REG - Elementis PLC - Half-year Report
Thu 07:01
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RNS Number : 2838T Elementis PLC 31 July 2025
Elementis plc
Interim results for the six months ended 30 June 2025
Strong financial performance with continued operational progress
Elevate Elementis strategy launched with new growth and return ambitions
Elementis plc ("Elementis" or the "Group"), today announces its results for
the six months ("the first half" or "the period") ended 30 June 2025.
Strong financial performance
· Revenue down 1% on a constant currency basis to $308m in soft market
conditions.
· Adjusted(1) operating profit up 7% on a constant currency basis to
$65m.
· Statutory operating profit(5) up 5% to $57m.
· Adjusted(1) operating margin(5) of 21%, up from 20% last year.
· Interim dividend of 1.3 cents per share up from 1.1 cents per share
last year, in line with dividend policy.
· $50m buyback progressing in line with expectations.
· Net debt(2) of $125m reduced by 36% since 31 December 2024. Net
debt(2) to EBITDA(4) of 0.9x.
Continued operational delivery
· Personal Care sales up 2% on a constant currency basis, with growth
in both Cosmetics and AP Actives. Record operating margins of 34%.
· Coatings sales down 4% on a constant currency basis with softer
demand in all regions. Resilient margins at 18%, in challenging market
conditions.
· On-track to deliver $12m savings in 2025 and complete two-year
efficiency programme.
· Sale of Talc business completed. Discontinued loss in the period of
$100m.
· CMD targets for 2026 delivered (Operating Margin, Cash Conversion,
ROCE).
Full Year Outlook
Following a strong first half performance, we expect the full year profit
performance to be in line with market expectations(3).
Financial Summary
Six months ended 30 June Adjusted results(1,5) Statutory results(5) (IFRS)
2025 2024 Change Change constant currency 2025 2024 Change
Revenue ($m) 308 314 -2% -1% 308 314 -2%
Operating profit/(loss) ($m) 65 62 6% 7% 57 54 5%
Diluted earnings/(loss) per share (c) 6.8 5.7 19% 5.8 4.8 21%
Net debt(2) ($m) 125 196 -36%
Net debt(2) to EBITDA(4) 0.9 1.6 -44%
Ordinary dividend per share (c) 1.3 1.1 18% 1.3 1.1 18%
( )
( )( )
New growth and return ambitions
Following the divestment of the Talc business in May 2025 Elementis is now a
focused, high-quality, pure-play specialty additives business. Our new
"Elevate Elementis" strategy is designed to deliver both improved growth and
returns, based on three priorities:
· Accelerate sustainable growth
o Leveraging our differentiators of hectorite, rheology and formulation
solutions, we will accelerate growth through enhancing our route to market,
innovation and bolt-on M&A.
· First choice for customers
o Enhancing service and delivery levels to become the first choice for
customers.
· Simpler, leaner Elementis
o New incremental $10m savings plan (net of increased R&D investment) by
2026.
o Driving simplification and agility across the business.
These priorities are designed to drive Elementis' financial performance. Our
new medium-term ambitions are:
· Mid-single digit revenue growth through the cycle
· Adjusted operating profit margin 23%+
· Three-year operating cash conversion >90%
· Return on capital employed (excluding goodwill) >30%
Commenting on the results, Luc van Ravenstein, CEO, said:
"I am pleased to report that the business has continued to build positive
operational momentum, delivering a strong first-half performance. Both profits
and margins from continuing operations are up on the prior year. This
performance underscores the resilience and quality of our business during a
period of soft market demand.
"Following my appointment in April as CEO, one of my first priorities was to
deliver the sale of the Talc business, which successfully completed in May.
This transaction refocuses Elementis towards premium performance specialty
additives, improving the quality of our earnings, significantly enhancing our
portfolio and reducing our capex profile. As announced at the time of the
transaction, we have commenced a share buyback programme of $50m using the net
proceeds from the sale.
"This is an exciting time for Elementis; we now have a very high-quality
business, with strong margins and significant opportunities to grow based on
our core strengths. Our new "Elevate Elementis" strategy sets out to
accelerate sustainable growth, position Elementis as the first choice for our
customers, and create a simpler, leaner company. These priorities underpin
ambitious deliverable medium-term targets that will drive significant value
for shareholders, as we elevate Elementis to the next level."
Further information
A presentation for investors and analysts will be held at 09.00 am GMT on 31
July 2025 via a live webcast and can be accessed via a link:
https://www.investis-live.com/elementis/684ae689056768001b7bff6d/wrfqg
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Conference call dial in details:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 808 189 0158
Other: Global Dial-In Numbers
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Participant access Code: 146477
Enquiries
Investors: Zeeshan Maqbool, Elementis plc
Tel: +44 (0) 7553 340 380
Press: Martin Robinson/Giles Kernick,
Teneo Tel: +44 (0) 20 7353 4200
Notes:
1. Adjusted figures exclude the adjusting items set out in Note 5.
2. Net debt stated as at the end of period. Pre IFRS 16 basis, refer to
unaudited information on page 37 for further information.
3. Based on company compiled consensus dated 30 July 2025, the mean
adjusted operating profit for the year ended 31 December 2025 is $126m (range
$122-129m).
4. Earnings before interest, tax, depreciation and amortisation, refer to
unaudited information on page 37 for further information.
5. Continuing operations.
Chief Executive Officer's overview
Financial performance
Elementis delivered a strong financial performance in the first half, with
revenue of $307.9m, down 1.4% on the prior period (H1 2024: $314.1m), on a
constant currency basis. Adjusted operating profit was up 7.2% to $65.3m (H1
2024: $61.7m), on a constant currency basis, and adjusted operating margin
improved by 160 bps to 21.2% (H1 2024: 19.6%).
During the period, we managed to largely offset the direct impact of tariffs
with our proactive pricing and supply chain actions. The indirect and future
demand impacts remain uncertain.
Statutory profit after tax from continuing operations was up 22.7% to $35.1m
(H1 24: $28.6m). After adjusting for the sale of the Talc business in May
2025, as a discontinued operation, the statutory loss for the period was
$65.1m (H1 2024: loss of $37.2m).
Personal Care
Personal Care sales were ahead at $116.4m, compared to $114.6m in the prior
period, up 2.4% on a constant currency basis, reflecting growth in both our
Cosmetics and our AP Actives businesses. Adjusted operating profit was up
17.6% to $39.5m (H1 2024: $33.6m), on a constant currency basis, supported by
cost savings including the impact of the closure of the Middletown AP Actives
plant. As a result, adjusted operating profit margin was up at 33.9% (H1 2024:
29.3%), a 460 bps improvement.
In Cosmetics, we continue to see growing demand for natural products and
"skinification", the practice of applying skincare principles to the entire
body. In response to this, during the period, we launched BENTONE® ULTIMATE
ISD and BENTONE® ULTIMATE LC, part of the BENTONE® ULTIMATE series, an
innovative, patent-pending oil-based rheology technology. Based on our
industry leading organically modified hectorite clay, the new gel technology
utilises a 100% natural activation system that gives manufacturers and
formulators more flexibility in their application due to its efficacy and
stability benefits.
In Skincare, the biggest trend remains sustainability and replacing
non-biodegradable polymers with natural thickeners is driving sales in the
BENTONE HYDROCLAY(TM) range, which is up more than 40% compared to last
year.
In AP Actives, a significant highlight for the period was the launch of our
non-metal based, biodegradable sweat control antiperspirant and deodorant
active, Deoluxe™ SC, at the In-Cosmetics Global trade fair in Amsterdam, in
April 2025. This new product addresses a key challenge in non-metal based
high-performance sweat control, featuring strong and clinically proven sweat
reduction. Following the launch, several large customers have placed orders
for sampling and testing purposes.
Hectorite is a key ingredient for our personal care formulations and is used
in both its pure and blended form (alongside complementary technologies such
as emollients and emulsifiers). This unique product with its superior
sensorial and rheological benefits makes it ideal for developing new
formulations in Personal Care that can help our customers' sunscreen give
maximum UV protection through an even application on the skin or enable the
ingredients in an antiperspirant bottle to be suspended evenly to give even
and consistent coverage on the skin.
Coatings
In line with the broader market and our update in Q1, Coatings revenues were
down 3.5% to $191.5m (H1 24: $199.5m) on a constant currency basis, due to the
weaker global demand environment for industrial and architectural coatings.
Operational challenges at St. Louis provided an additional headwind; these are
being addressed. Adjusted operating profit and margins were resilient at
$34.9m (H1 24: $38.5m) and 18.2% (H1 24: 19.3%) respectively.
All regions saw revenue decline in the first half due to lower volumes, with
Asia down 7.8%, EMEA down 8.3% and Americas down 2.8%, all on a constant
currency basis. The decline in overall Coatings revenue was offset partially
in the period by the improved performance of our Energy business, where
volumes were higher than last year. During the period, we launched new
products across our Coatings business including RHEOLATE® HX 6030
(Architectural), THIXATROL® 5050W (Industrial) and BENAQUA® 1101 (Energy).
