ELEMENTIS, the British chemicals maker, posted a 62 per cent decline in full year pre-tax profits yesterday following a global slump in demand for its products.
But the company maintained its dividend and shares were up more than 11 per cent, with analysts maintaining their “buy” rating on the stock.
Brewin Dolphin said: “Elementis’ full-year results are slightly ahead of our expectations, confirming that the stabilisation in end markets continued as expected through to the end of the year.”
The Group achieved cost savings at an annualised rate of £16m, part of its global cost reduction programme, and has plans to grow in 2010 as customers begin to re-stock.
“Our priority going into 2010 is to position ourselves for growth rather than to look for more costs to take out,” chief financial officer Brian Taylorson said.