Elementis PLC (LON:ELM) shares rose on Thursday as the chemicals firm reported a solid start to the year and said it was confident of further progress in 2018.
In a trading statement, the FTSE 250-listed firm said its hectorite based products for the cosmetics market continued to experience growth across new product categories and geographies, while performance in coatings benefited from growth within the EMEA region and the Americas.
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Elementis added that its chromium sector continues to deliver a ‘resilient performance’ although ‘exceptional weather conditions’ at its Castle Hayne plant constrained output in the first quarter, however, production has now recovered and is expected to be in line with 2017.
The company said its strong free cash generation continued in the first quarter and net debt reduced from the year-end, assisted by the completion of the disposal of its Surfactants business in March.
Paul Waterman, CEO of the company, said: “Elementis has had a solid start to the year and we are confident of delivering continued progress in 2018, in line with our previous expectations.”
In late morning trading, Elementis’ shares were up 4% to 293.8p.