Elementis PLC - London-based speciality chemicals - Says trading in three months to end of March is "positive" as it unveiled a strategic review of its Chromium business.
"The review will establish whether the full potential of Chromium can best be delivered as part of Elementis, or, via a full or partial divestment. It will consider the practicality of all options, whilst prioritising the best interests of all stakeholders, including employees, customers and shareholders," the firm says. Chromium is used to harden steel and to make stainless steel. Elementis has aerospace and refractory customers for the business.
Turning to recent trading, Elementis says revenue is up 7% in the recent three-month period on an underlying basis, driven by pricing actions, new business wins and continued demand recovery in Personal Care.
"We have made a good start to the year and will continue to maintain our focus on self-help actions and effectively managing the challenging external supply chain environment, demand uncertainties and rising inflation. We remain on-track to deliver USD50 million of new business opportunities, over 20 new products and progress towards USD10 million of additional efficiency savings by 2023," says Chief Executive Paul Waterman.
Current stock price: 119.60 pence, down 1.6% on Tuesday
12-month change: down 18%
By Lucy Heming; lucyheming@alliancenews.com
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Elementis (ELM)