Essentra delivers 'resilient' FY 24 performance, CFO to stand down

19th Mar 2024 08:05

(Sharecast News) - Essential components manufacturer Essentra said it had delivered a "resilient" performance in 2023, with the group progressing towards its medium-term targets.

Essentra said adjusted operating profits were up 85.3% at £43.2m, while adjusted operating margins rose 630 basis points to 13.7% and adjusted basic earnings per share surged from 1.9p to 10.6p. However, revenues dropped from £33.7m to £316.3m - a 4.4% year-on-year decline at constant currency and a 6.4% contraction at actual FX rates.

The FTSE 250-listed company noted that its 2024 performance to date was in line with expectations, with the group remaining focussed on "enhancing its hassle-free customer proposition", delivering strong profit margins and cash conversion, and investing in growth initiatives, whilst delivering on its sustainability goals.

"The business is well positioned for when volume growth returns to normalised levels. Management anticipates 2024 performance will be weighted towards a recovery in the second half," said Essentra. "The group remains confident of making further progress towards its medium-term targets in 2024."

Essentra also revealed that chief financial officer Jack Clarke will retire from the group. He will stay with the company until a successor can be put in place in order to ensure a smooth transfer of responsibilities. Essentra expects him to leave no later than 31 March 2025.

As of 0925 GMT, Essentra shares were down 6.34% at 162.60p.

Reporting by Iain Gilbert at Sharecast.com