Essentra PLC (LON:ESNT) shares surged as it announced the resignation of its finance director and reiterated expectations for a return to revenue and margin growth in 2018.
The maker of plastic and fibre products said Stefan Schellinger will step down as finance director later this year to “pursue his career outside of Essentra”.
Schellinger, who has been finance director since October 2015, leaves following a restructuring of the business into four divisions – components, packaging, filters and specialist components – to get the business back on track after plunging to an annual loss in 2016.
READ: Essentra narrows 2017 loss and reports rise in revenue as it restructures the business
"Stefan has been a member of the board since 2015, and his knowledge and commitment have proved very valuable through what was a period of challenge in 2016,” said chairman Paul Lester.
"He has played an important role in stabilising the company in 2017, and in developing the clear strategy we now have."
Revenues rise in year-to-date
In a separate trading update, the company reported a 2% increase in like-for-like revenue for the year-to-date with strong growth in the components business offsetting a decline in the packaging unit.
Shares in Essentra jumped 8% to 469p in morning trading.
Components achieved growth across all geographic regions with a “stable result” in filters reflecting a continued “good performance” in China and a pipeline of new products, Essentra said.
In packaging, the group revealed that the rate of decline continued to moderate, thanks to “significant improvements” in service and quality.
Essentra confirms full year guidance
“The components business is expected to continue to generate strong, broad-based growth, with both the filters and specialist components divisions maintaining a broadly stable result,” Essentra said.
“In Packaging, improving year-on-year trends continue to be anticipated, having increasingly stabilised the business and addressed certain one-time factors in 2017.”
The group therefore continues to expect a return to like-for-like revenue growth and margin expansion in fiscal year 2018.