Strategic Reviews Progressing
The Board has commenced strategic reviews of both the
Trading performance
Overall, the Group has delivered a strong performance for the year and Q4 2021. Trading is in line with expectations. Thanks to the maintained strength of performance in Components and Filters, albeit against tougher comparatives and against a backdrop of continued global supply chain disruptions, LFL revenue grew 12.7% in Q4 2021 (+11.1% vs. Q4 2019). Order book trends remain strong across the Group and as a result, despite the continuous challenges of the pandemic, the Company is expecting to deliver a total FY 2021 operating profit in the range of analysts' forecasts2.
The Components division had another positive quarter. Q4 2021 LFL trading days adjusted revenue grew by c.18.5% compared to Q4 2020 despite a tougher comparative, and is c.14.7% ahead of trading days adjusted 2019 Q4 levels. This performance builds upon the trend of positive momentum delivered throughout the year, as demand remains strong in our end markets and our commercial initiatives support growth. We continue to manage global supply chain disruptions and price increases implemented in H2 have helped offset input cost inflation.
The Packaging division has continued to show improvement throughout the year, with Q4 LFL revenue growth of 1.1% (reported growth 2.1%). In comparison to 2019, Q4 shows a LFL decline of -1.9% (reported growth vs. Q4 2019 10.4%). Performance has been supported by the positive impact from the pricing actions taken in Q3 2021 as well as a pick-up of activity in healthcare markets. The labour availability and retention situation in the US is stabilising, and whilst global supply chain challenges are impacting the availability of raw materials, we maintain our guidance that the Q4 2021 margin will be slightly below 8%.
The Filters division has delivered a strong performance despite tougher comparatives, with LFL Q4 2021 revenue up 22.3% and is 20.5% ahead of Q4 2019 levels. The division continues to benefit from higher volumes from outsourcing contracts and a strong performance in
Commenting on today's results
'We have delivered a strong Q4 performance with all three businesses delivering growth and having encouraging order books as we start the year. We continue to monitor COVID-19 challenges and take actions to offset the impact of global supply chain challenges which should better position our market leading global businesses for growth in their respective markets.
The Board is making good progress with the strategic reviews of both the
remains committed to finding the right outcome for each of our three strong businesses to thrive independently and to maximise shareholder value in the relatively short term.'
(1) Excludes the impact of acquisitions, disposals and foreign exchange
(2) Analyst operating profit (adjusted to exclude intangible amortisation on acquired assets and exceptional operating items) forecasts for FY21 range from
Contact:
Chief Financial Officer
Lucy Yank
Group Communications Director
Group Investor Relations Manager
Tel: +44 (0)1908 359100
Tel: +44 (0)20 7353 4200
About
Headquartered in the
Essentra Components
Essentra Components is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items. Operating in 25 countries worldwide, 14 manufacturing facilities and 23 sales & distribution centres serve more than 82,000 customers with a rapid supply of low cost but essential products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics and construction.
The division also includes the Reid Supply business, which provides a wide range of branded hardware supplies to a broad base of industrial customers, largely located in the US Mid-West.
Essentra Filters
Essentra Filters is the only global independent cigarette filter supplier. Currently headquartered in
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