Trading Update
Q4 2024 strong with full-year adjusted operating profit of £126-128m ahead of expectations, net debt cut to below £160m.
vs expectations: ahead
- Adjusted operating profit FY 2024 $126-128m (prior $104m)
- Adjusted operating margin FY 2024 above 17% (prior 14.6%)
- Net debt (pre IFRS 16) below $160m (prior $202m)
- Leverage ratio (net debt to EBITDA pre IFRS 16) approximately 1.0x (prior 1.5x)
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Elementis plc ("Elementis" or the "Group"), a global specialty chemicals company, today issues its scheduled trading update for the three months and year ended 31 December 2024.
Elementis will publish its results for the financial year to 31 December 2024 on 6th March 2025.
A strong performance, ahead of expectations
The Group has delivered a strong fourth quarter performance, with continued revenue growth and double-digit profit growth across Coatings and Personal Care, compared with Q4 2023.
As a result, adjusted operating profit for the financial year 2024 is expected to be in the range of $126-128 million, ahead of expectations1, and significantly higher compared with the prior year (2023: $104 million).
Adjusted operating margin above 17% for the 2024 financial year (2023: 14.6%) demonstrates good progress on the efficiency and growth programmes, introduced at the November 2023 Capital Markets Day.
Cash generation strengthens balance sheet
Strong cash generation supported further deleveraging, with net debt anticipated to be below $160 million (pre IFRS 16) at the end of the financial year 2024 (2023: $202 million). This represents a leverage ratio of approximately 1.0x net debt to EBITDA (pre IFRS 16), down from 1.5x at the start of the year.
Talc strategic review
The strategic review of Talc, announced on 1st August, is progressing and a further update will be provided in due course.
Note: 1. Based on company compiled consensus: FY 2024 adjusted operating profit range of $121-125 million.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.