REG - Elementis PLC - Preliminary Results
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RNS Number : 4005V Elementis PLC 05 March 2026
Elementis plc
Preliminary results for the year ended 31 December 2025
Resilient financial performance
Well positioned to deliver attractive returns with Elevate Elementis growth
strategy
Elementis plc ("Elementis" or the "Group") today announces its results for the
year ended 31 December 2025.
Resilient financial(1) performance with strong profit and margin delivery
- Revenue resilient in a challenging demand environment. Strong Adjusted
operating profit and margin performance up 4.6%(2) and 150 bps to $126.7m and
21.2% respectively
- Personal Care revenue up 2.4%(2) with higher volumes and pricing. Operating
margin up strongly at 32.4%
- Coatings revenue down 4.3%(2) with soft demand in all regions offset
partially by positive price impacts and strong performance from
the energy business. Operating margin resilient at 18.9%
- Final proposed dividend of 3.0 cents per share, resulting in a full-year
dividend of 4.3 cents per share, up 7.5%
- Statutory loss for the year of $45.5m includes $110.5m from the loss on sale
of the Talc business in H1 2025
- £40.0m ($53.8m) share buyback successfully completed in 2025
- Net debt(3) at $185.4m as per the January trading update, with net debt to
EBITDA(4) at 1.3x
Building momentum with Elevate Elementis strategy
- Transformation of Elementis into pure-play specialty chemicals business
following the disposal of the Talc business
- Elevate Elementis growth strategy launched with new medium-term targets(5).
Positive progress across all strategic priorities
- Innovation Revenue up 200 bps to 16.4%(1)
- Acquisition of Alchemy for $22m in fast growing natural skincare and
cosmetics markets
- Debottlenecking action at St. Louis, US, leads to a 20% uplift in capacity
utilisation since H1 2025
- $18m cost savings delivered in 2025. On-track to deliver remaining $4m in
2026, part of the $10m additional cost savings announced in H1 2025
- Elementis announces today that it has reached an agreement to sell its
pharmaceutical manufacturing business, which makes antacids and excipients, to
Associated British Foods ("ABF"). Completion expected Q2 2026, subject to
receipt of regulatory approvals
- Strong progress in all areas of sustainability with zero lost time accidents
in 2025
Full year outlook
- Whilst we remain mindful of the soft demand environment for coatings and
recent geopolitical uncertainty, we are confident in another year of progress
and have made a solid start to the new year
Financial(1) summary
Statutory results (IFRS) Adjusted results
2025 2024 Change 2025 2024 Change Change constant currency
Revenue ($m) 597.5 603.8 (1.0%) 597.5 603.8 (1.0%) (1.9%)
Personal Care revenue ($m) 224.5 217.4 3.3% 224.5 217.4 3.3% 2.4%
Coatings revenue ($m) 373.0 386.4 (3.5%) 373.0 386.4 (3.5%) (4.3%)
Operating profit ($m) 109.0 96.0 13.5% 126.7 119.2 6.3% 4.6%
Personal Care operating profit ($m) 63.4 49.3 28.6% 72.8 61.6 18.2% 16.9%
Coatings operating profit ($m) 64.7 73.5 (12.0%) 70.4 78.4 (10.2%) (11.6%)
Operating profit margin (%) 18.2% 15.9% 230 bps 21.2% 19.7% 150 bps
Profit before tax ("PBT") ($m) 89.9 74.3 21.0% 107.5 96.7 11.2%
Diluted earnings per share (c) 10.5 8.1 29.6% 13.7 12.0 14.2%
Net debt(3) ($m) 185 157 17.8%
Net debt(3) to EBITDA(4) 1.3 1.1 18.2%
Ordinary dividend per share (c) 4.3 4.0 7.5% 4.3 4.0 7.5%
Commenting on the results, Luc van Ravenstein, CEO, said:
"I am pleased we have delivered a resilient performance with strong growth in
profitability and margins despite the challenging market environment.
"We have made good progress in the first six months of our Elevate Elementis
strategy, leveraging our winning differentiators, acquiring Alchemy, a
complementary fast-growing personal care specialist, and investing in
innovation to accelerate growth. Our proven track record of delivering cost
savings is creating a simpler, leaner Elementis while we continue to
strengthen our direct customer relationships.
"We are pleased to have reached another important milestone for Elementis with
the agreement to sell our pharmaceutical manufacturing business. The
transaction sharpens our focus on our core markets, will reduce the Group's
capital intensity and will enhance our operating margins. Following closing,
we expect to return the net cash proceeds to shareholders.
"As a focused premium specialty chemicals business with a clear strategy and
good operational momentum, we are well positioned to capitalise on the
opportunities in large, attractive Personal Care, Coatings and new adjacent
markets to create long-term value for our shareholders."
Further information
A presentation for investors and analysts will be held at 09.00 am GMT on 5
March 2026 via a live webcast, and can be accessed via a link:
https://www.investis-live.com/elementis/696e0d900064e60016386918/wlrg
(https://www.investis-live.com/elementis/696e0d900064e60016386918/wlrg)
Conference call dial in details:
UK: +44 (0) 20 3936 2999 Other: Global Dial-In Numbers
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Participant access code: 783195
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 Unless otherwise stated, financial results are presented on a continuing
operations basis and adjusted basis. Adjusted figures exclude the adjusting
items set out in Note 5.
2 Constant currency basis.
3 Pre IFRS 16 basis; refer to alternative performance measures on page 31 for
further information.
4 Earnings before interest, tax, depreciation and amortisation; refer to
alternative performance measures on page 29 for further information.
5 Medium-term targets (i) Mid-single digit revenue growth through the cycle,
(ii) Adjusted operating profit margin 23%+, (iii) Three-year operating cash
conversion >90%, (iv) Return on capital employed (excluding goodwill)
>30%.
Chief Executive Officer's review
Elevating Elementis
I am delighted to present my first full set of results for Elementis. It is a
privilege to lead such a fantastic company and the talented colleagues who
make it so special. This has been a transformational year at Elementis, and I
am proud of all that we have accomplished together.
Having spent 14 years with Elementis leading both our Personal Care and
Coatings segments, I know the business, our customers and our colleagues
intimately. When I stepped into the role in April, I had a clear vision for
where we can take this business. My first priority was completing the sale of
Talc - a milestone we reached in May. This successful transaction delivered a
clean exit, returned value to our shareholders, and repositioned Elementis as
a pure-play specialty chemicals company. It also accelerated the delivery of
our 2026 financial targets, set out at our 2023 Capital Markets Day, by a full
year - an outstanding achievement.
With this foundation in place, I was pleased to launch our new Elevate
Elementis strategy and medium-term targets in July 2025. Our three priorities
- accelerating sustainable growth, being first choice for customers, and
becoming a simpler, leaner Elementis - are firmly embedded across the business
and we have already made encouraging progress across all three areas, but
there is much more to do. I am truly excited about the journey ahead and look
forward to keeping you updated as we elevate Elementis to the next level.
Navigating a challenging operating environment
2025 was another challenging year for global economies, with persistent
geopolitical uncertainty, US tariff volatility, higher inflation and trade
fragmentation all impacting consumer and business sentiment.
Within the wider European Chemicals sector, 2025 was another difficult year
and we continued to see the diversified companies under pressure from Chinese
oversupply and a sluggish global demand environment. The truly specialty
chemicals businesses performed better though, delivering a positive
performance overall.
Results in line with expectations
Overall Group revenue was slightly down at $597.5m, compared to $603.8m in the
prior year. We achieved strong growth in adjusted operating profit and margin
of $126.7m (2024: $119.2m) and 21.2% (2024: 19.7%) respectively. This, in
combination with lower net finance costs in the year, meant we were able to
generate adjusted profit before tax ("PBT") of $107.5m, up 11.2% from last
year, and our adjusted earnings per share ("EPS") was up 1.7 cents to 13.7
cents (2024: 12.0 cents). This is an outstanding performance in the context of
the challenging operating environment I outlined earlier, and a testament to
the premium specialty nature of our business.
After adjusting for the loss on the sale of the Talc business of $110.5m in H1
2025, the statutory loss for the year was $45.5m.
In relation to our divisional performance, Personal Care represents 37.6% of
Group revenues and 50.8% of Group adjusted operating profit. Revenues
increased 3.3% to $224.5m (2024: $217.4m), with higher volumes and pricing
helping to offset negative mix impacts in the year. Revenue was higher across
all regions despite the impact of tariffs, driven by our positive pricing and
proactive supply chain management actions, which enabled us to manage our raw
materials cost exposure, while keeping production levels optimised. These, in
combination with our self-help actions and cost savings, including the closure
of the Middletown AP Actives plant last year, helped us to deliver higher
adjusted operating profit and margin of $72.8m (2024: $61.6m) and 32.4% (2024:
28.3%) respectively.
In Coatings, which represents 62.4% of Group revenue and 49.2% of Group
adjusted operating profit, revenues fell by 3.5% to $373.0m (2024: $386.4m).
