REG - Essentra plc - Trading Update

EssentraAnnouncement

17/09/2024 07:00

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RNS Number : 4109E  Essentra plc  17 September 2024

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 adjusted(1) operating profit to be in the range of
£40m-£42m(2).

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                                 FTI Consulting

 Jack Clarke, Chief Financial Officer         Richard Mountain

 Claire Goodman, Head of Investor Relations   Ariadna Peretz

 Emma Reid, Company Secretary                 FTI_essentra@fticonsulting.com (mailto:FTI_essentra@fticonsulting.com)

 Tel: +44 (0)1908 359100                      Tel: +44 (0)20 3727 1340

 

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
(http://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.

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