Elementis PLC has released its trading update for the three months and year ended 31 December 2023. The company's performance in the fourth quarter was resilient, with significant profit and revenue growth compared to the same period in 2022. As a result, the adjusted operating profit for the financial year 2023 is expected to be slightly ahead of expectations, ranging between $102-104 million, an increase from the prior year's $100.5 million.
The implementation of growth and efficiency platforms presented at the November 2023 Capital Markets Day is on track, and the company is committed to achieving its financial targets, including an operating margin of above 19% by 2026. Additionally, the company has made substantial progress in deleveraging, with net debt at the end of the financial year 2023 anticipated to be approximately $201 million, down from $367 million at the end of 2022. This represents a leverage ratio of approximately 1.5x net debt to EBITDA, down from 2.2x at the start of the year.
Elementis PLC's full-year 2023 results will be released on 7 March 2024. For further information, investors can contact Eva Hatfield at Elementis plc.