The decline, which was in line with management's expectations and the weak
global demand environment for Coatings, resulted in lower volumes across all
regions. Offsetting these, we were pleased to have realised positive pricing
across all regions, and our Energy business continued to perform strongly
despite the low oil price environment. As a result of the lower revenues,
adjusted operating profits were lower at $70.4m (2024: $78.4m) and margins
were resilient at 18.9% (2024: 20.3%) respectively.
Elevating Elementis
A key step in the transformation of the Company was the sale of the Talc
business, which we completed in May. In July we launched our new growth
strategy, Elevate Elementis, designed to build on our strong foundations and
take the business to the next level.
We have identified three clear priorities for the medium term. These will
propel our performance, drive higher growth and generate material free cash
flow that will create optionality for reinvestment and additional shareholder
returns.
Accelerate sustainable growth
We will unlock our growth potential by utilising our premium hectorite asset
as well as our leading capabilities in rheology and formulation solutions.
Together, we call these our winning differentiators.
As recognised experts in rheology, we have deep technical knowledge and a
reputation for long-standing innovation in personal care and coatings
applications.
Our aim in rheology, which makes up approximately 60% of Group revenue, is to
build on our existing share of the $4bn personal care and coatings market, as
well as to enter new and adjacent markets with an addressable size of $4bn.
To accelerate growth across our portfolio, we will be using three key levers:
- We are increasing our investment in innovation, with research and development
("R&D") spend increasing from 2% to 3% of Group revenue. In addition,
having achieved a 200 bps improvement in our Innovation Revenue to 16.4%, our
target is to grow this to 20% over the medium term. Our approach to innovation
will be multi-faceted. A key focus, however, will be to increase the
penetration of hectorite in our product portfolio through focused innovation
and the development of new use cases, such as in agro chemicals, fire
retardants, and household and industrial cleaning products. Over the medium
term, we expect double-digit growth in revenue from hectorite-based products;
- We will enhance customer intimacy by leveraging our global footprint and
expanding direct account coverage to enable us to move up the innovation curve
and deliver more impactful higher-margin products. We will also establish new
warehouses and technical support labs in Southeast Asia and India; and
- To complement our organic-led innovation growth, we will selectively pursue
bolt-on M&A opportunities that complement our portfolio and capabilities,
such as the acquisition of Alchemy in November 2025, while maintaining balance
sheet strength and financial discipline.
First choice for customers
Having spent years in sales, I know firsthand that being top of mind - and the
first choice for customers - is not just desirable; it is essential. It
demands focus, consistency, and commitment from every colleague across the
business. Each of us has a role to play in making Elementis the partner of
choice for our customers.
We have identified three focus areas to help achieve this priority.
- On-Time, In-Full (OTIF) improvement - This is a key performance metric that
measures how reliably a supplier delivers products to customers. A higher OTIF
is indicative of a more reliable supplier and leads to greater customer
satisfaction. Our OTIF levels between 2020 and the first quarter of 2025 fell
below historic levels and we see a 20% upside opportunity to reach industry
best in class. Thanks to our proactive measures, we are already seeing
encouraging signs of progress in our OTIF performance, which has risen from
76% last year to 83% by the end of 2025.
- Leveraging our footprint to increase output - For us, this means maximising
our operational efficiency through several parallel measures, including
debottlenecking at critical plants, first and foremost at our St. Louis plant,
implementing preventive and predictive maintenance strategies across all our
operations, improving batch efficiency through process optimisation, and using
digital tools such as real-time monitoring and analytics to help identify
efficiencies and optimise production.
- Customer-first mindset - We are investing in our colleagues to nurture a
culture that embraces a customer first, growth-driven mindset, where every
employee, regardless of their role, understands how they contribute to our
long-term success.
Simpler, leaner Elementis
To deliver our growth agenda, it is imperative that we become a simpler,
leaner business.
The successful completion of our $30m in aggregate cost savings programme over
the last two years, via our Fit for the Future restructuring and supply chain
improvement programmes, has created a strong foundation by which we can help
shape Elementis to become more agile and dynamic.
While we will continuously look to optimise our cost base, for example through
the additional $10m in net savings announced in July (of this amount, $6m was
delivered in 2025 and the remainder will be delivered in 2026), our focus is
on building the right mindset to succeed: reducing complexity, improving
responsiveness, and accelerating execution. These principles are embedded in
how we work, and it is encouraging to see their impact cascading across the
organisation.
New medium-term targets
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%.
Acquisition of Alchemy
In November 2025, we announced the acquisition of UK-based Alchemy for an
enterprise value of $22m on a cash-free debt-free basis.
Alchemy develops innovative, high-quality, sustainable rheology modifiers for
the personal care industry. Its products are natural functional ingredients
that fully or partially replace synthetic raw materials in cosmetic
formulations. Alchemy's key technologies revolve predominantly around oil
gelling (with the Sucragel® and Sapogel® families of products) and water
gelling (Clearthix® and Sclerothix®).
Alchemy brings exciting new products and technologies that are complementary
to our portfolio, further enhancing our expertise in formulation solutions and
rheology, and which are highly synergistic with our hectorite products. These
will help to create new sensory profiles and textures to enhance the Group's
Cosmetics and Skin Care product ranges. Elementis will enable Alchemy to build
on its success by leveraging its global sales and distribution network
alongside its complementary technology and application knowledge.
Strategic sale of pharmaceutical manufacturing business
On 3 March 2026, we reached an agreement to sell our pharmaceutical
manufacturing business, which makes antacids and excipients to ABF, for an
enterprise value of c.€34m ( equivalent to c.$40m). For the year ended 31
December 2025, the business contributed c.$35m to Group revenue.
The transaction is subject to customary closing conditions and regulatory
approvals and is expected to complete in Q2 2026. The strategic divestment
is in line with our strategic priorities and focus on the Personal Care and
Coatings markets. The transaction will lower the Group's capital intensity and
is expected to lead to an uplift to our Personal Care and Group adjusted
operating margins. Following closing, we expect to return the net cash
proceeds to shareholders.
Innovating sustainably at the core of our strategy
At Elementis, innovation and sustainability go hand in hand. Our
sustainability priorities cover three areas: the environment, people and
responsible business. All three components are critical to the delivery of our
strategy.
Starting with the environment, our recently validated science-based target
("SBT") for greenhouse gas ("GHG") reductions from the Science Based Targets
initiative ("SBTi") in March 2025 was a major milestone, and we made good
progress in our first year. The expansion of low-carbon electricity across all
our US manufacturing sites, the installation of rooftop solar panels in Anji,
China, and energy efficiency initiatives such as the upgrading of heat
exchangers in Livingston, UK, and in Anji, China, are all evidence of this.
Looking further ahead, we are working closely with our customers to reduce our
collective environmental impacts and take advantage of sustainability-driven
changes in the wider economy to move towards a more circular economy and our
Net Zero by 2050 ambitions.
Whether we are reformulating legacy products or developing new products, our
aim is to increase the percentage of revenue from products that contain at
least 50% of natural or naturally-derived content to above 60% by 2027.
Examples of such innovation include our RHEOLATE® biobased Non-ionic
Synthetic Associative Thickener ("NiSAT") additives, which are used in premium
decorative paints, and which have over 90% biobased content and more effective
rheological properties than our previous-generation petrochemical-based
NiSATs. In Personal Care, in our AP Active business, we launched DEOLUXE™
SC. This is a biodegradable antiperspirant and deodorant active. This new
product addresses a key challenge in non-metal-based high-performance sweat
control, featuring strong and clinically proven sweat reduction. We also
launched NATURALUXETM MFF as a biodegradable film former and emollient for
sunscreens. It is a biobased polymer that has good film-forming properties,
good UV filter compatibility, and improved water resistance. These help with
more uniform coverage, build consumer trust in the sunscreen's durability on
the skin, and apply to all types of sunscreen applications.
Turning to People. Our employees play a pivotal role in bringing our purpose
to life - delivering unique chemistry and sustainable solutions. We measure
the satisfaction levels of our employees using the Gallup survey. I am pleased
to share that, despite a period of significant change in the organisation, we
improved on our mean score by 0.13 to 4.04 out of 5.00. Our goal is to
continuously improve year on year, with clear engagement goals set annually.
We are currently at the 62nd percentile globally and remain committed to
making meaningful progress, recognising that long-term improvement depends on
sustained focus, collective effort and collaboration.
In January 2026, we were pleased to have been awarded Bronze in the Chemicals
sector at Britain's Most Admired Companies awards, the UK's longest‑running
independent peer‑review study of corporate reputation, run by Echo Research
in partnership with the London Stock Exchange.
On Safety, we are committed to becoming a zero-injury business and we continue
to invest in building a strong, proactive safety culture. This includes
strengthening competencies, embedding risk‑based decision‑making, and
implementing global Health, Safety and Environment ("HSE") and process safety
standards across our operations.
