Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions with three global divisions: Components, Packaging and Filters. Their international network extends to 33 countries and includes c.50 principal manufacturing facilities, c.30 sales and distribution operations and 4 research & development centres.
In 2016, following a series of profit warnings and poor share price performance, the company announced that Paul Forman, formerly chief executive of Coats, would be taking on the CEO role.
What followed was not a slash and burn strategy but rather a review of the existing assets and a refocus on a smaller number of key business areas.
A year into his tenure, Paul asked h2glenfern to carry out an extensive investor perception study. Paul’s goal was to ensure that the key findings of the study helped shape both the strategy as well as the effective articulation of the investment story. It also highlighted a broad range of investor interests in the stock and a variety of different investment styles.
As the benefits of the strategy became increasingly evident, the share register started to evolve as the traditional recovery or value investors exited their holdings only to be replaced by a more growth-oriented shareholder base.
h2glenfern continue to advise the executive team by helping them to evolve their equity story as the business developed. This is an iterative process and not one that should be pushed to ensure that new investors are taken on the same journey as existing shareholders to optimise the alignment.
H2glenfern’s ability to engage directly with both the company and its shareholders was positively impacted by their execution of the investor perception study, which provided unrivalled insights into the most effective change messaging.