HIGHLIGHTS
Group earnings per share increased by 6 per cent to 23.0 cents per share.
Strong growth in Specialty Products:
o Sales and operating profit* up 10 per cent.
o Double digit sales growth in Personal Care and Oilfield drilling.
Another year of excellent cash generation:
o Net cash position increased to $54.1 million.
Total dividends for the year increased by 11 per cent to 13.93 cents per share:
o Special dividend increased by 22 per cent.
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FINANCIAL SUMMARY |
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2013 |
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2012 restated** |
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change |
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Sales |
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$776.8m |
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$757.0m |
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+3% |
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Operating profit |
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$146.6m* |
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$143.9m |
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+2% |
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Profit before tax |
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$136.0m* |
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$133.4m |
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+2% |
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Diluted earnings per share Operating cash flow |
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23.0c $143.9m |
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21.8c $117.2m |
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+6% +23% |
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Net cash |
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$54.1m |
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$44.0m |
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+23% |
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Profit for the year |
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$106.7m |
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$100.3m |
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Basic earnings per share |
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23.3c |
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22.2c |
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Dividends to shareholders: - Interim dividend |
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2.57c |
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2.45c |
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+5% |
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- Final proposed - Special dividend - Total for the year |
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5.50c 5.86c 13.93c |
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5.32c 4.79c 12.56c |
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+3% +22% +11% |
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Commenting on the results, Group Chief Executive, David Dutro said:
"2013 has been another excellent year for Elementis with sales, operating profit, operating cash flow and earnings per share all showing a positive trend. Throughout the year we have continued to strengthen our businesses both organically and through acquisition. We have introduced new products, built on existing and new applications and invested to serve our customers' growing needs.
Elementis Specialty Products delivered excellent growth in both sales and operating profit for the year, with stable operating margins. All of the main market segments and geographies making up the business contributed to the growth. We have continued to enhance our product portfolio, geographic presence and ability to benefit from global trends in life expectancy, lifestyle choices and energy consumption. In coatings additives, our technical expertise, ability to serve our customers throughout the world and investments in new products and markets combined to deliver sales growth of 7 per cent. Our high value niche positions in personal care and oilfield drilling delivered sales growth of 26 per cent and 14 per cent respectively.
As previously reported, Elementis Chromium was impacted by a planned maintenance shutdown in the first quarter but recovered as the year progressed, delivering stable margins for the year which demonstrates the strength of its market positions.
Cash generation was again a strong feature of our performance in 2013. We invested in new manufacturing facilities, acquired Hi-Mar in the US and made our first special dividend payment in the year. Despite this the Group still managed to increase its net cash balance at the end of the year by $10.1 million to $54.1 million. Consequently, we are continuing with our dividend policy of paying approximately one third of earnings each year as the combined interim and final dividend, plus a special dividend of up to 50 per cent of the year end net cash balance. As a result our shareholders will receive a 22 per cent increase in the special dividend and an 11 per cent increase in total dividends for the year.
Although it is widely anticipated that 2014 will be a period of modest growth in global GDP, our internal performance targets and growth objectives are not predicated on improvements in overall market conditions. Based on our strategic position, focus on innovation, strong product portfolio and healthy new product pipeline, we remain confident in our ability to deliver profitable growth across a broad range of economic scenarios."