This year, I am pleased to report that we have achieved our first zero lost
time accident year since 2019 - a significant milestone and a positive
reflection of the efforts across our teams. Regrettably though, we had four
recordable injuries during the year, compared with two last year. While these
were all non-serious in nature, our commitment is clear: no incident is
acceptable. In response, we significantly increased our audits, inspections,
and stop‑work reporting, more than doubling these activities across our
sites. This strengthened safe behaviours, enhanced accident‑prevention
practices, and enabled us to identify improvement opportunities through a more
risk‑based approach.
On Diversity, Equity and Inclusion ("DE&I"), we continue to make good
progress. Of note, I am pleased to share that we maintained the number of
female colleagues in senior positions at 42% and our ethnic diversity in the
US was also unchanged at 29%.
Finally, on being a Responsible Business, we are continuing to invest in key
areas such as cyber security, ethics training and responsible sourcing.
Outlook
While the demand environment for coatings remains soft and the geopolitical
backdrop remains uncertain, our repositioning as a pure-play specialty
chemicals business and operational momentum give us confidence as we enter
2026 and deliver another year of progress.
Our priorities for the year ahead are to:
- Accelerate the pace and quality of innovation, with a focus towards
sustainable products, to strengthen our leadership positions in rheology and
formulation solutions;
- Expand direct customer account coverage to deepen relationships and deliver
superior service;
- Drive greater simplicity and efficiency across our operations to enhance
agility;
- Advance our sustainability agenda by designing more sustainable products,
reducing GHG emissions and energy intensity while maintaining a strong safety
work ethic; and
- Deliver attractive returns to shareholders by effectively balancing our
capital allocation priorities to generate maximum value.
Business performance overview
Personal Care
Personal Care financial performance
Personal Care revenue increased 3.3% on a reported basis and was 2.4% down on
a constant currency basis to $224.5m (2024: $217.4m), driven by improved
pricing and volumes benefits that helped to offset negative mix impacts in the
year. Of this amount, $0.5m related to the pro-rata contribution from the
acquisition of Alchemy, which we completed in November 2025.
Revenues were higher across Europe, up 6%, and Asia, up 1%, with Americas flat
overall.
Adjusted operating profit increased 18.2% on a reported basis and 16.9% on a
constant currency basis to $72.8m (2024: $61.6m). Growth was driven by higher
pricing and cost savings actions, including the closure of the Middletown AP
Actives plant. These actions led to an improvement in adjusted operating
margin, which increased from 28.3% to 32.4%, a 410 bps improvement.
Personal Care strategic progress
Our Personal Care business operates in attractive growth markets globally. Our
focus is within Skin Care, Colour Cosmetics and Antiperspirants Actives.
Leveraging our deep expertise in rheology and formulation solutions, we
develop high-value performance additives for a range of customers that include
multinationals and distributors. We also work closely with several
fast-growing local Indie brands.
Hectorite is a key ingredient for our personal care formulations and is used
in both its pure and blended forms (alongside complementary technologies such
as emollients and emulsifiers). This special 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
consistent coverage on the skin. Hectorite penetration in the Personal Care
portfolio is currently c. 40% and we expect this to continue to grow over the
medium term.
During the year we introduced seven new products, four of which were
hectorite-based products. We expanded our technology toolkit and developed two
highly customised products, based on individual customer specifications. Our
partnership-led approach to innovation is helping us gain momentum with our
customers and drive revenue growth. Revenue from new and innovation products
increased to 22.2% (2024: 17.0%), and our new business pipeline was $92m,
compared with $89m in the prior year.
In Cosmetics, we continue to see growing demand for natural products and
'skinification', the practice of applying skin care principles to the entire
body.
In response to this, during the year, 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 Skin Care, the biggest trend remains sustainability. Replacing
non-biodegradable polymers with natural thickeners is driving revenue in the
BENTONE HYDROCLAY™ range. We also launched NATURALUXE™ MFF, our latest
innovation in sun care at In-Cosmetics Asia 2025, one of the leading trade
events in the Asia-Pacific region. This new multi-functional eco-friendly film
former (essential for sunscreen formulations) forms a thin, invisible layer on
the skin to enhance coverage and durability. In addition, as a polymeric
emollient, it provides long-lasting wear and helps sunscreens to feel soft and
spread evenly on the skin.
Alchemy's addition strengthens our Cosmetics and Skin Care portfolio with
high‑margin, high‑growth technologies that create a strong foundation for
continued growth.
Lastly, in AP Actives, a significant highlight of the year 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, and we expect to commence commercial sales
during the second half of 2026.
Coatings
Coatings financial performance
In line with the broader market, Coatings revenue was down 3.5% on a reported
basis and 4.3% down on a constant currency basis respectively to $373.0m
(2024: $386.4m), due to weaker volume demand for industrial and architectural
coatings across all regions. Our Energy business, which accounts for c. 10% of
total Coatings revenue, performed strongly, with volumes, pricing and mix
higher than last year.
Adjusted operating profit was down 10.2% on a reported basis and was down
11.6% on a constant currency basis to $70.4m (2024: $78.4m), driven by
self-help actions, as well as improved pricing benefits. The adjusted
operating margin was marginally down at 18.9% compared with 20.3%,
demonstrating the quality and resilience of the business amid a continued weak
demand environment.
Coatings strategic progress
Our Coatings business operates across three key markets: Industrial Coatings,
Architectural Coatings and Energy. Through our expertise in rheology and
formulation, we develop high-value performance additives solutions for a range
of customers that include multinationals and distributors. We also work with
established local businesses that have a strong regional presence.
Within our portfolio, hectorite has become an increasingly important
ingredient in both pure and blended forms. With its special 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 and 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.
In 2025, we launched 12 new products across our Coatings business, one of
which was hectorite-based. We expanded our technology toolkit and developed
two highly customised products, based on individual customer specifications.
Revenue from new and innovation products increased to 13.4% (2024: 13.2%) and
our new business pipeline was $170m compared with $182m in the prior year.
Following the launch of two RHEOLATE® biobased NiSATs last year, we launched
RHEOLATE® HX 6030 in 2025. This high-efficiency NiSAT is made for
high-performance, ultra-low Volatile Organic Compound ("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.
In Industrial Coatings, we launched THIXATROL® 5050W, 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.
Finally, in relation to our Energy business, we launched BENAQUA® 1101. This
is one of the first water-based rheology solutions that withstands the extreme
demands of high-temperature, high-pressure drilling - with thermal stability
proven up to 400°F (204°C).
During the year, we were pleased to announce that our recently launched
RHEOLATE® biobased 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.
Finance report
Revenue
$m 2025 2024
Coatings 373.0 386.4
Personal Care 224.5 217.4
Revenue 597.5 603.8
Operating profit
$m 2025 Operating profit/ Adjusting items 2025 Adjusted operating profit/ 2024 Operating profit/(loss) Adjusting items 2024 Adjusted operating profit/
(loss)
(loss)1
(loss)1
Coatings 64.7 5.7 70.4 73.5 4.9 78.4
Personal Care 63.4 9.4 72.8 49.3 12.3 61.6
Central costs (19.1) 2.6 (16.5) (26.8) 6.0 (20.8)
Operating profit 109.0 17.7 126.7 96.0 23.2 119.2
1. After adjusting items, see Note 5 for detail.
The 2024 results in this finance report have been re-presented following the
sale of the Talc business.
Group results
In 2025 revenue decreased to $597.5m (2024: $603.8m), down 1.0% on a reported
basis or 1.9% on a constant currency basis, driven by lower volumes in
Coatings and mix effects. Reductions in volumes were partially offset by
pricing actions.
Adjusted operating profit increased 6.3% on a reported basis and 4.6% on a
constant currency basis to $126.7m (2024: $119.2m), driven by self-help
initiatives and proactive cost management. Reported operating profit was
$109.0m (2024: $96.0m), a 13.5% increase on a reported basis; this, combined
with lower finance costs in the year, led to a 27.7% increase in profit from
continuing operations to $62.3m, compared with $48.8m in the prior year.
Loss for the year of $45.5m is driven by the successful sale of the Talc
business for the purpose of refocusing the Group's strategy, for an amount
less than its carrying value. This resulted in a loss on sale of the Talc
business of $110.5m.
Central costs
Central costs are those costs that are not identifiable as expenses of a
particular business segment and comprise expenditure of the Board of Directors
and corporate head office. Adjusted central costs decreased to $16.2m (2024:
$20.8m), largely driven by proactive cost management, including benefits
associated with business transformation.
Adjusting items
In addition to the statutory results, the Group uses alternative performance
measures ("APM") to provide additional analysis of the performance of the
business. The Board considers these non-GAAP measures as an alternative way to
measure the Group's performance. Adjusting items in 2025 resulted in a charge
of $17.6m before tax (2024: $22.6m). The key categories of adjusting items are
summarised below. For more information on adjusting items, please see Note 5
to the financial statements.
