UK exporters have generally been boosted by the weaker pound. Not so much Elementis (ELM), which manufactures much of its chemicals in North America and sells them around the world. Volumes and margins at the group's chromium segment were thus hurt by a strengthening US dollar. Underlying profitability within that business is expected to be flat through 2017, as the price of chrome ore increased significantly towards the end of last year, prompting price increases to prop up margins.
Matters were no better at the surfactants segment, where constant-currency sales were down 19 per cent due to faltering end-markets in Asia. A weakened average oil price weighed on energy revenue, although sales gathered momentum during the second half as crude prices stabilised. The large speciality products division, which accounts for more than two-thirds of group sales, fared better, contributing the lion's share of the $94.2m (£75.6m) in adjusted operating profit, although this figure was 22 per cent adrift of the 2015 comparative.
N+1 Singer expects pre-tax profit of £106m and EPS of 18.1p in 2017 (from £89.7m and 12.8p in 2016).
| ELEMENTIS (ELM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 286.3p | MARKET VALUE: | £1.33bn | |
| TOUCH: | 286.1p-286.5p | 12-MONTH HIGH: | 312p | LOW: 180p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 135¢* | NET CASH: | $78m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢)** |
|---|---|---|---|---|
| 2012 | 757 | 133 | 22.2 | 7.77 |
| 2013 | 777 | 134 | 23.3 | 8.07 |
| 2014 | 790 | 148 | 38.1 | 8.45 |
| 2015 | 677 | 121 | 20.5 | 8.45 |
| 2016 | 660 | 75.5 | 14.7 | 8.45 |
| % change | -3 | -38 | -28 | - |
Ex-div: 27 Apr Payment: 26 May *Includes intangible assets of $360m, or 78¢ a share £1=$1.24 **Excludes special dividends of 4.79¢ for 2012, 5.86¢ for 2013, 6.95¢ for 2014, 8¢ for 2015 and 8.35¢ for 2016 | ||||
