Last checked at 
(Alliance News) - Essentra PLC on Friday reinstated its 2020 dividend payments and delivered a full-year operating profit in line with the consensus of analysts' forecasts.
The FTSE 250 plastics and fibre products manufacturer said 2020 revenue fell 8% to GBP897 million from GBP947 million in 2019, while adjusted pretax profit fell 37% to GBP46 million from GBP73 million. Essentra experienced difficulties in trading in the second quarter due to the onset of the Covid-19 pandemic, which resulted in its Components division declining by 10%.
Adjusted operating profit - adjusted to exclude intangible amortisation on acquired assets and exceptional operating items - for 2020 decreased 28% at constant currency to GBP62.0 million from GBP88 million. This is in line with consensus from analyst forecasts, which ranged between GBP59 million and GBP63 million. In January, Essentra said it expected to post an annual 2020 operating profit in line with this range.
Business disposals completed in 2019 accounted for GBP5.0 million of the decline, with "the remainder driven predominantly by the effect of volume gearing and temporary manufacturing inefficiencies linked to the pandemic, partially offset by continued successful pricing management and cost control actions," it said.
After cancelling its 2019 final and 2020 interim dividends, Essentra reinstated its dividend payments to a final 2020 payout of 3.3 pence per share. It paid an interim dividend of 6.3p in 2019.
Shares in Essentra were up 0.3% at 302.40p in London on Friday.
"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. Cash generation has also been strong, improving our liquidity position, and the company took the decision not to partake in any employee-related UK government support. Our equity capital raise enabled us to acquire a strategic bullseye in 3C! Packaging, whilst further strengthening our balance sheet and providing greater strategic optionality," said Chief Executive Paul Forman.
Looking ahead, Essentra said its underlying business continues to improve on a constant currency basis.
"I believe we have ended the year a closer team with deeper customer relationships, a stronger balance sheet and a clearer picture of the future. The resilient platform that we have built has been proven through the depths of this pandemic and gives us a fantastic base from which to drive responsible, profitable and cash generative growth in each of the divisions in 2021 and beyond," said Forman.
Additionally, Essentra said Senior Independent Director & Non-Executive Director Tommy Breen will retire from these roles at the end of the annual general meeting due to be held May 20.
Breen said he is retiring in order to commit more time to his role as Homeserve PLC chair. Current Board Employee Champion Mary Reilly will take over the senior position once Breen steps down.
"Mary's PLC experience and interpersonal skills make her ideally suited for the role of senior independent director," said Chair Paul Lester.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
