Elementis plc says its operating profit slid 34% in 2020

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on Mar 23, 2021
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  • Elementis plc says its operating profit slid 34% in 2020.
  • The British company reports £48.52 million of net loss.
  • Elementis refrains from declaring a dividend on Tuesday.

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Elementis plc (LON: ELM) said on Tuesday that it swung to a loss in 2020 attributed to the ongoing Coronavirus pandemic that weighed on its industrial and consumer segments. The COVID-19 crisis has so far infected more than 4.3 million people in the United Kingdom and caused over 126 thousand deaths.

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Elementis shares jumped roughly 4.5% in premarket trading on Tuesday but tanked 8% on market open. Including the price action, the stock is now exchanging hands at 121 pence per share, close to 118 pence per share, where it started the year. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

Elementis reports £48.52 million of net loss

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Elementis reported £48.52 million of net loss for the recently concluded year. In 2019, it had posted a lower £33.31 million of net loss. On an adjusted basis, its operating profit stood at £59.38 million in 2020, which represents a 34% annualised decline. Elementis’ operating profit, however, matched the market expectations in the recent year.

Chief Executive Paul Waterman commented on the financial update on Tuesday and said:

“We will continue to maintain our focus on self-help actions to optimise performance, and in 2021 expect to deliver more than £21 million of new business opportunities, over 20 new products and more than £7 million of cost savings.”

In separate news from the United Kingdom, mining corporation Rio Tinto pledged to protect cultural heritage on Tuesday to avoid another Juukan Gorge-like disaster.

Elementis refrains from declaring a dividend

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The board refrained from resuming dividend payment for 2020 on Tuesday, citing the uncertainty related to the ongoing health emergency. Elementis had suspended its dividend for 2019 as well. As per the UK’s largest speciality chemicals and personal care business, it intends to reinstate payments once signs of recovery are evident.

As of 31st December, Elementis had £295.45 million of net debt versus the year-ago figure of a higher £328.76 million. The British firm’s financial report comes a day after the gold mining company Centamin plc said its EBITDA jumped 54% in 2020.

Elementis performed largely downbeat in the stock market last year with an annual decline of more than 35%. At the time of writing, the London-based firm has a market capitalisation of £694 million.

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