ESSENTRA PLC

("Essentra", the "Group" or the "Company")

RESULTS FOR THE HALF YEAR ENDED 30 JUNE 2025

First half performance in line with expectations

FY25 expectations unchanged

Results at a glance

	H1 2025 £m	H1 2024 £m	Change Constant FX	Change Actual      FX
Revenue	152.4	159.7	(1.1)%	(4.6)%
Adjusted1 operating profit	16.5	21.8	(19.8)%	(24.3)%
Adjusted1 operating margin	10.8%	13.7%	(250)bps	(290)bps
Adjusted1 pre-tax profit	12.5	17.7	(25.0)%	(29.4)%
Adjusted1 basic earnings per share	3.4p	4.6p	(21.8)%	(26.1)%
Adjusted1 net cash flow from operating activities	17.4	17.5	3.9%	(0.6)%
Reported operating profit	5.3	8.1	(24.5)%	(34.6)%
Reported pre-tax profit	1.3	4.0	(58.3)%	(67.5)%
Reported net profit	0.3	2.5	(82.6)%	(88.0)%
Reported basic earnings per share	0.1p	0.9p	-	(88.9)%
Dividend per share	0.8p	1.25p	-	(36.0)%
Reported net cash inflow from continuing operating activities2	10.8	14.5	-	(25.5)%
Free cash flow2	11.9	12.5	-	(4.8)%
Net debt excluding lease liabilities4	68.7	59.7	-	-
Net debt excluding lease liabilities to adjusted EBITDA3,4	1.5x	1.1x	-	-

Numbers reported on a continuing operations basis

Financial performance

·      H1 2025 performance in line with the Board's expectations

·      Revenue of £152.4m (H1 2024: £159.7m), 1.1% lower on a constant currency basis

·    Adjusted¹ operating profit £16.5m (H1 2024: £21.8m), representing adjusted¹ operating margin of 10.8% (H1 2024: 13.7%)

·      Excellent adjusted¹ cash conversion of 106% (H1 2024: 80%) with an adjusted¹ net cash inflow from operating activities of £17.4m (H1 2024: £17.5m)

·     Net debt of £68.7m excluding IFRS16 lease liabilities (31 December 2024 £68.2m), representing leverage of 1.5x adjusted EBITDA³

·     Interim dividend of 0.8p per share, consistent with the Company's policy for cover in the order of three times adjusted earnings

 

Market and operational performance

·      Group like-for-like ("LFL") sequential revenue improvement in H1 2025 compared to the H2 2024 exit rate, with further momentum from Q1 2025 into Q2

·      Increased new order intake across all regions year-on-year

·      EMEA LFL revenue reduced 4.5% year-on-year, with the rate of contraction easing through the second quarter, in line with external indicators

·     Americas returned to growth in the period, reporting +0.7% LFL revenue growth year-on-year, benefitting from improved pricing performance, stabilisation within the wider customer industrial environment and growth in distributor end-channels

·     APAC delivered +9.5% LFL revenue growth year-on-year, supported by the China export market to the rest of Asia and continues to reflect the growth of access hardware sales and new customer projects offsetting a mixed domestic China market

·    Close control of overhead costs across the business while balancing re-investment with regional volume demand

 

Outlook

·     Board expectations for FY 2025 adjusted¹ operating profit remain unchanged

·     Margins are expected to improve through H2 as a result of operational and commercial initiatives that have been actioned in the first half, including a review of our footprint and enhanced pricing initiatives. These actions, alongside volumes remaining consistent with Q2 levels, will support margin accretion and modest revenue growth in the second half of the year

·   The acquisition pipeline remains strong and management is actively reviewing certain bolt-on acquisition opportunities, in accordance with the Group's acquisition strategy

·    Management actions and initiatives across the organisation to drive growth and operational excellence, well-positioning the business for when markets return

 

 

Commenting on the Half Year results, Scott Fawcett, Chief Executive, said:

"The Group delivered a first half financial performance in line with Board expectations, whilst navigating continued external global challenges and mixed macroeconomic conditions. We have been particularly encouraged by the resilience and performance in Americas and APAC through the first half of 2025, with both regions returning to year-on-year revenue growth.

H1 2025 revenue performance improved sequentially from the exit rate in H2 2024, with further growth of 1.1% in Q2 2025 compared to Q1. It is also encouraging that there are signs of momentum in new order intake, with all three regions reporting an increase year-on-year.

The Group continues to demonstrate excellent cash control, with conversion in the period of 106%, underpinning balance sheet strength and flexibility, and supporting delivery of our growth strategy both via organic investment and providing optionality for bolt-on acquisition opportunities.

