Essentra PLC (LSE:ESNT) announced a “strong” performance for the first six months, with double-digit revenue growth at both its components and filters businesses and the order book ahead of last year.
The company reported revenue of £340.8mln for the half-year to 30 June 2022, up from £287.9mln in the same period last year, while adjusted operating profit grew 44% to £35.3mln.
As a result of the strong results, Essentra upped its interim dividend to 2.3 pence from 2p.
The company’s components business achieved revenue of £175.9mln, a rise of 12.7% on a like-for-like basis, driven by price and volume increases against a backdrop of cost inflation and pandemic lockdowns in China.
Adjusted operating profit in the components division increased by 33.7% to £35.9mln.
The filters operations saw revenue growth of 15.4%, underpinned by growth of outsourcing contract wins and an increase in China joint venture volumes. Adjusted operating profit at the division rose by 27.2% to £15.1mln.
During the first half, the company took its first step towards becoming a pure-play components business when it announced the sale of its packaging operations to Mayr-Melnhof in June. The deal is expected to complete in the final quarter of this year.
In addition, Essentra is undertaking a strategic review of its filters business and said it will provide an update by the end of September.
The company also said it intends to return a portion of the packaging disposal proceeds to shareholders following the conclusion of its strategic reviews.
Noting the uncertain macroeconomic climate, Essentra said it continues to manage cost inflation and supply chain challenges through pricing and cost mitigation.
“Whilst we are mindful of the wider macroeconomic uncertainty, the group remains well positioned with organic and inorganic growth opportunities, strong order books and a robust balance sheet. We expect to deliver adjusted operating profit in line with the board's expectations," said chief executive Paul Forman.