The Elementis Board recognise the importance of a dividend to their shareholders. However, given the elevated financial leverage and continued COVID-19 related macroeconomic uncertainty the Board has decided it is prudent to preserve cash and will not be declaring an interim dividend for 2021. The Board will keep future dividends under review and will restart payments as soon as it is appropriate to do so.
Other financial highlights include:
Revenue up 17% (up 12% on an underlying basis) from COVID-19 impacted H1 2020 ($387m) to $452m driven by improved industrial demand, customer restocking and currency tailwinds.
Adjusted operating profit up 29% (21% on an underlying basis) to $54m with strong operational performance and underlying revenue growth partially offset by cost increases. Profit after tax of $28m, up from a loss of $51m in the prior year period due to performance improvement and a $66m reduction in adjusting items.
Net debt ($415m) in line with 31 December 2020 ($408m) as earnings growth and disciplined working capital management offset $20m EU state aid payment. Leverage ratio (3.0x net debt/EBITDA) declining and forecast to reduce further during the second half.
