Revenue, profit rises in first half at Elementis

(Sharecast News) - Elementis reported first-half revenue of $318.2m on Thursday, up 9.4% on a reported basis and 4.7% organically at constant currencies, while adjusted operating profit rose 16.4% to $73.2m. Its adjusted operating margin improved to 23.0% from 21.6% and adjusted diluted earnings per share increased 28.8% to 8.5 cents.

Coatings revenue rose 5.6% organically to $209.0m, while Personal Care grew 2.9% to $109.2m.

The FTSE 250 specialty chemicals group said it remained confident of delivering full-year results in line with market expectations despite uncertainty linked to the Middle East.

"Revenue in the first half is up 5% organic constant currency, profits are up 16% and margins are also improving while net debt is close to our 1x target," said chief executive Luc van Ravenstein.

Net debt fell to $163.8m from $185.4m at year-end, and Elementis launched a new share buyback of around £25m using proceeds from the sale of its pharmaceutical manufacturing business.

At 0955 BST, shares in Elementis were up 2.74% at 179.8p.

Reporting by Josh White for Sharecast.com.

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