Credit/(charge) $m Coatings Personal Care Central costs Total
Business transformation - 0.8 6.7 7.5
Acquisitions and disposals - 0.4 (6.8) (6.4)
St. Louis operational transformation 3.5 - - 3.5
Cloud and data transformation - - 2.2 2.2
Early termination of contract 1.9 - - 1.9
St. Louis fire 0.3 - - 0.3
Environmental provisions - - 0.5 0.5
Amortisation of intangibles arising on acquisitions - 8.2 - 8.2
Total charge to operating profit 5.7 9.4 2.6 17.7
Unwind of discount on provision - - 1.1 1.1
Interest on EU state aid receivable - - (1.2) (1.2)
Total charged to net finance costs - - (0.1) (0.1)
Total charged to profit before tax 5.7 9.4 2.5 17.6
Business transformation
Costs of $7.5m (2024: $6.6m) primarily included: $4.4m (2024: $nil) of
transitionary costs of the exiting CEO and other related restructuring items;
costs of $2.3m (2024: $4.1m) in relation to the Fit for the Future
restructuring programme which was announced in September 2023 and completed
during 2025; and costs of $0.8m (2024: $1.6m) in relation to the closure of
the Middletown plant and preparation of the site for sale. See Note 5 for
further detail.
Acquisitions and disposals
A net credit of $6.4m (2024: cost of $0.2m) was recognised in relation to
acquisitions and disposals. This principally included a credit of $6.9m in
relation to the gain on sale of the Eaglescliffe site and $0.3m of transaction
costs incurred in relation to the acquisition of Alchemy Ingredients Limited.
St. Louis operational transformation
Costs of $3.5m (2024: $nil) in relation to the transformation programme at the
Group's St. Louis plant in 2025.
Cloud and data transformation
Costs of $2.2m (2024: $2.1m) include $1.6m (2024: $2.1m) of costs in relation
to the data transformation programme due to be completed in 2027 and $0.7m
(2024: $nil) of costs in relation to upgrading the Group's Enterprise Resource
Planning ("ERP") system due to be completed in 2027.
Early termination of contract
Costs of $1.9m (2024: $nil) were recognised in respect of an early termination
fee paid to one of the Group's contracts.
St. Louis fire
Costs of $0.3m (2024: $1.3m) were recognised in respect of the fire at the St.
Louis plant which occurred in November 2024. These costs relate to the write
off of items of property, plant and equipment that were damaged as a result of
the fire.
Environmental provisions
Charges of $0.5m (2024: $1.8m) were recognised in respect of the Group's
environmental provision. The environmental provision is calculated on a
discounted cash flow basis, reflecting the time period over which spending is
estimated to take place. The movement in the provision relates to changes in
discount rates, which have resulted in a reduction of $0.8m (2024: $2.2m), and
extra remediation work identified in the year, which has resulted in a $1.3m
(2024: $4.0m) increase to the liability. Also included within adjusting items
is a charge of $1.1m, within finance costs, in relation to the unwind of the
discount on the provision.
Amortisation of intangibles arising on acquisitions
Amortisation of $8.2m (2024: $8.2m) has been recognised in relation to the
Group's acquired intangible assets.
Interest on EU state aid receivable
Finance income of $1.2m (2024: $1.2m) has been recognised in respect of
interest due to the Group.
Net finance costs
$m 2025 2024
Finance income 0.7 0.2
Finance cost of borrowings (17.5) (20.0)
Net finance cost of borrowings (16.8) (19.8)
Net pension finance income 1.3 1.4
Unwind of discount on provisions (1.3) (1.5)
Interest on EU state aid receivable 1.2 1.2
Interest on lease liabilities (0.9) (1.1)
Net finance costs (16.5) (19.8)
Net finance costs decreased in the year to $16.5m (2024: $19.8m). Net finance
costs comprise interest payable on borrowings, calculated using the effective
interest rate method, amortisation of facility arrangement fees, the unwinding
of discounts on the Group's environmental provisions, net pension interest
income/expense, fair value movement on derivatives, interest receivable on the
EU state aid receivable balance and interest charged on lease liabilities.
The decrease in net finance costs is primarily due to the lower finance cost
of borrowings as a result of lower interest rates.
Net pension finance income of $1.3m (2024: $1.4m) is a function of discount
rates under IAS 19, and the value of the schemes' deficit or surplus
positions.
The Group's environmental provisions are calculated on a discounted basis,
reflecting the time period over which the spending is estimated to take place.
The unwind of discount on provisions of $1.3m (2024: $1.5m) was lower than the
prior year due to the sale of the Eaglescliffe site and the related
environmental liabilities.
Interest on lease liabilities of $0.9m (2024: $1.1m) is a function of the
discount rates under IFRS 16, and was lower than the prior year due to reduced
lease liabilities.
Interest on the EU state aid receivable balance was consistent with the prior
year at $1.2m.
Taxation
2025 2024
$m Effective rate % $m Effective rate %
Reported tax charge 27.6 30.7 25.5 34.3
Adjusting items tax charge (1.6) - (0.8) -
Adjusted tax charge 26.0 24.2 24.7 25.5
The Group incurred a tax charge of $26.0m (2024: $24.7m) on adjusted profit
before tax, resulting in an effective tax rate of 24.2% (2024: 25.5%). The
Group's adjusted effective tax rate in 2025 decreased due to the closure of an
overseas tax audit and the subsequent release of an associated provision.
Tax on adjusting items relates primarily to the business transformation
expenditure and amortisation of intangible assets, partially offset by an
uncertain tax position. See Note 6 for further detail.
The medium-term expectation for the Group's adjusted effective tax rate is
around 25%.
Earnings per share
To aid comparability of the underlying performance of the Group, earnings per
share ("EPS") reported under IFRS is adjusted for items classified as
adjusting.
2025 2024
Profit from continuing operations ($m) 62.3 48.8
Adjusting items net of tax ($m) 19.2 23.2
Adjusted profit after tax ($m) 81.5 72.0
Weighted average number of shares for the purpose of basic EPS (m) 583.6 588.9
Effect of dilutive shares options (m) 10.5 11.9
Weighted average number of shares for the purpose of diluted EPS (m) 594.1 600.8
Reported basic EPS (cents) 10.7 8.3
Reported diluted EPS (cents) 10.5 8.1
Adjusted basic EPS (cents) 14.0 12.2
Adjusted diluted EPS (cents) 13.7 12.0
Reported basic EPS and Adjusted diluted EPS were up 28.9% and 14.2% to 10.7
cents (2024: 8.3 cents) per share and 13.7 cents (2024: 12.0 cents) per share
respectively, primarily due to the higher profit after tax and adjusted profit
after tax figures.
Note 9 provides disclosure of EPS calculations, both including and excluding
the effects of adjusting items and the potential dilutive effects of
outstanding and exercisable options.
Distributions to shareholders
The Board has considered the strength of the balance sheet and the near-term
prospects for the business and, in line with the stated dividend policy,
recommended a final dividend of 3.0 cents per share (2024: 2.9 cents), which
will be paid in pounds sterling, resulting in a full-year dividend of 4.3
cents per share. A dividend of 2.23 pence per share has been determined by
converting the 3.0 cents into pounds sterling using the forward rate of
£1.00:$1.3482, as determined on 27 February 2026. If approved at the AGM, the
dividend will be paid on 29 May 2026 to shareholders included on the share
register on 1 May 2026.
During the period the Group also undertook a share buyback programme totalling
$53.8m. This brings total returns to shareholders in the period to c.$79m.
Cash flow
As per the statutory cash flow statement, net cash inflow from operating
activities decreased to $74.2m (2024: $100.0m), primarily as a result of a
higher net working capital outflow, which excludes discontinued operations and
is adjusted for foreign exchange impacts and lower net cash flow from
discontinued operations of $6.7m (2024: $27.3m), which was partially offset by
improved profit from continuing operations.
Net cash flow used in investing activities was $7.3m (2024: $37.5m),
significantly reduced from the prior year, primarily as a result of the
receipt of $52.5m from the sale of the Talc business, made up of $60.2m gross
cash proceeds less cash sold of $7.7m, along with a lower net cash flow from
discontinued operations of $6.7m (2024: $20.8m). These amounts were partially
offset by $11.1m of cash outflow related to the completion of the sale of the
Eaglescliffe site, and $20.1m outflow in relation to the acquisition of
Alchemy Ingredients Limited.
Net cash outflow used in financing activities was $82.4m (2024: outflow
$59.8m), up from the prior year in part due to the Group's share buyback
programme ($53.8m). Movements in debt to a net inflow of $2.2m, from a net
outflow in 2024 of $34.8m, included the repayment of €142m borrowings as
part of the refinancing in May 2025, along with the drawing of a new $110m
term, with a maturity date of May 2029. Dividends paid during the year were
$25.3m, compared with $18.8m in the prior year.
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
operating profit and EBITDA is shown in the APM section.