The Group continues to focus on delivering a "hassle-free" proposition to our customers, and remains focused on the elements that are within our control. Management have actioned a number of operational and commercial initiatives in the first half, including a review of our footprint and pricing initiatives. These actions, alongside volumes remaining consistent with Q2 levels, will support margin accretion and modest revenue growth in the second half of the year. Our full year expectations are unchanged, and we remain committed to the successful delivery of our medium-term targets."

​

^{1 On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items. Further details can be found in Note 3 of the Condensed Consolidated Interim Financial Statements.}

^{2 A reconciliation of free cash flow and net cash inflow from continuing operating activities is set out in the Financial Review section.}

^{3 Adjusted EBITDA is defined as operating profit before depreciation (and other amounts written off property, plant and equipment), share option expense, amortisation of acquired intangible assets and adjusting items. Net debt to adjusted EBITDA including lease liabilities is 1.8x (H1 2024: 1.4x).}

^{4 Presented on a last twelve months basis excluding lease liabilities. £95.5m (H1 2024: £89.1m) when including lease liabilities.}

 

Enquiries

Essentra plc Rowan Baker, Chief Financial Officer Claire Goodman, Head of Investor Relations Emma Reid, Company Secretary Tel: +44 (0)1908 359100

FTI Consulting Richard Mountain Ariadna Peretz [email protected] Tel: +44 (0)20 3727 1340

 

Presentation

A copy of these results is available on www.essentraplc.com

There will be a presentation to analysts and investors starting at 08:30am (UK time, registration from 08:00am) on Tuesday 29 July 2025 at the offices of FTI Consulting (200 Aldersgate, Aldersgate Street, London EC1A 4HD).

There are two options for participating in the event:

1.   To attend in person, please e-mail your details to [email protected]

2.   To join the live webcast of the presentation, please pre-register at http://www.essentraplc.com/en/investors/company-information/webcasts-and-presentations

A recording of the webcast will be made available on the Company's website later in the day. 

Notes to Editors

About Essentra plc

Essentra plc is a leading global provider of essential components and solutions, focusing on the manufacture and distribution of plastic injection moulded, vinyl dip moulded and metal items.

Headquartered in the United Kingdom, Essentra's global network extends to 28 countries worldwide and includes c.3,000 employees, 14 manufacturing facilities, 26 distribution centres and 37 sales & service centres serving c.64,000 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, medical and renewable energy. For further information, please visit www.essentraplc.com

LEI: 5493007MOZNA03BVNE96

Cautionary forward-looking statement

These results contain forward-looking statements based on current expectations and assumptions. Various known and unknown risks, uncertainties and other factors may cause actual results to differ from future results or developments expressed or implied from the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. The Company accepts no obligation to revise or update these forward-looking statements publicly or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.

 

 

First half performance

Consistent with the AGM trading update shared in May 2025, market recovery continues to vary by region. EMEA LFL revenue reduced by 4.5% compared to the prior year, with the rate of contraction slowing through H1 2025. The Americas reported a return to revenue growth with +0.7% LFL improvement in the period, continuing the momentum seen within the wider customer environment through the second half of 2024, with growth in distributor end-channels as volumes continue to normalise, and improved pricing performance. APAC maintained its positive growth trajectory with +9.5% LFL revenue growth in the period, remaining resilient despite mixed domestic demand in China, with growth continuing to be supported by the export market to the rest of the APAC region.

H1 2025 revenue improved sequentially from the exit rate in H2 2024, with further growth of 1.1% in Q2 2025 compared to Q1 2025 on a constant currency basis. There are encouraging signs of momentum in new order intake, with all three regions reporting an increase year-on-year.

Gross margins in H1 2025 softened to 43.6% (H1 2024: 46.4%), led by volume, geographic sales mix and Turkish inflation, with margins improving in Q2 2025 to 45.7%. Pricing and operational initiatives have been actioned through H1, and the Group anticipates this to benefit margins in H2. Cost control remains disciplined and is under regular review, in line with volumes.

Group strategy and medium-term targets

Whilst continuing to navigate external global challenges and mixed macroeconomic conditions, Essentra is making progress in a number of strategic areas, that are outlined below, to support the achievement of its medium-term targets.

The medium-term ambition of the business is supported by:

·     A clear strategy to drive market share gains, underpinned by our leading market position in a highly fragmented market

·      Margin expansion from scale, operating efficiencies and pricing initiatives

·    A highly cash generative business model with continued focus on working capital management and a strong balance sheet

·      A clear capital framework to support growth and drive further shareholder returns.

 

Essentra continues to invest selectively in growth initiatives that are expected to drive market share gains, supported by its leading position in a highly fragmented market. Key focus areas include enhancing technology, customer experience, product offering and expert advice, all of which will enable further progress in driving cross-selling and increasing market share, whilst also developing its people and entering new markets and geographies.

