined benefit pension credit 0.2 0.6 0.9 1.8
Income before income taxes 10.8 7.9 33.0 30.1
Provision for income taxes (2.3) (1.9) (7.2) (3.6)
Net income from continuing operations 8.5 6.0 25.8 26.5
Net loss from discontinued operations, net of tax (0.5) (0.7) (0.9) (2.8)
(Loss) / gain on disposition of discontinued operations, net of tax — (0.5) — 6.6
Net (loss) / income from discontinued operations $ (0.5) $ (1.2) $ (0.9) $ 3.8
Net income $ 8.0 $ 4.8 $ 24.9 $ 30.3
Earnings / (loss) per share1
Basic from continuing operations $ 0.31 $ 0.22 $ 0.94 $ 0.96
Basic from discontinued operations2
$ (0.02) $ (0.04) $ (0.03) $ 0.14
Basic $ 0.29 $ 0.17 $ 0.91 $ 1.09
Diluted from continuing operations $ 0.31 $ 0.21 $ 0.93 $ 0.94
Diluted from discontinued operations2 $ (0.02) $ (0.04) $ (0.03) $ 0.14
Diluted $ 0.29 $ 0.17 $ 0.90 $ 1.08
Weighted average ordinary shares outstanding
Basic 27,295,862 27,722,472 27,403,844 27,718,874
Diluted 27,525,314 28,033,732 27,652,886 28,072,155


	Second Quarter				Year-to-date
In millions, except share and per-share data	2023		2022		2023		2022
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	(1.0)		(1.2)		(2.2)		(2.5)
Restructuring charges	(2.5)		(0.3)		(2.8)		(1.7)

Acquisition and disposal related costs	—		(0.1)		—		(0.3)


Operating income	7.9		12.6		15.0		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		12.0		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 share1
Basic from continuing operations	$	0.18	$	0.35	$	0.20	$	0.63
Basic from discontinued operations	$	(0.01)	$	(0.01)	$	(0.01)	$	(0.01)
Basic	$	0.17	$	0.34	$	0.19	$	0.62

Diluted from continuing operations	$	0.18	$	0.35	$	0.20	$	0.62
Diluted from discontinued operations2	$	(0.01)	$	(0.01)	$	(0.01)	$	(0.01)
Diluted	$	0.17	$	0.34	$	0.19	$	0.61

Weighted average ordinary shares outstanding
Basic	26,923,804		27,428,579		26,922,528		27,458,980
Diluted	27,065,338		27,703,217		27,083,986		27,720,065

See accompanying notes to condensed consolidated financial statements

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 ~~in the Third Quarter of 2022 and 2021 and year-to-date of 2022~~ has not been diluted, since the incremental shares included in the weighted-average number of shares outstanding would have been anti-dilutive.

LUXFER HOLDINGS PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Net income $ 8.0 $ 4.8 $ 24.9 $ 30.3
Other comprehensive (loss) / income
Net change in foreign currency translation adjustment, net of tax (12.5) (2.1) (22.5) (0.1)
Pension and post-retirement actuarial gains, net of $0.1, $0.2, $0.3 and $0.5 tax, respectively 0.3 0.7 1.0 2.1
Other comprehensive (loss) / income, net of tax (12.2) (1.4) (21.5) 2.0
Total comprehensive (loss) / income $ (4.2) $ 3.4 $ 3.4 $ 32.3


	Second Quarter				Year-to-date
In millions	2023		2022		2023		2022
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		(10.0)
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		0.7
Other comprehensive income / (loss), net of tax	3.6		(7.9)		13.8		(9.3)

Total comprehensive income	$	8.3	$	1.4	$	19.0	$	7.6

See accompanying notes to condensed consolidated financial statements

LUXFER HOLDINGS PLC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 25, December 31,
In millions, except share and per-share data 2022 2021
Current assets
Cash and cash equivalents $ 11.2 $ 6.2
Restricted cash 0.3 0.2
Accounts and other receivables, net of allowances of $0.7 and $0.8, respectively 66.1 57.8
Inventories 111.6 90.5
Current assets held-for-sale 9.1 8.5
Total current assets $ 198.3 $ 163.2
Non-current assets
Property, plant and equipment, net $ 75.0 $ 87.5
Right-of-use assets from operating leases 22.9 12.6
Goodwill 62.5 69.7
Intangibles, net 12.4 13.7
Deferred tax assets 7.1 8.0
Investments and loans to joint ventures and other affiliates 0.3 0.4
Pensions and other retirement benefits 13.9 13.7
Total assets $ 392.4 $ 368.8
Current liabilities
Short-term debt $ 25.0 $ —
Accounts payable 27.9 31.7
Accrued liabilities 32.6 28.2
Taxes on income 7.8 3.0
Current liabilities held-for-sale 4.9 1.4
Other current liabilities 12.6 19.6
Total current liabilities $ 110.8 $ 83.9
Non-current liabilities
Long-term debt $ 61.8 $ 59.6
Pensions and other retirement benefits 2.3 1.9
Deferred tax liabilities 2.7 2.7
Other non-current liabilities 19.5 11.6
Total liabilities $ 197.1 $ 159.7
Commitments and contingencies (Note 15)
Shareholders' equity
Ordinary shares of £0.50 par value; authorized 40,000,000 shares for 2022 and 2021; issued and outstanding 28,944,000 for 2022 and 2021 $ 26.5 $ 26.5
Deferred shares of £0.0001 par value; authorized issued and outstanding 761,835,318,444 shares for 2021 — 149.9
Additional paid-in capital 220.6 70.9
Treasury shares (16.2) (9.6)
Own shares held by ESOP (0.9) (1.1)
Retained earnings 121.8 107.5
Accumulated other comprehensive loss (156.5) (135.0)
Total shareholders' equity $ 195.3 $ 209.1
Total liabilities and shareholders' equity $ 392.4 $ 368.8


	July 2,		December 31,
In millions, except share and per-share data	2023		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	72.0		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	3.0		3.0
Investments and loans to joint ventures and other affiliates	0.3		0.4
Pensions and other retirement benefits	29.8		27.0
Total assets	$	415.2	$	407.1
Current liabilities
Short-term debt	$	—	$	25.0
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		5.0
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	—		4.5
Deferred tax liabilities	11.4		9.9
Other non-current liabilities	18.1		19.0
Total liabilities	200.0		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)		(1.0)
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

See accompanying notes to condensed consolidated financial statements

LUXFER HOLDINGS PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Year-to-date
In millions 2022 2021
Operating activities
Net income $ 24.9 $ 30.3
Net loss / (income) from discontinued operations 0.9 (3.8)
Net income from continuing operations $ 25.8 $ 26.5
Adjustments to reconcile net income to net cash (used) / provided by operating activities
   Depreciation 9.8 10.5
   Amortization of purchased intangible assets 0.6 0.7
   Amortization of debt issuance costs 0.4 0.3
   Share-based compensation charges 1.8 2.2
   Deferred income taxes 0.5 (2.2)
   Gain on disposal of property, plant and equipment (0.2) —
   Defined benefit pension credit (0.9) (1.8)
   Defined benefit pension contributions — (4.6)
Changes in assets and liabilities
   Accounts and other receivables (13.6) (10.2)
   Inventories (29.6) (5.4)
   Current assets held-for-sale (3.8) (1.6)
   Other current assets — 0.4
   Accounts payable 3.5 9.6
   Accrued liabilities 5.5 8.6
   Current liabilities held-for-sale 3.5 (1.0)
   Other current liabilities (1.9) 0.7
   Other non-current assets and liabilities (4.6) 1.4
Net cash (used) / provided by operating activities - continuing (3.2) 34.1
Net cash provided by operating activities - discontinued — —
Net cash (used) / provided by operating activities $ (3.2) $ 34.1
Investing activities
Capital expenditures $ (5.2) $ (5.6)
Proceeds from sale of property, plant and equipment 3.7 —
Proceeds from sale of businesses and other — 23.7
Acquisitions, net of cash acquired — (19.3)
Net cash used by investing activities - continuing (1.5) (1.2)
Net cash used by investing activities - discontinued — —
Net cash used by investing activities $ (1.5) $ (1.2)
Financing activities
Net drawdown / (repayment) of long-term borrowings $ 31.7 $ (4.4)
Repurchase of deferred shares (0.1) —
Repurchase of own shares (6.9) (2.8)
Share-based compensation cash paid (1.4) (1.9)
Dividends paid (10.6) (10.2)
Net cash provided / (used) by financing activities $ 12.7 $ (19.3)
Effect of exchange rate changes on cash and cash equivalents (2.9) 0.1
Net increase $ 5.1 $ 13.7
Cash, cash equivalents and restricted cash; beginning of year 6.4 1.5
Cash, cash equivalents and restricted cash; end of the Third Quarter 11.5 15.2
Supplemental cash flow information:
Interest payments $ 2.8 $ 2.5
Income tax payments, net 2.2 5.2


	Year-to-date
In millions	2023		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	—		(0.2)
Asset impairment charges	2.3		—
Defined benefit pension charge / (credit)	8.3		(0.7)
Defined benefit pension contributions	(2.1)		—
Changes in assets and liabilities
Accounts and other receivables	3.8		(19.8)
Inventories	(6.4)		(18.0)
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		—
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	—		3.7



Net cash (used) / provided by investing activities - continuing	(4.9)		0.8
Net cash used by investing activities - discontinued	(0.1)		—
Net cash (used) / provided by investing activities	(5.0)		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	(7.0)		(7.0)
Net cash provided by financing activities	1.2		6.0
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

See accompanying notes to condensed consolidated financial statements

LUXFER HOLDINGS PLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

In millions, Ordinary
shares Deferred
shares Additional paid-in capital Treasury shares Number Treasury shares Amount Own shares held by ESOP Number Own shares held by ESOP Amount Retained
earnings Accumulated other comprehensive loss Total
equity
At January 1, 2022 $ 26.5 $ 149.9 $ 70.9 (0.6) $ (9.6) (0.8) $ (1.1) $ 107.5 $ (135.0) $ 209.1
Net income — — — — — — — 7.6 — 7.6
Other comprehensive loss, net of tax — — — — — — — — (1.4) (1.4)
Dividends declared — — — — — — — (7.0) — (7.0)
Share-based compensation — — 0.2 — — — — — — 0.2
Share buyback — — — (0.1) (1.5) — — — — (1.5)
Utilization of shares from ESOP to satisfy share based compensation — — (0.4) — — — — — — (0.4)
At March 27, 2022 $ 26.5 $ 149.9 $ 70.7 (0.7) $ (11.1) (0.8) $ (1.1) $ 108.1 $ (136.4) $ 206.6
Net income — — — — — — — 9.3 — 9.3
Other comprehensive loss, net of tax — — — — — — — — (7.9) (7.9)
Share based compensation — — 0.7 — — — — — — 0.7
Share buyback — — — (0.1) (2.2) — — — — (2.2)
Utilization of treasury shares to satisfy share based compensation — — 0.1 — 0.3 — — — — 0.4
Utilization of shares from ESOP to satisfy share based compensation — — (1.5) — — — 0.1 — — (1.4)
At June 26, 2022 $ 26.5 $ 149.9 $ 70.0 (0.8) $ (13.0) (0.8) $ (1.0) $ 117.4 $ (144.3) $ 205.5
Net income — — — — — — — 8.0 — 8.0
Other comprehensive loss, net of tax — — — — — — — — (12.2) (12.2)
Dividends declared — — — — — — — (3.6) — (3.6)
Share based compensation — — 0.9 — — — — — — 0.9
Share buy back — — — (0.2) (3.2) — — — — (3.2)
Utilization of shares from ESOP to satisfy share based compensation — — (0.1) — — 0.1 0.1 — — —
Cancellation of deferred share capital — (149.9) 149.8 — — — — — — (0.1)
At September 25, 2022 $ 26.5 $ — $ 220.6 (1.0) $ (16.2) (0.7) $ (0.9) $ 121.8 $ (156.5) $ 195.3


