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Elementis in the black as personal care unit delivers bumper sales
Specialty chemicals manufacturer Elementis said full year adjusted operating profits rose as its personal care unit delivered a massive increase in sales.
Profits were up 32% to $128m, assisted by the contribution from the recently acquired SummitReheis, which makes additives for anti-perspirants.
Revenues were up 27% to $782.7m and the dividend was increased by 4% to 8.8 cents a share.
Elementis said personal care sales rose 186% to $179.3m, adding that it was now the biggest contributor to group profits.
The change in US tax laws result in a 2017 tax credit of $51m and should enable the group tax rate in the medium term to remain around 20%, Elementis said.
Chief executive Paul Waterman said the company's portfolio changes had moved on with the sale of "our strategically disadvantaged US Colourants business and the recently announced sale of our Surfactants business".
"This generates cash, simplifies our supply chain and enables us to reallocate capital to higher margin growth opportunities," he said.
"In 2018 we will continue to reallocate resources to our best growth and productivity opportunities while further improving our cash flow profile. We have started the year positively and are focused on making further progress in 2018."