In its results for the half-year ended 30 June 2022, the Kidlington, Oxford-headquartered company reported revenue for continuing operations of £340.8m, up 18.4% from its restated H1 2021 figure of £287.9m. On a like-for-like constant currency basis, revenue was up by 14%.

Its adjusted pre-tax profit climbed to £23.4m, from a restated H1 2021 figure of £18.1m, while adjusted operating profit was up by 44% to £35.3m, from £24.6m at the same stage a year ago.

Components saw revenue growth of 18.6% (12.7% like-for-like) on a constant currency basis, with growth driven through price and volume, while Filters revenue grew by 15.4% like-for-like on a constant currency basis, underpinned by growth of outsourcing contract wins and an increase in China joint venture volumes.

Essentra chief executive Paul Forman said: “We have made significant progress on our journey to reposition Essentra as a leading manufacturer and distributor of components, with the announced sale of Packaging to MM Group.

“This transaction will further strengthen our balance sheet and give Components the flexibility to accelerate investment in growth opportunities.

“The strategic review of Filters is progressing well, and the board remains focused on maximising shareholder value. We will provide a further update towards the end of Q3 2022.”

He added: “The company has delivered a strong first half; the Components and Filters divisions have delivered double digit H1 growth, including margin expansion and we continue to see strength in our order book, providing encouragement as we move into the second half.

“Whilst we are mindful of the wider macroeconomic uncertainty, the group remains well positioned with organic and inorganic growth opportunities, strong order books and a robust balance sheet. We expect to deliver adjusted operating profit in line with the board’s expectations.”

Given the continuing group’s strong performance and aligned with its progressive dividend policy, the board has recommended an interim dividend of 2.3p per share, up 15% compared to H1 2021.

The board also said it intends to return a portion of proceeds from the sale of its Packaging division to shareholders after the conclusion of its strategic reviews.

Essentra’s share price has fallen by around 8% in the last five days, including by 1% today, and stood at 234.5p at the time of writing.