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Essentra PLC on Friday reported a swing to profit and robust revenue growth in 2021 on a strong performance by its Components and Filters divisions.
The Oxford-based plastics and fibre products manufacturer swung to a pretax profit of £33.2 million from a loss at £4.1 million in 2020. This was on revenue growth of 7% to £959.7 million from £896.5 million.
Essentra credited the improvement to a robust performance by its Components and Filters divisions, with the Components segment delivering revenue growth of 22% on a like-for-like constant currency basis and its Filters business growing revenue 13% on the same basis.
Revenue from Packaging, on the other hand, fell 3.6% on a like-for-like constant currency basis due to the ongoing impact of the pandemic on prescription and elective surgery volumes.
The FTSE 250 company recommended a final dividend of 4.0 pence per share, giving a total payout of 6.0p for 2021. This reflects 81% growth from the total 3.3p paid to shareholders in 2020.
Last year, Essentra had set out its plan to become a pure play Components business, with its Filters and Packaging divisions likely to be sold off. The company noted that its strategic reviews of the Filters and Packaging divisions are progressing in line with expectations.
Essentra noted that it has no ‘significant’ operations or employees in Ukraine or Russia. Sales to these markets are immaterial to the company, it said, and all sales to Russia have been suspended until further notice.
Essentra said it made a ‘strong’ start to 2022, with sales and order book ahead of 2021.
‘Whilst the external environment remains challenging due to global supply chain disruptions and the continued impact of cost inflation, the group has demonstrated its ability to manage these challenges in the past, and will continue to implement pricing actions alongside local cost mitigation activities,’ the company said.
Looking ahead, Essentra said it is well-positioned for growth.
‘Despite the challenges arising from the pandemic and supply chain headwinds, we have seen an improving revenue trend throughout the year, which has continued into the start of 2022 with all three global divisions well-positioned for growth with strong order books,’ Chief Executive Paul Forman said.
Shares were trading 1.1% higher at 317.50 pence each on Friday morning in London, while the wider FTSE 250 index was marginally lower.
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