- Wednesday, October 16, 2024
Essentra, a leading supplier of plastic and fiber products, announced that it has swung to a pretax profit for the first half of the year due to lower costs. The FTSE 250-listed company reported a pretax profit of £10.3 million ($13.1 million), compared to a loss of £10.7 million in the previous year.
Adjusted pretax profit, which excludes exceptional and other one-off items, was £23 million, significantly higher than the £3.4 million reported last year.
However, Essentra's revenue decreased to £166.3 million from £175.9 million. This decline was attributed to a 10% slide in like-for-like sales (excluding an acquisition) and a strong comparative performance from the prior year.
Despite the decrease in revenue, Chief Executive Scott Fawcett expressed confidence in the company's future, stating, "We expect to make further progress in the second half of the year, supported by continued cost management initiatives, maintaining our pricing actions, and delivering new business wins." Fawcett also highlighted the company's strong balance sheet, which supports organic growth and further investment in disciplined and value-enhancing M&A opportunities.
The board of Essentra declared an interim dividend of 1.2 pence per share, lower than the 2.3 pence given in the previous period.
At 0740 GMT, Essentra shares were up 4.20 pence (2.7%) at 159.40 pence.
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