Essentra FY adjusted operating profits seen in line with expectations

Essentra said it had delivered "a sequential improvement" in sales performance, with average sales per trading day growing by roughly 5% in the four months ended 4 May on a like-for-like basis.

The FTSE 250-listed company said group revenue was down 1.2%, while LFL sales reduced by 5.0%, reflecting a "comparatively stronger" start to 2023 in the Americas and EMEA, partly offset by 3.8% positive contribution from its acquisition of BMP.

Essentra added that it has maintained "strong operating margins" in the period, demonstrating "continued resilience" and its ability to manage changes in the macro-environment through the cycle.

Looking forward, Essentra said internal expectations for 2024 were unchanged and anticipates its performance to be second-half weighted, with an improvement in volumes in H2.

"The group remains well positioned to benefit from a recovery in its end-markets when volume growth returns to normalised levels, given the actions that have been taken to right-size the cost base and optimise the business to deliver operating leverage. The Group is proactively responding to changes in market conditions, and continues to invest in value-enhancing growth initiatives, driving operational effectiveness. Management remain confident in making further progress towards Essentra's medium-term targets in 2024," it said.

Essentra also revealed that Steve Good had been appointed as non-executive chair designate, effective 1 July. Good will take over from Paul Lester, who will stand down from the role after nine years on 1 November. Good currently serves as non-executive board chair of Norcros and was until 2023 non-executive board chair of Devro and Zotefoams.

As of 1120 BST, Essentra shares were up 0.22% at 183.20p.

Reporting by Iain Gilbert at Sharecast.com