FTSE 250 company says it expects profits to be around £137m
Companies: Essentra plc
FTSE 250 firm Essentra plc has warned investors that it expects year-end operating profit to be at the "bottom end" of guidance after its Health and Personal Care Packaging division suffered "significant" decline in revenue and profitability. Previous guidance had been £137-£142m.
Trading overall had been broadly consistent with its 21 November update, with its Component Solutions and Filtration Products businesses performing well. However, the Health & Personal Care Packaging business had endured continuing operational issues and as a result suffered a significant decline in both revenue and profitability during November and December.
The company says the unit will be receiving specific short-term focus and "remedial" action from the CEO Paul Forman, but that it doesn't currently expect a near-term improvement as the firm moves into 2017.
Shares in Essentra fell c.6% in early trading on Monday.