Interim Management Statement

RNS Number : 0489U

Essentra plc

13 October 2014

 



13 October 2014

ESSENTRA PLC

("Essentra" or "the Company")

A leading international supplier of speciality plastic, fibre, foam & packaging components

INTERIM MANAGEMENT STATEMENT FOR THE PERIOD FROM 1^ST JULY 2014

STRONG REVENUE GROWTH MAINTAINED IN Q3

ON TRACK TO EXCEED VISION 2015 OBJECTIVES

Company Financial Performance

In the third quarter of 2014, revenue increased 8% versus Q3 2013 at constant exchange rates: on a like-for-like basis ("LFL"¹) growth was +7%.

Divisional Overview (at Constant Exchange)

Revenue versus comparable period	Q3 2014 % change	Year-to-date 2014 % change
Component & Protection Solutions -     LFL	+17 +10	+15 +8
Porous Technologies2 -     LFL	-9     -7	-9 -7
Packaging & Securing Solutions -     LFL	+2 +6	+28 +2
Filter Products	+11	+18
Other3	+13	+12
Total Company -     LFL	+8 +7	+16 +8

¹ Like-for-like revenue is adjusted to exclude the impact of acquisitions, disposals and foreign exchange, but includes the impact of

  Dakota Packaging Limited as it is no longer separately identifiable having been fully integrated into the healthcare packaging business

² Includes intercompany revenue

³ Other relates to the Essentra Extrusion business

The result in Component & Protection Solutions was led by a strong performance in Pipe Protection Technologies, supported by continued improvement in the Components businesses in Europe and Asia: it was also boosted by the acquisitions of Mesan Kilit A.S. and Kelvindale Products Pty Ltd.  In Porous Technologies, further good growth in speciality wipes and encouraging new business wins in air care were mitigated by softness in Printer Systems, notwithstanding the renewal of shipments to a major global OEM.  Growth in Packaging & Securing Solutions came from healthcare packaging and speciality tapes, which outweighed weakness in tear tape to the tobacco market.  Successful commercialisation of recent contract wins combined with ongoing proprietary innovation continued to underpin the result in Filter Products, with the increase in Extrusion benefiting from new business wins and a more encouraging European market backdrop.   

There has been no material change in the financial position of the Company during the period.

On 24 September 2014, Essentra announced that it had signed an agreement for the acquisition of 100% of the share capital of the major operating subsidiaries of Abric Berhad ("Abric") for RM 146m (approximately £28m), on a cash free, debt free basis.  The consideration, which is subject to customary adjustments for net debt and working capital, is payable on completion of the transaction and will be funded from the Company's existing facilities.  Completion is subject to customary closing conditions, including certain regulatory clearances and approval from Abric's shareholders at an Extraordinary General Meeting, which are anticipated to be satisfied during the fourth quarter of 2014.

Commenting on today's Interim management Statement, Colin Day, Chief Executive, said:

"As Essentra's Vision 2015 approaches its conclusion, our year-to-date revenue growth of 8% on a like-for-like basis underscores that we remain on track to exceed our objectives of at least mid single-digit like-for-like revenue growth and double-digit adjusted EPS growth at constant exchange - not only in 2014, but also over the three-year period since the strategy was implemented. 

Combined with continued good progress with the integration of recent acquisitions, as well as the successful transition to our new organisational structure, the Company is therefore also well-positioned for the next phase of its development, further details of which we will provide at our previously announced Capital Markets Day on 20 November."     

The Company will hold a conference call to discuss this Interim Management Statement at 08:30 (UK time) today, details of which are as follows:

Dial-in number:	[phone] (UK / international participants) [phone] (US participants)
Toll-free number:	0808 237 0040 (UK participants) [phone] (US participants)
PIN code:	19606588#
Replay number:	[phone] (UK / international participants)
Toll-free number:	0808 237 0026 (UK participants) [phone] (US participants)
Replay PIN	650898#
Replay available:	For 30 days

For Reference

The table below sets out Essentra's Q3 and year-to-date revenue growth by division at actual exchange rates.

Revenue vs comparable period	Q3 2014 % change	Year-to-date 2014 % change
Component & Protection Solutions -     LFL1	+10 +3	+8 +2
Porous Technologies2 -     LFL	-15 -13	-15 -13
Packaging & Securing Solutions -     LFL	-1 +3	+24 -1
Filter Products	+1	+7
Other3	+9	+7
Total Company -     LFL	+1 +1	+8 +1

¹ Like-for-like revenue is adjusted to exclude the impact of acquisitions, disposals and foreign exchange, but includes the impact of

   Dakota Packaging Limited as it is no longer separately identifiable having been fully integrated into the healthcare packaging business

²  Includes intercompany revenue

³ Other relates to the Essentra Extrusion business

Enquiries

Essentra plc Joanna Speed, Corporate Affairs Director Tel: [phone]

Buchanan Richard Oldworth Jeremy Garcia Helen Chan Tel: [phone]

Notes to Editors

Essentra plc is a FTSE 250 company and a leading international supplier of speciality plastic, fibre, foam and packaging products.  Through its four principal operating divisions, Essentra focuses on the light manufacture and distribution of high volume, essential components which serve customers in a wide variety of end-markets and geographies.

Component & Protection Solutions

The Components business is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items. Operating units in 26 countries serve a very broad industrial base of customers with a rapid supply of primarily plastic products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics and construction.

The Pipe Protection Technologies business specialises in the manufacture of high performance innovative products from commodity resins to engineering-grade thermoplastics and polymer alloys for use in a range of end-markets. Locations in four countries, combined with a wide distributor network, serve customers around the world.

Porous Technologies

A global market leading developer and manufacturer of custom fluid handling components, engineered from a portfolio of technologies that includes bonded and non-woven fibre, polyurethane foam and porous plastic. Representing leading innovations used in healthcare, consumer and industrial applications, its enabling components are found in a wide range of products from medical diagnostics tests to advanced wound care pads, inkjet printer cartridges, writing instruments, clean room wipes and air fresheners. Customers in over 56 countries are served from six manufacturing facilities with research and development centres supporting the division globally.

Packaging & Securing Solutions

A leading global provider of packaging and securing solutions to a diversified blue-chip customer base. The division focuses on delivering value adding innovation, quality and service to customers through a range of cartons, tapes, leaflets, foils and labels for the healthcare, consumer and specialist packaging, point of sale and paper & board industries. The division is also a leading supplier of authentication technologies and identity solutions. Customers in over 100 countries are served from facilities operating in ten countries.

Filter Products

The only global independent cigarette filter supplier. The nine worldwide locations, including a UK-based research facility and three regional development centres provide a flexible infrastructure strategically positioned to serve the tobacco industry. The division supplies a wide range of value adding high quality innovative filters, packaging solutions to the roll your own sector and analytical laboratory services for ingredient measurement for the industry.

Other

The Extrusion business is a leading custom profile extruder located in The Netherlands and offers a complete design and production service. One of the first companies to extrude plastics in 1956, it is now one of Europe's most advanced suppliers of co-extrusions and tri-extrusions to all branches of industry.

Headquartered in the United Kingdom, Essentra's global network extends to 33 countries and includes c. 5,700 employees, 42 principal manufacturing facilities, 64 sales & distribution operations and 5 research & development centres. For further information, please visit www.essentra.com.

 

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