Business
FY20 Pre-Close Trading Statement
FY20 Pre-Close Trading Statement.
About this update from Essentra Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 9979K\n Essentra plc\n 08 January 2021\n \n \n \n \n ESSENTRA PLC\n \n \n PRE-CLOSE TRADING UPDATE\n \n \n \n \n \n \n Summary\n \n \n · \n Four priorities remain; employee physical and emotional wellbeing, continued high levels of customer support, cash conservation, and building for our future\n \n \n · \n On a like for like basis (LFL), Group Q4 revenue is -1.1% on the prior year, maintaining the trend of steady quarterly improvement since the nadir in Q2 of -9.8%. The Company expects to deliver FY20 operating profit in line with the consensus of analysts' forecasts\n \n 1\n \n \n \n · \n Improved LFL revenue trends seen through Q2 and Q3 have been maintained in Q4 for Components\n \n \n · \n A reduction \n in elective surgeries and prescription levels, first seen in Q3, continued but overall the Packaging division had a much improved Q4\n \n \n · \n The Filters division faced certain logistical challenges in Asia, derived from regional shipping container shortages, that resulted in a tougher Q4\n \n \n · \n Essentra has a strong balance sheet and liquidity levels of c£285m \n \n \n · \n Strategic initiatives continue to be implemented, helping to underpin the profitability potential of the Company \n \n \n \n Essentra plc ('the Company') today provides a pre-close trading update for the year ending 31 December 2020.\n \n \n \n \n \n Trading performance\n \n \n \n \n \n Since the onset of COVID-19, as the year has progressed, Group revenue on a LFL basis has shown steady improvement - going from -9.8% in Q2, to -6.7% in Q3 and finally improving to -1.1% in Q4 (which equates to -3.9% for H2). As a result, the Company is expecting to deliver a total FY20 operating profit number in line with the consensus of analysts' forecasts1.\n \n \n \n \n \n The Components division\n \n is recovering well. Q2 revenue was -20% LFL on the prior year period, improving to -13.9% in Q3 and -0.4% in Q4. Overall for H2, Components was 7.2% down on a LFL basis. Recent order book trends are demonstrating continued steady progress across all regions. Our enhanced online offer continues to differentiate us, whilst our new state-of-the-art German warehouse has recently become operational, providing an enhanced logistical platform from which to drive the European Components business. The divis...