A number of strategic opportunities and initiatives are being pursued, including growing the access hardware business in each region by targeting growth markets such as energy transition and digital infrastructure. Future growth and efficiencies continue to be supported by embedding enabling technology as seen through the deployment of the ERP platform in addition to deploying a new connected planning platform to enhance our service proposition in each region.

One of Essentra's medium-term targets remains the delivery of an adjusted operating margin of c.18% by 2030, supported by the organic and total revenue CAGR targets. While adjusted operating margin has decreased in H1 from 13.7% in the prior year to 10.8%, mainly driven by volume, geographic sales mix and Turkish inflation, the Group's disciplined approach to cost control and procurement activities to support margins remains strong. Throughout H1, the Group has continued to take operational and commercial actions that are expected to lead to improvements in volume. At the same time, the business has retained the capacity to grow and taken actions to manage costs and drive efficiencies to ensure it remains well-positioned to take advantage of market recoveries when they occur.

Essentra continues to have an active M&A pipeline and is actively reviewing certain bolt-on acquisition targets. Successful delivery of revenue and cost synergies within a disciplined acquisitions framework is a key element of the Group's strategy. The acquisitions of BMP TAPPI in 2023 and Wixroyd in 2022 continue to demonstrate the Company's ability to successfully identify and execute on opportunities to enhance earnings and deliver revenue and cost synergies, predominantly through cross-selling to existing customers.

Essentra is fundamentally well-positioned, with a unique business model in a highly fragmented market combining manufacturing and distribution, enabling breadth and depth of product offering alongside a "hassle-free" customer offering. The business is diversified, with attractive exposure to structural growth markets, and generates high and stable gross margins through the cycle, with the scope to expand through scale and operational effectiveness.

 

Tariffs

The Group retains its view that it is well-positioned with established supply chains and operational capacity to navigate the increased uncertainty within global trading conditions. Essentra has a global manufacturing and distribution footprint with 14 manufacturing sites worldwide. In all three regions, the significant majority of products that are made in region, are sold in region and therefore, the direct impact of tariffs is limited. Through the first half, the Group worked closely with its customers and supply chain, and has started to pass through the incremental costs associated with tariff changes. Additional actions, including the redirection of the flow of manufactured goods from lower tariff jurisdictions, are also being considered to fully mitigate any direct impact should implementation be required. The Americas region specifically continues to optimise its competitive position resulting from scale and ability to serve customers in-region which is leading to increased commercial opportunities, some of which have materialised in Q2.

 

Ordinary dividend

The Board has declared a 2025 interim dividend of 0.8 pence per share. The interim dividend is in line with the Group's dividend policy maintaining full year dividend cover in the order of three times adjusted earnings.

The interim dividend will be paid on 24 October 2025 to shareholders on the share register at the record date, being 19 September 2025. The ex-dividend date will be 18 September 2025. Essentra operates a Dividend Re-Investment Programme ("DRIP"), details of which are available from the Company's Registrars, Computershare Investor Services PLC. The final date for DRIP elections will be 3 October 2025.

 

 

Share buyback programme

The Company's share buyback programme remains in progress. The pace of deployment is dependent on the Group's capital allocation opportunities and priorities, and in particular the timing and access to earnings accretive acquisitions.

Since the launch of the programme to 30 June 2025, a total of 17,158,227 shares have been purchased, at an average purchase price of 173.2 pence per share, totalling £29.8m. Of the shares purchased, 4,141,321 were transferred into treasury, and 13,016,906 have subsequently been cancelled, which represented 4.3% of the issued share capital of the Company (excluding treasury shares) when the programme commenced.

 

​

Outlook

The Group traded as anticipated in H1 2025 and performance is in line with Board expectations. The Board's FY25 expectations remain unchanged.

The Group remains resilient and has seen a quarterly sequential improvement in revenue during 2025 H1, and also compared to the second half of 2024. Encouragingly, all three regions are reporting an increase in new order intake year-on-year. Looking ahead to H2, margins are expected to improve as a result of operational and commercial initiatives actioned in H1, including a review of our footprint and pricing initiatives. These actions, alongside volumes remaining consistent with Q2 levels, will support margin accretion and modest revenue growth in the second half of the year.

The business continues to maintain a balanced approach to cost control, whilst also investing appropriately in value-enhancing growth initiatives and assessing bolt-on growth opportunities that will support long-term value creation. The Board remains confident in the Group's ability to achieve its medium-term strategic plan and financial targets, underpinned by the strength of Essentra's business model and supported by a number of ongoing management actions and initiatives across the organisation to drive growth and operational excellence.

