(Sharecast News) - Essentra said it was considering selling its filters business as a first step to becoming a pure-play components business as the company said its results were on track to meet full-year expectations.
Like-for-like revenue rose 5.1% in the third quarter from a year earlier, driven by its core components business where revenue on that basis rose 28.5%. Filters revenue rose 2.8% and packaging revenue fell 6.1%.
Recent orders indicate strong revenue growth for components and filters in the fourth quarter and signs of improvement for packaging. As a result, adjusted operating profit for the full year will be within analysts' range of forecasts for £80.7m-£84.3m, Essentra said.
Essentra said its three businesses were market leaders with strong prospects but were at different stages of development with few synergies. The best plan for shareholders is for the company to concentrate on its components division, it said.
The company said it would review "the full range of options" for its filters business with a decision likely in the second quarter of 2022 at the earliest.
Paul Forman, chief executive, said: "We have concluded it is in the best interests of all our stakeholders that Essentra becomes a pure play components business over time - reflecting the opportunity to build on its growth strategy and accelerate investment in organic and inorganic growth, leveraging its highly attractive financial model.
"I am pleased with the third quarter performance overall. Components has delivered strong revenue growth, filters has good momentum and packaging continues to manage the difficult conditions within its market."
Essentra (ESNT)