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Essentra PLC on Wednesday reported it swung to an interim loss following the disposal of its Packaging business, but posted a rise in revenue on the strength of its two remaining divisions.
In the six months ended June 30, the Milton Keynes, England-based components, packaging and filter maker swung to a pretax loss of £900,000.
A year before, the firm posted a profit of £11.1 million. This year's loss was mainly attributed to the disposal of its Packaging business.
Essentra said made a ‘significant’ first step in repositioning itself as a pure-play Components business through the sale of its Packaging business in June.
This sale is expected to complete in the final quarter of the year.
These discontinued operations made a post-tax loss of £182.8 million, with the Packaging business leading to a non-cash £181.6 million goodwill impairment.
Revenue rose by 18% to £340.8 million from £287.9 million.
The firm's Components business delivered a strong performance, with revenue growing by 19% year-on-year. Its Filters business grew by 15% as a result of outsourcing contract wins and in increase in China joint venture volumes.
Essentra declared an interim dividend of 2.3 pence per share, up 15% year-on-year.
Looking forward, the company said it made a strong start to the year, with its sales and order book ahead of 2021. It noted an ‘uncertain’ macroeconomic environment but reassured it continues to effectively manage cost inflation and supply chain challenges.
Shares in Essentra were down 3.3% at 246.00 pence on Wednesday morning in London.
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