 

EMEA

	H1 2025 £m	% growth Constant FX	% growth Actual FX
Revenue	82.0	(4.5)	(8.3)
Gross profit	39.9	(12.6)	(15.5)
Gross margin	48.7%	(450)bps	(410)bps

Revenue for the half year was £82.0m, a 4.5% reduction on a constant currency basis, compared to the prior year, with the rate of contraction easing since H2 2024. Q1 2025 saw constant currency revenue 4.7% lower, easing to a reduction of 3.4% in Q2 2025, compared to the prior year period on a trading day adjusted basis. The region is performing against a strong H1 2024 comparative, which is set to ease through H2. Trends in the current year are improving, with the region reporting c.2% higher sales per trading day in Q2 2025 compared to Q1 2025 and 1.4% improvement in new order intake compared to the prior year which will support momentum heading into the second half.

The business in Turkey has sustained stronger momentum relative to Core Europe in H1 and has benefitted from the growth of faster growing end-markets including energy transformation and digital infrastructure. Following the challenges associated with the hyperinflationary environment, gross margins in Turkey remained stable compared to H2 2024 and are improving through Q2. Q1 saw high labour cost inflation which was not fully offset by pricing, but this position has improved during Q2 as a result of local currency devaluation and additional price increases. The geographic mix of Turkey revenue growth in comparison to Core Europe has partially contributed to the dilution in EMEA and overall Group gross margin through H1.

Within Core Europe (excluding Turkey), consumer products and automotive end-markets continue to be supressed, whilst industry sectors such as general industrial equipment remain strong. By product category, sales of product launches from the BMP TAPPI and Wixroyd product ranges continue to accelerate, demonstrating cross-selling opportunities.

The planned ERP deployments in H1 2025 are on track, with four additional sites deployed. The ERP deployment in West Europe in December 2024, including the distribution hub in Germany, combined with increased new order intake, has generated an elevated level of backlog in the first half, requiring a temporary increase in labour and freight cost to normalise service levels. This resulted in temporary gross margin dilution, which is expected to unwind through the second half.

As highlighted above, EMEA gross margins of 48.7% (H1 2024: 52.8%) were impacted by reduced volumes, geographic sales mix, Turkish inflation and temporary investment to normalise service levels during the ongoing ERP implementation. Second half volumes remaining consistent with levels seen in Q2, alongside enhanced pricing initiatives will support margin accretion and modest revenue growth through H2.

 

 

AMERICAS

	H1 2025 £m	% growth Constant FX	% growth Actual FX
Revenue	50.0	+0.7	(2.5)
Gross profit	19.4	+2.3	(0.5)
Gross margin	38.8%	+60bps	+80bps

H1 revenue was £50.0m with growth of 0.7% on a constant currency basis compared to the prior year, benefitting from improved pricing performance. The region continued to see stabilisation within the wider customer industrial environment, which is consistent with the trends in H2 2024, and growth in distributor end-channels as volumes continued to normalise. Americas saw first quarter constant currency revenue growth of 3.0% and flat sales in Q2 compared to the prior year, on a trading day adjusted basis.

The sequential improvements in revenue through 2024, which continued into 2025, are led by an increasing opportunity pipeline and strong levels of customer activity, particularly within the telecoms and automation end-markets. New order intake is c.3% ahead of H1 2024. Pricing actions have started to deliver benefit in Q2, with a targeted approach to sales price increases taken in response to the tariff environment and cost inflation. A further tranche of price increases will deliver further benefits through the second half. The region has a strong local manufacturing and distribution footprint, and is therefore well-positioned to win new business within a volatile tariff environment where customers are seeking to secure supply. A number of new opportunities and project wins have crystalised as customers revaluate their supply chains, demonstrating Essentra's competitive advantage.

As part of its medium-term strategy, the Group continues to review and enhance its commercial and operational footprint. During H1, the decision was taken to close the region's manufacturing site in Costa Rica, following a thorough review of the regional operating cost base and the service needs of its customers. As previously announced, in 2023 the region opened a substantial new manufacturing and distribution hub in Monterrey, Mexico, both to increase production capacity for existing customers in North America but also to grow its customer base in Mexico and Latin America. The facility is now strongly positioned to support both current and future demand within the region. Through H2, operations in Costa Rica will transfer to Mexico and the Costa Rica site is anticipated to close by the end of 2025.