In millions,	Ordinary shares		Additional paid-in capital		Treasury shares Number	Treasury shares Amount		Own shares held by ESOP Number	Own shares held by ESOP Amount		Retained earnings		Accumulated other comprehensive loss		Total equity
At January 1, 2023	$	26.5	$	221.4	(1.3)	$	(20.4)	(0.7)	$	(1.0)	$	120.2	$	(139.4)	$	207.3
Net income	—		—		—	—		—	—		0.5		—		0.5



Other comprehensive income, net of tax	—		—		—	—		—	—		—		10.2		10.2
Dividends declared	—		—		—	—		—	—		(3.5)		—		(3.5)
Share-based compensation	—		0.6		—	—		—	—		—		—		0.6
Share buyback	—		—		(0.1)	(0.8)		—	—		—		—		(0.8)
Utilization of shares from ESOP to satisfy share based compensation	—		(0.3)		—	—		—	—		—		—		(0.3)

At April 2, 2023	26.5		221.7		(1.4)	(21.2)		(0.7)	(1.0)		117.2		(129.2)		214.0
Net income	—		—		—	—		—	—		4.7		—		4.7

Other comprehensive income, net of tax	—		—		—	—		—	—		—		3.6		3.6
Dividends declared	—		—		—	—		—	—		(7.0)		—		(7.0)
Share based compensation	—		0.7		—	—		—	—		—		—		0.7
Share buyback	—		—		—	(0.8)		—	—		—		—		(0.8)
Utilization of treasury shares to satisfy share based compensation	—		(0.3)		—	0.2		—	—		—		—		(0.1)
Utilization of shares from ESOP to satisfy share based compensation	—		—		—	—		0.1	0.1		—		—		0.1

At July 2, 2023	$	26.5	$	222.1	(1.4)	$	(21.8)	(0.6)	$	(0.9)	$	114.9	$	(125.6)	$	215.2

See accompanying notes to condensed consolidated financial statements

LUXFER HOLDINGS PLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
In millions, Ordinary shares Deferred shares Additional paid-in capital Treasury shares Number Treasury shares Amount Own shares held by ESOP Number Own shares held by ESOP Amount Retained earnings Accumulated other comprehensive loss Total equity
At January 1, 2021 $ 26.6 $ 149.9 $ 70.6 (0.4) $ (4.0) (1.0) $ (1.4) $ 91.2 $ (165.8) $ 167.1
Net income — — — — — — — 14.5 — 14.5
Other comprehensive income, net of tax — — — — — — — — 1.5 1.5
Dividends declared — — — — — — — (3.4) — (3.4)
Share-based compensation — — 0.5 — — — — — — 0.5
Utilization of treasury shares to satisfy share based compensation — — (1.4) — — 0.1 0.1 — — (1.3)
At March 28, 2021 $ 26.6 $ 149.9 $ 69.7 (0.4) $ (4.0) (0.9) $ (1.3) $ 102.3 $ (164.3) $ 178.9
Net income — — — — — — — 11.0 — 11.0
Other comprehensive income, net of tax — — — — — — — — 1.9 1.9
Dividends declared — — — — — — — (3.4) — (3.4)
Share based compensation — — 0.9 — — — — — — 0.9
Utilization of shares from ESOP to satisfy share based compensation — — (0.3) — — 0.1 0.1 — — (0.2)
Cancellation of ordinary share capital (0.1) — (0.8) — — — — — — (0.9)
At June 27, 2021 $ 26.5 $ 149.9 $ 69.5 (0.4) $ (4.0) (0.8) $ (1.2) $ 109.9 $ (162.4) $ 188.2
Net income — — — — — — — 4.8 — 4.8
Shares sold from ESOP — — (0.1) — — — — (0.1)
Other comprehensive loss, net of tax — — — — — — — — (1.4) (1.4)
Dividends declared — — — — — — — (3.4) — (3.4)
Share based compensation — — 0.8 — — — — — — 0.8
Utilization of shares from ESOP to satisfy share based compensation — — (0.3) — — — — — — (0.3)
Purchase of own shares — — — (0.1) (1.5) — — — — (1.5)
Cancellation of ordinary share capital — — (0.4) — — — — — — (0.4)
At September 26, 2021 $ 26.5 $ 149.9 $ 69.5 (0.5) $ (5.5) (0.8) $ (1.2) $ 111.3 $ (163.8) $ 186.7


In millions,	Ordinary shares		Deferred shares		Additional paid-in capital		Treasury shares Number	Treasury shares Amount		Own shares held by ESOP Number	Own shares held by ESOP Amount		Retained earnings		Accumulated other comprehensive loss		Total equity
At January 1, 2022	$	26.5	$	149.9	$	70.9	(0.6)	$	(9.6)	(0.8)	$	(1.1)	$	107.5	$	(135.0)	$	209.1
Net income for the year	—		—		—		—	—		—	—		7.6		—		7.6

Other comprehensive loss, net of tax	—		—		—		—	—		—	—		—		(1.4)		(1.4)
Dividends declared	—		—		—		—	—		—	—		(7.0)		—		(7.0)
Share based compensation	—		—		0.2		—	—		—	—		—		—		0.2
Share buyback	—		—		—		(0.1)	(1.5)		—	—		—		—		(1.5)

Utilization of treasury shares to satisfy share based compensation	—		—		(0.4)		—	—		—	—		—		—		(0.4)

At March 27, 2022	26.5		149.9		70.7		(0.7)	(11.1)		(0.8)	(1.1)		108.1		(136.4)		206.6
Net income for the year	—		—		—		—	—		—	—		9.3		—		9.3

Other comprehensive income, net of tax	—		—		—		—	—		—	—		—		(7.9)		(7.9)

Share based compensation	—		—		0.7		—	—		—	—		—		—		0.7
Share buyback	—		—		—		(0.1)	(2.2)		—	—		—		—		(2.2)

Utilization of treasury shares to satisfy share based compensation	—		—		0.1		—	0.3		—	—		—		—		0.4
Utilization of shares from ESOP to satisfy share based compensation	—		—		(1.5)		—	—		—	0.1		—		—		(1.4)
At June 26, 2022	$	26.5	$	149.9	$	70.0	(0.8)	$	(13.0)	(0.8)	$	(1.0)	$	117.4	$	(144.3)	$	205.5

See accompanying notes to condensed consolidated financial statements

LUXFER HOLDINGS PLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. 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, ~~2021.~~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 ~~Third~~Second Quarter 2023, ended on July 2, 2023, and the Second Quarter 2022, ended on ~~September 25, 2022, and the Third Quarter 2021, ended on September~~June 26, ~~2021.~~2022.

Accounting standards issued but not yet effective

None that will be material to the Company.

2. 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 ~~or loss~~ 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:
Third Quarter Year-to-date
In millions except share and per-share data 2022 2021 2022 2021
Basic earnings:
Net income from continuing operations $ 8.5 $ 6.0 $ 25.8 $ 26.5
Net (loss) / income from discontinued operations (0.5) (1.2) (0.9) 3.8
Net income $ 8.0 $ 4.8 $ 24.9 $ 30.3
Weighted average number of £0.50 ordinary shares:
For basic earnings per share 27,295,862 27,722,472 27,403,844 27,718,874
Dilutive effect of potential common stock 229,452 311,260 249,042 353,281
For diluted earnings per share 27,525,314 28,033,732 27,652,886 28,072,155
Earnings / (loss) per share using weighted average number of ordinary shares outstanding(1):
Basic earnings per ordinary share for continuing operations $ 0.31 $ 0.22 $ 0.94 $ 0.96
Basic (loss) / earnings per ordinary share for discontinued operations (0.02) (0.04) (0.03) 0.14
Basic earnings per ordinary share $ 0.29 $ 0.17 $ 0.91 $ 1.09
Diluted earnings per ordinary share for continuing operations $ 0.31 $ 0.21 $ 0.93 $ 0.94
Diluted (loss) / earnings per ordinary share for discontinued operations (0.02) (0.04) (0.03) 0.14
Diluted earnings per ordinary share $ 0.29 $ 0.17 $ 0.90 $ 1.08


	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

~~In the third quarter of 2022 and 2021 and year-to-date 2022, basic~~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.

3. Net Sales

Disaggregated sales disclosures for the quarter and year-to-date ended ~~September 25,~~July 2, 2023, and June 26, 2022, ~~and September 26, 2021,~~ are included below and in Note ~~14,~~13, Segmental Information.

Third Quarter
2022 2021
In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total
General industrial $ 7.0 $ 31.0 $ 38.0 $ 7.6 $ 21.6 $ 29.2
Transportation 17.9 11.3 29.2 19.7 11.4 31.1
Defense, First Response & Healthcare 18.5 14.5 33.0 18.3 12.6 30.9
$ 43.4 $ 56.8 $ 100.2 $ 45.6 $ 45.6 $ 91.2


	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
2022 2021
In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total
General industrial $ 23.7 $ 90.1 $ 113.8 $ 23.3 $ 69.0 $ 92.3
Transportation 53.9 40.4 94.3 50.7 35.1 85.8
Defense, First Response & Healthcare 54.3 44.3 98.6 54.3 43.0 97.3
$ 131.9 $ 174.8 $ 306.7 $ 128.3 $ 147.1 $ 275.4


	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

The Company’s performance obligations are satisfied at a point in time. With the reclassification of our Superform business as discontinued operations, none of the Company's revenue from continuing operations is satisfied over time. As a result, the Company's contract receivables, contract assets and contract liabilities are included within current assets and liabilities held-for-sale.

4. Restructuring

The ~~$0.3~~$2.5 million ~~(2021: $0.5 million)~~ and ~~$2.0~~$2.8 million restructuring charges (2021: $2.1 million) in the third quarter and first nine months of 2022, respectively, included $0.3 million (2021: $0.3 million) and $1.8 million (2021: $1.0 million), respectively, of further costs associated with the closure of Luxfer Gas Cylinders France, and was largely legal and professional fees. In addition $0.2 million of costs were incurredcharge 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~~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 ~~nine months~~half, respectively, relates to costs associated with the closure of ~~2021 also includes $0.9 million primarily of one-time employee termination benefits~~Luxfer Gas Cylinders France, which ceased operations in ~~the Elektron division, largely in relation to the divestiture of our small Luxfer Magtech production facility in Ontario, Canada.~~2019.