· RHEOLATE® HX 6030, is a high-efficiency Non-Ionic Synthetic
Associative Thickener (NiSAT) made for high-performance, ultra-low Volatile
Organic Compounds (VOC) coatings for architectural applications. This
next-generation thickener, which was co-developed with a large customer offers
good sag resistance, excellent flow and levelling, and broad compatibility for
a wide range of water-based systems. In addition, we have introduced the
product more broadly to the market, with strong growth potential expected in
the Americas. We are also seeing potential opportunities emerging in other key
regions, including Southeast Asia and EMEA.
· THIXATROL® 5050W is our latest innovation for waterborne automotive
coatings. It delivers superior metallic pigment alignment without adding
viscosity or compromising formulation stability. With this 100% water-based
additive, formulators can achieve brilliant, even finishes with fewer
formulation steps and less complexity.
· BENAQUA® 1101 is one of the first water-based rheology solutions
that withstands the extreme demands of high-temperature, high-pressure (HTHP)
drilling - with thermal stability proven up to 400 °F (204 °C).
During the period, we were pleased to announce that our recently launched
RHEOLATE® bio-based NiSAT, featuring over 90% biobased content (C14
measured), won the 2025 Coatings Industry Ringier Technology Innovation Award.
This prestigious recognition is renowned for honouring significant
technologies that set new benchmarks in the coatings sector. The achievement
highlights our distinctive expertise and reaffirms our ongoing commitment to
delivering innovative solutions to the paint and coatings industry.
In our Coatings business, hectorite has become an increasingly important
ingredient in both pure and blended forms. With its unique three-dimensional
structure, this naturally derived mineral offers outstanding viscosity
control, formulation stability, and application performance. Its ability to
deliver smooth, consistent flow and prevent settling makes it ideal for a wide
range of coating systems. From providing a uniform finish
in architectural paints, to improving the workability and durability of
industrial coatings, adhesives & sealants and construction materials.
Hectorite is often used in combination with other high-performance additives
from our portfolio including organoclays, NISATs, dispersants, defoamers,
organic thixotropes, and other specialty additives to help formulators address
complex formulation challenges.
Discontinued operations
Talc
On 27 May 2025, we announced the simultaneous sale and completion of the Talc
business to IMI Fabi S.p.A ("IMI Fabi"), a global talc manufacturer, for an
enterprise value of $121m(1), with net cash proceeds after transaction costs
of $55m(1) (the "Transaction").
The Transaction follows the strategic review of the Talc business, announced
in August 2024, to evaluate whether the full potential of Talc could best be
delivered as part of Elementis, or via a divestment. The Board concluded that
the sale to IMI Fabi was the best outcome for all stakeholders. As a result of
the Transaction, all sites, employees, assets and liabilities of Talc have
moved under IMI Fabi's ownership and, following a short transitional period,
will trade under Mondo Minerals as well as its other affiliated IMI Fabi
brands.
Balance Sheet
We maintained a strong balance sheet during the period, and following the sale
of the Talc business, net debt reduced to $125.4m (31 December 2024: $196.4m).
As a result, the net debt to EBITDA ratio reduced to 0.9x (31 December 2024:
1.0x).
In line with the Group's progressive dividend policy, the Board has declared
an interim dividend of 1.3 cents, up from 1.1 cents in the prior year, an
increase of 18%.
On 27 May 2025, we successfully completed the refinancing of our term loan
facility and revolving credit facility ("RCF"). Under the terms of the
refinancing, we repaid the outstanding €142m term loan with a maturity date
of May 2026 and put in place a new $110m term loan with a maturity date of May
2029. We also extended our $250m RCF by an extra year to May 2029. The $50m
term loan with a maturity date of May 2026 remains unchanged.
Following the refinancing, post period end, the Company entered into new
interest rate swap arrangements for its USD denominated debt, under which a
total of $110m of debt was swapped from floating to fixed rate for a period
between one and three years.
In recognition of Elementis' strong balance sheet and the confidence in the
streamlined Group's prospects, the Board announced on 27 May 2025 its
intention to return $50m of the net cash proceeds from the sale of Talc to
shareholders, by way of a share buyback programme. The programme, which
commenced on 28 May 2025, will aim to purchase approximately £40m ($50m
equivalent), with the objective of cancelling the majority of shares
repurchased, with a small amount retained in treasury to meet the obligations
under the Company's employee share scheme.
Elevating Elementis
At Elementis, we have strong foundations and much to be proud of. We are
recognised as a market leader in rheology, the science of how materials deform
and flow under the influence of external forces, and in formulation solutions,
that enable us to design and develop mixtures to achieve desired outcomes for
our end customers in the Personal Care and Coatings markets. We also own the
only high-grade hectorite mine in the world, whose premium rheological
qualities in combination with our formulation expertise leads to superior
performance across a wide range of industrial sectors.
Our strong, long-standing relationships with global customers, coupled with a
broad manufacturing footprint, provide flexibility and resilience. Through our
unique product portfolio, we deliver sustainable solutions, reinforcing our
commitment to responsible business practices. Moreover, as a business with
healthy margins and strong cash flow generation, we are well-positioned to
seize new opportunities.
Over the past few years, we have made significant strides in delivering on our
strategic priorities of growth, innovation, and efficiency. Following the sale
of the Talc business in May 2025, we were pleased to have accelerated the
delivery of our 2023 Capital Markets Day (CMD) financial targets of adjusted
operating profit of 19%+, three-year operating cash conversion of >90% and
return on capital employed (excluding goodwill) >20% by 2026. In addition,
we are firmly on-track with our commitment to deliver aggregate cost savings
of $30m by 2025.
With the transformation of the company into a premium pure play speciality
additives player, we now have the chance to 'Elevate' Elementis' by building
on our strengths to deliver significant value creation potential. Equally we
recognise there are challenges to address. First, we have not reached our full
potential in the pace of top-line growth, due to a challenging market backdrop
and the distractions of the Talc business. Second, we are enhancing our
service delivery and reliability levels to win new business faster. And
finally, we need to simplify and streamline the way we work.
From our position of strength and recognising these challenges, we are
initiating our 'Elevate 'Elementis' strategy - a focus on three priorities
that will drive consistent growth and attractive returns for shareholders.
1. Accelerate sustainable growth
· Leverage core capabilities in Hectorite, Rheology and Formulations
solution to drive growth by:
o Delivering double-digit revenue growth from hectorite;
o Leveraging our global rheology leadership;
o Becoming formulation solutions partner of choice for our customers.
· This will be enabled by the following:
o Investing in R&D to drive innovation - R&D spend to increase from
~2% to ~3% of sales and innovation sales to increase from 15% to 20% over the
medium;
o Enhancing customer intimacy by increasing direct account coverage and
opening new warehouses and technical support labs in south east Asia and
India;
o To complement the above organic growth, we will selectively consider
bolt-on M&A opportunities, while maintaining balance sheet strength.
2. First choice for customers
· Enhancing service levels to meet requirements for specialty products
with Group wide On-Time, In-Full (OTIF) programme to achieve best-in-class
service and delivery levels.
· Debottlenecking at critical plants, starting at St. Louis, with
significant self-help opportunities remaining across our manufacturing
footprint.
· Enhancing customer service with a renewed focus on end-to-end customer
service excellence.
3. Simpler, leaner Elementis
· $10m additional savings by 2026 (net of additional R&D spend), with
reduced overheads and improved supply chain and procurement processes.
· Driving simplification, agility and speed of execution across the
business.
These priorities are designed to propel Elementis' performance, driving higher
growth whilst generating material free cash flow and creating optionality for
additional shareholder returns. Our new medium-term ambitions, which are
aligned with these priorities, are as follows:
· Mid-single digit revenue growth through the cycle
· Adjusted operating profit margin 23%+
· Three-year operating cash conversion >90%
· Return on capital employed (excluding goodwill) >30%
Through disciplined execution of this strategy, we will create value for
customers, employees, and shareholders alike-elevating Elementis to the next
level.
Sustainability
In line with our purpose, we continue to develop high-performance additives
that deliver better, more sustainable outcomes for the environment and for
society, unlocking the opportunities that arise from helping our customers on
their own sustainability journeys. We are committed to reducing our impact on
the environment while designing products that use fewer resources and create
less pollution.
In March 2025, we received validation of our science-based target (SBT) for
GHG emissions reduction from the Science Based Targets initiative (SBTi). As
part of this process, we have committed to reducing absolute scope 1 and 2 GHG
emissions 58.8% by 2034 from a 2024 base year. We have also committed to
reducing absolute scope 3 GHG emissions covering purchased goods and services,
upstream transportation and distribution and waste generated in operations by
35%, within the same timeframe. Our SBT ensures we remain competitive and
proactive to reduce our emissions in line with best practice.
The divestment of our Talc business has changed our environmental footprint
and risk / opportunity profile. In 2019, Elementis' GHG emissions intensity
(Scope 1 & Scope 2 market -based) in 2019 was
400 tCO2e/$m revenue. Following the sale of both Chromium and Talc businesses,
it is c.120 tCO2/$m, a c.70% reduction. As a result, we are reviewing our
sustainability strategy, material focus areas, and our environmental targets
and will publish updated information in due course, however, we do not expect
our SBT to change. Meanwhile, our actions to improve our footprint remain
robust. So far in 2025:
· We have turned on Elementis' first on-site solar panels Anji, China,
lowering emissions and electricity costs for the site;
· We have also secured low carbon electricity certificates for our
remaining US sites that were without such a contract;
· Our Livingston, UK site is in the process of upgrading a heat
exchanger on their dryer, which will contribute additional energy efficiency.