Adjusted cash flow
$m 2025 2024
Adjusted EBITDA1 149.0 141.7
Change in working capital (21.6) (1.6)
Capital expenditure (22.7) (16.9)
Adjusted operating cash flow 104.7 123.2
Pension payments (2.3) (0.6)
Interest (16.3) (16.8)
Tax (22.1) (26.5)
Adjusting items (22.3) (29.0)
Other2 (0.7) 0.7
Free cash flow 41.0 51.0
Issue of shares, net of share repurchases (53.8) 0.5
Dividends paid (25.3) (18.8)
Acquisitions and disposals 21.3 -
Discontinued operations (1.0) 4.8
Currency fluctuations (10.4) 7.3
Movement in net debt (28.2) 44.8
Net debt at start of year (157.2) (202.0)
Net debt at end of year (185.4) (157.2)
1. Earnings before interest, tax, adjusting items, depreciation and
amortisation.
2. Other includes share-based payments, movement in provisions, movement in
derivatives and payment of lease liabilities.
Adjusted operating cash flow decreased to $104.7m (2024: $123.2m), primarily
driven by higher working capital outflow and higher capital expenditure,
partially offset by an improvement in adjusted EBITDA.
Adjusting items decreased to $22.3m (2024: $29.0m), primarily due to lower
amounts paid in relation to the Fit for the Future restructuring programme,
which was completed during the year.
Free cash flow decreased to $41.0m (2024: $51.0m), primarily driven by reduced
operating cash flow, partially offset by lower cash taxes and lower adjusting
items.
Acquisitions and disposals includes net cash proceeds received or paid for
business acquisitions and disposals. Acquisitions and disposals increased to
$21.3m as a result cash received for the sale of the Talc business, offset by
net of cash paid for the sale of the Eaglescliffe site and Alchemy
acquisition.
Net debt increased to $185.4m (2024: $157.2m), an increase of $28.2m,
following the acquisition of Alchemy and return of cash to shareholders. Net
debt to adjusted EBITDA increased to 1.3x in 2025 on a pre-IFRS 16 basis
(2024: 1.1x).
Balance sheet
$m 31 December 2025 31 December 2024
Intangible fixed assets 603.9 585.9
Tangible fixed assets 169.0 338.0
Working capital 132.5 137.4
Net tax liabilities (74.7) (68.3)
Provisions and retirement benefit obligations 12.8 (29.4)
Financial assets and liabilities 0.3 3.9
Lease liabilities (20.4) (34.7)
Unamortised syndicate fees 3.8 3.7
Net debt (185.4) (157.2)
Net assets held for sale 2.1 (22.3)
Total equity 643.9 757.0
Group equity decreased to $643.9m (2024: $757.0m), primarily driven by lower
fixed assets and higher net debt, partially offset the change lower provisions
and retirement benefit obligations from a net liability to a net asset.
Intangible fixed assets increased by $18.0m, primarily due to the acquisition
of Alchemy Ingredients Limited, partially offset by the sale of the Talc
business. The decrease in tangible fixed assets of $169.0m primarily relates
to the sale of the Talc business.
Working capital, which comprises inventories, trade and other receivables, and
trade and other payables, decreased by $4.9m. The decrease was driven by the
sale of the Talc business, which resulted in lower inventories and receivables
at the end of the year, partially offset by lower payables.
Provisions and retirement benefit obligations changed from a net liability to
a net asset, primarily due to the sale of the Talc business and utilisation of
the restructuring provisions.
Net debt increased primarily as a result of the share buyback, the impact of
the foreign exchange and lower free cash flow, offset by net cash received
from acquisitions and disposals.
Net assets held for sale changed from a net liability to a net asset of $2.1m
primarily as a result of the sale of the Eaglescliffe site. The net asset held
for sale relates to the Middletown site.
Adjusted ROCE (excluding goodwill) improved to 30% (2024: 29%), reflecting
higher adjusted operating profit offset by higher operating capital employed
(see the APM section for more detail).
Trade working capital
2025 2024
$m Days $m Days
Inventory 142.9 144.2 152.5 117.1
Trade receivables 68.9 40.8 78.1 36.0
Trade payables and accruals (88.6) 92.9 (101.0) 77.8
Total trade working capital 123.2 129.6
Average working capital to sales (%) 23.9 23.4
Total trade working capital decreased to $123.2m (2024: $129.6m). The decrease
is primarily driven by the sale of the Talc business, offset by higher
inventories post-sale of the Talc business. The higher post-sale of the Talc
business inventories was a result a strategic build up of inventories to
support growth ambitions and improve customer service experiences, as well as
reflecting higher raw material pricing and manufacturing costs.
Foreign currency
The financial information is presented in US dollars. The main dollar exchange
rates relevant to the Group are set out below.
2025 2024
Year end Average Year end Average
Pounds sterling 0.74 0.76 0.80 0.78
Euro 0.85 0.89 0.97 0.92
Pensions and other post-retirement benefits
$m 2025 2024
UK (19.5) (23.0)
US (2.1) (1.2)
Other 5.5 5.2
Net (surplus)/liability: (16.1) (19.0)
UK plan
The largest of the Group's retirement plans is the UK defined benefit pension
scheme ("UK Scheme"), which at the end of 2025 had a surplus, under IAS 19, of
$19.5m (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 decrease in net surplus was largely driven by
actuarial losses on the plan. Company contributions of $nil (2024: $nil)
reflect the funding agreement reached with the UK trustees following the 2023
triennial valuation, which concluded in 2024.
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 the end of 2025 of $5.4m (2024:
$4.6m), and a post retirement medical plan with a liability of $3.3m (2024:
$3.4m). The US pension plans are smaller than the UK plan. In 2025, the
overall surplus on the US plans increased by $0.9m, primarily as a result of
employer contributions of $1.2m (2024: $0.4m).
Other plans
Other pension plans amounted to $5.5m (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.
Financial assets and liabilities
The Group uses cash flow hedges to manage exposure to interest rate and
commodity price risks, particularly those associated with US dollar and euro
interest payments and aluminium pricing. In 2025, interest rate and commodity
price movements resulted in a net gain from the hedge transactions of $4.5m
(2024: $4.4m) recycled to the income statement.
Net financial assets are represented by net derivative financial assets of
$0.3m (2024: $3.9m), which relate to the valuation of various risk management
instruments.
Events after the balance sheet date
On 3 March 2026, Elementis entered into a share purchase agreement to sell its
pharmaceutical manufacturing business to ABF for an enterprise value of
c.€34m (equivalent to c.$40m). Completion of the transaction is subject to
customary closing conditions and regulatory approvals and is expected to occur
in Q2 2026.
There were no other significant events after the balance sheet date.
Consolidated income statement
For the year ended 31 December 2025
2025 2024(1)
$m
$m
Revenue 597.5 603.8
Cost of sales (317.4) (314.2)
Gross profit 280.1 289.6
Distribution costs (91.6) (98.5)
Administrative expenses (79.5) (95.1)
Operating profit 109.0 96.0
Comprising of:
Adjusted operating profit 126.7 119.2
Adjusting items (17.7) (23.2)
Other expenses(2) (2.6) (2.0)
Finance income 3.0 2.9
Finance costs (19.5) (22.6)
Profit before income tax 89.9 74.3
Tax (27.6) (25.5)
Profit from continuing operations 62.3 48.8
Loss from discontinued operations (107.8) (96.6)
Loss for the year attributable to equity holders of the parent (45.5) (47.8)
Earnings per share
From continuing operations
Basic earnings (cents) 10.7 8.3
Diluted earnings (cents) 10.5 8.1
Adjusted basic earnings (cents) 14.0 12.2
Adjusted diluted earnings (cents) 13.7 12.0
From continuing and discontinued operations
Basic loss (cents) (7.8) (8.1)
Diluted loss (cents) (7.8) (8.1)
1 2024 has been re-presented following the sale of the Talc business.
2 Other expenses comprise administration expenses for the Group's pension
schemes.
Consolidated statement of comprehensive income
For the year ended 31 December 2025
2025 2024(1)
$m
$m
Loss for the year (45.5) (47.8)
Other comprehensive income:
Items that will not be reclassified subsequently to profit and loss:
Remeasurement of retirement benefit obligations (3.1) (14.3)
Deferred tax associated with retirement benefit obligations 0.8 3.5
Items relating to discontinued operations, net of tax - -
Items that may be reclassified subsequently to profit and loss:
Exchange differences on translation of foreign operations 11.4 (23.9)
Effective portion of change in fair value of net investment hedge 0.9 6.5
Effective portion of changes in fair value of cash flow hedges 0.5 1.4
Fair value of cash flow hedges transferred to income statement 0.6 1.8
Tax associated with changes in cash flow hedges 0.3 (0.4)
Exchange differences on translation of share options reserves 0.7 0.1
Items relating to discontinued operations, net of tax (7.0) (5.3)
Other comprehensive income/(loss) 5.1 (30.6)
Total comprehensive loss for the year attributable to equity holders of the (40.4) (78.4)
parent
1 2024 has been re-presented following the sale of the Talc business.
