Essentra plc. (ESNT.L), a supplier of plastic and fibre products, reported Friday that its fiscal 2020 pre-tax profit declined 91 percent to 6 million pounds from last year’s 66 million pounds.
Basic earnings per share were 1.7 pence, down 88 percent from 14.7 pence last year.
Adjusted pre-tax profit was 46 million pounds, compared to 73 million pounds a year ago. Adjusted basic earnings per share were 13.1 pence, compared to 21.3 pence a year ago.
Adjusted operating profit was down 27.9% at constant FX to 62.0 million pounds.
Revenue for the year declined 8 percent to 897 million pounds from 974 million pounds last year. Revenues fell 7 percent at constant exchange rates, and 6.3% on a like-for-like basis.
Further, the Board recommended a resumption of dividend payments, with a FY 2020 final dividend of 3.3p per share. This is 48 percent lower than 6.3 pence per share paid last year.
Looking ahead, the company said, “On a constant currency basis, our underlying business continues to improve.”
Essentra is reviewing its global footprint, which has resulted in the proposed closure of certain sites in 2021 across the Components and Packaging divisions.
The company expects to start generating savings from these actions in 2021, with annual savings of about 13 million pounds from 2022 onwards.
Separately, ,Essentra announced that Tommy Breen will retire as a Non-Executive Director and Senior Independent Director, with effect from the conclusion of the Annual General Meeting to be held on May 20.
The Board announced that Mary Reilly will become Senior Independent Director upon Breen’s retirement, subject to Mary’s re-election at the AGM.
The Nomination Committee has initiated a process to appoint a new Non-Executive Director.
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