Essentra profits improve despite flat revenues

Plastic and fibre products supplier Essentra lifted profits last year despite reporting flat revenues.

Essentra recorded an 8% increase in pre-tax profits from continuing operations to £80m as its components and filter units witnessed a 13.2% and 1.5% increase in profits, respectively.

The FTSE 250 resident posted flat revenues of £1.02bn.

Looking forward, chief executive Paul Forman said the current macro environment remained "uncertain", but added that much of Essentra's end-markets were non-cyclical, offsetting its exposure to cyclical industrial segments.

Forman said: "Of course, there is more for us still to do. However, I am proud of the great strides we have taken in FY 2018 versus our stated change plan to restore sustainable growth, and have every faith in our ability to deliver further improvement and achieve success together as a team."

Essentra maintained its final dividend at 14.4p per share, making the total dividend for the year an unchanged 20.7p.

Analysts at Peel Hunt praised the "good progress" delivered by Essentra following its restructuring programme in 2018 but noted that 2019 looked set to see "slower progress" due to macro headwinds and heightened investments into central resources.

"Nonetheless, the business is in increasingly good shape," said Peel Hunt.

As of 1050 GMT, Essentra shares had picked up 3.08% to 388.40p.