(Alliance News) - Essentra PLC on Wednesday said it was "well positioned" to rebound from the impact of Covid-19 after a strong second quarter.
Essentra manufactures and distributes small components, health and personal care packaging and tobacco filters.
The Milton Keynes, England-based firm said second quarter revenue increased by 14% on a like-for-like basis. First half income now is up 7.4% compared to the year prior.
Revenue in the second quarter remained 2.4% higher than the same pre-pandemic period in 2019.
Essentra said its components and filters income grew by 28% and 15%, respectively. Conversely, the company's packaging revenue was down 4.8%, reflecting lower volumes of prescriptions and elective surgery during the pandemic.
Despite continued macro-economic uncertainty, the components producer said its "order book trends have been improving".
"We continue to believe the market will return to moderate growth in [the second half of] 2021 as global healthcare systems catch up on the significant backlog of prescriptions and elective surgeries," the company noted.
As its outlook improves, the FTSE 250-listed company said it has agreed to issue USD250 million in medium and long-dated US debt notes. Adding that notes worth USD80 million are due in 2028, USD85 million in 2031 and USD85 million in 2033.
"The issuance of our private placement debt provides us with optimal long term funding. The strength of our balance sheet, liquidity position and capital structure means we are well positioned to pursue attractive bolt-on acquisition opportunities," Chief Executive Paul Forman said.
Shares in Essentra were trading up 0.4% at 294.26 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Essentra (ESNT)