Consolidated balance sheet
as at 31 December 2025
2025 2024
31 December $m
31 December $m
Non-current assets
Goodwill and other intangible assets 603.9 585.9
Property, plant and equipment 169.0 338.0
Derivative financial assets - 1.8
Deferred tax assets 0.6 7.4
Net retirement benefit surplus 26.5 27.6
Total non-current assets 800.0 960.7
Current assets
Inventories 142.9 152.5
Trade and other receivables 81.6 93.3
Derivative financial assets 0.4 3.6
EU State aid tax recoverable 23.7 21.0
Current tax assets 9.3 11.2
Cash and cash equivalents 54.6 59.9
Total current assets 312.5 341.5
Assets classified as held for sale 2.1 6.2
Total assets 1,114.6 1,308.4
Current liabilities
Short-term borrowings (50.0) -
Trade and other payables (92.0) (108.4)
Derivative financial liabilities - (1.5)
Current tax liabilities (16.0) (9.8)
Lease liabilities (4.5) (5.9)
Provisions (1.7) (6.3)
Total current liabilities (164.2) (131.9)
Non-current liabilities
Loans and borrowings (186.2) (219.2)
Retirement benefit obligations (8.6) (8.6)
Deferred tax liabilities (92.3) (98.1)
Lease liabilities (15.9) (28.8)
Provisions (3.4) (42.1)
Derivative financial liabilities (0.1) -
Total non-current liabilities (306.5) (396.8)
Liabilities classified as held for sale - (22.7)
Total liabilities (470.7) (551.4)
Net assets 643.9 757.0
Equity
Share capital 51.3 52.7
Share premium 239.7 239.7
Other reserves 60.5 51.5
Retained earnings 292.4 413.1
Total equity attributable to holders of the parent 643.9 757.0
Total equity 643.9 757.0
Consolidated statement of changes in equity
for the year ended 31 December 2025
2025 2024
Share capital $m Share premium $m Other reserves $m Retained earnings $m Total equity $m Share capital $m Share premium $m Other reserves $m Retained earnings $m Total equity $m
Balance at 1 January 52.7 239.7 51.5 413.1 757.0 52.5 239.2 70.1 485.5 847.3
Comprehensive income:
Loss for the year - - - (45.5) (45.5) - - - (47.8) (47.8)
Other comprehensive income:
Exchange differences - - 13.0 - 13.0 - - (17.3) - (17.3)
Effective portion of changes in fair value of cash flow hedges - - 0.6 - 0.6 - - 2.3 - 2.3
Fair value of cash flow hedges transferred to the income statement - - (4.5) - (4.5) - - (4.4) - (4.4)
Tax associated with changes in cash flow hedges - - - 0.3 0.3 - - - (0.4) (0.4)
Remeasurements of retirement benefit obligations - - - (3.1) (3.1) - - - (14.3) (14.3)
Deferred tax associated with retirement benefit obligations - - - 0.8 0.8 - - - 3.5 3.5
Recycling of deferred foreign exchange gains on disposal - - (2.0) - (2.0) - - - - -
Transfer - - (6.4) 6.4 - - - (5.3) 5.3 -
Total other comprehensive income/(loss) - - 0.7 4.4 5.1 - - (24.7) (5.9) (30.6)
Total comprehensive income/(loss) - - 0.7 (41.1) (40.4) - - (24.7) (53.7) (78.4)
Transactions with owners:
Issue of shares by the Company 0.1 - - 0.3 0.4 0.2 0.5 - - 0.7
Purchase of shares by the Company and Employee Share Options Trust ("ESOT") (1.5) - 1.5 (54.1) (54.1) - - - - -
Dividends paid - - - (25.3) (25.3) - - - (18.8) (18.8)
Deferred tax on share-based payments recognised within equity - - - (0.5) (0.5) - - - 0.1 0.1
Share-based payments - - 7.0 - 7.0 - - 5.7 - 5.7
Fair value of cash flow hedges transferred to net assets - - (0.2) - (0.2) - - 0.4 - 0.4
Total transactions with owners (1.4) - 8.3 (79.6) (72.7) 0.2 0.5 6.1 (18.7) (11.9)
Balance at 31 December 51.3 239.7 60.5 292.4 643.9 52.7 239.7 51.5 413.1 757.0
Consolidated cash flow statement
for the year ended 31 December 2025
2025 2024(1)
$m
$m
Operating activities:
Profit from continuing operations 62.3 48.8
Adjustments for:
Other expenses 2.6 1.9
Gain on disposal of Eaglescliffe site (6.9) -
Finance income (3.0) (2.9)
Finance costs 19.5 22.6
Tax charge/(credit) 27.6 25.7
Depreciation and amortisation 30.7 31.3
Loss on disposal of property, plant and equipment 0.8 1.0
Decrease in provisions and financial liabilities (11.3) (16.3)
Pension payments net of current service cost (2.3) (0.6)
Share-based payments expense 6.9 6.1
Operating cash flow before movement in working capital 126.9 117.6
(Increase)/decrease in inventories (7.7) 5.1
(Increase)/decrease in trade and other receivables (7.6) 8.2
Decrease in trade and other payables (4.7) (14.8)
Cash generated by operations 106.9 116.1
Income taxes paid (22.1) (26.5)
Interest paid (17.3) (16.9)
Net cash flow used in operating activities from discontinued operations 6.7 27.3
Net cash flow from operating activities 74.2 100.0
Investing activities:
Interest received 1.0 0.2
Purchase of property plant and equipment (22.3) (16.5)
Purchase of intangible assets (0.6) (0.4)
Disposal of business 41.4 -
Acquisition of business (20.1) -
Net cash flow used in investing activities from discontinued operations (6.7) (20.8)
Net cash flow used in investing activities (7.3) (37.5)
Financing activities:
Issue of shares by the Company 0.3 0.5
Repurchases of shares by the Company and ESOT (54.1) -
Repayment of term loans (244.0) (25.0)
Proceeds from new term loans 166.5 -
Net movement on other loans and borrowings 79.7 (9.8)
Dividends paid (25.3) (18.8)
Payment of interest on lease liabilities (0.9) (1.1)
Payment of gross lease liabilities (3.8) (3.7)
Net cash flow used in financing activities from discontinued operations (0.9) (1.9)
Net cash flow used in financing activities (82.5) (59.8)
Net increase in cash and cash equivalents (15.6) 2.7
Cash and cash equivalents at 1 January 59.9 65.8
Foreign exchange on cash and cash equivalents 4.4 (2.7)
Cash and cash equivalents classified as held for sale 5.9 (5.9)
Cash and cash equivalents at 31 December 54.6 59.9
1 2024 has been re-presented following the sale of the Talc business.
Notes to the financial statements
1. Preparation of the preliminary announcement
The financial information in this statement does not constitute the Company's statutory accounts for the years ended 31 December 2025 or 2024 but is derived from those accounts. Statutory accounts for 2024 have been delivered to the Registrar of Companies, and those for 2025 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
This preliminary announcement was approved by the Board of Directors on 4 March 2026.
2. Basis of preparation
Elementis plc (the "Company") is incorporated in the UK. The information within this document has been prepared based on the Company's consolidated financial statements which are prepared in accordance with International Financial Reporting Standards as adopted by the UK (adopted IFRS) and consistent with the accounting policies as set out in the previous consolidated financial statements.
The Group's financial statements have been prepared on the historical cost basis except that derivative financial instruments are stated at their fair value. Non-current assets held for sale are stated at the lower of carrying amount and fair value less costs to sell. The preparation of financial statements requires the application of estimates and judgements that affect the reported amounts of assets and liabilities, revenues and costs and related disclosures at the balance sheet date.
The accounting policies adopted are consistent with those of the previous financial year.
The comparative financial statements have been re-presented following the sale
of the Talc business and classification as a discontinued operation.
Going concern
The Group and Company financial statements have been prepared on the going concern basis, as the Directors are satisfied that the Group and Company have adequate resources to continue to operate for at least a period of 12 months from the date of approval of the financial statements. An explanation of the Directors' assessment of using the going concern basis is given in the Directors' report in the Annual Report and Accounts 2024 which will be made available to shareholders on 25 March 2024.
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.
