Essentra Plc (LON:ESNT) half year results show improved profitability, though the plastic components and packaging manufacturer cautioned over uncertain ‘macro-environment’.
In the company’s outlook for the full year remains unchanged, and, it also updated on its preparations for a ‘no deal’ Brexit.
Like-for-like revenue increased by 1.3% compared to the comparative period of 2018, albeit reported revenue came in at £507mln against £513mln for H1 2018.
Adjusted pre-tax profit was reported at £41mln, up 8%, while adjusted net income amounted to £33mln, up 8%, and basic earnings per share rose by 9% to 12p.
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Reported pre-tax profit totalled £53mln, marking a 155% improvement from its 2018 comparative figure of £26mln, while the reported net income was up 94% at £32mln versus £17mln in 2018.
"At our FY 2018 results, I stated my confidence that 2018 represented an inflection point for our business and that we had restored Essentra to a position where future revenue and profit growth can be sustained,” said Paul Forman, chief executive.
“With each of Components, Packaging and Filters showing improvement in this respect in HY 2019 - combined with further improvement in our key operational and people metrics - this belief has strengthened.”
Preparing for ‘no deal’ Brexit
Essentra, headquartered in Milton Keynes, has operations across twelve European countries (as well as its broader global operations) today confirmed that it is currently assuming a "no deal" Brexit scenario for its planning processes.
It detailed that it working to change its supply routings, as well as building of stocks of finished goods and relevant raw materials to mitigate against short-term supply chain disruption.
The company said it is also working to ensure that its logistics providers have the required status and processes in place to facilitate smooth customs handling.