Essentra back on track as it returns to profits growth

Plastics supplier Essentra on Friday said it had returned to profit growth as it unveiled a 7% rise in half-year pre-tax profits to £21m.

Revenue fell to £513.1m from £522.6m, but was unchanged on a like-for-like basis, the company said.

The interim dividend was held at 6.3p a share as Essentra reported margin growth in three of its four divisions.

"I am pleased by the group's continued transformation and the progress we have made on our strategic objectives in the first half of 2018, returning the company to profit growth while maintaining widespread stability across the organisation,” said chief executive Paul Forman.

“I believe we have now turned a corner in packaging, although there is still much to do. The sequential improvement in 2018 in both the revenue trend and profitability is testament to the significant efforts we have made to stabilise the business, to focus on doing the basics better and to become an increasingly valued partner to our customers.”

Forman said the Europe & Asia packaging business returned to underlying growth, and the company was confident of reaching an “inflexion point for the entire packaging division during the second half of this year”.