3. Finance income
2025 2024
$m
$m
Interest on bank deposits 0.7 0.3
Pension and other post retirement liabilities 1.1 1.4
Interest on EU state aid receivable 1.2 1.2
Total finance income 3.0 2.9
4. Finance costs
$m 2025 2024
$m
$m
Interest on bank loans 17.5 20.0
Unwind of discount on provisions 1.1 1.5
Interest on lease liabilities 0.9 1.1
Total finance costs 19.5 22.6
5. Adjusting items
2025 2024
$m
$m
Business transformation 7.5 6.6
Acquisitions and disposals (6.4) 0.2
St. Louis operational transformation 3.5 -
Cloud and data transformation 2.2 2.1
Early termination of contract 1.9 -
St. Louis fire 0.3 1.3
Environmental provisions 0.5 1.8
Settlement of Brazil customs matter - 3.0
Amortisation of intangibles arising on acquisition 8.2 8.2
17.7 23.2
Unwind of discount on provisions 1.1 0.4
Interest on EU state aid receivable (1.2) (1.2)
Tax charge in relation to adjusting items 1.6 0.8
19.2 23.2
A number of items have been recorded under 'adjusting items' by virtue of
their size and/or one-time nature, in line with our accounting policy in Note
1 to the consolidated financial statements, 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 segments are
performing as they achieve consistency and comparability between reporting
periods. The net impact of these items on the Group profit from continuing
operations for the year is a debit of $19.2m (2024: $23.2m). The items fall
into a number of categories, as summarised below:
Business transformation - costs of $7.5m (2024: $6.6m) were recognised and
principally include:
Costs of $4.4m (2024: $nil) in relation to transitionary costs of the exiting
CEO and other related restructuring costs. These costs primarily relate to
one-off advisory and consultancy fees, salary, and LTIP-related charges in
relation to the former CEO, and salary and LTIP-related costs in relation to
subsequent senior leadership changes. Additional costs are expected to be
incurred during the first quarter of 2026.
Costs of $2.3m (2024: $4.1m) in relation to the Fit for the Future
restructuring programme which was announced in September 2023. Of the costs
recognised in 2025, additional charges of $1.3m (2024: $0.7m) in relation to
the restructuring provision, along with an additional $1.0m (2024: $3.4m) of
costs incurred. Including discontinued operations, costs of $29.6m have been
recognised since 2023 and the programme was concluded during 2025.
Costs of $0.8m (2024: $1.6m) in relation to the closure of the Middletown
plant and preparation of the site for sale. Costs of $2.4m have been
recognised since 2024.
Acquisitions and disposals - a net credit of $6.4m (2024: cost of $0.2m) was
recognised in relation to acquisitions and disposals. This principally
included a credit of $6.9m in relation to the gain on sale of the Eaglescliffe
site and $0.3m of transaction costs incurred in relation to the acquisition of
Alchemy Ingredients Limited.
St. Louis operational transformation - costs of $3.5m (2024: $nil) were
recognised in relation to a transformation programme at the Group's St. Louis
plant which was initiated and completed in 2025. These costs primarily relate
to advisory fees and inventory written off due to operational changes made to
the St. Louis manufacturing plant as a result of the transformation programme.
Cloud and data transformation - costs of $2.2m (2024: $2.1m) were recognised
and include:
Costs of $1.6m (2024: $2.1m) in relation to the data transformation programme
which was initiated to develop a new internal data analytics platform to
deliver a unified global view of our data, leveraging advance analytical
technology. Costs of $3.7m have been recognised since 2024 and the new
platform is expected to be fully implemented during 2026.
Costs of $0.7m (2024: $nil) in relation to upgrading the Group's Enterprise
Resource Planning ("ERP") system. The upgraded ERP system is expected to be
fully implemented during 2027.
Early termination of contract - costs of $1.9m (2024: $nil) were recognised in
respect of an early termination fee paid for one of the Group's contracts.
St. Louis fire - costs of $0.3m ($1.3m) were recognised in respect of the fire
at the St. Louis plant which occurred in November 2024. These costs relate to
the write off of items of property, plant and equipment that were damaged as a
result of a fire.
Environmental provisions - charges of $0.5m (2024: $1.8m) were recognised in
respect of the Group's environmental provision. The environmental provision is
calculated on a discounted cash flow basis, reflecting the time period over
which spending is estimated to take place. The movement in the provision
relates to changes in discount rates, which have resulted in a reduction of
$0.8m (2024: $2.2m), and extra remediation work identified in the year which
has resulted in a $1.3m (2024: $4.0m) increase to the liability. Also included
within adjusting items, within finance costs, is a charge of $1.1m in relation
to the unwind of the discount on the provision.
Amortisation of intangibles arising on acquisition - amortisation of $8.2m
(2024: $8.2m) has been recognised in relation to the Group's acquired
intangible assets. As in previous years, these are included in adjusting items
as they are a non-cash charge arising from historical investment activities.
Interest on EU state aid receivable - finance income of $1.2m (2024: $1.2m)
has been recognised in respect of interest due to the Group.
Tax on adjusting items - this is the net impact of tax relating to the
adjusting items listed above.
To support comparability with the financial statements as presented in 2025, a
reconciliation to the adjusted consolidated income statement is shown below.
2025 2024
Profit and loss $m Adjusting items $m Adjusted profit and loss $m Profit and loss $m Adjusting items $m Adjusted profit and loss $m
Revenue 597.5 - 597.5 603.8 - 603.8
Cost of sales (317.4) - (317.4) (314.2) - (314.2)
Gross profit 280.1 - 280.1 289.6 - 289.6
Distribution costs (91.6) - (91.6) (98.5) - (98.5)
Administrative expenses (79.5) 17.7 (61.8) (95.1) 23.2 (71.9)
Operating profit 109.0 17.7 126.7 96.0 23.2 119.2
Other expenses (2.6) - (2.6) (2.0) - (2.0)
Finance income 3.2 (1.2) 2.0 2.9 (1.2) 1.7
Finance costs (19.7) 1.1 (18.6) (22.6) 0.4 (22.2)
Profit before income tax 89.9 17.6 107.5 74.3 22.4 96.7
Tax (27.6) 1.6 (26.0) (25.5) 0.8 (24.7)
Profit from continuing operations 62.3 19.2 81.5 48.8 23.2 72.0
Earnings per share
From continuing operations
Basic earnings (cents) 10.7 3.3 14.0 8.3 3.9 12.2
Diluted earnings (cents) 10.5 3.2 13.7 8.1 3.9 12.0
To support comparability with the financial statements as presented in 2025, a
reconciliation from operating profit/(loss) to adjusted operating
profit/(loss) by segment is shown below for each year.
2025 2024
Coatings Personal Care Segment totals Central costs $m Total Coatings $m Personal Care Segment totals $m Central costs $m Total
$m
$m
$m
$m
$m
$m
Operating profit/(loss) 64.7 63.4 128.1 (19.1) 109.0 73.5 49.3 122.8 (26.8) 96.0
Adjusting items:
Business transformation - 0.8 0.8 6.7 7.5 0.5 4.2 4.7 2.1 6.8
Acquisitions and disposals - 0.4 0.4 (6.8) (6.4) - - - - -
St. Louis operational transformation 3.5 - 3.5 - 3.5 - - - - -
Cloud and data transformation - - - 2.2 2.2 - - - 2.1 2.1
Early termination of contract 1.9 - 1.9 - 1.9 - - - - -
St. Louis fire 0.3 - 0.3 - 0.3 1.3 - 1.3 - 1.3
Environmental provisions - - - 0.5 0.5 - - - 1.8 1.8
Settlement of Brazil customs matter - - - - - 3.0 - 3.0 - 3.0
Amortisation of intangibles arising on acquisition - 8.2 8.2 - 8.2 0.1 8.1 8.2 - 8.2
Adjusted operating profit 70.4 72.8 143.2 (16.5) 126.7 78.4 61.6 140.0 (20.8) 119.2
6. Income tax expense
2025 2024
$m
$m
Current tax:
UK corporation tax 26.4 12.9
Overseas corporation tax 2.3 7.6
Adjustments in respect of prior years:
United Kingdom (0.6) 0.7
Overseas 1.2 0.2
Total current tax 29.3 21.4
Deferred tax:
United Kingdom (0.1) 6.0
Overseas (1.4) (1.5)
Adjustment in respect of prior years:
United Kingdom - -
Overseas (0.2) (0.4)
Total deferred tax (1.7) 4.1
Income tax expense for the year 27.6 25.5
Comprising:
Income tax expense for the year 27.6 25.5
Adjusting items(1):
Overseas taxation on adjusting items (7.4) 0.6
UK taxation on adjusting items 9.0 0.2
Taxation on adjusting items 1.6 0.8
Income tax expense for the year after adjusting items 26.0 24.7
1 See Note 5 for details of adjusting items.
The tax charge on profits represents an effective rate of 30.7% (2024: 34.3%)
and an effective tax rate after adjusting items of 24.2% (2024: 25.5%).
The tax impact of the adjusting items outlined within Note 5 and within the
consolidated income statement relates to the following:
2025 2024
Gross Tax impact $m Gross Tax impact $m
$m
$m
Business transformation 7.5 1.5 6.6 1.7
Acquisitions and disposals (6.4) - 0.2 -
St. Louis operational transformation 3.5 0.7 - -
Cloud and data transformation 2.2 0.5 2.1 0.6
Early termination of contract 1.9 0.4 - -
St. Louis fire 0.3 0.1 1.3 0.3
Environmental provisions 0.5 0.1 1.8 -
Settlement of Brazil customs matter - - 3.0 -
Amortisation of intangibles arising on acquisition 8.2 2.4 8.2 2.5
Interest on EU state aid receivable (1.2) (0.3) (1.2) (0.3)
Unwind of discount on provision 1.1 0.2 0.4 0.1
Uncertain tax provisions - (7.2) - -
Derecognition of deferred tax asset regarding Eaglescliffe - - - (5.7)
Tax charge 17.6 (1.6) 22.4 (0.8)
The Group is international and has operations across a range of jurisdictions.