Our newest site, Taloja, India is working through several energy efficiency
opportunities identified;
· We continue to reduce our water use and associated water withdrawal and
effluent costs, with additional recycling of water from certain manufacturing
processes at Milwaukee and New Martinsville in the US, and additional water
recycling assessment work commenced at St. Louis, US (the site with largest
water use).
In 2025, we are further embedding supplier ESG risk assessment, supported by
EcoVadis, into our supplier management processes. We are also expanding the
range of products supported by life-cycle assessment, to deliver quantified,
more sustainable product design solutions to our customers.
Credible data is increasingly important for our stakeholders. While our key
environmental data is 3(rd) party verified for many years, the trend is
towards assurance of this data. During 2025/2026, we are reviewing and
enhancing non-financial reporting processes to ensure our disclosures retain
transparency, competitiveness and are ready for future assurance.
Safety
Safety is one of our fundamental values and is key to the success of
Elementis. We are committed to becoming a zero-injury business and we continue
to invest in building a strong, proactive safety culture. This includes
ongoing training, rigorous asset maintenance, and a focus on prevention.
Regrettably, during the first half of the year, we had three recordable
incidents, compared to one in the prior period (excluding Talc). None of these
required time away from work. As a result of this, we doubled the number of
audits and inspections across our sites to help reinforce safe behaviours and
identify improvement opportunities. These efforts reflect our belief that
safety is not only a responsibility, it is essential to how we operate and
grow.
People, culture and values
Our people are our greatest asset, and our purpose-driven culture continues to
be a key driver of our success. We are supported by a diverse and
action-oriented team with a strong winning mentality. The Fit for the Future
organisational restructuring was concluded during the first half of the year,
and following the sale of our Talc business, we now have a more streamlined
and focused organisation. As the company continues to evolve, we remain
anchored in our purpose-unique chemistry, sustainable solutions-and guided by
our values-Safety, Team, Respect, Solutions and Ambition-, which continue to
shape how we work, collaborate and lead.
Our latest engagement scores show a positive trend, reflecting the resilience
and commitment of our teams during a period of change in the organisation.
Outlook
In the first half, we delivered a strong financial performance with continued
operational progress in challenging economic conditions, with operating profit
and margins both ahead of last year. For the remainder of 2025, we assume no
significant change in the demand environment.
Following the sale of the Talc business, we expect the full year adjusted
operating profit performance to be in line with market expectations(2).
Notes:
1. Enterprise value €107m, net cash proceeds after transaction costs in
the region of €48m. Converted at exchange rate of €1 = $1.1379.
2. Based on company compiled consensus dated 30 July 2025, the mean
adjusted operating profit for the year ended 31 December 2025 is $126m (range
$122-129m).
Finance report
Revenue
Six months ended 30 June ($m) 2025 Effect of 2025 2024
exchange
rates Increase/
(decrease)
Coatings 191.5 (1.0) (7.0) 199.5
Personal Care 116.4 (0.9) 2.7 114.6
Revenue 307.9 (1.9) (4.3) 314.1
Operating profit
Six months ended 30 June ($m) 2025 Adjusting 2025 2024 Operating profit Adjusting items 2024 Adjusted operating profit(1)
items Adjusted operating profit (1)
Operating profit
Coatings 32.8 2.1 34.9 35.3 3.2 38.5
Personal Care 34.4 5.1 39.5 28.9 4.7 33.6
Central costs (10.2) 1.1 (9.1) (9.9) (0.5) (10.4)
Operating profit 57.0 8.3 65.3 54.3 7.4 61.7
1. After adjusting items - see Note 5.
Adjusted operating profit
Six months ended 30 June ($m) 2025(1) Effect of 2025 2024(1)
exchange
Operating
rates Increase/ Operating
profit
profit/(loss)
(decrease)
Coatings 34.9 (0.4) (3.2) 38.5
Personal Care 39.5 (0.3) 6.2 33.6
Central costs (9.1) - 1.3 (10.4)
Adjusted operating profit 65.3 (0.7) 4.3 61.7
1. After adjusting items - see Note 5.
Group results
Group revenue for the six months to 30 June 2025 was $307.9m (H1 2024:
$314.1m), a decrease of $6.2m or 2.0% on a reported currency basis and a
decrease of $4.3m or 1.4% on a constant currency basis, due to lower volumes
and mix effect, partially offset by pricing actions.
Adjusted operating profit was up 7.2% on a constant currency basis and 5.9% on
a reported basis, to $65.3m (H1 2024: $61.7m), driven by self-help and pricing
actions. Statutory operating profit was $57.0m, higher as compared to $54.3m
in the prior period. The reported profit after tax from continuing operations
was $35.1m (H1 2024: $28.6m).
Business performance overview
Personal Care
Personal Care revenue was up 1.6% (or 2.4% on a constant currency basis) to
$116.4m (H1 2024: $114.6m), driven by the increase in sales in our Cosmetics
and AP Actives businesses.
Adjusted operating profit increased strongly by 17.6% (or 18.7% on constant
currency basis) to $39.5m (H1 2024: $33.6m), benefiting from higher volumes,
price management actions and cost savings. As a result, the adjusted operating
margin increased to 33.9% (H1 2024: 29.3%).
Coatings
Coatings revenue decreased 4.0% (or 3.5% on a constant currency basis) to
$191.5m (H1 2024: $199.5m), principally due to weaker volumes in all
regions.
Adjusted operating profit decreased by 9.4% (or 8.2% on a constant currency
basis) to $34.9m (H1 2024: $38.5m) principally due to lower demand and a
negative mix, partially offset by pricing actions. Adjusted operating margin
reduced from 19.3% to 18.2% in the prior period.
Coatings also includes our Energy business, which accounts for around 13% (H1
24: 10%) of total Coatings sales.
Central costs
Central costs are those costs that are not identifiable as expenses of a
particular business segment and comprise expenditures of the Board of
Directors and corporate head office. Adjusted central costs fell to $9.1m from
$10.4m in the prior period.
Adjusting items
In addition to the statutory results, the Group uses alternative performance
measures, such as adjusted operating profit and adjusted diluted earnings per
share, to provide additional useful analysis of the performance of the Group.
The Board considers these non-GAAP measures as an alternative way to measure
the Group's performance. Adjusting items in the six months ended 30 June 2025
resulted in a charge of $7.7m before tax (H1 2024: $7.1m). The key categories
of adjusting items are summarised below. For more information on adjusting
items and the Group's policy for adjusting items, please see Note 5.
Six months ended 30 June 2025 ($m) Coatings Personal Care Central costs Total
Credit/(charge)
Business transformation 1.7 1.0 1.5 4.2
Environmental provisions - - (0.4) (0.4)
St. Louis fire 0.4 - - 0.4
Amortisation of intangibles arising on acquisitions - 4.1 - 4.1
Total charge to operating loss 2.1 5.1 1.1 8.3
Interest on EU state aid receivable - - (0.6) (0.6)
Total 2.1 5.1 0.5 7.7
Business transformation
Business transformation costs of $4.2m primarily comprise a charge of $1.5m
(H1 2024: charge of $0.6m) in relation to the Fit for the Future restructuring
programme, $1.2m in relation to a US supply chain transformational review,
$0.4m recognised in respect of the closure of the Middletown plant, and $0.3m
in relation to the data transformation programme.
Environmental provisions
The Group's environmental provision is calculated on a discounted cash flow
basis and reflects the time period over which spending is estimated to take
place. A credit of $0.4m (H1 2024: credit of $1.4m) to the environmental
provision reflects the impact of changes in discount rates.
St. Louis fire
In November 2024, a fire incident at our St. Louis plant resulted in
remediation costs of $0.4m.
Amortisation of intangibles arising on acquisitions
Amortisation of $4.1m (H1 2024: $4.1m) represents the charge in respect of the
Group's acquired intangible assets.
Interest on EU state aid receivable
Finance income of $0.6m (H1 2024: $0.6m) has been recognised in respect of
interest due on the EU state aid receivable.
An explanation of other adjusting items relating to the previous period can be
found within the Finance Report of the 2024 Annual Report and Accounts.
Hedging
The Group uses cash flow hedges to manage exposure to interest rate and
commodity price risks, particularly those associated with interest payments
and aluminium pricing. In H1 2025 interest rate and commodity price movements
resulted in a net gain from hedge transactions of $0.9m (H1 2024: net loss of
$1.1m) recycled to the income statement.
Other expenses
Other expenses are administration costs incurred and paid by the Group's
pension schemes that largely relate to former employees of legacy businesses.
These costs were $1.4m in the first half of 2025 (H1 2024: $1.1m).
