The ongoing slowdown in the Asian tobacco market has dealt another blow to Essentra’s investors after the manufacturer warned for a second time this year that falling cigarette filter sales would hit profits.

The FTSE 250 filter and packaging maker said its 2016 operating profits could slump by a fifth compared to last year due to delays within its filter product business, which has been hard hit by tax hikes in the Asian tobacco market.

Shares in the Milton Keynes-based company, previously known as Filtrona, plummeted more than 20pc to 398.17p after the company admitted its operating profit for the year could fall to between £137m and £142m, from £171.5m last year.

The latest profit warning follows a disastrous mid-year report in which the company downgraded its profit forecast to £155m and £165m and announced that chief executive Colin Day would depart early next year.

At the time Mr Day blamed the company’s woes on the struggle to integrate its healthcare packaging facilities and lower filter sales in India and China.