Trading Update

Essentra plc

17 September 2024

 

This announcement contains inside information (as defined by Article 7 of Regulation (EU) No 596/2014), as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018) ("MAR") and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

ESSENTRA PLC

("Essentra", the "Group" or the "Company")

TRADING UPDATE

Essentra plc, a leading global manufacturer, and provider of essential components and solutions, provides the following trading update in respect of the current financial year ending 31 December 2024.

At the half year results, published 30 July 2024, the Group indicated that market conditions in its end-markets were mixed by region, with modest sequential improvement in volume trends through the first half. The Group had previously anticipated a further modest improvement in volumes in the second half, underpinned by ongoing recovery of demand across end-markets. However, through August and into September, consistent with the weak PMI metrics widely reported, market conditions in Europe, (including Turkey) have softened. Whilst the Americas region has reported a slower than anticipated rate of recovery, APAC remains broadly in line with expectations.

The impact of the market back drop on trading since the half year 2024 results, combined with a consequently more cautious view of the likely timing of further modest improvements in market conditions has led to the Board revising its expectations for full year 2024. Including the impact of adverse foreign exchange retranslation, estimated to be c.£2m, the Board now expects 2024 full year adjusted¹ operating profit to be in the range of £40m-£42m².

Management remain confident in the business model and that the Company is well positioned, supported by a right-sized cost base and robust operations, to benefit from high levels of operational leverage when normalised growth returns. The Group continues to balance its investment in value creating opportunities across the business alongside cost mitigation activities and driving efficiencies, which has supported strong gross and operating margins. The balance sheet remains robust, and full year leverage guidance remains unchanged.

Essentra will issue its Q3 results for the three months ending 28 September 2024 on 24 October 2024.

Enquiries

Essentra plc Jack Clarke, Chief Financial Officer Claire Goodman, Head of Investor Relations Emma Reid, Company Secretary Tel: [phone]

FTI Consulting Richard Mountain Ariadna Peretz [e-mail] Tel: [phone]

The person responsible for release of this announcement is Emma Reid, Company Secretary.

^{1.         On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items}

^{2.         Company compiled market expectations for 2024 adjusted operating profit are currently between £48.4m and £49.7m}

Notes to Editors

About Essentra plc

Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions, focusing on the manufacture and distribution of plastic injection moulded, vinyl dip moulded and metal items.

Headquartered in the United Kingdom, Essentra's global network extends to 28 countries worldwide and includes c.3,000 employees, 14 manufacturing facilities, 24 distribution centres and 33 sales & service centres serving c.69,000 customers with a rapid supply of low cost but essential products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics, medical and renewable energy. For further information, please visit www.essentraplc.com

LEI: 5493007MOZNA03BVNE96

Cautionary forward-looking statement

These results contain forward-looking statements based on current expectations and assumptions. Various known and unknown risks, uncertainties and other factors may cause actual results to differ from future results or developments expressed or implied from the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. The Company accepts no obligation to revise or update these forward-looking statements publicly or adjust them to future events of developments, whether as a result of new information, future events or otherwise, except to the extent legally required.

 

END