20th Feb 2015 07:52
LONDON (Alliance News) - Essentra PLC Friday said it has increased its full year dividend for 2014 after reporting a significant rise in pretax profit, driven by strong revenue growth across most of its divisions.
The supplier of plastic and fibre products also announced that it has completed the acquisition of an Australian plastics distributor that is set to "enhance" earnings immediately.
For the year ended December 31, the company reported a rise in pretax profit to GBP99.78 million compared to GBP60.3 million a year earlier, driven by strong revenue growth in the period.
Following the rise in profit, Essentra increased its final dividend to 12.6 pence per share, creating a full year dividend of 18.3 pence per share, up 19% from 2013.
Revenue for the year rose by 8% to GBP865.7 million from GBP798.1 million in 2013, after the company continued to invest in existing and new geographical markets with improved marketing and product innovation, it said.
All of its divisions experienced an increase in like-for-like sales in 2014, apart from it Porous Technology division, which saw like-for-like sales slump by 5%. Its Filter Products unit experienced the biggest rise in sales of 16% in the period.
In 2014, Essentra reduced its net debt significantly to GBP62.1 million from GBP217.1 million at the end of 2013. The company said it reduced debt from strong cash generation and because it used proceeds from share placings in 2014 to fund the acquisition of Clondalkin SPD, it said.
In a separate statement, the company said it has completed the acquisition of Speciality Plastics, which is based in Perth, Australia, for an undisclosed fee. Essentra said the acquisition was paid from existing resources.
Speciality Plastics is a distributor of protective plastic products to markets such as hydraulics, fabrication, construction and mining. Essentra said the acquisition will be "immediately earnings enhancing."
"With like-for-like revenue ahead 9% and adjusted earnings per share growth of 19% [41.9 pence], not only did we exceed our Vision 2015 objectives in 2014, but also over the three-year period since the strategy was implemented," said Chief Executive Colin Day.
"Essentra is well-positioned to continue its track record of balanced, profitable growth in 2015 under its Drive for 2020 strategy, notwithstanding the current economic climate," said Day.
By Joshua Warner; [email protected]; @JoshAlliance
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