Business
2019 Preliminary Results Announcement
2019 Preliminary Results Announcement.
About this update from Elementis Plc
[{"type":"text","content":"\n \n \n RNS Number : 9219E\n Elementis PLC\n 04 March 2020\n \n \n \n \n \n \n \n 4 March 2020\n \n ELEMENTIS plc\n \n \n PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019\n \n \n \n \n \n Self-help actions partially offset challenging market demand environment \n \n \n \n \n \n ·\n Revenue from continuing operations up 6% from $822m to $874m, driven by contribution from the recently acquired Talc business more than offsetting declines in other businesses.\n \n \n ·\n Adjusted operating profit down 7% to $123m. Growth in Talc and self-help actions offset by market related declines in Chromium and Energy, weaker industrial production and destocking in Coatings, and competitive pressures in AP Actives as volumes recover ahead of India plant start up. Statutory operating profit up 19% to $101m.\n \n \n ·\n Strong operating cash conversion of 130%\n \n 4\n \n \n driven by sustainable working capital reductions and capital discipline. Net debt reduced by $44m from $498m to $454m despite $29m of one off cash items in the first half. Year-end financial leverage\n \n \n 5\n \n up from 2.5x in 2018 to 2.7x.\n \n \n ·\n Ordinary dividend up from 8.40c\n \n † \n \n to 8.55c per share, reflective of strong underlying cash generation and attractive medium term prospects.\n \n \n \n \n \n Clear Innovation, Growth & Efficiency priorities underpin medium term objectives\n \n \n \n \n \n ·\n Talc integration complete - on track for delivery of $20-25m revenue synergies by 2023.\n \n \n ·\n Business fundamentals remain strong - a higher quality, advantaged portfolio in premium performance additives with clear growth opportunities.\n \n \n ·\n Group focused on Innovation, Growth & Efficiency agenda to deliver medium term performance objectives; 17% adjusted operating profit margin, 90% plus operating cash conversion and financial leverage under 1.5x net debt/EBITDA. \n \n \n \n Cautious 2020 outlook - stable performance expected with financial deleveraging \n \n \n \n \n \n · \n Market conditions remain challenging but solid start to the year.\n \n \n ·\n Stable performance expected, with overall progress in Personal Care, Coatings and Talc (c.80% of Group earnings) offset by a weak market in Chromium. Performance to be supported by progress on delivery of $15m medium term cost s...