The region delivered H1 gross margin of 38.8% (H1 2024: 38.0%), a 60bps improvement on a constant currency basis. Pricing and a proactive approach to cost management have been sustained as volumes show signs of normalising. Further margin accretion is anticipated through H2, supported by operational leverage, footprint efficiencies and realising the full benefit of pricing actions taken in H1

 

APAC

	H1 2025 £m	% growth Constant FX	% growth Actual FX
Revenue	20.4	+9.5	+7.4
Gross profit	7.2	+0.1	(2.7)
Gross margin	35.3%	(330)bps	(360)bps

The APAC region delivered revenue of £20.4m in H1 2025, an improvement of 9.5% on a constant currency basis compared to the prior year. On a trading day adjusted basis, the first quarter performance was 7.7% ahead of the prior year with growth in Q2 of 4.7%.

Aligned with previous trading updates, performance continues to be driven by the market dynamics in China (c.70% of APAC revenue; c.8% of Group revenue), which has seen mixed domestic market demand. Growth year-on-year within the region continues to be led by the export market to the rest of the APAC region, supported by a pipeline of commercial opportunities, including the access hardware product range and higher growth end-markets such as renewable energy and telecoms.

Investments in commercial activities in South East Asia have continued through H1, including the launch of a new Vietnamese website and enhancement of our service proposition in Thailand, improving local service with local stock holding in our Rayong facility.

Within the period, the Group reviewed its operating model in Japan and the go to market approach to develop greater commercial opportunity and future market share. The existing facility in Ningbo, China is now servicing a select number of distributors in Japan and providing greater level of reach into the Japan market than previously. Direct operations in Japan closed in Q2 which will drive greater cost efficiencies through the second half.

The Group is pleased with the continued significant progress in sustainability to date in 2025 and continues to make good progress in decarbonising its global footprint, focusing on renewable energy tariffs and energy saving initiatives across the manufacturing footprint. Essentra is now on track to hit its 2030 SBTi target of 50% reduction in its scope 1 and 2 emissions by end of 2025, which is five years earlier than planned.

Material sourcing is key to the Essentra's sustainability strategy. In H1, the percentage of materials from sustainable sources across its manufactured polymer ranges increased to 20% in H1, from 18% at the end of 2024.

The sustainability Centre of Excellence is continuing to further drive the development of new and more sustainable products; Essentra continues to innovate and develop relationships with its customers to identify new commercial opportunities. In Q2, after a series of successful trials, Essentra launched its first 100% post-consumer recycled content range, including c.1,000 products from the general protection product range.

In addition, the business is delighted to have been recognised by the Financial Times as a leader in reducing greenhouse gas emissions intensity, featuring in the 2025 Europe Climate Leaders List and has been included in CDP's Supplier Engagement Assessment A-list for the 2024 disclosure cycle.

 

 

Constant currency, like-for-like, and adjusted measures are provided to reflect the underlying financial performance of Essentra. For further details on the performance metrics used by Essentra, please refer to pages 14-15 and 19-20 of the Essentra plc Annual Report 2024.

Constant foreign exchange rates. The constant exchange rate basis adjusts the comparative to exclude the effect of currency movements, to show the underlying performance of the Company. The principal exchange rates for Essentra were:

	-------- Average --------		-------- Closing --------
	H1 2025	H1 2024	H1 2025	H1 2024
£:US$	1.30	1.27	1.37	1.26
£:€	1.19	1.17	1.17	1.18

 

Re-translating at H1 2025 average exchange rates decreases the prior year revenue by £5.6m, decreases prior year gross profit by £2.2m and decreases prior year operating profit by £1.3m.

Like-for-like ("LFL"). The term "like-for-like" describes the performance of the continuing business on a comparable basis, adjusting for the impact of acquisitions, disposals and foreign exchange.

Discontinued operations. In H1 2025 no amounts were recognised as discontinued operations (H1 2024: £1.2m post-tax loss), as reported in the Condensed Consolidated Interim Income Statement.

Adjusted basis. The term "adjusted" excludes the impact of amortisation of acquired intangible assets and adjusting items, less any associated tax impact. In H1 2025, amortisation of acquired intangible assets was £5.5m (H1 2024: £5.9m), and there was a pre-tax charge for adjusting items of £5.7m (H1 2024: £7.8m). In line with previous guidance, current year adjusting items include £4.9m major "SaaS" development expenditure; and £0.8m relating to legacy pension scheme costs. Further details on adjusting items are shown in Note 3 to the Condensed Consolidated Interim Financial Statements.

 

Adjusted operating cash flow. Adjusted operating cash flow is net cash flow from operating activities, excluding income tax paid, contributions to legacy pension schemes and cash flows relating to adjusting items, less net capital expenditure. It is a measure of the underlying cash generation of the business. Net capital expenditure is included in this measure as Management regard investment in operational assets (tangible and intangible) as integral to the underlying cash generation capability of the Company.

