Business
Preliminary results year ended 31 December 2022
Preliminary results year ended 31 December 2022.
About this update from Elementis Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n ELEMENTIS PLC\n \n \n \n \n PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022\n \n \n \n \n \n \n \n \n \n Improved financial performance driven by sales growth and disciplined margin management\n \n \n \n · \n Revenue from continuing operations up 4% (+10% underlying1) from $709m to $736m driven by strong new business momentum, targeted pricing actions and improved product mix.\n \n \n · \n Adjusted2 operating profit from continuing operations up 14% (23% underlying1) to $101m, with strong performances in both our Coatings and Personal Care businesses and significantly weaker demand impacting Talc profitability. \n \n \n · \n Statutory loss for the year of $51m, including a $103m non-cash goodwill impairment charge in the Talc business linked to macro related discount rate increases and demand conditions.\n \n \n · \n Net debt3 of $367m, down by $34m from prior year ($401m). Net debt3 to EBITDA4 down from 2.6x to 2.2x as at the year end and leverage now stands at 1.9x pro forma5 post the disposal of Chromium.\n \n \n \n \n \n \n \n \n Significant strategic progress; Chromium disposal, new business wins and the formation of Performance Specialties\n \n \n \n · \n Successful sale of Chromium business for an enterprise value of $170m post year end and completed 31 January 2023; proceeds of $119m6 to reduce the Group's net debt.\n \n \n · \n Delivered record $59m revenues from new business opportunities with 18 new product launches. New products\n \n 7\n \n 13% of sales and we are on track towards target of 17% of sales by 2025.\n \n \n · \n Transformed business focused on specialty chemicals with leading positions in attractive markets:\n \n \n §\n Substantially enhances margin and growth characteristics\n \n \n §\n Improves earnings resilience\n \n \n §\n Transforms sustainability profile\n \n \n · \n Talc combined with Coatings business, effective from January 2023, to create new Performance Specialties business. Combination will create greater market focus, enhanced growth opportunities and reduced costs. \n \n \n \n \n \n \n \n \n 2023 Outlook - further deleveraging - continued financial progress\n \n \n \n · \n An encouraging start to 2023, well positioned to...