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Elementis

December 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ELM
  • Price:
  • 117p
Elementis has sold its Chromium business for US$170m, valuing the business at 7.3 times EBITDA (12-months to 30 June). Book value of the asset was US$100m at the end of 2021 so this represents a gain on disposal. The cash proceeds from the sale reduces net debt to EBITDA to ~1.6x and means Elementis is now a fully focused global speciality chemicals business. In the year to 30 June these business segments had organic sales growth of 14%, operating profit of US$125m and an adjusted operating margin of 17%. Await deal closure in Q1 23. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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