Restructuring-related costs by reportable segment were as follows:
Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Severance and related costs
Gas Cylinders $ 0.3 $ 0.5 $ 1.8 $ 1.1
Elektron — — 0.2 1.0
Total restructuring charges $ 0.3 $ 0.5 $ 2.0 $ 2.1


	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

~~2022~~2023

Balance at January 1,

~~11.7~~3.7

Costs incurred

~~2.0~~0.5

Cash payments and other

~~(9.8)~~(0.9)

Balance at ~~September 25,~~July 2,

~~3.9~~3.3

5. Acquisition and disposal related costs

On March 15, 2021 the Company completed the acquisition of the Structural Composites Industries LLC (SCI) business of Worthington Industries, Inc., based in Pomona, California, for $19.3 million cash consideration. The acquisition of SCI strengthens Luxfer’s composite cylinder offerings and aligns with recent investment to enhance our alternative fuel capabilities to capitalize on the growing compressed natural gas (CNG) and hydrogen opportunities.

Acquisition-related costs of $0.3 million in the first ~~nine months~~half of 2022 ~~and $1.5 million in the first nine months of 2021~~ represent ~~transitional costs and~~ professional fees incurred in relation to the SCI acquisition.

~~6. Other charges~~

There were no other charges in the first nine months of 2022. Other charges of $1.1 million in the first nine months of 2021 relates to the settlement of a class action lawsuit in the Gas Cylinders segment in relation to an alleged historic violation of the Californian Labor Code, concerning a Human Resources administration matter.

7.6. Supplementary balance sheet information

September 25, December 31,
In millions 2022 2021
Accounts and other receivables
Trade receivables $ 54.0 $ 45.8
Related parties 0.1 0.1
Prepayments and accrued income 6.5 8.5
Derivative financial instruments 0.7 0.1
Deferred consideration 1.0 1.0
Other receivables 3.8 2.3
Total accounts and other receivables $ 66.1 $ 57.8
Inventories
Raw materials and supplies $ 44.1 $ 39.3
Work-in-process 41.8 26.7
Finished goods 25.7 24.5
Total inventories $ 111.6 $ 90.5
Property, plant and equipment, net
Land, buildings and leasehold improvements $ 56.8 $ 64.6
Machinery and equipment 241.1 266.3
Construction in progress 8.8 8.4
Total property, plant and equipment 306.7 339.3
Accumulated depreciation and impairment (231.7) (251.8)
Total property, plant and equipment, net $ 75.0 $ 87.5
Other current liabilities
Restructuring provision $ 3.9 $ 11.7
Short term provision 1.0 0.2
Derivative financial instruments 0.7 0.1
Operating lease liability 4.5 3.0
Advance payments 2.5 4.6
Total other current liabilities $ 12.6 $ 19.6
Other non-current liabilities
Contingent liabilities $ 0.6 $ 1.8
Operating lease liability 18.8 9.8
Other non-current liabilities 0.1 —
Total other non-current liabilities $ 19.5 $ 11.6


	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

8.7. Goodwill and other identifiable intangible assets

Changes in goodwill during the first ~~nine months~~half ended ~~September 25, 2022,~~July 2, 2023, were as follows:

In millions Gas Cylinders Elektron Total
At January 1, 2022 $ 27.6 $ 42.1 $ 69.7
Exchange difference (4.5) (2.7) (7.2)
Net balance at September 25, 2022 $ 23.1 $ 39.4 $ 62.5


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 ~~September 25, 2022~~July 2, 2023 and December 31, ~~2021.~~2022.

Identifiable intangible assets consisted of the following:

In millions Customer relationships Technology and trading related Total
Cost:
At January 1, 2022 $ 15.2 $ 8.2 $ 23.4
Exchange movements — (1.4) (1.4)
At September 25, 2022 $ 15.2 $ 6.8 $ 22.0
Accumulated amortization:
At January 1, 2022 $ 5.7 $ 4.0 $ 9.7
Provided during the period 0.4 0.2 0.6
Exchange movements — (0.7) (0.7)
At September 25, 2022 $ 6.1 $ 3.5 $ 9.6
Net book values:
At January 1, 2022 $ 9.5 $ 4.2 $ 13.7
At September 25, 2022 $ 9.1 $ 3.3 $ 12.4


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 ~~$0.6~~$0.4 million and ~~$0.7~~$0.4 million for the first ~~nine months~~half of ~~2022~~2023 and ~~2021~~2022 respectively.

Intangible asset amortization expense in ~~2022~~2023 and each of the following four years is expected to be approximately $0.8 ~~million.~~million per year.

9.8. Debt

Debt outstanding was as follows:

In millions September 25, 2022 December 31, 2021
4.88% Loan Notes due 2023 $ 25.0 $ 25.0
4.94% Loan Notes due 2026 25.0 25.0
Revolving credit facility 37.6 10.8
Unamortized debt issuance costs (0.8) (1.2)
Total debt $ 86.8 $ 59.6
Less current portion $ (25.0) $ —
Non-current debt $ 61.8 $ 59.6


	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 ~~3.60%~~6.80% for the ~~Third~~Second Quarter of ~~2022~~2023 and ~~1.70%~~3.80% for the full-year ~~2021.~~2022.

9.8. Debt (continued)

~~The maturity profile of the Company's debt, excluding unamortized issuance costs and discounts, is as follows:~~
In millions 2022 2023 2024 2025 2026 Thereafter Total
Loan Notes due 2023 — 25.0 — — — — 25.0
Loan Notes due 2026 — — — — 25.0 — 25.0
Revolving credit facility — — — — 37.6 — 37.6
Total debt $ — $ 25.0 $ — $ — $ 62.6 $ — $ 87.6

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 ~~September 25, 2022.~~July 2, 2023.

The Loan Notes due ~~2023 and~~ 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 ~~nine months~~half of ~~2022,~~2023, we drew down net ~~$31.7~~$35.1 million on the Revolving Credit Facility and the balance outstanding at ~~September 25, 2022,~~July 2, 2023, was ~~$37.6~~$68.1 million, and at December 31, ~~2021,~~2022, was ~~$10.8~~$31.9 million, with ~~$62.3~~$56.9 million undrawn at ~~September 25, 2022.~~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 ~~September 25, 2022.~~July 2, 2023.

~~10.~~9. 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 ~~in 2022.~~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 ~~2022~~2023 and ~~2021.~~

~~In 2021, our Superform U.K. business was also disclosed within assets and liabilities held-for-sale. The business was sold in September 2021.~~2022.

Results of discontinued operations in the first ~~nine months~~half of ~~2022~~2023 and ~~2021~~2022 were as follows:

Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Net sales $ 1.8 $ 4.9 $ 5.5 $ 19.5
Cost of goods sold (1.7) (4.7) (4.9) (20.4)
Gross profit/(loss) $ 0.1 $ 0.2 $ 0.6 $ (0.9)
Selling, general and administrative expenses (0.1) (1.4) (0.5) (3.1)
Restructuring charges — — (0.3) —
Acquisition and disposal related costs (0.7) — (0.9) —
Operating loss $ (0.7) $ (1.2) $ (1.1) $ (4.0)
Tax credit 0.2 0.5 0.2 1.2
Net loss $ (0.5) $ (0.7) $ (0.9) $ (2.8)


	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)

~~10.~~9. Discontinued Operations (continued)

~~Our U.S. aluminum gas cylinder business was sold in March 2021 for $21.0 million. During 2021, $0.8 million of working capital adjustments were made, resulting in final proceeds of $20.2 million.~~

In the Third Quarter of 2021, the Company also recorded a $0.1 million loss on the sale of the Superform U.K business resulting in a total $0.5 million loss on disposition in the quarter and $6.6 million gain on disposition in the year.

The assets and liabilities classified as held-for-sale related to discontinued operations were as follows:

Held-for-sale assets September 25, December 31,
In millions 2022 2021
Right-of-use-assets from operating leases $ 2.8 $ —
Inventory 3.0 2.7
Accounts and other receivables 2.1 2.1
Held-for-sale assets $ 7.9 $ 4.8
Held-for-sale liabilities
Accounts payable 1.1 0.5
Accrued liabilities 0.5 0.1
Other liabilities 0.2 —
Lease Liabilities 3.1 0.8
Held-for-sale liabilities $ 4.9 $ 1.4


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, ~~and an additional $3.7 million in 2021,~~ within our Elektron Segment.

~~The~~There was no depreciation and amortization, capital expenditures and significant non-cash ~~items were as follows:~~

Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Cash flows from discontinued operating activities:
Depreciation $ — $ 0.1 $ — $ 0.4
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.

~~11.~~10. 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 ~~nine months~~half ended ~~September 25, 2022,~~July 2, 2023, was ~~21.8%~~a 50.0%, tax credit compared to ~~12.0%~~a 22.1% charge for the first ~~nine months~~half ended ~~September~~June 26, ~~2021.~~2022. The ~~2021~~ rate was impacted by non-deductible expenses, asset impairment charges and a ~~$2.8 million~~ deferred tax credit, ~~as a result of~~primarily in relation to the ~~enacted increase in the U.K. tax rate from 19% to 25% from April 2023.~~

U.S. pension buyout.

~~12.~~11. Share Plans

Total share-based compensation expense for the quarters ended ~~September 25,~~July 2, 2023, and June 26 2022, ~~and September 26, 2021,~~ was as follows:
Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Total share-based compensation charges $ 0.9 $ 0.8 $ 1.8 $ 2.2


	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 ~~2022,~~2023, we issued our annual share-based compensation grants under the Luxfer Holdings PLC ~~Long-Term~~LongTerm Umbrella Incentive Plan. The total number of awards issued was approximately ~~167,400~~126,600 and the weighted average fair value of options granted in ~~2022~~2023 was estimated to be ~~$17.82~~$17.94 per share.

Also in March ~~2022,~~2023, approximately ~~17,000~~10,000 awards were granted based on the achievement of total shareholder return targets from the period January 1, ~~2019~~2020 to December 31, ~~2021.~~2022. 50% of these awards vested immediately upon grant, with the remaining 50% vesting in March ~~2023.~~

In May 2022, approximately 19,000 additional awards were granted under the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan. The fair value of options granted was estimated to be $15.00 per share.2024.

In June ~~2022,~~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 ~~26,295~~31,028 and the weighted-average fair value of options granted was estimated to be ~~$15.50~~$14.71 per share.

The following table illustrates the assumptions used in deriving the fair value of share options granted during ~~2022~~2023 and the year-ended December 31, ~~2021:~~2022:
2022 2021
Dividend yield (%) 2.27 2.27
Expected volatility range (%) 42.80 - 59.03 42.80 - 59.03
Risk-free interest rate (%) 0.04 - 0.24 0.04 - 0.24
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


	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.

~~13.~~12. Shareholders' Equity

Dividends paid and proposed
Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Dividends declared and paid during the year:
Interim dividend declared January 4 2021, and paid February 4, 2021 ($0.125 per ordinary share) $ — $ — $ — $ 3.4
Interim dividend declared April 5 2021, and paid May 5, 2021 ($0.125 per ordinary share) — — — 3.4
Interim dividend declared July 6 2021, and paid August 4, 2021 ($0.125 per ordinary share) — 3.4 — 3.4
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 July 5 2022, and paid August 3, 2022 ($0.130) per ordinary share) 3.6 — 3.6 —
$ 3.6 $ 3.4 $ 10.6 $ 10.2
In millions 2022 2021
Dividends declared and paid after the quarter end (not recognized as a liability at the quarter end):
Interim dividend declared October 5, and to be paid November 3, 2021 ($0.125 per ordinary share) $ — $ 3.4
Interim dividend declared October 4, and to be paid November 2, 2022 ($0.130 per ordinary share) 3.6 —
$ 3.6 $ 3.4


	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.

