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(Alliance News) - Essentra PLC on Friday kept its annual dividend intact, as profit rose sharply despite a fall in revenue below the GBP1.00 billion mark.
For 2019, the FTSE 250 plastic and fibre products maker posted pretax profit of GBP65.5 million, an 80% increase from GBP36.3 million the year before.
Milton Keynes-based Essentra's profit performance was helped by an exceptional gain of GBP15.4 million on the disposal of Pipe Protection Technology in January 2019 and Duraco Specialty Tapes in June, compared to an exceptional loss of GBP20.8 million recorded in 2018.
On an adjusted basis however, pretax profit fell by 8.8% year-on-year to GBP73 million from GBP80 million.
Revenue meanwhile, dropped by 5.1% to GBP974.1 million from GBP1.03 billion the prior year, meanly driven by a much weaker performance from its Specialist Components business.
Segmentally, Components revenue increased by 1.3% to GBP283.3 million, Packaging grew by 3.0% to GBP352.7 million and Filters by 1.4% to GBP303.6 million.
However, the Specialist Components unit reported a revenue drop of 67% to GBP35.2 million, as the business was dissolved at the end of the third quarter of 2019, as part of the simplification of Essentra's portfolio.
Essentra declared a full-year dividend of 20.7 pence per share, in-line with the year before.
Looking ahead, the group said the macro economic environment remains uncertain, especially in the face of the coronavirus outbreak. However Essentra noted that only its components division is exposed to industrial segments that are subject to cyclicality.
Most of the group's operations serve end-markets, which tend to be non-cyclical in nature, Essentra noted.
"As we enter 2020 the macroeconomic environment continues to look uncertain, exacerbated by COVID-19. However, we begin the year as a more focused business, ready and well-equipped to face the challenges and opportunities ahead. In 2020 we will continue to invest in our business and support growth in all three divisions," said Chief Executive Paul Forman.
Shares in Essentra were down 3.3% at 336.40 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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