29th Apr 2014 13:31
LONDON (Alliance News) - Speciality plastic and packing products supplier Essentra PLC Tuesday said that trading in the first quarter of its new financial year was in line with board expectations, boosted by a strong performance from its Packaging & Securing Solutions division.
The group said it maintained positive trading moment in the first quarter of the financial year, after its pretax profit grew by 15% in 2013, buoyed by further expansion in both existing and new markets and new business wins.
Essentra said that group revenues rose 17% at actual exchange rates in the quarter ended March 29, and 25% on a constant currency basis.
It said that like-for-like revenue for the period - which excludes the impact of acquisitions, disposals and foreign exchange - was up 8% at constant exchange rates, and up 1% on an actual exchange rate basis.
Essentra said its components and protection solutions business, where revenue rose 7% at actual exchange rates, and 13% on a constant currency basis, benefited from an improving backdrop in Europe and new business wins, as well as the acquisition of Turkish hardware manufacturer and distributor Mesan Kilit A.S.
The group said that as expected, the trading performance in Porous Technologies was hit by inventory de-stocking in Printer Systems with a major original equipment manufacturer, and said that growth is expected to be weighted towards the second-half of the year. Revenue for the quarter was down 17% at actual exchange rates, and 12% at constant rates.
Essentra said the acquisition of Contego Healthcare Ltd, contributed to an 83% increase in revenue on an actual exchange rates basis, in its Packaging & Securing Solutions division. It said that softness in tear tape to the European tobacco market in the quarter, offset a strong performance in Speciality Tapes.
The group said that continued demand for innovative special filters combined with the roll-out of recent contract wins, drove growth in its Filter Products division.
Essentra also announced Tuesday that it has signed an agreement to acquire Australia-based plastic protection and finishing products manufacturer and distributor Kelvindale Products Pty Ltd, but did not disclose how much the cash consideration was for. It said the acquisition will be funded using its existing facilities.
Essentra shares Tuesday afternoon were trading 0.7% higher at 824.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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