Elementis positive despite profits crash

Elementis posted a 62 per cent drop in full-year profits today but maintained its dividend and said trading was positive as customers started restocking.

"The second half exhibited an improvement in operating profit and margins as customer destocking abated and the actions taken to reduce costs began to take effect," the company said in a statement.

British firm Elementis, which makes chemicals to enhance the texture of paints and cosmetics, and chromium products used to coat metals and tan leather, said underlying pre-tax profit was £18.3 million for the year to 31 December, compared with £48.5 million last year.

Revenue fell nine per cent to £363.7 million. Analysts on average expected revenue of £356.1 million so the shares rose as much as six per cent on the news.

The company maintained its full-year dividend at 2.9p a share.

Elementis incurred £49.5 million in exceptional items for the year, including the closure of the UK Chromium plant and some one-time hedging costs.