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(Alliance News) - Essentra PLC on Thursday said it was on track to meet its annual profit guidance, despite revenue falling in the four months to May, while it named a new chair.
In the four months ended May 4, the Oxford, England-based components company said revenue was down 1.2% from a year earlier.
Like-for-like sales fell 5.0%, which Essentra said reflected a comparatively stronger start to 2023 in the Americas and Europe, Middle East and Africa, partly offset by 3.8% positive contribution from the acquisition of BMP srl.
Average sales per trading day grew by around 5%, however, compared to the fourth quarter of 2023 on a like-for-like basis.
"Consistent with the market environment outlined at the [financial 2023] results in March, Americas regional performance is encouraging, with greater stability of distributor volumes. APAC region is stable sequentially when compared to the end of 2023, with a greater level of recovery signalled in the China export market to the rest of Asia," the company explained.
"EMEA region is seeing mixed trading conditions in line with wider industrial production trends. West Europe, particularly Germany, is seeing lower volumes, whilst Turkey is seeing a stronger growth trajectory."
Looking ahead, Essentra said board expectations for 2024 remain unchanged, anticipating performance to be second half weighted with an improvement in volumes in the second half of the year.
"The group remains well positioned to benefit from a recovery in its end-markets when volume growth returns to normalised levels, given the actions that have been taken to right-size the cost base and optimise the business to deliver operating leverage," Essentra said.
"The group is proactively responding to changes in market conditions, and continues to invest in value enhancing growth initiatives, driving operational effectiveness. Management remain confident in making further progress towards Essentra's medium-term targets in 2024."
Essentra also announced the appointment of Norcors PLC Non-Executive Chair Steve Good to the board as independent non-executive chair designate, effective from July 1.
It said there will be a four-month induction and handover period during which Paul Lester will remain as chair.
After nine years on the board, Lester will stand down as chair and from the board on November 1.
"I am very pleased that Steve has joined the board of Essentra PLC. His significant commercial experience gained in both executive and non-executive roles will be invaluable as the company's independent non-executive chair. I very much look forward to working with him to continue the success of the business," said Essentra Chief Executive Officer Scott Fawcett.
Incoming Chair Good commented on his appointment: "It is a great pleasure to join Essentra as it continues to make good progress against its strategic priorities. I look forward to working with the board as we drive organic and inorganic growth, continue to increase operating efficiencies, margins and returns for stakeholders."
Shares in Essentra were up 0.1% to 183.00 pence each in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News senior reporter
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