TIDMESNT
RNS Number : 9187Z
Essentra plc
23 May 2019
ESSENTRA PLC
ANNUAL GENERAL MEETING - TRADING UPDATE
At Essentra plc's ("Essentra" or "the Company") Annual General
Meeting ("AGM") to be held today, Paul Lester, Chairman, will make
the following statement.
Current trading
Trading for the four months to 30 April 2019 has been in line
with the Board's expectations, with the Company delivering
like-for-like(1) revenue growth of c. 1% for the period (over 3%,
adjusting for the closure of the Kilmarnock and Largo packaging
sites at the end of 2018).
A modest increase in Components revenue(1, 2) reflected
successful pricing initiatives which were partially offset by a
softer end-market backdrop.
In Packaging, underlying revenue momentum (ie, adjusting for the
closure of Kilmarnock and Largo) remained strong, with good growth
in both Europe and the Americas boosted by new business wins.
The Filters division returned to growth, making encouraging
progress particularly with independent customers, and continued to
advance its three potential "game changers".
Specialist Components showed a low single-digit like-for-like
revenue decline, although the underlying operating performance
benefited from the strategic improvement plans that have previously
been communicated.
Portfolio changes
On 14 January 2019, the Company announced the divestment of its
Pipe Protection Technologies ("PPT") business to certain
wholly-owned subsidiaries of National Oilwell Varco, Inc. The
transaction valued PPT at US$48.0m, free of cash and debt.
On 19 March 2019, Essentra announced the acquisition of the 49%
minority interest in its Filters joint venture, Essentra (MEA) Pte.
Ltd, from Aberdeen International FZE (part of the BBM Bommidala
group) for a cash consideration of GBP11.6m. Essentra (MEA) Pte.
Ltd is the holding company of Essentra FZE, which undertakes the
Company's Filters activities in Dubai.
Outlook
The Company's outlook for Full Year 2019 is unchanged. While the
macro environment in 2019 remains uncertain which, as previously
stated, impacts the Component division - and elements of Specialist
Components - Essentra remains focused on delivering the stated
objectives for each of its four divisions. Accordingly, the Company
expects to make further strategic progress in 2019.
(1) With effect from mid-February 2019, the Hertila business is
included in like-for-like revenue as it has been fully integrated
into the existing Components activities in Sweden and is no longer
separately identifiable.
(2) With effect from 1 January 2019, like-for-like revenue
growth in Components is calculated on a trading day-adjusted basis.
During the four months to 30 April 2019, there was one less trading
day compared to the equivalent period in 2018.
Enquiries
Essentra plc Tulchan Communications LLP
Joanna Speed, Investor Relations Martin Robinson
Director Lisa Jarrett-Kerr
Lucy Yank, Group Communications Sophia Martin-Pavlou
Director Tel: +44 (0)20 7353 4200
Tel: +44 (0)1908 359100
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider
of essential components and solutions. Organised into four
divisions - reflecting the Company's strategic review - Essentra
focuses on the light manufacture and distribution of high volume,
enabling components which serve customers in a wide variety of
end-markets and geographies.
Essentra Components
Essentra Components is a global market leading manufacturer and
distributor of plastic injection moulded, vinyl dip moulded and
metal items. Operating in 28 countries worldwide, twelve
manufacturing facilities and 29 logistics centres serve more than
85,000 customers with a rapid supply of low cost but essential
products for a variety of applications in industries such as
equipment manufacturing, automotive, fabrication, electronics and
construction.
Essentra Packaging
Essentra Packaging is one of only two multicontinental suppliers
of a full secondary packaging range to the health and personal care
sectors, with 22 facilities across four geographic regions. The
division's innovative products include cartons, leaflets,
self-adhesive labels and printed foils used in blister packs, which
help customers to meet the rapidly-changing requirements of these
end-markets and can also be combined with Essentra's authentication
solutions to help the fight against counterfeiting.
Essentra Filters
Essentra Filters is the only global independent cigarette filter
supplier. The seven worldwide locations, plus a dedicated
Technology Centre supported by three regional development
facilities, provide a flexible infrastructure strategically
positioned to serve the tobacco sector. The business supplies a
wide range of value-adding high quality innovative filters,
packaging solutions to the roll your own segment and analytical
laboratory services for ingredient measurement to the industry:
Essentra's offering also includes e-cigarette and Heat Not Burn
solutions to the rapidly evolving market for Next Generation
Products.
Essentra Specialist Components
Essentra Specialist Components comprises the Company's five
smaller businesses and these activities largely have strong
positions in the markets in which they operate.
The Extrusion business is a leading custom profile extruder
located in The Netherlands which offers a complete design and
production service. One of the first companies to extrude plastics,
Essentra is now one of Europe's most advanced suppliers of
co-extrusion and tri-extrusion to all branches of industry.
The Speciality Tapes business has expertise in coating multiple
adhesive systems in numerous technologies, with approximately 1,200
tape products stocked for same-day shipping predominantly for
retail point of purchase, appliance and industrial
applications.
The Tear Tapes business is globally recognised as the leading
manufacturer and supplier of pressure-sensitive tear tapes, which
are largely used in the tobacco, food and drink and specialist
packaging sectors.
The Industrial Supply business provides a wide range of branded
hardware supplies to a broad base of industrial customers, largely
located in the US Mid-West.
The Card Solutions business is a leading European provider of ID
card printers, systems and accessories to direct and trade
customers.
Headquartered in the United Kingdom, Essentra's global network
extends to 33 countries and includes c. 8,000 employees, c. 45
principal manufacturing facilities, c. 30 sales & distribution
operations and 4 research & development centres. For further
information, please visit www.essentraplc.com.
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END
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