Accordingly, tax charges of the Group in future periods will be affected by
the profitability of operations in different jurisdictions and changes to tax
rates and regulations in the jurisdictions within which the Group has
operations. The Group's adjusted effective tax rate in 2025 is broadly in line
with the prior year. The medium-term expectation for the Group's adjusted
effective tax rate is around 25%.
The Group is below the revenue threshold for the Pillar 2 legislation to apply
and therefore there is no impact on the financial statements.
The total charge for the year can be reconciled to the accounting profit as
follows:
2025 2024
$m % $m %
Profit before tax 89.9 74.3
Tax at 25% (2024: 25.0%) 22.5 25.0 18.6 25.0
Difference in overseas effective tax rates 0.6 0.7 (0.3) (0.4)
Income not taxable (2.2) (2.4) (2.8) (3.8)
Expenses not deductible for tax purposes 6.0 6.7 3.2 4.3
Adjustments in respect of prior years 0.4 0.4 0.4 0.5
Uncertain tax provisions(2) 5.1 5.6 - -
Movement in unrecognised deferred tax(1) (4.8) (5.3) 6.4 8.7
Total charge and effective tax rate for the year 27.6 30.7 25.5 34.3
1 The current year movement in unrecognised deferred tax relates to foreign
exchange losses brought into tax as a result of the settlement of loans
previously regarded as quasi-equity. The prior year movement in unrecognised
deferred tax relates to the derecognition of the deferred tax asset in respect
of the Eaglescliffe environmental provision ahead of the disposal of the
Eaglescliffe site to Flacks Group.
2 The uncertain tax provisions are the net of a provision of $10.8m made
during the period in respect of an open HMRC tax audit and the reversal of a
$5.7m provision in respect of a German Organschaft created in 2020.
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:
Earnings:
2025 2024
$m
$m
Adjusted earnings 81.5 72.0
Adjusting items net of tax (19.2) 23.2
Earnings for the purpose of basic earnings per share 62.3 48.8
Loss from discontinued operations (107.8) (96.6)
Loss from continuing and discontinued operations (45.5) (47.8)
Number of shares:
2025 2024
m
m
Weighted average number of shares for the purpose of basic earnings per share 583.6 588.9
Effect of dilutive share options 10.5 11.9
Weighted average number of shares for the purpose of diluted earnings per 594.1 600.8
share
The dilutive loss from continuing and discontinued operations per share
calculation, does not include the impact of the 10.5m dilutive share options
(2024: 11.9m), as the inclusion of these potential shares would have an
anti-dilutive impact on the diluted loss per share from continuing and
discontinued operations; it would decrease the diluted loss per share from
continuing and discontinued operations.
Earnings per share:
2025 2024
cents
cents
Earnings per share from continuing operations:
Basic earnings 10.7 8.3
Diluted earnings 10.5 8.1
Adjusted basic earnings 14.0 12.2
Adjusted diluted earnings 13.7 12.0
Earnings per share from discontinued operations:
Basic loss from discontinued operations (18.5) (16.4)
Diluted loss from discontinued operations (18.5) (16.4)
Earnings per share from continuing and discontinued operations:
Basic loss from continuing and discontinued operations (7.8) (8.1)
Diluted loss from continuing and discontinued operations (7.8) (8.1)
Adjusted basic earnings per share from continuing and discontinued operations
in 2024 was 13.6 cents per share and Adjusted diluted earnings per share from
continuing and discontinued operations in 2024 was 13.3 cents per share.
8. 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 will move to settle some aspects of the audit,
reflected in the tax provision booked within the 2025 Annual Report and
Accounts.
On other matters the Group continues to come to a different conclusion to
HMRC, based on legal advice received, and will continue discussions. At this
stage management have concluded that there is a possible obligation with an
outcome ranging from $0m to $32.5m.
During Q4 2023, an environmental incident occurred at the Eaglescliffe site,
which, following investigation during H1 2024, is likely to require additional
remediation work at the site and 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 2025, Flacks Group are responsible for the cost
of any remediation and associated fine. As the terms of the sale and purchase
agreement state that Elementis must pay any amount due and then reclaim the
amount from Flacks Group via the indemnity clause we have disclosed the event.
Management have concluded at this stage that the obligation cannot be measured
with sufficient reliability.
9. 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% 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.
10. Events after the balance sheet date
On 3 March 2026, Elementis entered into a share purchase agreement to sell its
pharmaceutical manufacturing business to Associated British Foods for an
enterprise value of c.€34m (equivalent to c.$40m). Completion of the
transaction is subject to customary closing conditions and regulatory
approvals and is expected to occur in Q2 2026.
There were no significant events after the balance sheet date.
Alternative performance measures and unaudited information
Alternative performance measures
A reconciliation from reported profit for the year to adjusted earnings before
interest, tax, depreciation and amortisation (Adjusted EBITDA) is provided to
support understanding of the summarised cash flow included within the Finance
Report.
2025 2024
$m
$m
Loss for the year (45.5) (47.8)
Adjustments for:
Loss from discontinued operations 107.8 96.6
Finance income (3.2) (2.8)
Finance costs and other expenses 22.3 24.4
Tax charge 27.6 25.6
Adjusting items 17.7 23.2
Adjusted operating profit 126.7 119.2
Depreciation and amortisation 30.5 30.8
Excluding intangibles arising on acquisition (8.2) (8.2)
Adjusted EBITDA 149.0 141.8
There are also a number of key performance indicators ("KPIs") 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.
Adjusted operating cash flow
Adjusted operating cash flow is defined as the net cash flow from operating
activities less net capital expenditure but excluding income taxes paid or
received, interest paid or received, loss on disposal of property, plant and
equipment, movement in provisions and financial liabilities, pension
contributions net of current service cost, share-based payment expense and
adjusting items.
2025 2024
$m
$m
Net cash flow from operating activities 74.2 100.0
Less:
Capital expenditure (22.9) (16.9)
Add:
Net cash flow used in operating activities from discontinued operations (6.7) (27.3)
Income tax paid or received 22.1 26.5
Interest paid 17.3 16.9
Loss on disposal of property, plant and equipment 0.8 0.9
Decrease/(increase) in provisions and financial liabilities 11.1 16.4
Pension contributions net of current service cost 2.3 0.6
Share-based payments expense (6.9) (6.1)
Cash adjusting items 22.3 29.0
Less: cash adjusting items included in adjustments above (8.9) (16.8)
Adjusted operating cash flow 104.7 123.2
Adjusted operating cash conversion
Adjusted operating cash conversion is defined as adjusted operating cash flow
divided by adjusted operating profit.
2025 2024
$m
$m
Adjusted operating profit 126.7 119.2
Adjusted operating cash flow 104.7 123.2
Adjusted operating cash conversion 83% 103%
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 group profit before tax
Adjusted group profit before tax is defined as the adjusted profit for the
year plus the tax on adjusting items.
Adjusted return on operating capital employed
Adjusted return on capital employed ("ROCE") is defined as adjusted operating
profit from total operations divided by operating capital employed, expressed
as a percentage. Operating capital employed comprises fixed assets (excluding
goodwill but including tax recoverable), working capital and operating
provisions. Operating provisions include self-insurance and environmental
provisions but exclude retirement benefit obligations.
2025 2024(1)
$m
$m
Adjusted operating profit 126.7 119.2
Fixed assets excluding goodwill 301.7 301.5
Working capital 132.7 115.0
Operating provisions (5.1) (8.6)
Operating capital employed 429.3 407.9
Adjusted return on capital employed % 30% 29%
1 2024 has been represented following the sale of the Talc business.
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.
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 adjusted operating
profit to sales.
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.
Net debt/EBITDA
To support a full understanding of the performance of the Group, the
information below provides the calculations of Net debt/EBITDA.
2025 2024(1)
$m
$m
Revenue 597.5 603.8
Adjusted operating profit 126.7 119.2
Adjusted operating margin 21.2% 19.7%
Net Debt/EBITDA pre-IFRS 16
Adjusted EBITDA 149.0 141.8
IFRS 16 adjustment (4.7) (4.8)
Adjusted EBITDA pre-IFRS 16 144.3 137.0
Net Debt(2) 185.4 157.2
Net Debt/EBITDA(3) pre-IFRS 16 1.3 1.1
Net Debt/EBITDA post-IFRS 16
Adjusted EBITDA 149.0 141.8
Net Debt(2) 185.4 157.2
IFRS 16 lease liabilities 20.4 27.2
Net Debt including lease liabilities 205.8 184.4
Net Debt/EBITDA(2) post-IFRS 16 1.4 1.3
1 2024 has been re-presented following the sale of the Talc business.
2 Net debt excludes lease liabilities.
3 Net Debt/EBITDA, where EBITDA is the adjusted EBITDA on continuing
operations of the Group.
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