Essentra PLC (LON:ESNT) shares ticked up in early trading Friday after the plastic components maker reported improved profits for the full year despite flat revenue growth.
The FTSE 250 group reported an adjusted pre-tax profit from continuing operations of £80mln, up 8% on the prior year, while revenues had stayed flat at around £1.02bn.
READ: Essentra's third-quarter statement a bit of a curate's egg
Neutral revenues were supported by the components division, which at 12% growth largely offset declines across the company’s packaging, filters, and specialist components divisions.
However, total earnings were lifted by rises in operating profit in the components and filter arms by 13.2% and 1.5% respectively, mitigating declines of 10.9% in specialist components and flat operating profit growth in packaging.
The final dividend for the year was also maintained at 14.4p per share, leaving the total dividend for the year also unchanged at 20.7p.
Looking ahead, Essentra’s chief executive Paul Forman said that the macro environment was “uncertain”, however, added that much of the company’s end-markets were non-cyclical in nature, offsetting its exposure to cyclical industrial segments through its components and specialist components divisions.
In a separate announcement, the group also announced the appointment of Nicki Demby as a non-executive director from 1 June, while current non-exec Lorraine Trainer would step down at the company's annual general meeting in 2020.
In a note, the company’s corporate broker Peel Hunt said “good progress” had been made in improving the business following a restructuring last year, although added that 2019 was “likely to see slower progress” given macro headwinds and that the company was continuing to invest in its central resources to improve its capabilities.
“Nonetheless, the business is in increasingly good shape, with the key metrics…heading firmly in the right direction”.
Shares were up 2.8% at 387.4p.
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