Shares in Essentra PLC (LSE:ESNT) fell to 9% to their lowest in 14 years as the FTSE 250-listed components group said full-year underlying profit would be towards the lower end of expectations.
On a like-for-like basis, revenue in the third quarter declined 7.1%, which was an improvement from the 11.9% fall in the second quarter, while on a sequential basis sales were “broadly stable”.
Profit margins were said to be “strong” and the group said the outlook indicated the business would show “through-cycle resilience, as it has historically”.
On a regional basis, the quarter saw the market softening in Europe, Middle East and Africa due to macro-economic shifts, while distributor destocking persisted in the Americas; but Asia Pacific business, notably in China, continued a gradual recovery.
September saw a €33.5 million acquisition agreed for BMP TAPPI, an Italian maker of protective caps and plugs, with this “on track to complete shortly” and expected to unlock cross-selling opportunities.