Luxfer Holdings Plc Liquidation Value

LUXFER HOLDINGS PLC (LXFR) Q1 2026 10-Q, period ending March 29, 2026. Under the liquidation lens, MFFAIS reports a Cash Liquidation Value of -$132.7M, a Liquid Liquidation Value of -$69.2M, and an Operating Liquidation Value of +$31.6M. These figures are consistent with what the balance sheet confirms: tangible asset recoveries are heavily consumed by face-value liabilities, and only the operating asset base (which includes inventory and receivables haircuts but credits PP&E at a partial recovery) produces a marginal positive outcome.

Asset side: Total assets of $392.4M are dominated by inventory ($100.8M at book; ~$60.5M at 60% recovery), receivables ($59.3M at book; ~$54.8M at 92.5% midpoint recovery), PP&E net of $59.8M (~$30-42M at 50-70% recovery), goodwill of $69.2M (zero recovery), other intangibles net of $10.7M (zero recovery), and pension asset of $54.7M (treatment depends on jurisdiction; UK buy-in contract executed January 2026 provides some structural protection but not yet a settlement event under ASC 715, and surplus may be trapped). Cash and restricted cash combined approximate $17.1M (100% recovery). The pension asset is the most complex item: the Luxfer Group Pension Plan Trustee entered a full buy-in with Aviva in January 2026, substantially matching benefit obligations with insurer cash flows. This does not constitute a settlement under ASC 715 and the $54.7M net pension asset remains on the balance sheet. In a liquidation, pension surplus accessibility is subject to UK regulatory constraints and trustee discretion—this asset should be treated as uncertain to zero in a rapid wind-down, not at book.

Liability side at face: Total liabilities of $168.9M include current liabilities of $107.5M (accounts payable $27.7M, accrued liabilities $30.2M, current debt $25.0M Loan Note due June 2026, deferred revenue $7.0M, other current liabilities $17.0M, accrued taxes $4.1M, current operating lease $3.8M, restructuring reserve $1.1M, contingent consideration current $1.7M, discontinued ops liabilities $3.5M) and long-term liabilities of $61.4M (long-term debt $32.7M revolving credit, deferred tax $18.2M, non-current operating lease $7.3M, other non-current liabilities $10.4M, contingent consideration non-current $3.0M, pension liability nominal $0.1M). Pension obligation at ASC 715 carrying value is largely offset by the plan asset, but in liquidation, the surplus figure must be discounted materially.

Key changes quarter-over-quarter vs. December 31, 2025 (prior 10-K): (1) revolving credit facility drawdown increased from $15.3M to $33.5M, adding ~$18M in debt; (2) inventory increased meaningfully (IncreaseDecreaseInInventories cash use of $8.8M), elevating recoverable-asset-to-debt gap; (3) the $25.0M Loan Note due June 2026 is classified current and will be refinanced via the RCF per management disclosure ($91.5M RCF headroom); (4) $2.3M restructuring charge for Q1 2026, primarily Pomona, CA site cessation costs—these are cash outflows that reduce net tangible assets without creating recoverable assets. Contingent liabilities include a NHTSA Preliminary Evaluation of CNG cylinder fuel leaks (unquantified), a $1.0M identified environmental provision for the Madison, IL site, and a capped $10.0M unidentified environmental indemnification, plus a $3.1M dilapidation provision for the former Superform UK site—all recognized in 2025 but carried forward. Filing discusses the Superform dilapidation obligation and NHTSA investigation in MD&A/footnotes but does not separately tag the dilapidation provision or the NHTSA contingency in XBRL beyond the carrying amounts embedded in other liabilities.