Essentra (ESNT)

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Index:

FTSE 250

420.20p
   
  • Change Today:
      0.40p
  • 52 Week High: 442.00
  • 52 Week Low: 325.40
  • Currency: UK Pounds
  • Shares Issued: 263.16m
  • Volume: 447,416
  • Market Cap: £1,105.78m
  • Beta: 0.09

Essentra continues turnaround with decent first half performance

By Josh White

Date: Friday 02 Aug 2019

LONDON (ShareCast) - (Sharecast News) - Essentra reported that its half-year results built on the "inflection point" it saw in the 2018 full-year results on Friday, with revenue and profit growth in each of the three global divisions and "significant" portfolio simplification.
The FTSE 250 company said positive momentum was maintained in its packaging, division, having returned to growth in the second half of 2018.

It said revenue was ahead 1.3% on a like-for-like basis in the six months ended 30 June, or 3.7% adjusting for the closure of the Kilmarnock and Largo consumer packaging sites and the cessation of speciality tapes in Nottingham at the end of 2018.

On a reported basis, however, revenue was down 1% to £507m, or off 3% at constant currencies.

Essentra's adjusted operating profit rose 9.6% at constant exchange rates to £48.3m, after applying IFRS 16, or by 7.2% at constant currency to £47.3m, before applying IFRS 16.

It said that figure was actually up 10.8%, when adjusting for disposals, site closures and business cessation.

Reported operating profit stood at £60.1m, compared to £26.0m at the 2018 half-year.

Adjusted basic earnings per share rose 7.5% at constant exchange rates to 12.0p, while reported basic earnings per share of 11.6p surged from 5.7p a year earlier.

Essentra said its net debt stood at £242.0m its and net debt-to-EBITDA ratio was 1.6x, after applying IFRS 16.

Net debt was £192.8m and the net debt-to-EBITDA ratio was 1.4x, before applying IFRS 16.

The board left its half-year dividend unchanged at 6.3p per share.

It said it saw "further good progress" on all of its key operating and employee metrics of its stability programme.

The simplification of the portfolio continued during the period, allowing the specialist components division to be dissolved by the end of the third quarter.

Essentra said the funds from that would be used for two value-creating acquisitions, and net debt reduction.

Its maintained its "stable" full-year outlook, with further financial, operational and portfolio progress expected in the second half.

"At our 2018 full-year results, I stated my confidence that 2018 represented an inflection point for our business and that we had restored Essentra to a position where future revenue and profit growth can be sustained," said Essentra chief executive Paul Forman.

"With each of components, packaging and filters showing improvement in this respect, combined with further improvement in our key operational and people metrics, this belief has strengthened.

"We have also made significant progress in simplifying the Essentra Group, with the sale of pipe protection technologies, extrusion, speciality tapes and card solutions in the year to date."

Forman said further to those disposals, the firm would absorb tear tapes and industrial supply into the filters and components divisions respectively which, given the complementary end-markets served, would provide each of those two businesses with a strong platform for future successful growth, and allow Essentra to dissolve the specialist components division.

"At the same time, we have reallocated the disposal proceeds into two value-creating acquisitions in areas where we have identified we have real strategic strength, while also reinforcing our balance sheet."

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Essentra Market Data

Currency UK Pounds
Share Price 420.20p
Change Today 0.40p
% Change 0.10 %
52 Week High 442.00
52 Week Low 325.40
Volume 447,416
Shares Issued 263.16m
Market Cap £1,105.78m
Beta 0.09

Essentra Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
65.4% below the market average65.4% below the market average65.4% below the market average65.4% below the market average65.4% below the market average
52.46% below the sector average52.46% below the sector average52.46% below the sector average52.46% below the sector average52.46% below the sector average
Price Trend
10.02% above the market average10.02% above the market average10.02% above the market average10.02% above the market average10.02% above the market average
13.39% above the sector average13.39% above the sector average13.39% above the sector average13.39% above the sector average13.39% above the sector average
Income
50.05% above the market average50.05% above the market average50.05% above the market average50.05% above the market average50.05% above the market average
50.56% above the sector average50.56% above the sector average50.56% above the sector average50.56% above the sector average50.56% above the sector average
Growth
68.02% below the market average68.02% below the market average68.02% below the market average68.02% below the market average68.02% below the market average
72.88% below the sector average72.88% below the sector average72.88% below the sector average72.88% below the sector average72.88% below the sector average

What The Brokers Say

Strong Buy 4
Buy 0
Neutral 2
Sell 0
Strong Sell 0
Total 6
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Essentra Dividends

  Latest Previous
  Interim Final
Ex-Div 26-Sep-19 25-Apr-19
Paid 30-Oct-19 03-Jun-19
Amount 6.30p 14.40p

Trades for 21-Oct-2019

Time Volume / Share Price
16:40 25,000 @ 420.20p
16:36 100,000 @ 420.91p
16:35 147,145 @ 420.20p
16:29 59 @ 419.40p
16:29 107 @ 419.60p

Essentra Key Personnel

Chair Paul J Lester
CFO Lily Liu

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