~~14.~~13. 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; ~~other charges;~~ depreciation and ~~amortization; and unwind of the discount on deferred consideration.~~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 ~~Third~~Second Quarter and ~~year-to-date~~first half ended ~~September 25,~~July 2, 2023, and June 26, 2022, ~~and September 26, 2021,~~ is included in the following summary:

Net sales Adjusted EBITDA
Third Quarter Year-to-date Third Quarter Year-to-date
In millions 2022 2021 2022 2021 2022 2021 2022 2021
Gas Cylinders segment $ 43.4 $ 45.6 $ 131.9 $ 128.3 $ 3.4 $ 5.4 $ 9.8 $ 16.7
Elektron segment 56.8 45.6 174.8 147.1 12.7 8.4 39.3 32.1
Consolidated $ 100.2 $ 91.2 $ 306.7 $ 275.4 $ 16.1 $ 13.8 $ 49.1 $ 48.8


	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
Third Quarter Year-to-date Third Quarter Year-to-date
In millions 2022 2021 2022 2021 2022 2021 2022 2021
Gas Cylinders segment $ 1.2 $ 1.4 $ 3.8 $ 3.9 $ 0.3 $ 0.5 $ 1.8 $ 1.1
Elektron segment 2.1 2.4 6.6 7.3 — — 0.2 1.0
Consolidated $ 3.3 $ 3.8 $ 10.4 $ 11.2 $ 0.3 $ 0.5 $ 2.0 $ 2.1


	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

~~14.~~13. Segmental Information (continued)
Total assets Capital expenditures
September 25, December 31, Third Quarter Year-to-date
In millions 2022 2021 2022 2021 2022 2021
Gas Cylinders segment $ 131.0 $ 122.7 $ 0.4 $ 0.2 $ 0.8 $ 0.7
Elektron segment 213.1 206.5 2.1 1.8 4.7 4.9
Other 40.4 34.8 — — — —
Discontinued operations $ 7.9 $ 4.8 $ — $ — $ — $ —
Consolidated $ 392.4 $ 368.8 $ 2.5 $ 2.0 $ 5.5 $ 5.6


	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
September 25, December 31,
In millions 2022 2021
U.S. $ 42.2 $ 46.9
United Kingdom 28.8 36.0
Canada 2.9 3.3
Rest of Europe 0.9 1.0
Asia Pacific 0.2 0.3
$ 75.0 $ 87.5


	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:

Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Adjusted EBITDA $ 16.1 $ 13.8 $ 49.1 $ 48.8
Other share-based compensation charges (0.9) (0.8) (1.8) (2.2)
Depreciation and amortization (3.3) (3.8) (10.4) (11.2)
Gain on disposal of property, plant and equipment — — 0.2 —
Restructuring charges (0.3) (0.5) (2.0) (2.1)
Acquisition and disposal related costs — (0.6) (0.3) (1.5)
Other charges — — — (1.1)
Defined benefits pension credit 0.2 0.6 0.9 1.8
Interest expense, net (1.0) (0.8) (2.7) (2.4)
Net income before income taxes from continuing operations $ 10.8 $ 7.9 $ 33.0 $ 30.1


	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 ~~Third~~Second Quarter and First Half of the year ended ~~September 25, 2022,~~July 2, 2023, and ~~September~~June 26, ~~2021:~~2022:

Net Sales(1)
Third Quarter Year-to-date
2022 2021 2022 2021
$M Percent $M Percent $M Percent $M Percent
United States $ 57.0 56.8 % $ 49.4 54.2 % $ 174.0 56.8 % $ 151.8 55.1 %
U.K. 4.6 4.6 % 6.5 7.1 % 16.0 5.2 % 17.5 6.4 %
Germany 4.4 4.4 % 5.1 5.6 % 15.3 5.0 % 13.2 4.8 %
France 1.8 1.8 % 2.6 2.9 % 6.7 2.2 % 9.3 3.4 %
Italy 2.5 2.5 % 3.5 3.8 % 8.4 2.7 % 9.5 3.4 %
Top five countries $ 70.3 70.1 % $ 67.1 73.6 % $ 220.4 71.9 % $ 201.3 73.1 %
Rest of Europe 6.7 6.7 % 4.9 5.4 % 19.1 6.2 % 19.0 6.9 %
Asia Pacific 18.3 18.3 % 13.7 15.0 % 50.7 16.5 % 38.1 13.8 %
Other (2)
4.9 4.9 % 5.5 6.0 % 16.5 5.4 % 17.0 6.2 %
$ 100.2 $ 91.2 $ 306.7 $ 275.4


	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.

~~15.~~14. 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 ~~September 25, 2022 and~~ December 31, ~~2021.~~2022. Of these committed facilities, ~~$37.6~~$68.1 million was drawn at ~~September 25, 2022~~July 2, 2023 and ~~$10.8~~$31.9 million at December 31, ~~2021.~~2022. The Company also had an additional ~~$50.0~~$25.0 million of uncommitted facilities through an accordion ~~provision.~~

~~The Company also has a separate (uncommitted) bonding facility for bank guarantees, denominated in GBP sterling of £0.5~~provision at July 2, 2023 and $50.0 million ~~or $0.5 million (2021: £0.6 million or $0.9 million), £0.1 million ($0.1 million) and £0.1 million ($0.2 million) was utilized at September 25, 2022, and December 31, 2021, respectively.~~

The Company has a separate (uncommitted) facility for letters of credit, which at September 25, 2022, was $2.0 million (2021: $1.5 million). $1.1 million and $0.9 million of this was utilized at September 25, 2022, and December 31, 2021, respectively.

~~The Company also has a $4.0 million separate overdraft facility of which none was drawn at September 25, 2022 and~~ at December 31, ~~2021.~~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

In November 2018, an explosion occurred at a third-party waste disposal and treatment site in ~~Boise,~~Grand View, Idaho, reportedly causing property damage, personal injury, and one fatality. We ~~had~~ contracted with a service company for removal and disposal of certain waste resulting from the magnesium powder manufacturing operations at the Reade facility in ~~Lakehurst,~~Manchester, New Jersey. We believe this service company, in turn, ~~apparently~~ contracted with the third-party disposal company, at whose facility the explosion occurred, for treatment and disposal of the waste. In November 2020, we were named as a defendant in three lawsuits in relation to the incident -– one by the third-party disposal company, one by the estate of the decedent, and one by an injured employee of the third-party disposal company. We ~~do not~~ believe that we are not liable for the incident, have asserted such, and ~~therefore,~~continue to fully defend the Company against these lawsuits. Therefore, we do not currently expect ~~this matter~~the eventual outcome in these matters to have a material impact on the ~~Company’s~~Company's financial position or results of operations.

15. 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.

16. Subsequent Events

~~No material events.~~Post 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.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Information regarding forward-looking statements

This Interim Report on Form 10-Q contains certain statements, statistics and projections that are, or may be, forward-looking. These forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause our actual results of operations, financial condition, liquidity, performance, prospects, opportunities, achievements or industry results, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. The accuracy and completeness of all such statements, including, without limitation, statements regarding our future financial position, strategy, plans and objectives for the management of future operations, is not warranted or guaranteed. These statements typically contain words such as "believes," "intends," "expects," "anticipates," "estimates," "may," "will," "should" and words of similar import. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in such statements are reasonable, no assurance can be given that such expectations will prove to be correct. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, factors identified in "Business," "Risk factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations," or elsewhere in this Interim Report, as well as:

•general economic conditions, or conditions affecting demand for the services offered by us in the markets in which we operate, both domestically and internationally, being less favorable than expected;

•worldwide economic and business conditions and conditions in the industries in which we operate;

•post-pandemic impact of COVID-19 and future pandemics;

•fluctuations in the cost and / or availability of raw materials, labor and energy, as well as our ability to pass on cost increases to customers;

•currency fluctuations and other financial risks;

•our ability to protect our intellectual property;

•the amount of indebtedness we have incurred and may incur, and the obligations to service such indebtedness and to comply with the covenants contained therein;

•relationships with our customers and suppliers;

•increased competition from other companies in the industries in which we operate;

•changing technology;

•our ability to execute and integrate new acquisitions;

•claims for personal injury, death or property damage arising from the use of products produced by us;

•the occurrence of accidents or other interruptions to our production processes;

•changes in our business strategy or development plans, and our expected level of capital expenditure;

•our ability to attract and retain qualified personnel;

•restrictions on the ability of Luxfer Holdings PLC to receive dividends or loans from certain of its subsidiaries;

•climate change regulations and the potential impact on energy costs;

•regulatory, environmental, legislative and judicial developments; and

•our intention to pay dividends.

Please read the sections "Business" and "Risk factors" included within the ~~2021~~2022 Annual Report on Form 10-K and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk factors" of this Interim Report on Form 10-Q for a more complete discussion of the factors that could affect our performance and the industries in which we operate, as well as those discussed in other documents we file or furnish with the SEC.

About Luxfer

Luxfer is a global ~~manufacturer of highly-engineered~~ industrial company innovating niche applications in materials ~~which~~engineering. Luxfer focuses on value creation by using its broad array of technical know-how and proprietary ~~technologies.~~technologies to help create a safe, clean and energy-efficient world. Luxfer's high-performance ~~products~~materials, components and high-pressure gas containment devices are used in defense, first response and ~~emergency response,~~ healthcare, transportation and general industrial ~~settings. For more information, visit~~ ~~www.luxfer.com~~.applications.

Key trends and uncertainties regarding our existing business

~~Update on ongoing challenging global macro environment and related impact on~~Margin pressure resulting from supply chain ~~disruption~~challenges

~~Demand from most end-markets we serve has continued~~We have, and continue to ~~improve following the adverse impact of COVID-19~~

~~on volumes, notably in 2020. This sharp recovery in demand across the global macro environment has resulted in~~experience supply chain challenges, ~~characterized by significant increases in material~~largely now limited to the higher cost inflation on key inputs (including magnesium, aluminum and carbon fiber), labor availability issues and energy and transport cost increases. Additionally, in the prior year we were faced with two critical suppliers of magnesium and zirconium respectively declaring force majeure, of which the former remains in place. The continuing conflict in Ukraine which has resulted in punitive sanctions against the Russian Federation has further exacerbated the availability

~~and price~~ of certain raw ~~materials and energy supplies. In response~~materials. Additionally, force majeure still remains in place for our key supplier of U.S. sourced magnesium, with supply not expected to ~~the supply chain disruption,~~recommence until at least Quarter Four of 2023, although more likely 2024. However, we have been

successful in securing alternative sources of supply ~~for key material inputs affected by force majeure.~~outside of the U.S., albeit at a higher cost.

~~Furthermore, in~~

In the majority of cases we are able to pass through ~~inflation~~inflationary costs to our ~~customers.~~customers, although we are still constrained by contracts, particularly in the Gas Cylinders segment, the longest running of which is not subject to renewal until mid-2024. Currently, our

expectation is that the impact of material availability / inflation, ~~and~~ energy cost inflation and labor and transport

constraints will continue ~~into~~throughout 2023; but that we will be able to source sufficient material to meet demand and that in the majority of cases we expect to be able to pass on cost increases. However the outlook remains highly uncertain with both the size and timing of future cost increases difficult to predict.

