Welcome to the Luxfer Second Quarter Conference Call. We will first hear from Luxfer's Chief Executive, Brian Purves, who will provide a market overview followed by Group Finance Director, Andy Beaden, who will review financial performance. Brian will then return to sum up and offer an outlook. After that, Brian and Andy will be glad to take your questions. [Operator Instructions]. We will now turn the call over to Brian Purves.

Good morning, ladies and gentlemen. Welcome to the Luxfer conference call on the second quarter of 2015. Turning to slide 4, we were reasonably happy with our progress to quarter two, sales revenue is up by some 8% before the impact of exchange rates. Unfortunately the key exchange rate that affect us have moved by an excess 20% over the last 12 months and we’re for the -- more depressing underlying improvements in revenue and profits. There appear few sector remains a problem for us but increasingly less so while the other sectors have caused us problems in 2014 are performing much better this year with the important North America SCBA sector up by quarter and demand for U.S. military program has much improved albeit it from the low point of 2014. Our most recent acquisition continues to perform well with $6.8 million of sales in the quarter. Adjusted fully diluted EPS of $0.28 was $0.01 ahead of consensus and also $0.01 ahead of Q2 last year. We made some good progress on reducing working capital in the quarter with the result of cash generation in the quarter was our [indiscernible] sometime. Turning to slide 5, the North American market for SCBA kits is as we expected now well up on prior year with most although not all manufacturers having their kits approved to the new standards. We did suffer a 10 day outage our riverside composite plant at the end of May when an a electric arc burnt out number of distribution plans. Market disruption however was minimal while it did result in additional costs. Although this year we will be measured against historical average sales of military carriages have been well up on last year. The second quarter last year was particularly weak because of an accident at…

Thank you, Brian and welcome everyone to the call. Brian gave the divisional sales analysis and my first slide, slide 12 shows of our consolidation to the growth revenue changes to Q2 2015. Total revenue for Q2 2015 was a $122.8 million with no separate rare earth chemical surcharge now required. And this compares to a 121.3 million network new for Q2 2014 underlying group network new was in fact a $8.9 million with FX translation being a negative $7.4 million. Luxfer Magtech which was acquired at the end of July 2014 added $6.8 million in the quarter and we had a positive movement in the other trading revenue of $2.1 million. For $2.1 million represents in fact a $4.2 million increase in revenues across the continuing group with strong composite cylinder sales and growth in magnesium products. Less negative FX transaction differences of north 0.8 million and a 1.3 million net reduction in AF [ph] revenue, revenue in North America slightly up. We will see later this underlying growth that for some reasonable improvement in underlying profits though attempted by the FX headwinds. For the analysis I would like to breakout the FX impact to serve the underlying trading. Slide 13, shows trend and sales for Q2 2015 by geographic region which follows similar trends we saw in Q1 2015, the sales in North America well up the strong still contain breathing apparatus [ph] sales, the addition of Luxfer Magtech sales and further magnesium sales improving in area such as military players and plates products. Asia Pacific continues to lack against last year with weaker AF sales and some softening in Chinese markets. I think the trading profits in adjusted EBITDA results on slide '14. The Q2, 2015 good trading profit was 11.7 million up 0.5 million on Q2…

Thank you, Andy. Turn to slide 19, summarizing Q2 there as we underline performance of the cylinder us is improving for the North America SCBA returning to growth and progress being made on improving sales and cutting costs in the alternative fuel business stream. Improvement on this however was somewhat lost chain trade movements. Despite those adverse exchange rates the specialty material side of the group reported a higher result this time last year even with some key markets below cost. Overall our adjusted result was actually slightly ahead of consensus and our cash performance was very good. In terms of the outlook for the divisions the weakness of the euro is hurting profitability of our European operations on top of the continuing lack luster Eurozone economic. Nevertheless the electron divisions remains on track for the good year helped by the addition of Luxfer Magtech. In the North America side the performance of the business has little bit strengthened. AF losses are unlikely to be completed eliminated until late this year but non-AF markets are now strongly up and we expect this to continue in the balance of the year. We’re looking to add value to our medical products in Europe in 2016 and this should help our European side of the business. Slide 21, the outlook for the group, the outlook is in-line with our [indiscernible] indications. We still have more work to do in cost reduction in alternative fuel but the other markets that were badly affected by external factors in 2014 are coming good. The focus on working capital is starting to pay and we remain confident to further improvements in our return on capital. While the weakness of the euro and indeed of the Eurozone economy is troublesome we continue to believe that we can drive a net improvement in group profitability over 2014 underutilizing trend into 2016. Thank you, and we will now take questions.

[Operator Instructions]. Your first question comes from the line of Luke Folta of Jefferies.

Number questions here sort of all over the place, I guess firstly can you just give us a reminder on what you think the total cost savings of the restructuring efforts you’re doing in alternative fuels will be and I guess in the second quarter how much of that has been cash rich so far?

Well we’re trying to go from a situation where we were at a run-rate of losses which was several million dollars last year, the run-rate of several million dollars. We lost about nearly a half dollars in first quarter of this year, we just had about 1 million [ph] in Q2 with most of the restructuring actions in North America having taken place in terms of shutting down the use of our facility but over there transferring production from Germany into the Canadian operation. I think that’s probably, it should have been worse than that I mean in two course of the year, so the cash loss is probably huge amount better unless [indiscernible] surprise business. But the plan would be that as of January 1 next year with the German operation closed and with production transferred into Canada and/or UK but the watch case for 2016 would be breakeven so year-on-year you can get that clue into roughly a $4 million improvement in '16 overcome is what we’re aiming for with 2015 being better than 2014.