Net finance costs
Six months ended 30 June ($m) 2025 2024
Finance income 0.9 0.1
Finance cost of borrowings (9.0) (12.2)
(8.1) (12.1)
Net pension finance income 0.6 0.5
Discount unwind on provisions (0.7) (0.7)
Interest on EU state aid receivable 0.6 0.6
Interest on lease liabilities (0.5) (0.6)
Net finance costs (8.1) (12.3)
Net finance costs decreased to $8.1m (H1 2024: $12.3m). This was largely due
to lower net debt during the six months to 30 June 2025. Net pension finance
income was $0.6m (H1 2024: $0.5m). The interest on lease liabilities of $0.5m
decreased slightly (H1 2024: $0.6m) primarily as a result of lower finance
lease liabilities. The unwind of discount on provisions of $0.7m (H1 2024:
$0.7m) remained flat.
Taxation
Six months ended 30 June $m 2025 Effective rate $m 2024 Effective
%
rate
%
Reported tax charge/(credit) 12.4 26.1 12.3 30.1
Adjusting items tax credit (1.8) - (1.4) -
Adjusted tax charge 14.2 25.7 13.7 28.5
The Group incurred a tax charge of $14.2m (H1 2024: $13.7m) on adjusted profit
before tax, resulting in an effective tax rate of 25.7% (H1 2024: 28.5%). The
lower effective tax rate was driven primarily by changes in the geographic mix
of profits.
Tax on adjusting items largely relates to the amortisation of intangible
assets and the Fit for the Future restructuring programme.
The medium-term expectation for the Group's adjusted effective tax rate
remains around 26%.
Earnings per share
To aid comparability of the underlying performance of the Group, earnings per
share ("EPS") reported under IFRS is adjusted for items classified as
adjusting.
Six months ended 30 June 2025 2024
Adjusted profit after tax ($m) 41.0 34.3
Adjusting items net of tax ($m) (5.9) (5.7)
Profit from continuing operations ($m) 35.1 28.6
Loss from discontinued operations ($m) (100.2) (65.8)
Loss for the year (65.1) (37.2)
Weighted average number of shares for the purposes of basic EPS (m) 590.4 587.9
Effect of dilutive shares options (m) 10.2 12.3
Weighted average number of shares for the purposes of diluted EPS (m) 600.6 600.2
From continuing operations:
Basic EPS before adjusting items (cents) 5.9 4.9
Diluted EPS before adjusting items (cents) 5.8 4.8
Adjusted basic EPS (cents) 7.0 5.8
Adjusted diluted EPS (cents) 6.8 5.7
From discontinued operations:
Basic EPS (cents) (17.0) (11.2)
Diluted EPS (cents) (17.0) (11.2)
From continuing and discontinued operations:
Basic EPS (cents) (11.0) (6.3)
Diluted EPS (cents) (11.0) (6.3)
Adjusted diluted EPS increased 19.3% to 6.8 cents (H1 2024: 5.7 cents),
primarily due to a higher adjusted profit after tax, primarily as a result of
stronger operating performance during the six months to June 2025. A higher
basic earnings per share before adjusting items of 5.9 cents (H1 2024: 4.9
cents) resulted from a higher profit from continuing operations.
Note 7 provides disclosure of EPS calculations, both including and excluding
the effects of adjusting items, and the potential dilutive effects of
outstanding and exercisable options.
Dividend
The Board has considered the strength of the balance sheet and the outlook for
the remainder of the year. In line with the Group's dividend policy, the Board
has declared an interim dividend of 1.3 cents per share (H1 2024: 1.1 cents
per share), which will be paid in pounds sterling. A dividend of 0.97 pence
per share has been determined by converting the 1.3 cents into pounds sterling
using the forward rate of £1.00:$1.34 as determined on 30 July 2025. The
interim dividend will be paid on 26 September 2025 to shareholders included on
the share register on 15 August 2025.
Cash flow
As per the statutory cash flow statement, net cash inflow from operating
activities decreased to $29.1m (H1 2024: $35.1m) primarily as a result of a
higher net working outflow in the six months to June 2025. A net working
capital outflow of $29.3m was higher compared to the prior period (H1 2024:
$20.5m), due to a higher working capital outflow as a result of higher debtors
and inventories at 30 June 2025, partially offset by a change from an outflow
to an inflow for creditors.
Net cash inflow in relation to investing activities was $41.4m (H1 2024:
outflow of $16.6m), significantly above the prior period, following the
receipt of $52.5m from the sale of talc, which is made up of $60.2m gross cash
proceeds less, net of cash sold of $7.7m.
Net cash outflow in relation to financing activities was $78.9m (H1 2024:
outflow $15.4m), lower than the prior period which included a repayment of
€142m borrowings as part of the refinancing in May 2025 and the drawing of a
new $110m term, with a maturity date of May 2029. The amount also includes
$7.7m of funds used to purchase 5.1m shares in the period, as part of the
Group's $50m share buyback programme. Of this amount, c.1.3m shares were
originally held in treasury and subsequently used to meet existing share-based
awards in the period. Dividends paid during the first half of 2025 were $17.7m
(H1 2024: $12.1m).
The adjusted cash flow, which excludes the effect of adjusting items from
operating cash flow and is therefore distinct from the statutory cash flow
referenced above, is summarised below. A reconciliation between statutory
profit/(loss) and EBITDA is shown in the alternative performance measures
("APM") section (page 34).
Adjusted cash flow
Six months ended 30 June ($m) 2025 2024
Adjusted EBITDA 76.6 73.9
Change in working capital (29.3) (20.2)
Capital expenditure (5.3) (6.6)
Adjusted operating cash flow 42.0 47.1
Pension payments (0.6) 0.5
Interest (9.0) (14.4)
Tax (6.5) (8.2)
Adjusting items (7.7) (11.7)
Other(1) (2.2) 4.0
Free cash flow 16.0 17.3
Dividends paid (17.7) (12.1)
Share buy back, net of shares issued (7.7) -
Acquisitions and disposals 52.5 -
Discontinued operations (1.0) (1.8)
Currency fluctuations (10.3) 2.2
Movement in net debt 31.8 5.6
Net debt at start of period (157.2) (202.0)
Net debt at end of period (125.4) (196.4)
1. Other includes share-based payments, movement in provisions, movement in
derivatives and payment of lease liabilities.
Adjusted operating cash flow decreased to $42.0m (H1 2024: $47.1m),
principally driven by a higher working capital outflow of $29.3m compared to
an outflow of $20.3m in H1 2024, offset by lower capital expenditure spend and
higher adjusted EBITDA.
Free cash flow decreased slightly to $16.0m (H1 2024: $17.3m), primarily
driven by a lower adjusted operating cash flow and the negative impact of
movement in provisions during the six months to June 2025, partially offset by
lower tax and interest payments.
Net debt reduced to $125.4m (H1 2024: $196.4m), a decrease of $71.0m on a
pre-IFRS 16 basis, principally due to the sale of the Talc business. The net
debt to adjusted EBITDA ratio decreased to 0.9x on a pre-IFRS 16 basis (H1
2024: 1.6x).
Working capital
$m 30 June 31 December
2025 2024
Inventory 139.0 152.5
Debtors 81.5 78.1
Creditors (81.7) (101.0)
Trade working capital 138.8 129.6
Average working capital to sales (%) 23.8 23.4
Total trade working capital increased to $138.8m (31 December 2024: $129.6m
includes the working capital attributable to the sold Talc business). The
increase was driven primarily by lower creditors, offset by lower inventories.
The change in working capital was impacted by the sale of the Talc business
and normal operating seasonality.
Foreign currency
The financial information is presented in US dollars, the Group's reporting
currency. The main dollar exchange rates relevant to the Group are set out
below.
30 June 2025 2025 30 June 2024 2024
average
average
Pounds sterling 0.73 0.77 0.79 0.79
Euro 0.85 0.93 0.93 0.92
Related party transactions
There were no material related party transactions entered into and there have
been no material changes to the related party transactions disclosed in the
Group's 2024 Annual Report and Accounts on page 191.
Directors' responsibility statement
A full list of the Directors can be found on the Elementis corporate website
at: www.elementis.com (http://www.elementis.com) .
The Directors confirm that to the best of their knowledge:
· The condensed set of financial statements set out in this Half-yearly
financial report has been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the United Kingdom.
· The condensed set of consolidated financial statements, which has
been prepared in accordance with the applicable set of accounting standards,
gives a true and fair view of the assets, liabilities, financial position and
profit or loss of the issuer, or the undertakings included in the
consolidation as a whole as required by DTR 4.2.4R; and
· The interim management report contained in this Half-yearly financial
report includes a fair review of the information required by:
o DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of the important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year.
o DTR 4.2.8R of the Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in related party
transactions described in the 2024 Annual Report and Accounts that could have
a material effect on the financial position or performance of the entity
during the first six months of the current financial year.
