News Column

Essentra Records Strong First-Half On Business Wins, Cost Efficiency

July 31, 2014

Alice Attwood

LONDON (Alliance News) - Speciality plastic and packing products supplier Essentra PLC said Thursday that revenue and adjusted pretax profit rose in its first-half, buoyed by more sizeable business wins, the successful commercialisation of new products and further cost reduction and efficiency plans in its second quarter.

In its half-year results for the six months to June 30, 2014, Essentra said revenue rose 12% at actual exchange rates to GBP431.1 million from GBP384.6 million in the comparable half in 2013, a 20% rise at constant currency.

The company maintained its positive trading momentum during the period with adjusted pretax profit up 6% to GBP64.2 million from GBP60.3 million at actual exchange rates, a 16% rise at constant currency.

Essentra increased its interim dividend for the period to 5.7 pence per share, up 19% on the 4.8 pence per share paid last year.

The FTSE 250-listed company said the strength of its first-half was underpinned by "more sizeable business wins and the successful commercialisation of new product initiatives, and supported by further cost reduction and efficiency programmes." The integration of recent acquisitions, the delivery of savings and the transition to its new organisational structure are all progressing well and ahead of expectations, said Essentra.

Looking ahead the company remains confident in its prospects for the full-year. "Given these interim results, Essentra intends to deliver further balanced, profitable growth in 2014, and thus achieve its Vision 2015 objectives of at least mid single-digit like-for-like revenue growth and double-digit adjusted EPS growth at constant exchange," said Chief Executive Office Colin Day.

The Vision 2015 strategy focuses on the challenges which arise in the international environment in which Essentra conducts business and reflecting the company's appetite for risk in the delivery of its business objectives, it said.

Also, the speciality plastics and packaging company said that shortly after the end of the period it successfully refinanced and increased its our banking facilities, at more favourable rates. "This reinforces Essentra's stated objective of complementing our underlying performance with value-creating acquisitions, and provides the Company with even greater flexibility to pursue strategic opportunities which may arise in the future," said Day.

Shares in Essentra were Thursday trading 1.55% higher at 785.00 pence per share, amongst the top five gainers on the FTSE 250.

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Source: Alliance News

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