This announcement contains inside
information (as defined by Article 7 of Regulation (EU) No
596/2014), as it forms part of domestic law by virtue of the
European Union (Withdrawal) Act 2018) ("MAR") and is disclosed in
accordance with the Company's obligations under Article 17 of those
Regulations.
ESSENTRA
PLC
("Essentra", the "Group" or
the "Company")
TRADING
UPDATE
Essentra plc, a leading global manufacturer, and provider of essential
components and solutions, provides the following
trading update in respect of the current financial year ending 31
December 2024.
At the half year results, published
30 July 2024, the Group indicated that market conditions in its
end-markets were mixed by region, with modest sequential
improvement in volume trends through the first half. The Group had
previously anticipated a further modest improvement in volumes in
the second half, underpinned by ongoing recovery of demand across
end-markets. However, through August and into September, consistent
with the weak PMI metrics widely reported, market conditions in
Europe, (including Turkey) have softened. Whilst the Americas
region has reported a slower than anticipated rate of recovery,
APAC remains broadly in line with expectations.
The impact of the market back drop
on trading since the half year 2024 results, combined with a
consequently more cautious view of the likely timing of further
modest improvements in market conditions has led to the Board
revising its expectations for full year 2024. Including the impact
of adverse foreign exchange retranslation, estimated to be c.£2m,
the Board now expects 2024 full year adjusted1 operating
profit to be in the range of £40m-£42m2.
Management remain confident in the
business model and that the Company is well positioned, supported
by a right-sized cost base and robust operations, to benefit from
high levels of operational leverage when normalised growth returns.
The Group continues to balance its investment in value creating
opportunities across the business alongside cost mitigation
activities and driving efficiencies, which has supported strong
gross and operating margins. The balance sheet remains robust, and
full year leverage guidance remains unchanged.
Essentra will issue its Q3 results
for the three months ending 28 September 2024 on 24 October
2024.
Enquiries
Essentra plc
Jack Clarke, Chief Financial
Officer
Claire Goodman, Head of Investor
Relations
Emma Reid, Company
Secretary
Tel: +44 (0)1908 359100
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The person responsible for release
of this announcement is Emma Reid, Company Secretary.
1.
On a continuing operations basis, before
amortisation of acquired intangible assets and adjusting
items
2.
Company compiled market expectations for 2024 adjusted operating
profit are currently between £48.4m and £49.7m
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company
and a leading global provider of essential components and
solutions, focusing on the manufacture and distribution of plastic
injection moulded, vinyl dip moulded and metal items.
Headquartered in the United Kingdom,
Essentra's global network extends to 28 countries worldwide and
includes c.3,000 employees, 14 manufacturing facilities, 24
distribution centres and 33 sales & service centres serving
c.69,000 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,
medical and renewable energy. For further information, please
visit www.essentraplc.com
LEI: 5493007MOZNA03BVNE96
Cautionary forward-looking
statement
These results contain
forward-looking statements based on current expectations and
assumptions. Various known and unknown risks, uncertainties and
other factors may cause actual results to differ from future
results or developments expressed or implied from the
forward-looking statements. Each forward-looking statement speaks
only as of the date of this document. The Company accepts no
obligation to revise or update these forward-looking statements
publicly or adjust them to future events of developments, whether
as a result of new information, future events or otherwise, except
to the extent legally required.