Net finance expense. Net finance expense of £4.0m compared to £4.1m in the prior year period.

Tax. The effective tax rate ("ETR") for H1 2025 on adjusted profit before tax (before adjusting items and amortisation of acquired intangible assets) is 22.4% (H1 2024: 25.7%). The reduction in H1 2025 ETR is due to the release of a provision previously held in Germany, reducing the tax rate by 420bps. The medium-term guidance remains closely aligned to the tax rates applied in the majority of jurisdictions in which the Group operates and is 26-28%.

Adjusted operating cash flow from continuing operations. Adjusted operating cash flow from continuing operations of £17.4m equating to an operating cash conversion of 105.5% at the half year (H1 2024: £17.5m and 80.3%). Free cash flow was £11.9m (H1 2024: £12.5m).

	H1 2025	H1 2024
	£m	£m
Adjusted operating profit	16.5	21.8
Depreciation and amortisation of non-acquired intangible assets	5.8	6.0
Right-of-use asset depreciation	3.1	3.0
Share option expense / other movements	0.5	0.9
Change in working capital	(4.3)	(9.9)
Net capital expenditure	(4.2)	(4.3)
Adjusted operating cash flow from continuing operations	17.4	17.5
Tax	(1.0)	(1.1)
Cash outflow in respect of adjusting items1	(9.8)	(6.2)
Add back: net capital expenditure	4.2	4.3
Net cash inflow from continuing operating activities2	10.8	14.5
Adjusted operating cash flow from continuing operations	17.4	17.5
Tax	(1.0)	(1.1)
Net interest paid	(4.5)	(3.9)
Free cash flow	11.9	12.5

^{1 Pension contribution of £1.0m in H1 2025 for legacy pension schemes has been included within cash outflow in respect of adjusting items (H1 2024: £0.5m).}

^{2 Statutory cash flows from operating activities can be found in the Condensed Consolidated Interim Financial Statements.}

Net debt. Net debt at the end of the period was £68.7m compared to net debt of £68.2m at 31 December 2024 (excluding lease liabilities of £26.8m). The marginal increase in net debt in the period was supported by excellent operational cash flow generation in the first six months of 2025 offset by cash outflow in respect of adjusting items.

Whilst the Group's net debt position has remained stable in the period compared to the FY25 results, on a 12 month rolling adjusted EBITDA basis, the leverage position has increased to 1.5x remaining in line with the medium-term guidance target. Guidance for the full year, and in the medium term remains unchanged <1.5x, supported by strong operating cash conversion across the Group.

	H1 2025
	£m
Net debt as at 1 January 2025	68.2
Free cash flow	(11.9)
Cash outflow in respect of adjusting items	9.8
Share buyback	0.9
Principal Lease payments	2.9
Amortisation of arrangement facility fees paid	0.1
Movement in loan hedging derivatives	5.4
Foreign exchange	(6.7)
Net debt as at 30 June 2025	68.7

 

Banking and refinancing facilities. One of the main sources of funding for the Company is a Revolving Credit Facility ("RCF") provided by a group of five banks totalling £200.0m. As at 30 June 2025, £37.2m was drawn (30 June 2024: £32.6m drawn).

In June 2025, the Company exercised a one-year extension to the term of its existing RCF to July 2030 with all five banks, while maintaining the existing covenants, terms and size. The extension provides the Company with greater stability as well as reducing the need for frequent refinancing activities, providing greater liquidity to support our operational and strategic initiatives.

The Company retains $102.5m of long dated US Private Placement debt ("USPP") at an average coupon rate of 3.8%.

Type	Amount	Interest Rate	Maturity
RCF	£200.00m	Floating	July 2030
USPP	$32.80m	3.62%	July 2028
USPP	$34.85m	3.90%	July 2031
USPP	$34.85m	4.00%	July 2033

 

Treasury policy and controls. Essentra has a centralised treasury function to manage funding, liquidity and exposure to interest rate and foreign exchange risk. Treasury policies are approved by the Board and cover the nature of the exposure to be hedged, the types of derivatives that may be employed and the criteria for investing and borrowing cash. The Company intends to use derivatives to manage foreign currency and interest rate risk arising from underlying business activities. Whilst some transactions may be of a more speculative nature, they are in place with a view to manage exchange rate risk only. Underlying policy assumptions and activities are reviewed by the Treasury Committee. Controls over exposure changes and transaction authenticity are in place, and dealings are restricted to those banks with the relevant combination of geographical presence, expertise and suitable credit rating.

