TIDMESNT
RNS Number : 8142U
Essentra plc
23 January 2017
ESSENTRA PLC
A leading global provider of essential components and
solutions
POST-CLOSE TRADING UPDATE
Essentra plc ("Essentra" or "the Company") today announces the
following post-close trading update in respect of its financial
year ended 31 December 2016 ("FY 2016").
Trading update
Trading in both the Component Solutions and Filtration Products
Strategic Business Units ("SBUs") has been broadly consistent with
the Company's update of 21 November 2016.
However, the performance of the Health & Personal Care
Packaging SBU has been more challenging than previously anticipated
and, as a result of continuing operational issues, there has been a
further significant decline in both revenue and profitability
during the last two months of the year - nor is there currently an
expectation of a near-term improvement as the Company moves into
2017. This SBU will be receiving specific short-term focus and
remedial attention from Paul Forman, Chief Executive, and other
senior management.
As a result, and while the detailed year-end close and audit is
ongoing, the Board expects adjusted operating profit to be at, or
modestly below, the bottom end of the Company's previously
communicated guidance of GBP137 - 142m.
Paul Forman has recently commenced a strategic review of the
Company, and an update will be provided at the time of Essentra's
H1 2017 results on 28 July 2017.
Financial position
The Company's draft management accounts indicate net debt as at
31 December 2016 of approximately GBP380m (2015: GBP374m) at the
closing exchange rates of US$1.24 / GBP and EUR1.17 / GBP, better
than expectations and partly driven by improvements in the
Company's working capital position. This is again before detailed
year-end close reviews and is unaudited.
Subject to completion of the detailed year-end testing of asset
carrying values, it is anticipated that the FY 2016 results will
reflect an impairment with respect to the Health & Personal
Care Packaging SBU.
The Company confirms that it expects to complete the divestment
of its Porous Technologies business during Q1 2017. As previously
communicated, the net proceeds from the transaction are anticipated
to be in the region of GBP185 - 190m (taking into account tax
leakage and costs pertaining to the divestment / necessary
re-organisation of the Company), which is expected to result in a
significant exceptional gain on disposal in the financial year
ending 31 December 2017. The proceeds from the disposal of the
Porous Technologies business will be used to repay existing debt
facilities.
Other information
Essentra will announce its FY 2016 results on 17 February
2017.
Conference call
A conference call to discuss today's announcement with investors
and analysts will start at 07:45 (UK time), which can be accessed
using the following details:
Dial in, using the following details:
Dial-in number: +44 (0)20 3427 1904 (UK / international
participants)
+1 646 254 3360 (US participants)
Toll-free number: 0800 279 4977 (UK participants)
+1 877 280 2342 (US participants)
PIN code: 8913687
A replay of the call will additionally be available as
follows:
Replay number: +44 (0)20 3427 0598 (UK / international
participants)
+1 347 366 9565 (US participants)
Toll-free number: 0800 358 7735 (UK participants)
+1 866 932 5017 (US participants)
Replay access
code: 8913687
Replay available: For 7 days
Market Abuse Regulation Statement
This announcement contains inside information.
Enquiries
Essentra plc Ogilvy PR London
Joanna Speed, Corporate James Stewart
Affairs Director Tel: +44 (0)7342 068609
Tel: +44 (0)1908 359100 E-mail: james.stewart@ogilvy.com
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider
of essential components and solutions. Essentra focuses on the
light manufacture and distribution of high volume, enabling
components which serve customers in a wide variety of end-markets
and geographies.
Component Solutions
The Components business is a global market leading manufacturer
and distributor of plastic injection moulded, vinyl dip moulded and
metal items. Operating units in 29 countries serve a very broad
industrial base of customers with a rapid supply of products for a
variety of applications in industries such as equipment
manufacturing, automotive, fabrication, electronics and
construction.
The Pipe Protection Technologies business specialises in the
manufacture of high performance innovative products from commodity
resins to engineering-grade thermoplastics and polymer alloys for
use in a range of end-markets. Locations in four countries,
combined with a wide distributor network, serve customers around
the world.
Essentra Extrusion is a leading custom profile extruder located
in the Netherlands which offers a complete design and production
service. One of the first companies to extrude plastics in 1956,
Essentra is now one of Europe's most advanced suppliers of
co-extrusion and tri-extrusion to all branches of industry.
The Security business has access to a wide portfolio of products
and services, including printers, software and consumables from
leading manufacturers.
Health & Personal Care Packaging
A leading global provider of packaging and authentication
solutions to a diversified blue-chip customer base in the
pharmaceutical, health & personal care, consumer and specialist
packaging sectors. The business focuses on delivering value-adding
innovation, quality and service through the provision of a wide
range of printed products and solutions, including cartons, tapes,
leaflets, foils, labels and authentication solutions.
The Speciality Tapes business has expertise in coating multiple
adhesive systems in numerous technologies. With close to 3,000
adhesive products available for same-day shipping, Essentra's
products can meet all high performance needs, from foam, magnetic,
finger lift and acrylic high bond tapes to hook and loop and
non-skid foam.
Filtration Products
Essentra Filter Products is the only global independent
cigarette filter supplier. The nine worldwide locations, including
a dedicated Technology Centre supported by three regional
development facilities, provide a flexible infrastructure
strategically positioned to serve the tobacco industry. The
business supplies a wide range of value-adding high quality
innovative filters, packaging solutions to the roll your own
segment and analytical laboratory services for ingredient
measurement to the industry.
Essentra Porous Technologies is a leading developer and
manufacturer of custom fluid handling components, engineered from a
portfolio of technologies that includes bonded and non-woven fibre,
polyurethane foam and porous plastics. Representing innovations
used in healthcare, consumer and industrial applications, its
enabling components are found in a wide range of products from
medical diagnostics tests to advanced wound care pads, inkjet
printer cartridges, writing instruments, clean room wipes and air
fresheners.
Headquartered in the United Kingdom, Essentra's global network
extends to 33 countries and includes c. 9,000 employees, 53
principal manufacturing facilities, 64 sales & distribution
operations and 5 research & development centres. For further
information, please visit www.essentraplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTEAXFDAEEXEEF
(END) Dow Jones Newswires
January 23, 2017 02:01 ET (07:01 GMT)
Essentra (LSE:ESNT)
Historical Stock Chart
From Apr 2024 to May 2024
Essentra (LSE:ESNT)
Historical Stock Chart
From May 2023 to May 2024