devonplay
31 Jul 2018
Reignited Growth ELEMENTIS plc INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2018 Good H1 performance and 2018 outlook unchanged Reignite Growth strategy delivering a higher quality Elementis with attractive growth potential. Good growth in first half in line with expectations Revenue from continuing operations up 10% from $384m to $421m, driven by good performance in Personal Care and Coatings. Statutory operating profit increased by 10% to $56m, and adjusted operating profit increased 16% to $68m with improved profitability in Coatings along with growth in the high margin Personal Care business despite raw material cost inflation. Continued strong cash generation - net debt to adjusted EBITDA¹ reduces to 1.7x (2.3x at 30 June 2017). Interim dividend of 2.95c per share declared, up 9% on the prior year. Good cash generation and increasing dividend by nearly 10% - I like the sound of that! DL
devonplay
16 Jul 2018
Acquisition of Mondo Minerals - supplemental information New presentation available of the site [link] I’m just downloading it now. DL
devonplay
29 Jun 2018
Proposed $600m acquisition of mondo and $280m rights issue ELEMENTIS PLC PROPOSED $600M ACQUISITION OF MONDO AND $280M RIGHTS ISSUE CREATING A HIGHER QUALITY, HIGHER MARGIN GROUP WITH ATTRACTIVE GROWTH POTENTIAL Summary · Elementis plc (“Elementisâ€, or the “Company†and, together with its subsidiaries, the “Groupâ€), a global specialty chemicals company, is pleased to announce that it has reached an agreement in principle in relation to the proposed acquisition of Mondo Minerals B.V. known as “Mondo†a leading integrated producer of industrial talc additives (the “Acquisitionâ€). The Acquisition and the entry into the transaction documentation is subject to Mondo having completed the customary consultation procedures with its works council. · The offer price values Mondo at an enterprise value of $600 million on a cash free, debt free basis and represents a multiple of 13.1 times 2018 year to date EBITDA¹. · Mondo is a leading integrated producer of industrial talc additives currently owned by Advent International. Through the transformation of its high quality, long duratiotalc resources via proprietary flotation process know how and formulation expertise, Mondo creates reliably uniform and high purity additives, and has a strong track record of growth. In 2017 Mondo generated revenues of EUR 122 million and EBITDA of EUR 31 million with an EBITDA margin of 25%. The Company believes Mondo’s business has attractive growth prospects and is showing good momentum in the current year. · The Company believes that the Acquisition represents an exceptional opportunity for Elementis to strengthen its position as a leading additives company underpinned by sustainable competitive advantages and significant growth opportunities. DL
devonplay
25 Apr 2017
And the good news of the day.... "In our Chromium segment there were some indications of improved demand outside North America."DL
pharmaspecialist
10 Feb 2017
Acquisition looks sensible Today's acquisition of SummitReheis looks good according to the financial expectations released by Elementis and makes the company even less reliant on the oil industry. My only concern would be if there is a trend towards more natural deodorants which do not contain aluminium or zirconium but I am sure natural deodorants currently account for only a tiny percentage of sales and that Elementis would have done due diligence on this. There is also plenty of other diversification offered by the acquisition including a move into the dental sector which I guess must have good margins. I hope Elementis does not see a need to maintain any special dividend as it would be better to pay down debt arising from the acquisition rather than give money away. Have held for many years and still believe this company has good long term prospects.
devonplay
07 Jul 2016
Resilience I'm still surprised the price is holding up so well.I've been a shareholder for ever, but I'm still not tempted to top up at these levels.Latest brokers forecast I've seen set a target at 200pI have more like 186 in mind.Until then, best avoided.DL
Simbrad
27 Jun 2016
"In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction in the UK could therefore be..." Singer note just out on research tree
nk1999
24 Jun 2016
Times- Tempus "ElementisElementis seems to specialise in announcing the blindingly obvious and then seeing the market take it entirely amiss. The speciality chemicals producer serves a range of industries. Yesterday’s trading statement makes it clear that all is progressing well enough across most of the group, Asia Pacific is returning to growth and even some stability is returning to its oilfield activities after the inevitable downturn in the wake of the crude price collapse.Its chromium division sells in areas such as automotive production and leather tanning and, particularly in eastern Europe, the strong dollar has been a problem, making prices less competitive against local competition. The Russian and Kazakh currencies have been especially affected. The company has warned about this twice this year already, but the shares still fell 17¾p to 208¾p.Elementis hands out half its year-end cash balances to investors. The rate of cash build-up and so the potential for this year’s special dividend are unchanged and this means the shares offer a 5.4 per cent yield. This is attractive but I would worry about further share price falls.MY ADVICE AvoidWHY Potential for further surprises is there"
devonplay
22 Jun 2016
Re: Trading Statement I was tempted to pick more up in the recent low 200's, but held off.I'm not rushing in at the moment and I am waiting on 190's/180's.Its probably an over reaction, but hey, those are what create opportunities for private investors.I'm not selling, but if you are worried about a short term loss, then it's a weak SELL or if you bought on the recent Investors Chronicle BUY tip expecting a quick up move, I'd consider taking a small loss and looking for other quick trades.DL
Meanbugger
22 Jun 2016
Trading Statement Another share that will be down by 10-15% after a negative trading statement. Dollar strength, margin pressure in Chromium and Eastern Europe all hitting the company hard.
soi
28 Jul 2015
ELM long HiOpened a ELM long position at 252.33I do not know much about the company, just really taking a chance on the recent fall being overdone.It seems OK but could be wrong of course.All the Bestsoi
pharmaspecialist
26 Jun 2015
Re: Price fall I think that the disappointing trading statement from Elementis needs to be seen in context. Remember that the financial performance for the year to 31 December 2014 was strong, with basic eps up over 60% so this might explain why the rating of the company was higher than you might expect for a typical cyclical company (although I would argue that Elementis is not a typical cyclical). I would suggest that there has been no fundamental change in the business so I will continue to hold, but I would suggest that there will need to be a recovery in demand for Elementis' oil industry products before the share price recovers.
II Editor
26 Jun 2015
NEW ARTICLE: Be warned: Greece is not the only crisis in town "Should you fret or yawn over Greece? Negotiations appear to have foundered after the leftist Greek government tried to shift revenue-raising onto business taxation, but the Troika wanted a more serious cut in state spending. Ideologically they ..."[link]
devonplay
25 Jun 2015
Re: Price fall I believe that the case..opportunity to add more.DL
The Sandpiper
25 Jun 2015
Price fall Surely this fall has been overdone.