Foreign exchange risk. The majority of Essentra's net assets are in currencies other than sterling. The Company's normal policy is to reduce the translation exposure and the resulting impact on shareholders' funds through measures such as borrowing in those currencies in which the Group has significant net assets. The majority of Essentra's transactions are carried out in the functional currencies of its operations, and therefore transaction exposure is limited. However, where such exposure does occur, Essentra uses derivatives to hedge its exposure to movements in the exchange rates on its highly probable forecast foreign currency sales and purchases over a period of up to 18 months.

 

The Company has established and maintains an effective risk management and internal control framework designed to manage the delivery of the Company's strategic objectives.

The objectives of this framework are to:

·      identify the Company's material risks and appropriate mitigating actions

·      formulate the risk appetite and ensure that our business profile and plans are consistent with it

·      develop plans to bring any exposures that are outside appetite in line with the agreed appetite

·      ensure that growth plans are properly supported by an effective risk management framework

·      help management teams to improve the control and co-ordination of risk-taking across the Company.

The risk framework, along with the Company's Principal and Emerging risks, is described in detail in the "Risk Management Report" section of the Company's Annual Report and Accounts for the year ended 31 December 2024, on the Company website: www.essentraplc.com

 

During the period, the Board has considered the Principal and Emerging Risks, as disclosed on pages 54-57 of our 2024 Annual Reports and Accounts, in the context of the objectives noted above and across four risk categories: strategic risks, external risks, operational risks and disruptive risks.

The Board has also considered the global risks presented by volatile trade policies, in particular tariffs. The management team have implemented ongoing measures to identify and assess the full impacts of tariffs and mitigations. Mitigation activities include customer pricing actions, adjustments to our intercompany transfer pricing policies, and the assessment of options to redirect the flow of manufactured goods around the Essentra network.

Although we continue to see significant volatility in global trade policies and the imposition of tariffs, there have been no material changes to the Company's Principal and Emerging Risks since the publication of the 2024 Annual Report and Accounts. The Company remains confident that the mitigations already in place are sufficient to manage these risks within the previously agreed risk appetite. The Principal and Emerging Risks are summarised below:

 

Strategic risks

·      Environmental - evolving customer and regulatory sentiment towards plastics and sustainability, and the impact of our operations on the environment

·      Digital transformation - risks associated with delivery of the D365 platform, development of websites and eCommerce platforms, and failure to manage the Company's data

·      Leadership, talent and capability - our ability to attract, retain, develop and motivate the talent we need to be successful

·      M&A execution and integration - market conditions and capital considerations impact our ability to successfully execute transactions

·      Delivery of key growth initiatives - central and regional strategic initiatives fail to support growth in market share in existing markets, and expansion in high-growth end-markets.

External risks

·      Legal and regulatory - the impact of current and emerging regulations on our ability to operate efficiently, and comply with applicable requirements, across a broad range of jurisdictions

·      Cyber events - the impact of a cyber security or data breach

·      Macroeconomic environment - risks from concurrent downturns and insufficient mitigating actions in the broad range of global and geographic markets in which we operate

Operational risks

·      Health and safety performance - the impact on our people and our reputation, from a significant event such as workplace accident, war, fire, flood, or severe weather

Disruptive risks

·      Operational and supply chain disruption - impact of disruptive events, including natural disasters, geopolitical events such as volatile trade policies and tariffs, pandemics, material shortages, price inflation and single points of failure in our own operations

Emerging risks

·      Plastic free world - movement towards the elimination of plastic product in its entirety, supported by government sentiment and legislation

·      Exposure to low-growth economies - misalignment between our existing footprint and higher-growth economies as countries emerge from the current downturn

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Condensed consolidated income statement
			Six months	Six months		Year
			ended	ended		ended
		Note	30 Jun 2025	30 Jun 2024		31 Dec 2024
			£m	£m		£m
	Revenue	2	152.4	159.7		302.4
	Gross Profit	2	66.5	74.1		137.1
	Operating profit	2	5.3	8.1		14.6
	Finance income		5.8	1.4		3.6
	Finance expense		(9.8)	(5.5)		(12.5)
	Profit before tax		1.3	4.0		5.7
	Income tax (charge)/credit		(1.0)	(1.5)		5.9
	Profit for the period from continuing operations		0.3	2.5		11.6
	Loss from discontinued operations		-	(1.2)		(1.0)
	Profit for the period		0.3	1.3		10.6
	Attributable to:
	Equity holders of Essentra plc		0.3	1.3		10.6
	Profit for the period		0.3	1.3		10.6
	Earnings per share attributable to equity holders of Essentra plc:
	Basic	5	0.1p	0.5p		3.7p
	Diluted	5	0.1p	0.5p		3.7p
	Earnings per share from continuing operations attributable to equity holders of Essentra plc:		​			​​​​​​				​​
	Basic	5	0.1p	0.9p		4.0p
	Diluted	5	0.1p	0.9p		4.0p
	Adjusted profit measure: continuing operations
	Operating profit	2	5.3	8.1		14.6
	Amortisation of acquired intangible assets		5.5	5.9		11.5
	Adjusting items	3	5.7	7.8		14.0
	Adjusting operating profit1		16.5	21.8		40.1
Notes:
1	See note 3 for further details of the adjusted profit measure.