Approved by the Board on 30 July 2025 and signed on its behalf by:
Luc van Ravenstein Ralph
Hewins
CEO
CFO
30 July 2025
30 July 2025
Independent Review Report to Elementis Plc
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the condensed consolidated income statement, the
condensed consolidated statement of comprehensive income, the condensed
consolidated balance sheet, the condensed consolidated cashflow statement, the
condensed consolidated statement of changes in equity, and related notes 1 to
18.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 2, the condensed set of financial statements included in
this half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Cambridge, United Kingdom
30/7/2025
Condensed consolidated income statement
for the six months ended 30 June 2025
$m 2025 2024(1)
(unaudited) (unaudited)
Revenue 307.9 314.1
Cost of sales (163.9) (171.1)
Gross profit 144.0 143.0
Distribution costs (46.0) (47.7)
Administrative expenses (41.0) (41.0)
Operating profit 57.0 54.3
Other expenses(2) (1.4) (1.1)
Finance income 2.1 1.2
Finance costs (10.2) (13.5)
Profit before income tax 47.5 40.9
Tax (12.4) (12.3)
Profit from continuing operations 35.1 28.6
Loss from discontinued operations (100.2) (65.8)
Loss for the year (65.1) (37.2)
Attributable to:
Equity holders of the parent (65.1) (37.2)
Earnings per share
From continuing operations
Basic earnings (cents) 5.9 4.9
Diluted earnings (cents) 5.8 4.8
From continuing and discontinued operations
Basic loss (cents) (11.0) (6.3)
Diluted loss (cents) (11.0) (6.3)
1. 2024 has been represented following the classification of the Talc
business as a discontinued operation, see Note 17 for further details.
2. Other expenses comprise administration expenses for the Group's
pension schemes.
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2025
$m 2025 2024(1)
(unaudited) (unaudited)
Loss for the year (65.1) (37.2)
Other comprehensive income:
Items that will not be reclassified subsequently to profit and loss:
Remeasurements of retirement benefit obligations (3.7) (9.2)
Deferred tax associated with retirement benefit obligations 0.9 2.4
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of foreign operations 18.5 (9.9)
Effective portion of change in fair value of net investment hedge 4.5 2.6
Effective portion of changes in fair value of cash flow hedges - 3.0
Fair value of cash flow hedges transferred to income statement 0.9 (1.1)
Exchange differences on translation of share options reserves 0.9 (0.1)
Items relates to discontinued operations, net of tax (7.1) (4.1)
Other comprehensive income(loss) 14.9 (16.4)
Total comprehensive loss for the year (50.2) (53.6)
Attributable to:
Equity holders of the parent (50.2) (53.6)
1. 2024 has been represented following the classification of the Talc
business as a discontinued operation, see Note 17 for further details.
( )
Condensed consolidated balance sheet
as at 30 June 2025
$m 30 June 2025 31 December 2024
(unaudited) (audited)
Non-current assets
Goodwill and other intangible assets 585.4 585.9
Property, plant, and equipment 170.8 338.0
Derivative financial assets - 1.8
Deferred tax assets 7.4 7.4
Net retirement benefit surplus 22.3 27.6
Total non-current assets 785.9 960.7
Current assets
Inventories 139.0 152.5
Trade and other receivables 102.0 93.3
Derivative financial assets 0.1 3.6
Tax recoverable 23.6 21.0
Current tax assets 10.9 11.2
Cash and cash equivalents 58.8 59.9
Total current assets 334.4 341.5
Assets classified as held for sale 3.1 6.2
Total assets 1,123.4 1,308.4
Current liabilities
Bank overdrafts and loans (52.4) -
Trade and other payables (93.3) (108.4)
Derivative financial liabilities (1.1) (1.5)
Current tax liabilities (19.5) (9.8)
Lease liabilities (4.5) (5.9)
Provisions (2.5) (6.3)
Total current liabilities (173.3) (131.9)
Non-current liabilities
Loans and borrowings (130.4) (219.2)
Retirement benefit obligations (5.7) (8.6)
Deferred tax liabilities (91.3) (98.1)
Lease liabilities (16.7) (28.8)
Provisions (2.9) (42.1)
Total non-current liabilities (247.0) (396.8)
Liabilities classified as held for sale (21.6) (22.7)
Total liabilities (441.9) (551.4)
Net assets 681.5 757.0
Equity
Share capital 52.6 52.7
Share premium 239.7 239.7
Other reserves 70.4 51.5
Retained earnings 318.8 413.1
Total equity attributable to equity holders of the parent 681.5 757.0
Total equity 681.5 757.0
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2025
$m Share Share Translation reserve Hedging Other Retained Total
capital
premium
reserve
reserves
earnings
equity
Balance at 1 January 2024 52.5 239.2 (103.4) 5.9 167.6 485.5 847.3
Comprehensive income:
Loss for the year - - - - - (47.8) (47.8)
Other comprehensive income:
Exchange differences - - (17.4) - 0.1 - (17.3)
Effective portion of changes in fair value - - - 2.3 - - 2.3
of cash flow hedges
Fair value of cash flow hedges transferred to the income statement - - - (4.4) - - (4.4)
Tax associated with changes in cashflow hedges - - - - - (0.4) (0.4)
Remeasurements of retirement benefit obligations - - - - - (14.3) (14.3)
Deferred tax associated with retirement benefit obligations - - - - - 3.5 3.5
Transfer - - - - (5.3) 5.3 -
Total other comprehensive loss - - (17.4) (2.1) (5.2) (5.9) (30.6)
Total comprehensive loss - - (17.4) (2.1) (5.2) (53.7) (78.4)
Transactions with owners:
Issue of shares by the Company 0.2 0.5 - - - - 0.7
Dividends paid - - - - - (18.8) (18.8)
Deferred tax on share-based payments recognised within equity - - - - - 0.1 0.1
Share-based payments - - - - 5.7 - 5.7
Fair value of cash flow hedges transferred to net assets - - - 0.4 - - 0.4
Total transactions with owners 0.2 0.5 - 0.4 5.7 (18.7) (11.9)
Balance at 31 December 2024 52.7 239.7 (120.8) 4.2 168.1 413.1 757.0
Comprehensive income:
Loss for the period - - - - - (65.1) (65.1)
Other comprehensive income:
Exchange differences - - 23.0 - 0.9 - 23.9
Fair value of cash flow hedges transferred to the income statement - - - (4.2) - - (4.2)
Remeasurements of retirement benefit obligations - - - - - (3.7) (3.7)
Deferred tax adjustment on pension scheme deficit - - - - - 0.9 0.9
Recycling of deferred foreign exchange losses on disposal - - (2.0) - - - (2.0)
Transfer - - - - (2.1) 2.1 -
Total other comprehensive income/(loss) - - 21.0 (4.2) (1.2) (0.7) 14.9
Total comprehensive income/(loss) - - 21.0 (4.2) (1.2) (65.8) (50.2)
Transactions with owners:
Shares repurchased, net of shares issued by the Company (0.1) - - - 0.3 (10.8) (10.6)
Dividends paid - - - - - (17.7) (17.7)
Share-based payments - - - - 3.0 - 3.0
Total transactions with owners (0.1) - - - 3.3 (28.5) (25.3)
Balance at 30 June 2025 52.6 239.7 (99.8) - 170.2 318.8 681.5
Condensed consolidated cash flow statement
for the six months ended 30 June 2025
$m 2025 2024(1)
(unaudited) (unaudited)
Operating activities:
Profit from continuing operations 35.1 28.6
Adjustments for:
Other expenses 1.3 1.2
Finance income (2.1) (1.2)
Finance costs 10.2 13.5
Tax charge 12.4 12.3
Depreciation and amortisation 15.6 15.7
Decrease in provisions and derivatives (6.9) (5.9)
Pension payments net of current service cost (0.5) 0.5
Share-based payments expense 3.0 3.5
Operating cash flow before movement in working capital 68.1 68.2
Increase in inventories (4.2) (0.1)
Increase in trade and other receivables (25.2) (13.8)
Increase/(decrease) in trade and other payables 0.1 (6.6)
Cash generated by operations 38.8 47.7
Income taxes paid (6.5) (8.2)
Interest paid (9.9) (13.9)
Net cash flow from operating activities from discontinued operations 6.7 9.5
Net cash flow from operating activities 29.1 35.1
Investing activities:
Interest received 0.9 0.1
Purchase of property, plant and equipment (5.3) (6.5)
Sale of Talc, net of cash sold 52.5 -
Net cash flow used in investing activities from discontinued operations (6.7) (10.2)
Net cash flow from/(used in) investing activities 41.4 (16.6)
Financing activities:
Repurchases of shares, net of issued of shares by the company (7.7) -
Dividends paid (17.7) (12.1)
Proceeds from new term loans 110.0 -
Repayment of term loans (187.6) -
Net movement on existing debt 27.1 -
Payment of lease liabilities (2.3) (2.3)
Net cash flow used in financing activities from discontinued operations (0.7) (1.0)
Net cash used in financing activities (78.9) (15.4)
Net (decrease)/increase in cash and cash equivalents (8.4) 3.1
Cash and cash equivalents at 1 January 65.8 65.8
Foreign exchange on cash and cash equivalents 4.6 (1.4)
Less: cash and cash equivalents classified as held for sale (3.2) (8.2)
Cash and cash equivalents at 30 June 58.8 59.3
1. 2024 has been represented following the classification of the Talc
business as a discontinued operation, see Note 17 for further details.
Notes to the interim financial statements for the six months ended 30 June
2025
1. General Information
Elementis plc (the 'Company') and its subsidiaries (together, the 'Group')
manufacture specialty chemicals. The Group has operations in the US, UK,
Brazil, Germany, Portugal, China, Taiwan, Malaysia and India. The Company is a
limited liability company incorporated and domiciled in England and is listed
on the London Stock Exchange.
