Updates and Ideas

Essentra - Components and healthcare packaging firm on cusp of dramatic turnaround

December 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Essentra, a maker of components such as caps and cable ties, was formed following its de-merger from FTSE-100 listed Bunzl in 2005 but its roots go back to the 1940s when Bunzl started manufacturing cigarette filters at Jarrow. In spite of the political hostility to tobacco companies, Essentra has fashioned a 50% share of third party filter manufacturing, helped by a move into specials (slims, flavoured, shapes, carbon coated) capturing growth in Asia while it’s also entered bio-degradable and non-combustible (heat not burn), which is meant to be less toxic.While this legacy business still makes around a quarter of profits, my main interest lies in its other two divisions, components and packaging. Components (56% profit) man ...

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Yellow Cake

Watches of Switzerland

Essentra (December 2023)

Essentra - New acquisition for just 5.3x EBITDA post synergies (November 2023)

Essentra - £5m reduction in costs (October 2023)

Essentra - Huge dividend growth expected from FY’24 (July 2023)

Essentra - Cluster buying by directors (May 2023)

Essentra (March 2023)

Essentra - Outperforms early in a new cycle (January 2023)

Essentra (December 2022)

Essentra - Announces sale of filters; special dividend planned (November 2022)

Essentra (October 2022)

Essentra - Disposal of Packaging division (August 2022)

Essentra (July 2022)

Essentra - Strong start to 2022 (May 2022)

Essentra - Trading update drives chart breakout (February 2022)

Essentra - Industrial components and healthcare packaging firm to double eps by FY’23 (January 2022)

Essentra (September 2015)

Essentra - Shares break through £10 (April 2015)

Essentra - Acquires Clondalkin for US$455m (December 2014)

Essentra - New strategy to be unveiled in November (October 2014)

Essentra - Further acquisitions expected (April 2014)

Essentra - £200m borrowing facility available for potential acquisitions (December 2013)

Essentra (September 2013)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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