 

Condensed consolidated statement of comprehensive income
										Six months					Six months			Year
										ended					ended			ended
					Note					30 Jun 2025					30 Jun 2024			31 Dec 2024
											£m			£m				£m
			Profit for the period								0.3				1.3				10.6
			Other comprehensive income/(expense):
			Items that will not be reclassified to profit or loss in subsequent periods:
			Remeasurement of defined benefit pension schemes								4.9				7.5				8.0
			Deferred tax charge on remeasurement of defined benefit pension schemes								(1.2)				(1.9)				(2.1)
											3.7				5.6				5.9
			Items that may be reclassified subsequently to profit or loss in subsequent periods:
			Effective portion of changes in fair value of cash flow hedges:
			Net change in fair value of cash flow hedges transferred to the income statement								2.2				(0.2)				(0.5)
			Effective portion of changes in fair value of cash flow hedges								(2.1)				0.2				0.7
			Foreign exchange translation differences:
			Attributable to equity holders of Essentra plc:
			Arising on translation of foreign operations								(13.5)				(5.1)				(7.1)
			Arising on effective net investment hedges		14						2.1				0.2				0.1
			Net income tax credit/(expense)								1.5				(0.6)				(0.1)
											(9.8)				(5.5)				(6.9)
			Total other comprehensive (expense)/credit for the period, net of tax								(6.1)				0.1				(1.0)
			Total comprehensive (expense)/credit for the period								(5.8)				1.4				9.6
			Attributable to:
			Equity holders of Essentra plc								(5.8)				1.4				9.6
			Total comprehensive (expense)/credit for the period								(5.8)				1.4				9.6
			Attributable to:
			Continuing operations								(5.8)				2.6				10.6
			Discontinued operations								-				(1.2)				(1.0)
			Total comprehensive (expense)/credit for the period								(5.8)				1.4				9.6
Condensed consolidated balance sheet
						Note	30 Jun 2025									30 Jun 2024					31 Dec 2024
							£m									£m					£m
		Assets
		Property, plant and equipment				6	60.5					67.2						68.6
		Lease right-of-use asset				7	22.4					24.9						24.2
		Investment properties					-					3.3						-
		Intangible assets				8	191.8					210.9						205.0
		Long-term receivables					0.5					9.8						0.5
		Derivative assets				14	0.4					4.6						5.8
		Deferred tax assets					13.7					10.6						14.0
		Retirement benefit assets				9	13.8					11.1						10.6
		Total non-current assets					303.1					342.4						328.7
		Inventories					66.2					66.6						67.9
		Income tax receivable					2.0					1.0						2.4
		Trade and other receivables					67.0					73.3						56.2
		Derivative assets				14	0.4					-						-
		Cash and cash equivalents				10	41.3					49.3						33.7
		Total current assets					176.9					190.2						160.2
		Assets held for sale				11	10.7					-						5.1
		Total assets					490.7					532.6						494.0
		Equity
		Issued share capital				13	72.4					72.9						72.6
		Capital redemption reserve				13	3.3					2.8						3.1
		Other reserve					(132.8)					(132.8)						(132.8)
		Cash flow hedging reserve					0.1					(0.2)						-
		Translation reserve					(87.5)					(76.0)						(77.6)
		Retained earnings					409.7					408.9						405.5
		Attributable to equity holders of Essentra plc					265.2					275.6						270.8
		Total equity					265.2					275.6						270.8
		Liabilities
		Interest bearing loans and borrowings				10	110.4					113.6						106.7
		Lease liabilities				10	19.2					22.2						21.2
		Retirement benefit obligations				9	9.8					13.7						12.6
		Deferred tax liabilities					10.6					10.8						10.2
		Total non-current liabilities					150.0					160.3						150.7
		Interest bearing loans and borrowings				10	-					-						1.0
		Lease liabilities				10	7.6					7.2						7.7
		Income tax payable					6.8					14.0						7.6
		Trade and other payables					60.5					66.0						51.7
		Other financial liabilities				14	-					3.0						0.8
		Provisions					0.6					6.5						3.7
		Total current liabilities					75.5					96.7						72.5
		Total liabilities					225.5					257.0						223.2
		Total equity and liabilities					490.7					532.6						494.0