2. Accounting policies
Basis of preparation
The annual financial statements of Elementis plc will be prepared in
accordance with United Kingdom adopted International Financial Reporting
Standards. This condensed set of financial statements (also referred to as
'interim financial statements' in this announcement) has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the United
Kingdom.
As required by the Disclosure and Transparency Rules of the Financial Conduct
Authority, the condensed set of financial statements has been prepared
applying the same accounting policies and presentation that were applied in
the preparation of the Company's published consolidated financial statements
for the year ended 31 December 2024. The Group has not early adopted any
standard, interpretation or amendment that has been issued but is not yet
effective.
Key judgements and sources of estimation uncertainty remain unchanged from
those as set out in the Annual Report and Accounts at 31 December 2024. The
information for the year ended 31 December 2024 does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006. A copy of the
statutory accounts for that year has been delivered to the Registrar of
Companies. The auditor's report on those accounts was not qualified, did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying the report and did not contain statements under
section 498(2) or (3) of the Companies Act 2006.
Reporting currency
As a consequence of the majority of the Group's sales and earnings originating
in US dollars or US dollar linked currencies, the Group has chosen the US
dollar as its presentational currency. This aligns the Group's external
reporting with the profile of the Group, as well as with internal management
reporting.
Discontinued operations
On 27 May 2025, Elementis announced the sale of the Talc business to IMI Fabi
S.p.A. The sale was completed on the same day. The Talc business met the
criteria to be classified as a discontinued operation. As a result of this
classification, the condensed consolidated income statement, the condensed
consolidated statement of other comprehensive income and the condensed
consolidated statement of cash flows, including related notes, for the six
months ended 30 June 2024 has been re-presented.
3. Going concern
Given the continuing uncertainties resulting from the macro-economic
environment in which the Group operates, the directors have placed a
particular focus on the appropriateness of adopting the going concern basis in
preparing the condensed consolidated financial statements for the six months
ended 30 June 2025.
The Group's going concern assessment covers the period of at least 12 months
from the date of authorisation of these consolidated half year financial
statements (the 'going concern period'), and takes into account its
substantial liquidity, committed expenditure, and likely ongoing levels of
costs.
In preparing the assessment, alongside the most likely 'base case' forecast,
the Board has considered both a 'reverse stress test case' which flexes sales
and costs to determine what circumstances would be required to breach banking
covenants, and a 'plausible downside case'. This assessment shows the Group
has sufficient liquidity to discharge its liabilities as they fall due
throughout the going concern period under the base case, assuming continued
access to our revolving credit facilities. Access to these credit facilities
is dependent on the Group operating within its financial covenants.
The Group successfully refinanced its term loans effective 27 May 2025, along
with exercising its one-year extension option on the existing revolving credit
facility. The Group now has a $50m term loan due to mature in June 2026, a
$110m term loan due to mature in June 2029 and a multicurrency revolving
credit facility of $250m due to mature in June 2029.
Testing up to 30 June 2025 confirmed that the Group operated within these
covenants and under the base case the Group is expected to remain within its
financial covenants throughout the going concern period and the conditions
necessary for the reverse stress scenario to be applicable were deemed remote.
The directors also considered factors likely to affect future performance and
development, the Group's financial position, current excess liquidity
position, high level of cash conversion and the principal risks and
uncertainties facing the Group, including the Group's exposure to credit,
liquidity and market risk and the mechanisms for dealing with these risks.
In conclusion, after reviewing the base case and considering the remote
likelihood of the scenario in the reverse stress test case occurring as well
as having considered the uncertainty relating to the macro-economic
environment and the mitigating actions available, the directors have formed
the judgement that, at the time of approving the consolidated financial
statements, there are no material uncertainties that cast doubt on the Group's
going concern status and that it is appropriate to prepare the consolidated
accounts on the going concern basis.
4. Segment reporting
The Group's reporting segments are:
Coatings - production of rheological modifiers and additives for decorative
and industrial coatings
Personal Care - production of rheological modifiers and compounded products,
including active ingredients for anti-perspirant deodorants, for supply to
Personal Care manufacturers
Six months ended 30 June ($m) 2025 2024
Coatings 191.5 199.5
Personal Care 116.4 114.6
Revenue 307.9 314.1
All revenues are external and relate to the sale of goods. Revenue and
operating profit in Coatings (Decorative Paints) and Personal Care (AP
Actives) are marginally impacted by seasonal influences. Revenue and operating
profit tend to be higher in the first half of the year as our customers ramp
up production ready to meet end-customer demand in the summer months, when
weather conditions are favourable for painting and when anti-perspirants are
in greater demand.
Six months ended 30 June 2025 ($m) Coatings Personal Care Segment totals Central Total
costs
Reported operating profit/(loss) 32.8 34.4 67.2 (10.2) 57.0
Adjusting Items
Business transformation 1.7 1.0 2.7 1.5 4.2
Decrease in environmental provisions due to change in discount rate - - - (0.4) (0.4)
St. Louis fire 0.4 - 0.4 - 0.4
Amortisation of intangibles arising on acquisition - 4.1 4.1 - 4.1
Adjusted operating profit 34.9 39.5 74.4 (9.1) 65.3
Six months ended 30 June 2024 ($m) Coatings Personal Care Segment totals Central Total
costs
Reported operating profit/(loss) 35.3 28.9 64.2 (9.9) 54.3
Adjusting Items
Business transformation 0.3 0.6 0.9 0.9 1.8
Decrease in environmental provisions due to change in discount rate - - - (1.4) (1.4)
Settlement of Brazil customs case 2.9 - 2.9 - 2.9
Amortisation of intangibles arising on acquisition - 4.1 4.1 - 4.1
Adjusted operating profit 38.5 33.6 72.1 (10.4) 61.7
5. Adjusting items and alternative performance measures
A number of items have been recorded under adjusting items by virtue of their
size and/or one time nature in order to provide additional useful analysis of
the Group's results. The Group considers the adjusted results to be an
important measure used to monitor how the businesses are performing as they
achieve consistency and comparability between reporting periods. The net
impact of these items on the Group profit before tax for the year is a debit
of $7.7m (2024: $7.1m). The items fall into a number of categories, as
summarised below:
Six months ended 30 June ($m) 2025 2024
Business transformation 4.2 1.8
Environmental provisions (0.4) (1.4)
Saint Louis fire 0.4 -
Settlement of Brazil customs matter - 2.9
Amortisation of intangibles arising on acquisition 4.1 4.1
8.3 7.4
Unwind of discount on restructuring provision - 0.3
Interest on EU state aid receivable (0.6) (0.6)
Tax credit in relation to adjusting items (1.8) (1.4)
5.9 5.7
Business transformation - Business transformation costs of $4.2m primarily
included a charge of $1.5m (H1 2024: charge of $0.6m) in relation to the Fit
for the Future restructuring programme, $1.2m in relation to a US supply chain
transformational review, $0.4m in respect of the closure of the Middletown
plant, and $0.3m in relation to the Group's data transformation programme.
Environmental provisions - The Group's environmental provision is calculated
on a discounted cash flow basis and reflects the time period over which
spending is estimated to take place. A credit of $0.4m (H1 2024: credit of
$1.4m) to the environmental provision reflects the impact of changes in
discount rates.
St. Louis fire - In November 2024, a fire incident at our St. Louis plant
resulted in remediation costs of $0.4 million.
Amortisation of intangibles arising on acquisition - Amortisation of $4.1m (H1
2024: $4.1m) represents the charge in respect of the Group's acquired
intangible assets.
Interest on EU state aid receivable - Finance income of $0.6m (H1 2024: $0.6m)
has been recognised in respect of interest due on the EU state aid receivable.
Tax on adjusting items - this is the net impact of tax relating to the
adjusting items listed above.
An explanation of other adjusting items relating to the previous period can be
found within the Finance Report of the 2024 Annual Report and Accounts.
To support comparability with the financial statements as presented, a
reconciliation to the adjusted consolidated income statement is shown below.
Six months ended 30 June ($m) 2025 2024
$m Profit and loss Adjusting items Profit and loss after adjusting items Profit and loss Adjusting items Profit and loss after adjusting items
Revenue 307.9 - 307.9 314.1 - 314.1
Cost of sales (163.9) - (163.9) (171.1) - (171.1)
Gross profit 144.0 - 144.0 143.0 - 143.0
Distribution costs (46.0) - (46.0) (47.7) - (47.7)
Administrative expenses (41.0) 8.3 (32.7) (41.0) 7.4 (33.6)
Operating profit 57.0 8.3 65.3 54.3 7.4 61.7
Other expenses (1.4) - (1.4) (1.1) - (1.1)
Finance income 2.1 (0.6) 1.5 1.2 (0.6) 0.6
Finance costs (10.2) - (10.2) (13.5) 0.3 (13.2)
Profit before income tax 47.5 7.7 55.2 40.9 7.1 48.0
Tax (12.4) (1.8) (14.2) (12.3) (1.4) (13.7)
Profit from continuing operations 35.1 5.9 41.0 28.6 5.7 34.3
Earnings per share
Basic earnings (cents) 5.9 1.1 7.0 4.9 0.9 5.8
Diluted earnings (cents) 5.8 1.0 6.8 4.8 0.9 5.7
6. Finance income
Six months ended 30 June ($m) 2025 2024
Interest on bank deposits 0.9 0.1
Pension and other post retirement liabilities 0.6 0.5
Interest on EU state aid receivable 0.6 0.6
2.1 1.2
7. Finance costs
Six months ended 30 June ($m) 2025 2024
Interest on bank loans 8.4 12.2
Unwind of discount on provisions 0.7 0.7
Interest on lease liabilities 0.5 0.6
Fair value movements on derivatives 0.6 -
10.2 13.5
8. Income tax expense
The charge for tax on profits of $12.4m gives rise to an effective tax rate of
26.1% (H1 2024: $12.3m, or 30.1%) and is based on the probable tax charge in
those jurisdictions where profits arise. Within this figure is a tax credit of
$1.8m (H1 2024: $1.4m) in respect of adjusting items.
