Elementis PLC on Thursday reported a rise in annual profit, shaking off a ‘challenging demand environment’.
The London-based chemical manufacturer said pretax profit shot up 21% to $89.9 million from $74.3 million. Revenue declined 1.0% to $597.5 million from $603.8 million.
Administrative expenses were 16% lower at $79.5 million, aiding its bottom line.
‘I am pleased we have delivered a resilient performance with strong growth in profitability and margins despite the challenging market environment,’ Chief Executive Officer Luc van Ravenstein said.
The company on Tuesday reached an agreement to sell its pharmaceutical manufacturing business for around €34 million to Associated British Foods PLC, the owner of food and ingredients firms and also the operator of retailer Primark.
‘The transaction is subject to customary closing conditions and regulatory approvals and is expected to complete in Q2 2026. The strategic divestment is in line with our strategic priorities and focus on the Personal Care and Coatings markets. The transaction will lower the group’s capital intensity and is expected to lead to an uplift to our Personal Care and group adjusted operating margins. Following closing, we expect to return the net cash proceeds to shareholders,’ Elementis said.
Elementis upped its final dividend by 3.4% to 3.0 cents from 2.9 cents a year prior. Its annual dividend
has been lifted by 7.5% to 4.3 cents.
‘Whilst we remain mindful of the soft demand environment for coatings and recent geopolitical uncertainty, we are confident in another year of progress and have made a solid start to the new year,’ the firm said.
Shares in the company rose 0.5% to 161.80 pence each in London on Thursday afternoon.
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