19th Nov 2019 09:47
(Alliance News) - Chemicals firm Elementis PLC said Tuesday it intends to boost margins and cut debt levels over the medium term, as it continue to make progress in transforming the business.
Over the medium term, the FTSE 250-listed firm is targeting an adjusted operating profit margin of 17% amid an "efficiency and simplification" programme. This cost-cutting exercise is seeking to achieve USD10 million in cost savings in 2019 and a further USD15 million in savings by 2022.
In 2018, adjusted operating profit margins stood at 16.1%.
Elementis is targeting operating cash conversion levels of over 90% in the medium term. The London-based company also intends to reduce its debt levels.
"Elementis has made significant progress over the last three years to transform its portfolio and to re-position itself as a premium performance additives company with advantaged positions in growing markets," Chief Executive Officer Paul Waterman said.
"Coming through a challenging market backdrop in 2019, our medium term priorities are clear," Waterman added. "The execution of our innovation, growth and efficiency strategy will address our customers' most challenging problems whilst driving sustained value creation. We are excited about the potential at Elementis for material growth opportunities and margin improvement alongside strong cash generation."
Shares in Elementis were 1.5% higher at 174.60 pence in London on Tuesday.
By Ahren Lester; [email protected]
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