9. Earnings per share
The calculation of the basic and diluted earnings per share attributable to
the ordinary equity holders of the parent is based on the following:
Six months ended 30 June ($m) 2025 2024
Earnings:
Adjusted earnings 41.0 34.3
Adjusting items net of tax (5.9) (5.7)
Profit from continuing operations 35.1 28.6
Loss from discontinued operations (100.2) (65.8)
Loss from continuing and discontinued operations (65.1) (37.2)
Six months ended 30 June (m) 2025 2024
Number of shares:
Weighted average number of shares for the purposes of basic earnings per share 590.4 587.9
Effect of dilutive share options 10.2 12.3
Weighted average number of shares for the purposes of diluted earnings per 600.6 600.2
share
The dilutive loss per share calculation from discontinued operations and
dilutive loss per share from continuing and discontinued operations for 2025
and 2024 in the table below does not include the impact of the 10.2m (2024:
12.3m) dilutive share options, as the inclusion of these potential shares
would have an anti-dilutive impact on the diluted loss per share; it would
decrease the diluted loss per share.
Six months ended 30 June (cents) 2025 2024
Earnings per share from continuing operations:
Basic earnings 5.9 4.9
Diluted earnings 5.8 4.8
Basic after adjusting items 7.0 5.8
Diluted after adjusting items 6.8 5.7
Earnings per share from discontinued operations:
Basic loss (17.0) (11.2)
Diluted loss (17.0) (11.2)
Earnings per share from continuing and discontinued operations:
Basic loss (11.0) (6.3)
Diluted loss (11.0) (6.3)
10. Dividends
The following dividends were declared and paid by the Group:
Six months ended 30 June ($m) 2025 2024
Dividends paid on ordinary shares 17.7 12.1
11. Property, plant & equipment
Property, plant and equipment decreased to $170.8m (31 December 2024:
$338.0m), primarily due the sale of Talc business of $178.2m and depreciation
of $11.3m offset by net capital expenditure of $12.3m and the impact of
currency translation.
12. Pension
Valuations for IAS 19 purposes were conducted as of 30 June 2025. At this date
the Group is reporting a surplus on its UK scheme of $21.6m (31 December 2024:
$23.0m), a surplus on its US schemes of $0.7m (31 December 2024: $1.2m) and a
deficit on all other schemes of $5.7m (31 December 2024: $5.2m).
UK plan
The largest of the Group's retirement plans is the UK defined benefit pension
scheme ("UK Scheme"), which at 30 June 2025 had a surplus, under IAS 19, of
$21.6m (31 December 2024: $23.0m). The UK Scheme is relatively mature, with
approximately two thirds of its gross liabilities represented by pensions in
payment and is closed to new members. The reduction in net surplus was largely
driven by actuarial losses on plan assets of $2.8m.
US plan
In the US, the Group reports two post retirement plans under IAS 19: a defined
benefit pension plan with a net surplus at 30 June 2025 of $3.7m (31 December
2024: $4.6m), and a post-retirement medical plan with a liability of $3.0m (31
December 2024: $3.4m). The US pension plans are smaller than the UK plan and
at 30 June 2025 the overall surplus on the US plans decreased by $0.5m, as a
result of net actuarial losses of $0.5m and current service costs of $0.4m
offset by Company contributions of $0.4m.
Other plans
Other pension plans amounted to a liability of $5.7m (31 December 2024: $5.2m)
and relate to pension arrangements for a relatively small number of employees
in Germany, certain UK legacy benefits and one pension scheme acquired as part
of the SummitReheis transaction in 2017.
13. Movement in net debt
Six months ended 30 June ($m) 2025 2024
Change in net debt resulting from cash flows:
Decrease/(increase) in cash and cash equivalents (8.5) 3.1
Increase in bank overdraft and loans (52.4) -
Decrease in borrowings 103.0 -
42.1 3.1
Currency translation differences (10.3) 2.5
Decrease in net debt 31.8 5.6
Net debt at the beginning of period (157.2) (202.0)
Net debt at end of period (125.4) (196.4)
14. Financial risk management
The Group has exposure to the following financial risks:
• credit risk;
• liquidity risk; and
• market risk.
The Board of Directors has overall responsibility for the establishment and
oversight of the Group's risk management framework. The Group's risk
management policies are established to identify and analyse the risks faced by
the Group, to set appropriate risk limits and controls, and to monitor risks
and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group's activities.
The Group's Audit Committee, assisted by Internal Audit, oversees how
management monitors compliance with the Group's risk management policies and
procedures and reviews the adequacy of the risk management framework in
relation to the risks faced by the Group. These interim financial statements
do not include all the financial risk management information and disclosures
that are required in the Annual Report and Accounts and should be read in
conjunction with the financial statements for the year ended 31 December 2024.
The Group's risk management policies have not changed since the year end.
The Group measures fair values in respect of financial instruments in
accordance with IFRS 13, using the following fair value hierarchy that
reflects the significance of the inputs used in making the measurements:
• Level 1: Quoted market price (unadjusted) in an active market for an
identical instrument.
• Level 2: Valuation techniques based on observable inputs, either directly
or indirectly.
• Level 3: Valuation techniques using significant unobservable inputs.
Derivatives are held at fair value and are categorised within Level 2. All
other financial instruments are held at amortised cost, which is assumed to
approximate their fair values. All the fair values of financial assets and
liabilities carried at amortised cost are considered to be Level 2 valuations
which are determined using directly or indirectly observable inputs other than
unadjusted quoted prices.
15. Contingent liabilities
As is the case with other chemical companies, the Group occasionally receives
notice of litigation relating to regulatory and legal matters. A provision is
recognised when the Group believes it has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of
economic benefits will be required to settle the obligation. Where it is
deemed that an obligation is merely possible and that the probability of a
material outflow is not remote, the Group would disclose a contingent
liability.
During 2021, HM Revenue and Customs ("HMRC") opened a tax audit into the 2019
tax returns of certain UK Group entities, focused specifically on the
tax-efficient financing structure set up in 2014. The Group has been working
constructively with HMRC and is hopeful of bringing these matters to a
conclusion during 2025. At this stage management have concluded that there is
a possible obligation but that any such obligation cannot be measured with
sufficient reliability.
During 2022, the Group terminated a distribution agreement with one of its
distributors. The distributor has brought a claim for compensation as a result
of the termination. This matter has now proceeded to arbitration and
management have concluded at this stage that the obligation cannot be measured
with sufficient reliability.
During Q4 2023, an environmental incident occurred at the Eaglescliffe site,
which, following investigation during 2024, could result in a fine from the
relevant supervisory body. Under the terms of the sale and purchase agreement
with Flacks Group, signed in March 2024, Flacks Group are responsible for the
cost of any remediation and associated fine. As the transaction has not yet
completed, Elementis have disclosed the event. Management have concluded at
this stage that the obligation cannot be measured with sufficient reliability.
16. Related party transactions
The Company is a guarantor to the UK pension scheme under which it guarantees
all current and future obligations of UK subsidiaries currently participating
in the pension scheme to make payments to the scheme, up to a specified
maximum amount. The maximum amount of the guarantee is that which is needed
(at the time the guarantee is called on) to bring the scheme's funding level
up to 105 per cent of its liabilities, calculated in accordance with section
179 of the Pensions Act 2004. This is also sometimes known as a Pension
Protection Fund (PPF) guarantee, as having such a guarantee in place reduces
the annual PPF levy on the scheme.
17. Business Exits
Sale of Talc business
On 27 May 2025, Elementis entered into an agreement to sell its Talc business
to IMI Fabi S.p.A. for gross cash proceeds of €52.2m ($60.2m). The sale was
completed on 27 May 2025. Transaction costs of $8.0m were incurred for the
sale, of which $6.1m was recognised in the six months to 30 June 2025.
