6th Mar 2025 13:13
(Alliance News) - Elementis PLC on Thursday said it was considering a range of options for additional shareholder returns as it posted improved revenue in 2024.
The London-based speciality chemicals and personal care business swung to a pretax loss of USD49.6 million in 2024 from profit of USD39.7 million in 2023.
This was despite revenue improving by 3.4% to USD738.3 million from USD713.4 million, in what Chief Executive Paul Waterman referred to as a "flat demand environment".
The swing occurred as Elementis took a USD126 million impairment charge relating to its Talc business in its 2024 accounts, compared to no such charge in 2023.
Elementis said a nationwide strike in Finland, coupled with weak market demand, triggered preparation of a new business plan for the Talc business, which resulted in a USD66.1 million impairment charge in the first half of last year.
Classification recommendations by the Risk Assessment Committee of the European Chemicals Agency created uncertainty in the European talc industry, said Elementis, giving rise to a further impairment charge of USD59.9 million in the second half.
Administrative expenses more than doubled to USD236.7 million from USD116.7 million. Distribution costs also grew, increasing 18% to USD127.9 million from USD108.7 million.
Shares in Elementis were down 2.5% to 149.00p on Thursday afternoon in London.
Elementis declared a final dividend of 2.9 cents per share, up 38% from 2.1 cents a year before. This brought its full-year dividend to 4.0 cents. The company announced the resumption of dividend payments in 2024 as part of its 2023 results.
On current trading, Elementis reported a "solid start to the year amid [a] challenging demand environment", with its delivery for 2025 underpinned by a "strong new business pipeline" and new products.
Waterman commented: "Our strategy is working. Innovation and new business continue to drive growth, with USD60 million of new business of which 75% was from our core growth platforms. At the same time, our efficiency programmes are accelerating, with USD18 million of annual costs savings delivered in 2024 and the remaining USD12 million expected in 2025."
"In recognition of our strong balance sheet and the positive outlook for the business, the board will evaluate a range of options for additional shareholder returns."
By Christopher Ward, Alliance News reporter
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