9th Jun 2016 06:18
LONDON (Alliance News) - Plastic and fibre products company Essentra PLC on Thursday issued a profit warning for 2016 following a deteriorating in trading in its filter products business.
FTSE 250-listed Essentra said it is "unlikely" to meet the trading expectations for the year to the end of December that it had set out in its annual results in February.
Essentra said its Filter Products unit, which makes filters for cigarettes, has been hit by a challenging market backdrop and projects either no being commercialised or being delayed.
The group also has faced short-term operational issues in its Health & Personal Care Packaging division in the US and UK amid an extensive site-integration programme. The disruption from this has hit revenue and operating profit for the unit.
Due to this, Essentra said its total revenue for 2016 will be broadly flat on the GBP1.10 billion posted a year earlier, while adjusted operating profit will be GBP155.0 million to GBP165.0 million, down from GBP171.5 million the year earlier.
The group does expect a better second half of 2016.
Essentra will publish interim results on July 29.
By Sam Unsted; [email protected]; @SamUAtAlliance
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