The results of the discontinued operation, which is included in the
consolidated income statement within 'Loss from discontinued operation', were
as follows
Six months ended 30 June ($m) 2025 2024
Revenue 66.8 68.5
Expenses (65.2) (134.0)
Loss on sale of Talc business (101.4) -
Recycling of deferred foreign exchange gains 2.0 -
Operating loss from discontinued operations (97.8) (65.5)
Finance expense (0.5) (1.3)
Loss before tax from discontinued operations (98.3) (66.8)
Income tax (expense)credit from discontinued operations (1.9) 0.9
Loss from discontinued operations (100.2) (65.9)
A reconciliation of the reported operating loss from discontinued operations
to adjusted operating profit from discontinued operations is provided below:
Six months ended 30 June ($m) 2025 2024
Operating loss from discontinued operations (97.8) (65.5)
Loss on sale of Talc business 101.4 -
Recycling of deferred foreign exchange gains (2.0) -
Gain on termination of nickel hedges (3.6) -
Impairment of assets - 66.1
Transaction and other costs in relation to the sale of Talc 7.1 0.2
Amortisation of intangible assets on acquisition 0.1 2.7
Adjusted operating profit from discontinued operations 5.2 3.5
Details of assets and liabilities at the date of disposal are provided in the
following table:
At 27 May 2025 ($m) 2025
Intangible assets 1.4
Property, plant and equipment 178.2
Inventories 24.8
Trade and other receivables 23.5
Total assets 227.9
Trade and other payables (16.6)
Provisions (43.3)
Retirement benefit obligations (0.1)
Tax liabilities (6.7)
Lease liabilities (7.3)
Total liabilities (74.0)
Net assets sold 153.9
Gross cash proceeds 60.2
Less: cash sold (7.7)
Gross cash proceeds net of cash sold 52.5
Loss on sale of Talc business (101.4)
Eaglescliffe held for sale
On 6 March 2024, Elementis entered into an agreement to sell its former
Chromium manufacturing site at Eaglescliffe to Flacks Group for negative
purchase consideration of £11.5m ($14.5m). Completion of the transaction is
conditional on regulatory approval. Whilst the transaction is still awaiting
regulatory approval, Elementis and the Flacks Group are committed to the sale
and therefore the site has continued to be classified as held for sale as of
30 June 2025.
18. Events after the balance sheet date
There were no significant events after the balance sheet date.
Principal risks and uncertainties
The Group has policies, processes and systems in place to help identify,
evaluate and manage risks throughout the organisation that may have a material
effect on its business operations and the delivery of its strategic
objectives, including its business model, future performance, solvency,
liquidity and / or reputation. The Board continues to take a proactive
approach to recognising and mitigating risk with the aim of protecting its
employees and safeguarding the interests of the Group, its shareholders,
employees, customers, suppliers and all other stakeholders.
The principal risks and uncertainties facing the Group are set out in the
Annual Report and Accounts for the 12 months ended 31 December 2024 (pages 70
to 74). The Group has reviewed these risks and concluded there are no material
changes and hence that they will remain relevant for the second half of the
financial year. The potential impact of these risks, together with details of
specific mitigating actions are set out in the 2024 Annual Report and
Accounts.
All risks are subject to executive oversight and assessment and management
will continue to review the effectiveness and efficiency of existing controls
over those risks and to identify further actions where appropriate in order to
manage the Group's exposure.
Alternative performance measures and unaudited information
Alternative performance measures
A reconciliation from reported profit for the year to earnings before
interest, tax, depreciation and amortisation ("EBITDA") is provided to support
understanding of the summarised cash flow included within the Finance report.
Six months ended 30 June ($m) 2025 2024
Loss for the year (65.1) (37.2)
Adjustments for
Loss from discontinued operations 100.2 65.8
Finance income after adjusting items (2.1) (1.2)
Finance costs and other expenses after adjusting items 11.6 14.6
Tax charge 12.4 12.3
Depreciation and amortisation after adjusting items 15.4 16.3
Excluding intangibles arising on acquisition (4.1) (4.1)
Adjusting items before finance costs and depreciation 8.3 7.4
Adjusted EBITDA 76.6 73.9
There are also a number of key performance indicators used in this report. The
reconciliations to these are given below.
Constant Currency
Constant currency is calculated by applying the prior year average local
currency to USD translation rates to translate revenue and adjusted operating
profit. Constant currency rates are determined as the reported rates excluding
the impact of changes in the average translation exchange rates during the
period.
Contribution margin
The Group's contribution margin, which is defined as sales less all variable
costs, divided by sales and expressed as a percentage.
Six months ended 30 June ($m) 2025 2024
Revenue 307.9 314.1
Variable costs (145.2) (155.0)
Non variable costs (18.7) (16.1)
Cost of sales (163.9) (171.1)
Contribution margin 52.8% 50.7%
Adjusted operating profit/operating margin
Adjusted operating profit is the profit derived from the normal operations of
the business. Adjusted operating margin is the ratio of operating profit,
after adjusting items, to sales.
Adjusted Group profit before tax
Adjusted Group profit before tax is defined as the Group profit before tax
after adjusting items, excluding adjusting items relating to tax.
Adjusted operating cash flow
Adjusted operating cash flow is defined as the net cash flow from operating
activities less net cash used in or operating activities from discontinued
operations less net capital expenditure but excluding, income taxes paid or
received, interest paid or received, movement in provisions and derivatives,
pension contributions net of current service cost, share-based payment expense
and adjusting items.
Six months ended 30 June ($m) 2025 2024
Net cash flow from operating activities 29.1 35.1
Add/(deduct):
Net cash flow from operating activities from discontinued operations (6.7) (9.5)
Capital expenditure (5.3) (6.5)
Add/(deduct):
Income tax paid 6.5 8.2
Interest paid 9.9 13.9
Decrease in provisions and derivatives 6.9 5.9
Pension contributions net of current service cost 0.5 (0.5)
Share-based payments expense (3.0) (3.5)
Adjusting items - non cash (3.6) (7.7)
Adjusting items - cash 7.7 11.7
Adjusted operating cash flow 42.0 47.1
Adjusted operating cash conversion
Adjusted operating cash conversion is defined as adjusted operating cash flow
divided by adjusted operating profit.
Six months ended 30 June ($m) 2025 2024
Adjusted operating profit 65.3 61.7
Adjusted operating cash flow 42.0 47.1
Adjusted operating cash flow conversion 64.3% 76.3%
Free cash flow
Free cash flow is defined as adjusted operating cash flow (as defined above),
less pension contributions net of current service cost, net interest paid,
income tax paid, cash flow relating to adjusting items and other, which
includes share-based payments, movement in provisions and derivatives and
payment of lease liabilities.
Adjusted return on operating capital employed
The adjusted return on operating capital employed ("ROCE") is defined as
adjusted operating profit for the last 12 months divided by operating capital
employed, expressed as a percentage. Operating capital employed comprises
fixed assets (excluding goodwill), working capital and operating provisions.
Operating provisions include self-insurance and environmental provisions but
exclude retirement benefit obligations.
$m 2025 2024
Adjusted operating profit for last 12 months to 30 June 122.8 107.8
Operating capital employed at 30 June(1)
Fixed assets excluding goodwill 296.6 308.6
Working capital 146.8 138.4
Operating provisions (5.4) (16.2)
Operating capital employed 438.0 430.8
Adjusted return on capital employed for the last 12 months to 30 June 28.0% 25.0%
1. Excludes the operating capital employed for the Talc business as of 30
June 2024.
Average trade working capital to sales ratio
The trade working capital to sales ratio is defined as the 12 month average
trade working capital divided by sales, expressed as a percentage. Trade
working capital comprises inventories, trade receivables (net of provisions)
and trade payables. It specifically excludes repayments, capital or interest
related receivables or payables, changes due to currency movements and items
classified as other receivables and other payables.
Net debt
Net debt is defined as borrowings less cash and cash equivalents, including
any restricted or held for sale cash and cash equivalents. Pre IFRS 16 net
debt does not include lease liabilities.
Unaudited information
To support a full understanding of the performance of the Group, the
information below provides the calculation of net debt/EBITDA.
Pre IFRS 16 Net debt/EBITDA:
Six months ended 30 June ($m) 2025 2024
Revenue 307.9 314.1
Adjusted operating profit 65.3 61.7
Adjusted operating margin 21.2% 19.6%
Adjusted EBITDA for the last 12 months to 30 June 145.3 130.2
IFRS 16 adjustment for the last 12 months to 30 June (4.8) (4.1)
Adjusted EBITDA pre-IFRS 16 for the last 12 months to 30 June 140.5 126.1
Net debt(1) 125.4 196.4
Net debt/EBITDA(2) 0.9 1.6
1. Net debt excludes lease liabilities.
2. Net Debt/EBITDA, where EBITDA is the adjusted EBITDA on continuing
operations of the Group on a pre IFRS 16 basis.
Post IFRS 16 Net debt/EBITDA:
Six months ended 30 June ($m) 2025 2024
Revenue 307.9 314.1
Adjusted operating profit 65.3 61.7
Adjusted operating margin 21.2% 19.6%
Adjusted EBITDA for the last 12 months to 30 June 145.3 130.2
Net debt(1) 125.4 196.4
IFRS 16 liabilities(2) 21.2 28.3
Adjusted net debt post IFRS 16(2) 146.6 224.7
Net debt/EBITDA(3) 1.0 1.7
1. Net debt excludes lease liabilities.
2. Excludes IFRS 16 lease liabilities for the Talc business as of 30 June
2024.
3. Net Debt/EBITDA, where EBITDA is the adjusted EBITDA on continuing
operations of the Group on a post IFRS 16 basis.
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