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Manufacturing & engineering

Essentra begins review of packaging division as part of strategic slimdown

Reviews of both the unwanted divisions are seen as likely to be concluded by the end of June at the earliest

Essentra PLC (LSE:ESNT) reported a strong finish to 2021 and said it is mulling the best way to sell or spin off its packaging and filters divisions as part of its plan to become a pure play components business.

Full year operating profit is expected “in the range of analysts' forecasts”, namely between £80.7mln and £84.3mln, it added.

In October, the FTSE 250 company said it would start by reviewing options for its tobacco-led filters division, as its three main prongs are at different stages of development and have limited synergies.

Today, Essentra said the board was conducting two reviews in parallel, with a focus on maximising shareholder value, with both still seen as likely to be concluded by the end of June at the earliest.

As for the group’s overall performance for the fourth quarter, like-for-like sales grew 12.7% on the previous year and 11.1% versus pre-pandemic 2019.

Chief executive Paul Forman said: “We continue to monitor COVID-19 challenges and take actions to offset the impact of global supply chain challenges which should better position our market leading global businesses for growth in their respective markets.”

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