Essentra's interim revenue soars but profit decline on Clondalkin acquisition
Plastic and fibre producer Essentra reported a decline in interim profits on the back of exceptional costs, although revenue soared following the acquisition of Clondalkin specialist packaging.
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Pre-tax profit for the first six months of the year declined 8.1% year-on-year after the group booked one-off costs related to the acquisitions of specialist packaging group Clondalkin earlier this year.
However, the acquisition boosted the group’s revenue, which soared 27.6% year-on-year to £550.4m, while like-for-like revenue grew 1.1%.
Group’s chief executive Colin Day said despite a sluggish performance in the group’s pipe protection technologies, due to a global slowdown in the oil and gas sector, the group had made a solid start to the year.
“While the current environment in the oil and gas sector remains uncertain, Essentra remains well-positioned to deliver balanced, profitable growth in 2015 under its Drive for 2020 strategy," Day said.
Essentra said it will pay an interim dividend of 6.3p per share, 10.5% higher than in the corresponding period in 2014.
Essentra shares were down 5% to 912.00p at 0929 BST on Friday.