Specialist plastic, fibre, foam and packaging products maker Essentra PLC (LON:ESNT) produced a mixed bag in its third-quarter trading statement.
The good news was that the Packaging division returned to revenue growth while its Components business delivered “a robust organic result”.
READ: Essentra returns to profits growth
The news was less good in the Filters division, where project volatility (particularly in Europe) resulted in an underlying revenue decline in the third quarter; the full-year outlook is for a moderate decline in year-on-year revenue and a stable margin in this division, Essentra said.
Specialist Components saw a modest decline in sales, largely due to the continued poor performance of Tear Tapes where a strategic improvement plan is being implemented. Full-year revenue is expected to be similar to last year, but with the margin below 2017.
"I am pleased with both the improved stability that we are continuing to drive throughout the organisation, as well as the solid progress we are making on our strategic objectives,” said Paul Forman, the chief executive of Essentra.
The company expects to close its Largo factory in the US by the end of this year and is also planning to close its site in Kilmarnock and stop production of speciality tapes in Nottingham this year.
The closure of its Kilmarnock site with the loss of 50 jobs is helping the recovery and stabilisation of print group @EssentraPack - according to trading figures. #jobs #Kilmarnock #Essentra #print https://t.co/sOcz2kCxUQ
— Insider.co.uk (@Insidermag) October 19, 2018
“The return to growth across our Packaging division is particularly gratifying and, being well underpinned, is set to continue. Accordingly, we remain confident that we are on track to deliver an improvement in both revenue and operating margin for the company,” Forman said.
The shares were down 2.5% at 376.2p in a flat market.