~~Impact of conflict in Ukraine~~

However the outlook remains highly uncertain with both the size and timing of future cost increases difficult to predict. The Russian invasion of Ukraine and ongoing military conflict which commenced on February 24, 2022, has resulted in massive displacement of the Ukrainian population and huge disruption to its economy. Wide ranging sanctions have been imposed on the Russian Federation by the international community, targeting individuals, banks, businesses, funds transfers and imports and exports and are expected to have a significant adverse impact on Russia's economy as well as on international businesses active in the region. The impact on Luxfer is not expected to be significant as we have no direct operations in the region, and our sales to Russia and Ukraine combined typically represent less than one percent of total revenue by destination. Furthermore, neither country is a critical supplier of our raw material needs, and while Russia is a major global exporter of magnesium, we are able to source the metal from various alternative locations, including China, Israel, Turkey and the United States.

Operating objectives and trends

In ~~2022,~~2023, we expect the following operating objectives and trends to impact our business:

•~~Organic~~Addressing general macro uncertainty as well as impacts from the extended outage of U.S. domestic magnesium supply;

•Continuing high activity on revenue growth initiatives with particular focus on ~~revenue from new products;~~increasing volumes;

•Actions to ensure continuity of supply of critical materials and services while safeguarding ~~margins amid inflationary pressures;~~margins;

•~~Proactive response on health and well-being~~Execution of ~~employees,~~productivity improvements, including ~~continuous improvement on safety;~~completion of rationalization projects;

•~~Targeted~~Increases in selling prices to mitigate and pass through current cost pressure;

•Further improvements in ESG standing through investment in new projects;

•~~Continued focus~~Focus on recruiting, developing and ~~developing~~maintaining talent, ~~and~~through our new leadership development programs, while driving a high-performance culture; and

•Continued ~~focus~~emphasis on operating cash generation ~~leveraging our recent years' of restructuring activity~~ and ~~targeting~~maintaining strong working capital performance.

CONSOLIDATED RESULTS OF OPERATIONS

The consolidated results of operations for the ~~Third~~Second Quarter of ~~2022~~2023 and ~~2021~~2022 of Luxfer were as follows:

Third Quarter % / point change
In millions 2022 2021 2022 v 2021
Net sales $ 100.2 $ 91.2 9.9 %
Cost of goods sold (77.0) (70.1) 9.8 %
Gross profit 23.2 21.1 10.0 %
     % of net sales 23.2 % 23.1 % 0.1
Selling, general and administrative expenses (10.3) (10.6) (2.8) %
     % of net sales 10.3 % 11.6 % (1.3)
Research and development (1.0) (1.3) (23.1) %
     % of net sales 1.0 % 1.4 % (0.4)
Restructuring charges (0.3) (0.5) (40.0) %
     % of net sales 0.3 % 0.5 % (0.2)
Acquisition and disposal related costs — (0.6) (100.0) %
     % of net sales — % (0.7) % 0.7
Operating income $ 11.6 $ 8.1 43.2 %
     % of net sales 11.6 % 8.9 % 2.7
Net interest expense (1.0) (0.8) 25.0 %
     % of net sales 1.0 % 0.9 % 0.1
Defined benefit pension credit 0.2 0.6 (66.7) %
     % of net sales 0.2 % 0.7 % (0.5)
Income before income taxes $ 10.8 $ 7.9 36.7 %
     % of net sales 10.8 % 8.7 % 2.1
Provision for income taxes (2.3) (1.9) 21.1 %
     Effective tax rate 21.3 % 24.1 % (2.8)
Net income from continuing activities $ 8.5 $ 6.0 41.7 %
     % of net sales 8.5 % 6.6 % 1.9


	Second Quarter						% / point change
In millions	2023			2022				2023 v 2022
Net sales	$	110.4		$	109.5			0.8	%
Cost of goods sold	(86.2)			(83.8)				2.9	%
Gross profit	$	24.2		$	25.7			(5.8)	%
% of net sales	21.9		%	23.5		%		(1.6)
Selling, general and administrative expenses	(12.8)			(11.5)				11.3	%
% of net sales	11.6		%	10.5		%		1.1
Research and development	(1.0)			(1.2)				(16.7)	%
% of net sales	0.9		%	1.1		%		(0.2)
Restructuring charges	(2.5)			(0.3)				733.3	%
% of net sales	2.3		%	0.3		%		2.0


Acquisition and disposal related costs	—			(0.1)				(100.0)	%
% of net sales	—		%	(0.1)		%		0.1


Operating income	$	7.9		$	12.6			(37.3)	%
% of net sales	7.2		%	11.5		%		(4.3)
Net interest expense	(1.8)			(0.9)				100.0	%
% of net sales	1.6		%	0.8		%		0.8
Defined benefit pension credit	0.6			0.3				100.0	%
% of net sales	0.5		%	0.3		%		0.2
Income before income taxes	$	6.7		$	12.0			(44.2)	%
% of net sales	6.1		%	11.0		%		(4.9)
Provision for income taxes	(1.8)			(2.4)				(25.0)	%
Effective tax rate	26.9		%	20.0		%		6.9




Net income from continuing activities	$	4.9		$	9.6			(49.0)	%
% of net sales	4.4		%	8.8		%		(4.4)

The consolidated results of operations for the ~~nine~~six months of ~~2022~~2023 and ~~2021~~2022 of Luxfer were as follows:

Year-to-date % / point change
In millions 2022 2021 2022 v 2021
Net sales $ 306.7 275.4 11.4 %
Cost of goods sold (233.6) (203.2) 15.0 %
Gross profit 73.1 72.2 1.2 %
% of net sales 23.8 % 26.2 % (2.4)
Selling, general and administrative expenses (32.5) (33.9) (4.1) %
% of net sales 10.6 % 12.3 % (1.7)
Research and development (3.5) (2.9) 20.7 %
% of net sales 1.1 % 1.1 % —
Restructuring charges (2.0) (2.1) (4.8) %
% of net sales 0.7 % 0.8 % (0.1)
Acquisition and disposal related costs (0.3) (1.5) (80.0) %
% of net sales 0.1 % (0.5) % 0.6
Other charges — (1.1) n/a
% of net sales — % 0.4 % (0.4)
Operating income 34.8 30.7 13.4 %
% of net sales 11.3 % 11.1 % 0.2
Net interest expense (2.7) (2.4) 12.5 %
% of net sales 0.9 % 0.9 % —
Defined benefit pension credit 0.9 1.8 (50.0) %
% of net sales 0.3 % 0.7 % (0.4)
Income from continuing operations 33.0 30.1 9.6 %
% of net sales 10.8 % 10.9 % (0.1)
Provision for income taxes (7.2) (3.6) 100.0 %
Effective tax rate 21.8 % 12.0 % 9.8
Net income from continuing operations $ 25.8 $ 26.5 (2.6) %
% of net sales 8.4 % 9.6 % (1.2)


	Year-to-date						% / point change
In millions	2023			2022			2023 v 2022
Net sales	$	211.7		$	206.5		2.5	%
Cost of goods sold	(166.4)			(156.6)			6.3	%
Gross profit	45.3			49.9			(9.2)	%
% of net sales	21.4		%	24.2		%	(2.8)
Selling, general and administrative expenses	(25.3)			(22.2)			14.0	%
% of net sales	12.0		%	10.8		%	1.2
Research and development	(2.2)			(2.5)			(12.0)	%
% of net sales	1.0		%	1.2		%	(0.2)
Restructuring charges	(2.8)			(1.7)			64.7	%
% of net sales	1.3		%	0.8		%	0.5


Acquisition and disposal related costs	—			(0.3)			(100.0)	%
% of net sales	—		%	0.1		%	(0.1)


Operating income	$	15.0		$	23.2		(35.3)	%
% of net sales	7.1		%	11.2		%	(4.1)
Net interest expense	(3.1)			(1.7)			82.4	%
% of net sales	1.5		%	0.8		%	0.7
Defined benefit pension (charge) / credit	(8.3)			0.7			n/a
% of net sales	(3.9)		%	0.3		%	(4.2)
Income from continuing operations	$	3.6		$	22.2		(83.8)	%
% of net sales	1.7		%	10.8		%	(9.1)
Credit / (provision) for income taxes	1.8			(4.9)			(136.7)	%
Effective tax rate	(50.0)		%	22.1		%	(72.1)




Net income from continuing operations	$	5.4		$	17.3		(68.8)	%
% of net sales	2.6		%	8.4		%	(5.8)

Net sales

Adjusting for foreign exchange ~~headwinds~~tailwind of ~~$4.9~~$0.2 million and ~~$9.8~~a headwind of $2.1 million in the second quarter and first half of 2023 respectively, net sales have increased by ~~15.2%~~0.6% and ~~14.9% in the third quarter and first nine months of 2022 respectively.~~3.5%. The passing through of material cost inflation, ~~where not constrained by contract,~~ accounted for approximately ~~14.6%~~$6.5 million and ~~13.0% of the~~$16.5 million increase in consolidated net sales in the ~~third~~second quarter and first ~~nine months,~~half, respectively, of ~~2022~~2023 from ~~2021.~~2022. Furthermore, there was a benefit in the quarter from:

•Growth in our Defense, First Response and Healthcare end market, including chemical kits, medical cylinders and flameless ration heaters (FRH), especially our new unitized group ration product (UGR-E);

•Increased sales of alternative fuel cylinders; and

•Continued increase in demand for zirconium products, particularly those used in pharmaceutical applications.

These increases were partially offset by:

•Decreased demand for photo-engraving plates outside of the North American market;

•Lower sales of SoluMag® due to destocking by customers in the Oil and Gas industry; and

•Reduction in sales of magnesium powders ~~used in~~for commercial ~~applications;~~use.

Further to the above, the first half of the year were also affected by:

•~~Increased~~Higher demand for ~~composite~~SCBA cylinders, ~~used in aerospace and medical applications, although constrained~~offset by ~~historical contractual prices;~~lower sales of large industrial cylinders;

•Increased sales of magnesium alloys, especially those used in aerospace and automotive applications; ~~and~~

•~~Higher demand for our zirconium products particularly in industrial applications.~~

~~These increases were partially~~Partially offset ~~by:~~

•~~Unfavorable~~by unfavorable foreign exchange variances as highlighted above;

•~~Softening sales of flameless ration heaters ("FRH") and Chemical detection kits, and~~

•~~Alternative fuel cylinders down on strong quarter in prior year.~~

~~Further to the above, the first nine months of the year were also affected by:~~

•~~Increased sales of magnesium powders used in military applications; and~~

•~~Higher demand for photo-engraving plates~~

Gross profit

The ~~2.4~~1.6 and 2.8 percentage point decrease in gross profit as a percentage of sales in the second quarter and first ~~nine months~~half, respectively of ~~2022~~2023 from ~~2021~~2022 was primarily the result of ~~increased material~~adverse sales mix and ~~labor~~higher materials costs ~~and other supply chain investments~~relative to ~~overcome disruption, not fully covered by~~ price increases, particularly in the ~~Gas Cylinders~~Elektron Division.

~~The 0.1 percentage point increase in gross profit as a percentage of sales in the third quarter of 2022 from 2021~~ However, cost recovery and margin is ~~a result of positive sales mix between the Elektron and Gas Cylinders Division offsetting the impact of fixed-priced contracts~~improving in the Gas Cylinders ~~Division.~~Division as fixed-priced contracts are being renegotiated.

