(Alliance News) - Elementis PLC on Tuesday said demand recovered in the second half of 2020, though the speciality chemicals firm still posted a double-digit fall in revenue, a swing to loss, and decided against paying a dividend.
Revenue in 2020 was down 14% to USD751.3 million from USD873.6 million in 2019. Elementis swung to a pretax loss of USD68.8 million from a USD61.0 million profit.
The revenue decline and an 86% rise in administrative expenses to USD172.9 million devastated the company's bottom line.
"In 2020 we faced challenging demand conditions due to the unprecedented impact of Covid-19 on communities around the world," Chief Executive Officer Paul Waterman said.
Elementis noted a "demand recovery" in the second half of the year.
Elementis has customers in the personal care, energy and coatings industry. It also has a talc and chromium unit. Talc is often used in motor vehicles, while chromium can be utilised in metal and plastic finishing.
By unit, the energy arm saw the largest revenue fall, at 49%. Elementis noted the "lower drilling activity" in 2020.
The company decided against a payout, following a 2.8 cents dividend in 2019.
"The board recognises the importance of dividends to shareholders and will look to reinstate payments once material progress is made on reducing financial leverage," Elementis said.
Looking to 2021, the company said it has made an "encouraging" start, though is still faced with Covid-19 uncertainty.
Elementis shares were 3.3% lower at 119.86 pence each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Elementis (ELM)