30th Jul 2019 08:25
(Alliance News) - Shares in FTSE 250-listed chemicals maker Elementis PLC jumped Tuesday after it boosted its interim payout amid profit and revenue growth despite tough conditions, with forecasts of an improved second half of the year.
Shares in Elementis were 5.6% higher at 141.10 pence in London on Tuesday.
For the six months ended June, pretax profit widened 3.8% to USD48.6 million from USD46.8 million the year prior. This was after revenue rose 6.7% to USD449.7 million from USD421.4 million the year before.
"Trading conditions have been challenging in the first six months of the year following an unusually weak first quarter with destocking, and an improved second quarter," Chief Executive Paul Waterman said.
"Our confidence in an improved performance in the second half of the year is based on a continuation of demand levels consistent with the second quarter, progress on cost savings and continued new business successes," Waterman added.
Elementis proposed a 2.80 US cents per share interim dividend, up 3.7% from 2.70 cents the year prior. This reflected the "confidence" of the firm for its "medium-term growth prospects".
"Overall the board continues to anticipate the group will deliver strategic and financial progress in 2019, broadly in line with expectations, with a continuing focus on strong cash generation," Waterman continued.
"The fundamentals of our business remain strong. In recent years we have focused Elementis on high quality, high margin activities in Personal Care, Coatings and Talc," Waterman said. "Despite the uncertainties of the current market environment, these businesses have advantaged positions in structural growth markets."
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