Portfolio

Essentra reports strong fourth quarter as review of divisions continues

By Josh White

Date: Friday 07 Jan 2022

Essentra reports strong fourth quarter as review of divisions continues

(Sharecast News) - Essentra reported a strong overall fourth quarter performance in a trading update on Friday, with revenue increasing 12.7% year-on-year on a like-for-like basis, and by 11.1% when compared to the pre-pandemic fourth quarter of 2019.
The FTSE 250 company reported another positive performance in components, with like-for-like trading days-adjusted revenue rising 18.5% in the period.

In packaging, Essentra reported an "improving trend", with the division returning to like-for-like growth of 1.1% in the fourth quarter, while in filters, it also recorded a strong performance led by higher volumes of outsourcing, with growth of 22.3%.

The company said it expected to deliver operating profit for the 2021 financial year in line with analyst forecasts.

Its board also said its strategic reviews of the filters and packaging divisions were progressing as planned following its decision to become a pure-play components business, with both reviews likely to conclude in the second quarter of 2022 at the earliest, as previously indicated.

"We have delivered a strong fourth quarter performance with all three businesses delivering growth and having encouraging order books as we start the year," said chief executive officer Paul Forman.

"We continue to monitor Covid-19 challenges and take actions to offset the impact of global supply chain challenges which should better position our market leading global businesses for growth in their respective markets.

"The board is making good progress with the strategic reviews of both the filters and packaging divisions and remains committed to finding the right outcome for each of our three strong businesses to thrive independently, and to maximise shareholder value in the relatively short term."

At 0927 GMT, shares in Essentra were up 0.71% at 342.91p.

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