Also there are some comments around weakness on the aerospace alloys part of the magnesium business, that’s being an area that’s been pretty strong, I recall over the last several quarters -- can you just give us some sense of what's changed there?

You’re right, I mean as on year-on-year growth for several years now and it's the same model as that we’re intending to read across into the [indiscernible] sector but right at the moment certainly in Q2 we saw military -- the one for military programs are in a bit. As you know we’re heavily into the helicopter industry and some of the build rates on military helicopters those programs would stretch out a bit. So this is a monthly call off as such we use for the moment. So it's clearly military helicopter demand it's a bit down and that’s just unusual because we’re seeing steady growth in that market for several years we talked, it's not more of a short term effect but from military side I guess that we’re suddenly know for 12 to 18 months at least.

And so you are speaking that you step down into this sort of lower run-rate for the next 12 to 18 months or you’re wanting to be on decline in the next 12 to 18 months?

I think we set down to a lower run-rate for next 12 to 18 months. It's not a major impact on it's just a little disappointing to see a temporary setback but bear in mind that this is the same alloys that we’re targeting the civil airline market with [indiscernible] see it pick up back at some point in 2016.

And then the medical oxygen product that you’re developing, I think appreciate to update on the timeline your thoughts there but just as we think about the cost associated with doing the initial production testing, it's not that you’re going to ramp up, I think if I recall correctly you’re recovering this ramp this upto to pretty decent product rate do you qualify the test units. So can you just give us a sense of what sort of drag that’s having on costs now and sort of through the remainder of the year clearly something that will reverse in the future?

The cost of the program has been running into approximately a nearly sterling a year ago so $1.5 million - $1.6 million give or take. We’re producing I think about 200 of these devices to do statistical testing, so in itself that’s not a major cost and most of those should be available for sale once the product is approved but that’s a representative of run-rate if you like if we -- the ongoing cost of the product, exactly in the coming year and last year pretty much last year as well, there will be also [indiscernible] costs marketing expenses and such like, probably things that are probably run through the first quarter of next year but it will start to -- net back when sales commence.

And just a couple of more quick ones if I could. The SCBA market is thanks to see that the headwinds there have subsided but as we move into '16 it might be a little bit of something -- are you able to give us some sense of how much you think the lost sales were this year and just given the regulatory delays that’s not going to be an issue next year so I imagine there will be a nice step up in sales there even if demand remains flat but any color if you can give.

I think it was 2014 numbers that were quite heavily depressed and by the regulatory problems. There might have been a small degree of staff updates [ph] in Q1 but pretty much the year-to-date in 2015 is I think probably a little higher than it would have been in the coast that started to catch fire. Some of the sales were lost if 2014. So when you look at the number being sort of 25% - 27% up on prior year we probably expect that to continue through the balance of this current year but some of that will be catch back of 2014 loss of sales. So for 2016 it's only reasonable that we won't get a further pick, carry and grow because we got catch up in this year presumably that will be done by the end of the year. So I think 2016 is likely to be fairly modest increase over '15 and then we will see probably the growth again in '17 according to the marketing that we and our customers have.

Last one, just looking at the comments you made around the sterling, euro FX impacting in the hedge, can we get some sense on what the baggage through that could be on -- I mean you provided us your sales there but it's unclear exactly where you’ve put the hedge on so can you tell us sort of help us understand the magnitude if there were reset today, how would that impact the business?

I'm planning against sterling and I guess the dollar, sterling/euro this issue for several years. So over nine we have being deteriorating not just in the spot price but the hedges that we have in place and they continue to deteriorate but not one single hedge rates. I think our blended rate at the moment is around 130 still into euro, the euro is about 142 so there is probably another potential $4 million - $5 million impact if all our rates is set. Of course we have got hedges going right up into 2016. So it's quite a long time to go and then on top of that we do have the power to clearly to target price increases. So they joist take time. So there are a number of for the levers that we can call to mitigate the potential longer term margin impact if in theory the euro stayed at it's current weak position.

But just to reassure everyone, Luke, we have factored in continuing weak euro in 2016 when we have considered the guidance that we have out there. We will have a trouble what to do with cash back, the shortfall through pricing. I very much doubt that we will be able to do all of that in one year. As I pointed out the background inflation rate in the euro zone is still going 0% to 0.2% something like that. So all else being equal it would take several years where we need to see an inflation impact come through. But we will set ourselves the objective of recurring every summer the impact through pricing and other improvements in the business not on revenue streams. I mean we can overcome that sort of gross impact Andy, was talking about but it is a significant additional potential impact if we are close to that 142 level in 2016, the best you can say about is we have got define to plan for and to do what we can do about it.

[Operator Instructions]. At this time there are no further questions. I will now turn the call to Brian Purves for any additional or closing remarks.

Okay, I will assume that Luke [indiscernible] ask everybody's questions in one go so thank you very much ladies and gentlemen and we will speak to you again for the Q3 results in November. Thank you. Bye.

An encore recording of this conference call will be available in about two hours. You can access the recording on the Luxfer Group website at www.luxfer.com. Thank you for participating in the call. You may now disconnect your lines and have a wonderful day.