Essentra Full-year Revenue Rises

Essentra Plc (FLRAF), a British packaging and hardware solutions provider, on Wednesday reported a wider pre-tax loss for 2022 that reflected loss from discontinued operations. Excluding items, it reported profit, but down from last year.

However, the company recorded an increase in revenue, driven by strong demand from most industry sectors and as the Americas and Europe emerged in a post-Covid-19 recovery phase.

In addition, for full year 2023, the UK-based company has reaffirmed its outlook.

For the 12-month period, Essentra posted a pre-tax loss of 29.1 million pounds, compared with a 7.1 million pounds loss in 2021.

Excluding items, pre-tax income dropped to 7 million pounds from 12 million pounds a year ago.

Net loss for the year was at 183.8 million pounds or 62.4 pence per share, compared with a profit of 28.3 million pounds or 8.9 pence per share of previous year.

On adjusted basis, it reported earnings of 6 million pounds or 1.9 pence per basic share, versus 11 million pounds or 3.7 pence per basic share of last year.

Operating loss stood at 11.3 million pounds as against last year’s profit of 7.7 million pounds.

Adjusted operating income declined to 25 million pounds from 26 million pounds of 2021.

The results of the Packaging and Filters businesses have been classified as discontinued operations. Discontinued operations recognized 152.7 million pounds post-tax loss, compared with last year’s profit of 33.2 million pounds.

Revenue, however, improved to 337.9 million pounds from previous year’s 301.7 million pounds.

The company will pay a final ordinary dividend of 1 penny per share, resulting in a total dividend for 2022 of 3.3 pence, lesser than last year’s total dividend of 6 pence per share. The final dividend will be paid on June 30, to shareholders of record on May 19.

Looking ahead, Scott Fawcett, Chief Executive, said: “…We are focussed on strong profit margins and managing our cost base and we are pleased to see new order intake to date c.8% ahead of 2022 on a LFL basis. We will continue to invest in organic growth initiatives as well as value accretive bolt-on M&A, for which our pipeline is active. Our expectations for 2023 are unchanged.”

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