Selling, general and administrative expenses ("SG&A")

SG&A costs as a percentage of sales in 2023 from 2022 ~~from 2021~~ has ~~decreased~~increased by ~~1.3~~1.1 percentage points and ~~1.7~~1.2 percentage points in the quarter and first ~~nine months~~half respectively, largely due to the ~~impact~~$1.2 and $2.3 million of ~~price increases on revenue, as well as cost reduction programs effected~~legal costs expensed in the ~~prior year. We have also benefited from foreign currency translation of $1.0 million~~Elektron Division. These predominantly relate to the case described in Note 14 - Commitments and ~~$1.6 million in the quarter and first nine months respectively.~~Contingencies.

Research and development costs

Research and development costs as a percentage of sales decreased by ~~0.4~~0.2 percentage points in the ~~third~~second quarter and ~~remained flat for the~~ first ~~nine months~~half of ~~2022~~2023 relative to ~~2021~~2022 respectively. The slight reduction inis a result of the ~~quarter has brought~~ the ~~year-to-date spend in line~~inflationary impact on sales, coupled with ~~the prior year. There has been~~ a $0.1 million and $0.2 million impact due to foreign exchange ~~accounting for~~in the quarter and first half ~~of the percentage point reduction.~~respectively.

Restructuring charges

The ~~$0.3~~$2.5 million and ~~$2.0~~$2.8 million restructuring charge in the ~~third~~second quarter and first ~~nine~~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 six months 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 ~~predominantly~~ to costs associated with the closure of Luxfer Gas Cylinders France, which ceased operations in 2019. There was $0.2 million recognized in the second quarter of 2022 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 $0.5 million and $2.1 million restructuring charge in the third quarter and first nine months of 2021 included $0.3 million and $1.1 million respectively of further costs associated with the announced closure of Luxfer Gas Cylinders France, and was largely legal and professional fees. The first nine months of 2021 also includes $0.9 million of one-time employee termination benefits in the Elektron division, largely in relation to the planned divestiture of our small Elektron production facility in Ontario, Canada.

Acquisition and disposal related costs

~~Net~~No acquisition and disposal related costs ~~of $0.3 million~~have been incurred ~~in the first nine months of 2022 and $0.6~~during 2023.

The $0.1 million and ~~$1.5~~$0.3 million in the ~~third~~second quarter and first ~~nine months~~half of ~~2021~~2022 respectively, represents amounts incurred in relation to the acquisition of Structural Composites Industries.

~~Other charges~~

Other charges in the first nine months of 2021 relates to the settlement of a class action lawsuit in the Gas Cylinders segment in relation to an alleged historic violation of the Californian Labor Code, concerning an Human Resources administration matter.

Net interest expense

Net interest expense of ~~$1.0~~$1.8 million in the ~~third~~second quarter of 2023 doubled from $0.9 million in the second quarter of 2022, ~~increased $0.2 million from $0.8 million in the third quarter 2021,~~due to a combination of increased interest rates and higher drawings. Interest expense of ~~$2.7~~$3.1 million in the first ~~nine months~~half of ~~2022~~2023 was also significantly higher than the ~~$2.4~~$1.7 million in the first ~~nine months~~half of ~~2021.~~2022.

Defined benefit pension credit

~~The~~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 ~~$0.9~~$0.7 million ~~decrease in~~ defined benefit credit on the U.K pension ~~credit to $0.2 million and $0.9 million in~~plan for the ~~third~~second quarter and first ~~nine months~~half of ~~2022 from $0.6~~2023 respectively, consistent with the $0.3 million and ~~$1.8~~$0.7 million ~~in 2021 is primarily due to~~for the ~~combined effect on the U.K. plan~~second quarter and first half of ~~lower projected asset returns and a higher inflation projection coupled with the weakening of the pound sterling.~~2022.

Provision for income taxes

The movement in the statutory effective tax rate from ~~12.0%~~22.1% in ~~2021,~~2022, to ~~21.8%~~negative 50.0% in ~~2022,~~2023, was primarily due to ~~the impact of the enacted tax rate change in the U.K. in 2021, which is due to rise from 19% to 25% in April 2023. The subsequent increase in the value of~~non-deductible expenses and deferred tax ~~assets related~~credit, predominantly in relation to ~~our defined benefit~~the previously mentioned pension ~~plan resulted in a credit of $2.2 million recorded in our tax charge in the second quarter of 2021.~~buy-out and impairment charges. When stripping out the impact of this, as well as other less significant adjusting items, the adjusted effective tax rate has ~~increased~~reduced slightly to ~~21.5%~~22.0% in ~~2022~~2023 from ~~21.2%~~22.2% in ~~2021,~~2022, largely as a result of jurisdictional profit mix.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

The following table of non-GAAP summary financial data presents a reconciliation of net income to adjusted net income for the periods presented, being the most comparable GAAP measure. Management believes that adjusted net income, adjusted earnings per share, adjusted EBITA and adjusted EBITDA are key performance indicators (KPIs) used by the investment community and that such presentation will enhance an investor’s understanding of the Company's operational results. In addition, Luxfer's CEO and other senior management use these KPIs, among others, to evaluate business performance. However, investors should not consider adjusted net income and adjusted earnings per share in isolation as an alternative to net income and earnings per share when evaluating Luxfer's operating performance or measuring Luxfer's profitability.

Third Quarter Year-to-date
In millions except per share data 2022 2021 2022 2021
Net income from continuing operations $ 8.5 $ 6.0 $ 25.8 $ 26.5
Accounting charges relating to acquisitions and disposals of businesses:
Amortization on acquired intangibles 0.2 0.3 0.6 0.7
Acquisition and disposal related costs — 0.6 0.3 1.5
Defined benefit pension credit (0.2) (0.6) (0.9) (1.8)
Restructuring charges 0.3 0.5 2.0 2.1
Other charges — — — 1.1
Share-based compensation charges 0.9 0.8 1.8 2.2
Other non-recurring tax items(1)
— — — (2.2)
Income tax on adjusted items (0.1) (0.4) (0.7) (1.8)
Adjusted net income $ 9.6 $ 7.2 $ 28.9 $ 28.3
Adjusted earnings per ordinary share
Diluted earnings per ordinary share $ 0.31 $ 0.21 $ 0.93 $ 0.94
Impact of adjusted items 0.04 0.05 0.12 0.07
Adjusted diluted earnings per ordinary share(2)
$ 0.35 $ 0.26 $ 1.05 $ 1.01


	Second Quarter				Year-to-date
In millions except per share data	2023		2022		2023		2022
Net income from continuing operations	$	4.9	$	9.6	$	5.4	$	17.3
Accounting charges relating to acquisitions and disposals of businesses:

Amortization on acquired intangibles	0.2		0.2		0.4		0.4
Acquisition and disposal related costs	—		0.1		—		0.3
Defined benefit pension (credit) / charge	(0.6)		(0.3)		8.3		(0.7)
Restructuring charges	2.5		0.3		2.8		1.7



Share-based compensation charges	0.7		0.7		1.3		0.9

Tax impact of defined benefit pension settlement	—		—		(4.9)		—
Income tax on adjusted items	(0.3)		(0.5)		(0.5)		(0.6)
Adjusted net income	$	7.4	$	10.1	$	12.8	$	19.3

Adjusted earnings per ordinary share
Diluted earnings per ordinary share	$	0.18	$	0.35	$	0.20	$	0.62
Impact of adjusted items	0.09		0.01		0.27		0.08
Adjusted diluted earnings per ordinary share(1)	$	0.27	$	0.36	$	0.47	$	0.70

(1)Other non-recurring tax items represents the impact of the enacted U.K. tax rate change (from 19% to 25% with effect from April 2023) on deferred tax assets related to our U.K. defined benefit pension plan.

~~(2)~~ For the purpose of calculating diluted earnings per share, the weighted average number of ordinary shares outstanding during the financial year has been adjusted for the dilutive effects of all potential ordinary shares and share options granted to employees, except where there is a loss in the period, then no adjustment is made.

Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Adjusted net income $ 9.6 $ 7.2 $ 28.9 $ 28.3
Add back:
     Other non-recurring tax items — — — 2.2
     Income tax on adjusted items 0.1 0.4 0.7 1.8
     Provision for income taxes 2.3 1.9 7.2 3.6
Net finance costs 1.0 0.8 2.7 2.4
Gain on disposal of PPE — — (0.2) —
Adjusted EBITA $ 13.0 $ 10.3 $ 39.3 $ 38.3
     Depreciation 3.1 3.5 9.8 10.5
Adjusted EBITDA $ 16.1 $ 13.8 $ 49.1 $ 48.8


	Second Quarter				Year-to-date
In millions	2023		2022		2023		2022
Adjusted net income	$	7.4	$	10.1	$	12.8	$	19.3
Add back:

Tax impact of defined benefit pension settlement	—		—		4.9		—
Income tax on adjusted items	0.3		0.5		0.5		0.6
Provision for income taxes	1.8		2.4		(1.8)		4.9
Interest expense	1.8		0.9		3.1		1.7
Adjusted EBITA	$	11.3	$	13.9	$	19.5	$	26.5
Gain on disposal of PPE	—		(0.2)		—		(0.2)
Depreciation	3.1		3.2		6.2		6.7
Adjusted EBITDA	$	14.4	$	16.9	$	25.7	$	33.0

The following table presents a reconciliation for the adjusted effective tax rate, which management believes is a KPI used by the investment community and that such presentation will enhance an investor’s understanding of the Company's operational results.

Third Quarter Year-to-date
In millions 2022 2021 2022 2021
Adjusted net income $ 9.6 $ 7.2 $ 28.9 $ 28.3
Add back:
     Other non-recurring tax items — 2.2 — 2.2
     Income tax on adjusted items 0.1 0.4 0.7 1.8
     Provision for income taxes 2.3 1.9 7.2 3.6
Adjusted income before income taxes $ 12.0 $ 11.7 $ 36.8 $ 35.9
Adjusted provision for income taxes 2.4 4.5 7.9 7.6
Adjusted effective tax rate 20.0 % 38.5 % 21.5 % 21.2 %


	Second Quarter						Year-to-date
In millions	2023			2022			2023			2022
Adjusted net income	$	7.4		$	10.1		$	12.8		$	19.3
Add back:

Tax impact of defined benefit pension settlement	—			—			4.9			—
Income tax on adjusted items	0.3			0.5			0.5			0.6
Provision for income taxes	1.8			2.4			(1.8)			4.9
Adjusted income before income taxes	$	9.5		$	13.0		$	16.4		$	24.8
Adjusted provision for income taxes	2.1			2.9			3.6			5.5
Adjusted effective tax rate	22.1		%	22.3		%	22.0		%	22.2		%

SEGMENT RESULTS OF OPERATIONS

The summary that follows provides a discussion of the results of operations of each of our two reportable segments (Gas Cylinders and Elektron). Both segments comprise various product offerings that serve multiple end markets.

Adjusted EBITDA represents operating income adjusted for share based compensation charges; gain on disposal of property, plant and equipment, restructuring charges; acquisition and disposal related gains and costs; other charges; depreciation and amortization. A reconciliation to net income and taxes can be found in Note 1413 to the condensed consolidated financial statements.

