LONDON (ShareCast) - (Sharecast News) - Speciality chemicals firm Elementis traded higher early on Thursday as it unveiled a new strategic framework aimed at accelerating growth and returns following a "strong financial performance" in H1.
Elementis said revenues had dipped 1% on a constant currency basis to $308m in the six months ended 30 June, reflecting softer demand in coatings. However, adjusted operating profits climbed 7% to $65m, with margins improving to 21% from 20% a year earlier.

Personal care led the charge, delivering record margins of 34% on the back of product innovation and cost savings, including the closure of its Middletown plant, while coatings revenue fell 4% amid weaker volumes across all regions.

The FTSE 250-listed group, which completed the sale of its Talc business in May, booked a $100m discontinued loss but significantly reduced net debt by 36% to $125m. A $50m buyback programme, funded by the sale proceeds, was said to be progressing as planned.

Elementis also declared an interim dividend of 1.3 cents per share, up from 1.1 cents in FY24, and kept its FY profit expectations unchanged.

CEO Luc van Ravenstein said: "I am pleased to report that the business has continued to build positive operational momentum, delivering a strong first-half performance. Both profits and margins from continuing operations are up on the prior year. This performance underscores the resilience and quality of our business during a period of soft market demand."

As of 1035 BST, Elementis shares were up 6.59% at 171.40p.



Reporting by Iain Gilbert at Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE