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(Sharecast News) - Elementis said on Wednesday that full-year operating profit was set to be "marginally ahead" of consensus expectations despite ongoing challenging market conditions.
In an update for the three months and year to the end of December, the company said it had delivered a "resilient" performance, with revenues expected to be in line with market consensus of $600m.
Full-year group adjusted operating profit is set to be marginally ahead of market consensus of $125m, with adjusted operating margins higher than last year.
The improved margin performance was driven by the benefits of the company's 'Elevate Elementis' strategy and positive changes being implemented across the group, "as we look to build on our strong foundations", it said.
These include the simplification of its operational structure to enhance efficiency and agility, the bolt-on acquisition of UK based Alchemy in November 2025, and the ongoing delivery of Elementis' previously-announced cost savings targets.
"The group continues to generate positive free cash flow that gives us balance sheet strength and future capital allocation optionality," it said.
The specialty chemicals company said net debt pre IFRS 16 basis at the end of the financial year is expected to be about $185m. This reflects several one-off cash payments.
At 0925 GMT, the shares were up 2.7% at 169.60p.
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