Essentra issues profit warning

Specialist plastic, fibre and foam maker Essentra issued a profit warning on Thursday, citing a tough market in filter products and short-term operational problems in the US and UK from its healthcare and personal packaging unit.

The company said adjusted operating profit was now expected to be in the range of £155 - £165m against £171.5m in 2015, with second half profit stronger than H1 2016 and “directionally consistent” with the second half of 2015.

Full year revenue is anticipated to be broadly unchanged against 2015's £1.1bn, Essentra added.

It said conditions in filter products have deteriorated due to more challenging market backdrop, and “certain large projects either not being commercialised or being deferred”.

“In addition, the extensive site integration programme in health & personal care packaging has resulted in some short-term operational issues in both the US and the UK, which have impacted revenue and operating profit,” the company said in a statement.