Essentra FY adjusted operating profits seen in line with previous guidance

Essentra said it had seen "a sequential improvement" in performance during the fourth quarter when compared to the previous quarter, with group revenue down 3.6% year-on-year on a like-for-like basis, an improvement on the 7.1% decline reported in Q3, as comparatives continued to ease after a strong first-half performance in the prior year.

The FTSE 250-listed group said its European, Middle East, and Africa operations saw an improvement in new order momentum in Q4, while its American unit saw trading stability quarter-on-quarter, and remains focused on the improvement in destocking trends within distributor end-market channels. Essentra's Asia-Pacific business continued to demonstrate "a gradual recovery".

Essentra added that through a combination of "disciplined and proactive initiatives" taken through 2023, group adjusted operating margins remained strong. Central corporate costs, which were re-sized in the first half of 2023, continue to be "well managed", and remain in line with previous guidance of approximately £13.0m.

"With a robust and differentiated business model, underpinned by its breadth of customers, end market categories and geographical diversification, Essentra is well positioned, and continues to demonstrate through-cycle financial resilience. The group's balance sheet and cash generation remain strong, providing optionality for investment in organic growth initiatives and earnings enhancing M&A," said Essentra.

As of 0935 GMT, Essentra shares were down 3.16% at 153.0p.

Reporting by Iain Gilbert at Sharecast.com