Essentra sinks after interim results

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Essentra sinks after interim results

Shares in FTSE 250 plastics specialist Essentra (LON:ESNT) have fallen by 1.28% to 307.60p (as of 15:05 BST) after revenues declined by 11.7% during the six months ended 30th June. Reported operating profits were down by almost 75% relative to the same period last year. Interim dividend payments remain cancelled but management are open to the possibility of resuming dividends at the end of the full year.

CEO Paul Forman commented: “The first half of 2020 really has been an unprecedented period and I am very proud of how the Company has responded during these challenging times. From the onset of the pandemic, we focused our energies on our initial three main priorities – employee physical and emotional wellbeing, continued high levels of customer support, and cash conservation. Indeed, with the advent of our newer fourth priority – building for our future – we are now focusing on ensuring that we are best placed to successfully emerge from the pandemic.

[…]The strength of our three distinct business models has been clearly demonstrated in this half year. Whilst customer demand in Components was impacted by the crisis, the breadth of our portfolio, global footprint and flexible manufacturing have all helped to reduce its impact. In both Packaging and Filters, underlying customer demand has remained robust and despite some supply chain disruption, both divisions delivered growth towards the end of the half year.

I am pleased that we have delivered a resilient overall revenue and margin performance, backed up by robust cash generation and an improved liquidity position. Despite the immediate challenges posed by this pandemic, we have continued to pursue strategic initiatives that will drive medium to long term growth.

The fundamentals of our Company remain sound, and I am fully confident that the we will emerge from this unprecedented situation as an even better and stronger organisation“.

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