**Summary of Elementis PLC Half-Year Report (July 31, 2025):**
**Financial Performance**
**Revenue** Down 1% to $308 million on a constant currency basis due to soft market conditions.
**Adjusted Operating Profit** Up 7% to $65 million on a constant currency basis, with an adjusted operating margin of 21%.
**Statutory Operating Profit** Increased 5% to $57 million.
**Interim Dividend** Raised to 1.3 cents per share from 1.1 cents, in line with dividend policy.
**Net Debt** Reduced by 36% to $125 million since December 2024, with a net debt-to-EBITDA ratio of 0.9x.
**Share Buyback** $50 million buyback progressing as planned.
**Operational Highlights**
**Personal Care** Sales up 2% on a constant currency basis, with record operating margins of 34%.
**Coatings** Sales down 4% due to softer demand, but margins remained resilient at 18%.
**Efficiency Program** On track to deliver $12 million in savings in 2025.
**Talc Business Sale** Completed in May 2025, resulting in a discontinued loss of $100 million.
**Strategic Initiatives**
**Elevate Elementis Strategy** Launched to focus on sustainable growth, customer-centricity, and operational simplification.
**Growth Priorities** Accelerating growth through innovation, market expansion, and bolt-on M&A, with a focus on hectorite, rheology, and formulation solutions.
**Customer Focus** Enhancing service levels and delivery to become the first choice for customers.
**Simplification** Implementing a $10 million incremental savings plan by 2026 to streamline operations.
**Medium-Term Ambitions**
Mid-single-digit revenue growth.
Adjusted operating profit margin of 23%+.
Three-year operating cash conversion >90%.
Return on capital employed (excluding goodwill) >30%.
**CEO Commentary (Luc van Ravenstein)**
Highlighted the strong first-half performance despite soft market conditions, the successful sale of the Talc business, and the launch of the "Elevate Elementis" strategy to drive growth and value creation.
**Sustainability**
Science-based target (SBT) validated for GHG emissions reduction.
Reduced environmental footprint post-Talc divestment, with ongoing initiatives to improve energy efficiency and water use.
**Outlook**
Full-year profit performance expected to be in line with market expectations.
**Key Metrics**
Adjusted diluted EPS6.8 cents (up 19% from H1 2024).
Free cash flow$16.0 million (slightly down from H1 2024).
Net debt$125.4 million (down from $196.4 million in H1 2024).
**Conclusion**
Elementis demonstrated resilience in H1 2025, with strong financial and operational performance. The company is strategically repositioning itself as a pure-play specialty additives business, focusing on growth, customer satisfaction, and operational efficiency to achieve its medium-term ambitions.