Business
2018 Preliminary Results Announcement
2018 Preliminary Results Announcement.
About this update from Elementis Plc
[{"type":"text","content":"\n \nRNS Number : 8153R Elementis PLC 05 March 2019 \n\n \n \n5 March 2019\nELEMENTIS plc\nPRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018\nRobust 2018 performance and continued positive momentum against strategy\n· Revenue from continuing operations up 5% from $783m to $822m, driven by extra contribution from SummitReheis and Mondo. Underlying revenue progress in Personal Care, stable Coatings and declines in Chromium and Energy.\n· Adjusted operating profit increased 8% to $133m with improved profitability in Personal Care and Chromium. Group adjusted operating margin up 40bps to 16.1%. Statutory operating profit down 7% to $85m4.\n· Net debt to adjusted pro forma EBITDA 2.5x (1.9x at 31 December 2017) following Mondo acquisition; on track to reduce leverage to around 2.0x by end of 2019. Working capital reduction target increased from $18m to $25m by 2020.\n· Ordinary dividend up 4% to 8.4c per share.\nPortfolio transformation creating a higher quality, higher margin group\n· Completed acquisition of Mondo; performance strong and in line with expectations, $2m cost synergies identified and full integration expected by end of 2019.\n· Portfolio transformation has created a platform for improved returns and future growth, with c. 80% of pro forma earnings collectively from:\n- A substantial, high margin Personal Care business\n- A focused Coatings business delivering operational improvement, and\n- A well-positioned, high margin Talc business with significant growth potential under Elementis ownership\n \nIn 2019 expect good progress led by self-help initiatives\n· Whilst global market conditions remain challenging, expect good progress with focus on Talc integration, self-help initiatives and deleveraging.\n· Investor day planned for November 2019.\n \nFINANCIAL SUMMARY\n\n\n\n\n \n\n\n2018\n\n\n2017\n\n\n% Change\n\n\n\n\nRevenue\nStatutory profit for the period\nStatutory basic earnings per share2\n\n\n$822m\n$41m∆\n7.9c∆\n\n\n $783m\n$118m∆\n23.3c∆^\n\n\n+5%\n-65%\n-66%\n\n\n\n\n \n\n\n \n\n\n \n\n\n \n\n\n\n\nAdjusted operating profit1\n\n\n$133m\n\n\n$123m\n\n\n+8%\n\n\n\n\nAdjusted profit before tax1\n\n\n$113m\n\n\n$110m\n\n\n+3%\n\n\n\n\nAdjusted diluted earning...