GAS CYLINDERS

The net sales and adjusted EBITDA for Gas Cylinders were as follows:

Third Quarter % / point change Year-to-date % / point change
In millions 2022 2021 2022 v 2021 2022 2021 2022 v 2021
Net sales $ 43.4 $ 45.6 (4.8)% $ 131.9 $ 128.3 2.8%
Adjusted EBITDA 3.4 5.4 (37.0)% 9.8 16.7 (41.3)%
% of net sales 7.8 % 11.8 % (4.0) 7.4 % 13.0 % (5.6)


	Second Quarter						% / point change	Year-to-date						% / point change
In millions	2023			2022			2022 v 2021	2023			2022			2022 v 2021
Net sales	$	48.5		$	46.1		5.2%	$	90.0		$	88.5		1.7%
Adjusted EBITDA	4.9			3.7			32.4%	7.4			6.4			15.6%
% of net sales	10.1		%	8.0		%	2.1	8.2		%	7.2		%	1.0

Net sales

The ~~4.8% decrease~~5.2% increase in Gas Cylinders sales in the ~~third~~second quarter of ~~2022~~2023 from ~~2021~~2022 was primarily the result of:

•~~Continued reduction in~~Increased sales of ~~aluminum products;~~

•~~Reduction in~~ alternative fuel ~~and SCBA cylinder sales;~~cylinders; and

•~~$2.6 million FX headwind.~~Growth in sales of medical cylinders.

These ~~decreases~~increases have been partially offset by:

•~~Increased demand for composite cylinders used in aerospace;~~$0.3 million FX headwind; and

•~~Improved~~Reduced sales of ~~medical oxygen~~non-medical, aluminum cylinders.

~~Net sales in Gas Cylinders are still being impacted by the fixed-price contracts in place across the Division.~~

The first ~~nine months~~half of ~~2022~~2023 has also benefited from ~~$7.1 million of sales due to the acquisition of SCI at the end of the first quarter of 2021, which has positively impacted~~higher demand for SCBA cylinders, offset by lower sales of ~~cylinders used in aerospace and alternative fuels ("AF") applications.~~large industrial cylinders.

Adjusted EBITDA

The ~~4.0~~2.1 percentage point and ~~5.6~~1.0 percentage point ~~decrease~~increase in adjusted EBITDA for Gas Cylinders as a percentage of net sales in the ~~third~~second quarter and first ~~nine months~~half of ~~2022~~2023 relative to ~~2021 continue to be impacted by timing~~2022 is predominantly a result of ~~contractually constrained cost pass-through, though improving. Cost reduction effort activities~~the renegotiation of fixed price contracts, as price more than offset ~~adverse foreign exchange impact.~~inflation during the second quarter.

ELEKTRON

The net sales and adjusted EBITDA for Elektron were as follows:

Third Quarter % / point change Year-to-date % / point change
In millions 2022 2021 2022 v 2021 2022 2021 2022 v 2021
Net sales $ 56.8 $ 45.6 24.6% $ 174.8 $ 147.1 18.8%
Adjusted EBITDA 12.7 8.4 51.2% 39.3 32.1 22.4%
% of net sales 22.4 % 18.4 % 4.0 22.5 % 21.8 % 0.7


	Second Quarter						% / point change	Year-to-date						% / point change
In millions	2023			2022			2022 v 2021	2023			2022			2022 v 2021
Net sales	$	61.9		$	63.4		(2.4)%	$	121.7		$	118.0		3.1%
Adjusted EBITDA	9.5			13.2			(28.0)%	18.3			26.6			(31.2)%
% of net sales	15.3		%	20.8		%	(5.5)	15.0		%	22.5		%	(7.5)

Net sales

The ~~24.6% and 18.8% increase~~2.4% decrease in Elektron sales in the ~~third~~second quarter ~~and first nine months, respectively,~~ of ~~2022~~2023 from ~~2021~~2022 was primarily the result of:

•~~Increased~~Decreased demand for photo-engraving plates outside of the North-American market;

•Lower sales of SoluMag® due to destocking by customers in the Oil and Gas industry; and

•Reduction in sales of magnesium powders ~~used in~~for commercial ~~applications;~~

•~~Improved sales of zirconium products including catalysis and traditional oxides; and~~

•~~Increased demand for magnesium used in the aerospace market.~~use.

These increases were partially offset by ~~a decrease in~~increased sales of chemical response kits and flameless ration heaters, ~~heater meals and chemical response kits~~especially our new UGR-E product, supplied by Luxfer Magtech. There has also been continued increase in demand for zirconium products, particularly those used in pharmaceutical applications.

Net sales were also impacted by ~~$2.3~~$0.5 million of FX ~~headwinds.~~tailwinds.

The 3.1% increase in Elektron sales in the first half of 2023 from 2022 was primarily the result of increased sales of magnesium alloys, especially those used in aerospace and automotive applications, in addition to the above mentioned factors.

Adjusted EBITDA

The ~~4.0~~5.5 and ~~0.7~~7.5 percentage point ~~increase~~decrease in adjusted EBITDA for Elektron as a percentage of net sales in the ~~third~~second quarter and first ~~nine months~~half respectively of ~~2022~~2023 from ~~2021~~2022 was primarily the result of ~~the Division's ability~~adverse product mix and higher materials costs relative to ~~pass on the continued inflationary cost increases, as well as the benefit of positive foreign exchange variances.~~price increases.

LIQUIDITY AND CAPITAL RESOURCES

Our liquidity requirements arise primarily from obligations under our indebtedness, capital expenditures, acquisitions, the funding of working capital and the funding of hedging facilities to manage foreign exchange and commodity purchase price risks. We meet these requirements primarily through cash flows from operating activities, cash deposits and borrowings under the Revolving Credit Facility and accompanying ancillary hedging facilities and the Loan Notes due, ~~2023 and~~ 2026. Our principal liquidity needs are:

•funding acquisitions, including deferred contingent consideration payments;

•capital expenditure requirements;

•payment of shareholder dividends;

•servicing interest on the Loan Notes, which is payable at each quarter end, in addition to interest and / or commitment fees on the Senior Facilities Agreement;

•working capital requirements, particularly in the short term as we aim to safeguard the business from supply chain constraints, as well as to achieve organic sales growth; and

•hedging facilities used to manage our foreign exchange risks.

From time to time, we consider acquisitions or investments in other businesses that we believe would be appropriate additions to our business.

We believe that, in the long term, cash generated from our operations will be adequate to meet our anticipated requirements for working capital, capital expenditures and interest payments on our indebtedness. In the short term, we believe we have sufficient credit facilities to cover any variation in our cash flow generation. However, any major repayments of indebtedness will be dependent on our ability to raise alternative financing or to realize substantial returns from operational sales. Also, our ability to expand operations through sales development and capital expenditures could be constrained by the availability of liquidity, which, in turn, could impact the profitability of our operations.

We have been in compliance with the covenants under the Loan Notes and the Senior Facilities Agreement throughout all of the quarterly measurement dates from and including September 30, 2011, to ~~September 25, 2022.~~

July 2, 2023.

Luxfer conducts all of its operations through its subsidiaries, joint ventures and affiliates. Accordingly, Luxfer's main cash source is dividends from its subsidiaries. The ability of each subsidiary to make distributions depends on the funds that a subsidiary receives from its operations in excess of the funds necessary for its operations, obligations or other business plans. We have not historically experienced any material impediment to these distributions, and we do not expect any local legal or regulatory regimes to have any impact on our ability to meet our liquidity requirements in the future. In addition, since our subsidiaries are wholly-owned, our claims will generally rank junior to all other obligations of the subsidiaries. If our operating subsidiaries are unable to make distributions, our growth may slow, unless we are able to obtain additional debt or equity financing. In the event of a subsidiary's liquidation, there may not be assets sufficient for us to recoup our investment in the subsidiary.

Our ability to maintain or increase the generation of cash from our operations in the future will depend significantly on the competitiveness of and demand for our products, including our success in launching new products. Achieving such success is a key objective of our business strategy. Due to commercial, competitive and external economic factors, however, we cannot guarantee that we will generate sufficient cash flows from operations or that future working capital will be available in an amount sufficient to enable us to service our indebtedness or make necessary capital expenditures.

Cash Flows

Operating activities

Cash used by operating activities was ~~$3.2~~$1.3 million and $6.8 million for the first ~~nine~~six months in ~~2022.~~2023 and 2022 respectively. It was primarily related to net income from operating activities offset by ~~significant~~ increases in working capital related to inventory build to protect supply chain, and net of the following non-cash items: depreciation and amortization; share-based compensation charges; pension credit and net changes to assets and liabilities.

Cash provided by operating activities was $34.1 million in the first nine months of 2021. It was primarily related to net income from operating activities, net of the following non-cash items: depreciation and amortization; pension credit and net changes to assets and liabilities.

Investing activities

Net cash used by investing activities was ~~$1.5~~$4.9 million for the first ~~nine months~~half off ~~2022,~~2023, compared to net cash ~~used for~~provided by investing activities of ~~$1.2~~$0.8 million in ~~2021.The~~2022.The movement was ~~primarily~~ due to the $3.7 million cash received in 2022 in relation to the sale of our previously held-for-sale building in the Elektron division and the ~~$0.4~~$2.1 million ~~reduction~~increase in capital expenditures. ~~In 2021, we also received net, $4.4 million from the divestiture of our U.S. aluminum gas cylinder facility in the U.S. and acquisition of SCI.~~

Financing activities

In the first ~~nine months~~half of ~~2022,~~2023, net cash provided by financing activities was ~~$12.7~~$1.2 million ~~(2021: $19.3~~(2022: $6.0 million ~~used~~provided for financing activities). We made net drawdown on our banking facilities of ~~$31.7~~$10.1 million, ~~(2021: $4.4~~having drawn $35.1 million on our revolving credit facility to pay $25.0 million of short term debt (2022: $18.1 million repayment) ~~and dividend~~. Dividend payments of ~~$10.6~~$7.0 million ~~(2021: $10.2~~(2022: $7.0 million), equating to ~~$0.385~~$0.26 and ~~$0.375~~$0.255 per ordinary share ~~respectively. In addition,~~respectively and we paid out ~~$1.4~~$0.3 million ~~(2021: $1.9~~(2022: $1.4 million) in settling share based compensation and ~~$6.9~~$1.6 million ~~(2021: $2.8~~(2022: $3.7 million) in repurchasing our own shares as part of the share buyback program which equates to ~~350,000~~100,000 shares ~~(2021: 90,000~~(2022: 138,000 shares).

Capital Resources

Dividends

We paid year-to-date dividends in ~~2022~~2023 of ~~$10.6~~$7.0 million ~~(2021: $10.2~~and declared an additional $3.5 million (2022: $7.0 million paid year-to-date), or ~~$0.385~~$0.260 per ordinary share ~~(2021: $0.375)~~(2022: $0.255).

Any payment of dividends is also subject to the provisions of the U.K. Companies Act, according to which dividends may only be paid out of profits available for distribution determined by reference to financial statements prepared in accordance with the Companies Act and IFRS as adopted by the E.U., which differ in some respects from GAAP. In the event that dividends are paid in the future, holders of the ordinary shares will be entitled to receive payments in U.S. dollars in respect of dividends on the underlying ordinary shares in accordance with the deposit agreement. Furthermore, because we are a holding company, any dividend payments would depend on cash flows from our subsidiaries.

Authorized shares

Our authorized share capital consists of 40.0 million ordinary shares with a par value of £0.50 per share.

Contractual obligations

The following summarizes our significant contractual obligations that impact our liquidity:

Payments Due by Period
Total Less than
1 year 1 – 3
years 3 – 5
years After
5 years
(in $ million)
Contractual cash obligations
Loan Notes due 2023 $ 25.0 $ 25.0 $ — $ — $ —
Loan Notes due 2026 25.0 — — 25.0 —
Revolving credit facility 37.6 — — 37.6 —
Obligations under operating leases 33.3 5.5 11.1 7.3 9.4
Capital commitments 0.9 0.9 — — —
Interest payments 17.2 3.8 6.8 6.6 —
Total contractual cash obligations $ 139.0 $ 35.2 $ 17.9 $ 76.5 $ 9.4


	Payments Due by Period
	Total		Less than 1 year		1 – 3 years		3 – 5 years		After 5 years
	(in $ million)
Contractual cash obligations

Loan Notes due 2026	25.0		—		25.0		—		—
Revolving credit facility	68.1		—		68.1		—		—
Obligations under operating leases	27.6		5.1		9.5		3.8		9.2
Capital commitments	1.0		1.0		—		—		—
Interest payments	21.9		5.9		11.2		4.8		—
Total contractual cash obligations	$	143.6	$	12.0	$	113.8	$	8.6	$	9.2

Off-balance sheet measures

At ~~September 25, 2022,~~July 2, 2023, we had no off-balance sheet arrangements other than the two bonding facilities disclosed in Note ~~15.~~14.

NEW ACCOUNTING STANDARDS

See Note 1 of the Notes to Condensed Consolidated Financial Statements for information pertaining to recently adopted accounting standards or accounting standards to be adopted in the future.

CRITICAL ACCOUNTING POLICIES

We have adopted various accounting policies to prepare the consolidated financial statements in accordance with GAAP. Certain of our accounting policies require the application of significant judgment by management in selecting the appropriate assumptions for calculating financial estimates. In our ~~2021~~2022 Annual Report on Form 10-K, filed with the SEC on ~~February 24, 2022,~~March 1, 2023, we identified the critical accounting policies which affect our more significant estimates and assumptions used in preparing our consolidated financial statements.

Item 3. Quantitative and qualitative disclosures about market risk

There have been no material changes in our market risk during the first ~~nine months~~half ended ~~September 25, 2022.~~July 2, 2023. For additional information, refer to Item 7A of our ~~2021~~2022 Annual Report on Form 10-K, filed with the SEC on ~~February 24, 2022.~~March 1, 2023.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain a system of disclosure controls and procedures designed to provide reasonable assurance as to the reliability of our published financial statements and other disclosures included in this report. Our management evaluated, with the participation of our Chief Executive Officer and our Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the quarter ended ~~September 25, 2022,~~July 2, 2023, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934 (the “Exchange Act”). Based upon their evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective, at a reasonable assurance level, as of the quarter ended ~~September 25, 2022,~~July 2, 2023, to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended ~~September 25, 2022,~~July 2, 2023, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is a defendant in various lawsuits and is subject to various claims that arise in the normal course of business, the most significant of which are summarized in Note 1514 (commitments and contingencies) to the consolidated financial statements in ITEM 1. In the opinion of management, the likelihood that the ultimate disposition of these matters will have a material adverse impact is remote.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in Item 1A. of our ~~2021~~2022 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 6. Exhibits

31.1 Certification Required by Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934-Andrew Butcher

31.2 Certification Required by Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934-Stephen Webster

32.1 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)-Andrew Butcher

32.2 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)-Stephen Webster

101 The financial statements from the Company’s Interim Report on Form 10-Q for the quarter and year ended ended ~~September 25, 2022,~~July 2, 2023, formatted in XBRL: (i) Condensed Consolidated Statements of Income, (ii) Condensed Consolidated Statements of Comprehensive Income, (iii) Condensed Consolidated Balance Sheets, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Changes in Equity, and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.

3332

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Luxfer Holdings plc

(Registrant)

/s/Andrew Butcher

Andrew Butcher

Chief Executive Officer

(Duly Authorized Officer)

~~October~~July 25, ~~2022~~2023

3433


	Third Quarter				Year-to-date
In millions, except share and per-share data	2022		2021		2022		2021
Net sales	$	100.2	$	91.2	$	306.7	$	275.4
Cost of goods sold	(77.0)		(70.1)		(233.6)		(203.2)
Gross profit	23.2		21.1		73.1		72.2
Selling, general and administrative expenses	(10.3)		(10.6)		(32.5)		(33.9)
Research and development	(1.0)		(1.3)		(3.5)		(2.9)
Restructuring charges	(0.3)		(0.5)		(2.0)		(2.1)

Acquisition and disposal related costs	—		(0.6)		(0.3)		(1.5)

Other charges	—		—		—		(1.1)
Operating income	11.6		8.1		34.8		30.7
Interest expense	(1.0)		(0.8)		(2.7)		(2.4)

Defined benefit pension credit	0.2		0.6		0.9		1.8
Income before income taxes	10.8		7.9		33.0		30.1
Provision for income taxes	(2.3)		(1.9)		(7.2)		(3.6)


Net income from continuing operations	8.5		6.0		25.8		26.5

Net loss from discontinued operations, net of tax	(0.5)		(0.7)		(0.9)		(2.8)
(Loss) / gain on disposition of discontinued operations, net of tax	—		(0.5)		—		6.6
Net (loss) / income from discontinued operations	$	(0.5)	$	(1.2)	$	(0.9)	$	3.8

Net income	$	8.0	$	4.8	$	24.9	$	30.3

Earnings / (loss) per share1
Basic from continuing operations	$	0.31	$	0.22	$	0.94	$	0.96
Basic from discontinued operations2	$	(0.02)	$	(0.04)	$	(0.03)	$	0.14
Basic	$	0.29	$	0.17	$	0.91	$	1.09

Diluted from continuing operations	$	0.31	$	0.21	$	0.93	$	0.94
Diluted from discontinued operations2	$	(0.02)	$	(0.04)	$	(0.03)	$	0.14
Diluted	$	0.29	$	0.17	$	0.90	$	1.08

Weighted average ordinary shares outstanding
Basic	27,295,862		27,722,472		27,403,844		27,718,874
Diluted	27,525,314		28,033,732		27,652,886		28,072,155


	September 25,		December 31,
In millions, except share and per-share data	2022		2021
Current assets
Cash and cash equivalents	$	11.2	$	6.2
Restricted cash	0.3		0.2
Accounts and other receivables, net of allowances of $0.7 and $0.8, respectively	66.1		57.8
Inventories	111.6		90.5
Current assets held-for-sale	9.1		8.5

Total current assets	$	198.3	$	163.2
Non-current assets
Property, plant and equipment, net	$	75.0	$	87.5
Right-of-use assets from operating leases	22.9		12.6
Goodwill	62.5		69.7
Intangibles, net	12.4		13.7
Deferred tax assets	7.1		8.0
Investments and loans to joint ventures and other affiliates	0.3		0.4
Pensions and other retirement benefits	13.9		13.7
Total assets	$	392.4	$	368.8
Current liabilities
Short-term debt	$	25.0	$	—
Accounts payable	27.9		31.7
Accrued liabilities	32.6		28.2
Taxes on income	7.8		3.0
Current liabilities held-for-sale	4.9		1.4
Other current liabilities	12.6		19.6
Total current liabilities	$	110.8	$	83.9
Non-current liabilities
Long-term debt	$	61.8	$	59.6
Pensions and other retirement benefits	2.3		1.9
Deferred tax liabilities	2.7		2.7
Other non-current liabilities	19.5		11.6
Total liabilities	$	197.1	$	159.7
Commitments and contingencies (Note 15)
Shareholders' equity
Ordinary shares of £0.50 par value; authorized 40,000,000 shares for 2022 and 2021; issued and outstanding 28,944,000 for 2022 and 2021	$	26.5	$	26.5
Deferred shares of £0.0001 par value; authorized issued and outstanding 761,835,318,444 shares for 2021	—		149.9
Additional paid-in capital	220.6		70.9
Treasury shares	(16.2)		(9.6)
Own shares held by ESOP	(0.9)		(1.1)
Retained earnings	121.8		107.5
Accumulated other comprehensive loss	(156.5)		(135.0)
Total shareholders' equity	$	195.3	$	209.1
Total liabilities and shareholders' equity	$	392.4	$	368.8


In millions,	Ordinary shares		Deferred shares		Additional paid-in capital		Treasury shares Number	Treasury shares Amount		Own shares held by ESOP Number	Own shares held by ESOP Amount		Retained earnings		Accumulated other comprehensive loss		Total equity
At January 1, 2022	$	26.5	$	149.9	$	70.9	(0.6)	$	(9.6)	(0.8)	$	(1.1)	$	107.5	$	(135.0)	$	209.1
Net income	—		—		—		—	—		—	—		7.6		—		7.6



Other comprehensive loss, net of tax	—		—		—		—	—		—	—		—		(1.4)		(1.4)
Dividends declared	—		—		—		—	—		—	—		(7.0)		—		(7.0)
Share-based compensation	—		—		0.2		—	—		—	—		—		—		0.2
Share buyback	—		—		—		(0.1)	(1.5)		—	—		—		—		(1.5)
Utilization of shares from ESOP to satisfy share based compensation	—		—		(0.4)		—	—		—	—		—		—		(0.4)

At March 27, 2022	$	26.5	$	149.9	$	70.7	(0.7)	$	(11.1)	(0.8)	$	(1.1)	$	108.1	$	(136.4)	$	206.6
Net income	—		—		—		—	—		—	—		9.3		—		9.3

Other comprehensive loss, net of tax	—		—		—		—	—		—	—		—		(7.9)		(7.9)

Share based compensation	—		—		0.7		—	—		—	—		—		—		0.7
Share buyback	—		—		—		(0.1)	(2.2)		—	—		—		—		(2.2)
Utilization of treasury shares to satisfy share based compensation	—		—		0.1		—	0.3		—	—		—		—		0.4
Utilization of shares from ESOP to satisfy share based compensation	—		—		(1.5)		—	—		—	0.1		—		—		(1.4)

At June 26, 2022	$	26.5	$	149.9	$	70.0	(0.8)	$	(13.0)	(0.8)	$	(1.0)	$	117.4	$	(144.3)	$	205.5
Net income	—		—		—		—	—		—	—		8.0		—		8.0

Other comprehensive loss, net of tax	—		—		—		—	—		—	—		—		(12.2)		(12.2)
Dividends declared	—		—		—		—	—		—	—		(3.6)		—		(3.6)
Share based compensation	—		—		0.9		—	—		—	—		—		—		0.9
Share buy back	—		—		—		(0.2)	(3.2)		—	—		—		—		(3.2)

Utilization of shares from ESOP to satisfy share based compensation	—		—		(0.1)		—	—		0.1	0.1		—		—		—
Cancellation of deferred share capital	—		(149.9)		149.8		—	—		—	—		—		—		(0.1)
At September 25, 2022	$	26.5	$	—	$	220.6	(1.0)	$	(16.2)	(0.7)	$	(0.9)	$	121.8	$	(156.5)	$	195.3


In millions	September 25, 2022		December 31, 2021

4.88% Loan Notes due 2023	$	25.0	$	25.0
4.94% Loan Notes due 2026	25.0		25.0
Revolving credit facility	37.6		10.8

Unamortized debt issuance costs	(0.8)		(1.2)
Total debt	$	86.8	$	59.6
Less current portion	$	(25.0)	$	—
Non-current debt	$	61.8	$	59.6