Essentra sees continued improvement in Q3
By Iain Gilbert
Date: Friday 23 Oct 2020
(Sharecast News) - Plastic foam products company Essentra said on Friday that improving trends seen in the second quarter had carried on into the third.
While third-quarter revenues were down 6.7% on a like-for-like basis, Essentra said improved like-for-like trends had been maintained, most notably in its components and filters units.
On the other side of the coin, Essentra noted that a continued reduction in elective surgeries and prescription levels had meant that its packaging division had a weaker third quarter.
All the same, the AIM-listed group expects continued revenue progress on a stable operating base expected in the fourth quarter and added that barring "a material disruption" from a second wave of Covid-19, and based on recent trading, its expectations for the year ending 31 December remained unchanged.
Chief executive Paul Forman said: "The fundamentals of our company are strong. We have built a resilient platform from which to drive profitable, cash-generative growth across our three divisions, each with the potential to accelerate revenue growth as well as to grow margins.
"This platform, combined with new working arrangements brought about by Covid-19, presents us with a good opportunity to review our general and administrative costs as we move into 2021."
As of 0815 BST, Essentra shares were untraded at 263.20p.
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