Essentra posts strong Q1 revenue jump

29th Apr 2014 10:02

First quarter revenue rose 17 per cent compared to a year earlier, FTSE 250-listed Essentra reported on Tuesday. The group, which is a supplier of speciality plastic, fibre, foam and packaging products, said its top line rose 17% at actual rates, 8% on a like-for-like basis, and 25% at constant currency, driven by its packaging and securing solutions. Earnings were partly offset by its Porous Technologies, as had been expected, after it was hit by inventory destocking in Printer Systems with a major global original equipment manufacturer. Growth is expected to be weighted towards the second half of the year. Growth in component & protection solutions was broad-based across the division, benefiting from an improving backdrop in Components Europe and new business wins in Pipe Protection Technologies, the company explained. The acquisition of Contego Healthcare contributed to the performance of Packaging & Securing Solutions, where softness in tear tape to the European tobacco market offset a strong performance in Speciality Tapes. Continued demand for innovative special filters combined with the roll-out of recent contract wins drove strong growth in Filter Products.Chief Executive Colin Day said: "Essentra continued its positive organic growth trend in the first quarter, with revenue ahead 8% on a like-for-like basis and 25% at constant exchange. We also made good progress with the ongoing integration of recent transactions, and are pleased to have signed an agreement to acquire Kelvindale which further enhances the geographic presence of our Component & Protection Solutions division."Given this positive start to the year, combined with a strong pipeline of new business wins, Essentra is well-positioned for further balanced, profitable growth in 2014 and to deliver its Vision 2015 objectives of at least mid single-digit like-for-like revenue growth and double-digit adjusted earnings per share growth at constant exchange."The share price climbed 1.47% to 830p by 10:25.NR