Last checked at (Sharecast News) - Essentra restarted its dividend as the components and packaging company posted an upbeat outlook after a steep decline in annual profit.
Adjusted operating profit for the year to the end of December fell 28% at constant currency to £62m as revenue dropped 7% to £897m. Reported pretax profit fell 91% to £6m.
Essentra proposed a final dividend of 3.3p a share and said trading was improving in both its divisions. The annual result showed an improving trend after operating profit dropped 40% in the first half.
The FTSE 250 group scrapped its final dividend for 2019 in the early stages of the Covid-19 pandemic and paid no interim dividend in 2020. With trading improving, Essentra said in August it was considering restarting the dividend in 2020.
Paul Forman, Essentra's chief executive, said: "Through the company's agility, adaptability and resilience, we have delivered a full-year operating profit result which is in line with the consensus of analysts' forecasts. Given the group's resilient performance, encouraging outlook and strong financial position, the board recommends a resumption of dividend payments."
After a slow start to the current year because of logistical holdups Essentra's components division will register improving like-for-like trends, the company said. The packaging market should return to moderate growth in the second half of 2021 as healthcare systems catch up on a backlog of prescriptions and operations, it added.
6 Jan 2023 07:05
Essentra sees FY in line despite global headwinds
(Sharecast News) - Shares in components maker Essentra fell sharply after weaker sales in the final quarter, although the company said it expected annual profits to be in line with expectations despite global economic headwinds.
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