Source: Sharecast
For the three months to the end of December 2024, the specialty chemicals company hailed continued revenue growth and double-digit profit growth across Coatings and Personal care compared with the same period a year earlier.
As a result, adjusted operating profit for the financial year 2024 is expected to be between $126m and $128m, ahead of market expectations of $121m to $125m, and above the prior year’s $104m.
The adjusted operating margin was above 17% for the year, up from 14.6% in 2023. Elementis said this "demonstrates good progress on the efficiency and growth programmes" that were introduced at the November 2023 capital markets day.
Net debt is expected to be below $160m at the end of the year, down from $202m a year earlier. This represents a leverage ratio of approximately 1.0x net debt to EBITDA, down from 1.5x at the start of the year.
Elementis said the strategic review of the Talc business, announced last August, is progressing and a further update will be provided in due course.
At 0810 GMT, the shares were up 5.6% at 155p.