Elementis plc (LSE:ELM) enjoyed a strong start to trading after predicting that the group's financial performance is expected to be towards the top end of consensus expectations.
The news came as the specialty chemicals company reported 6% growth in half year revenue to US$478mln sending shares up 9.5%.
The results contained a record Coatings performance, reflective of a higher quality business with further growth potential while a strong Personal Care showing was linked to demand recovery and encouraging strategic momentum.
Elementis said that as expected, Talc performance was impacted by auto and paper demand related market headwinds.
CEO, Paul Waterman said:
“We expect that steady demand coupled with our self-help agenda will drive an improved financial performance, towards the top end of expectations, alongside further deleveraging.”
Biffa climbs on lower than expected provisions, dividend reinstated
Biffa PLC (LSE:BIFF) saw its shares surge 7% as the waste management group reported a sizeable fall in its provision for an HMRC landfill tax enquiry and the reinstatement of its final dividend.
The put-up-or-shut-up takeover deadline was also extended to 30 August, as discussions with suitor ECP were said to be still ongoing.
Peel Hunt analyst Andrew Shepherd said the HMRC provision of £20mln for the enquiry was much less than the headline rate of £153mln mentioned before.
He said: “It supports the idea that this could be a relatively unimportant issue and hence only have a limited impact on a bid or on an undisturbed share price.”
The news came alongside full year results with the group reporting adjusted pre-tax profits of £75.6mln, up 160.7% against the first half of 2021.
The final dividend of 4.69p was reinstated.
Revolution Beauty tumbles on profits warning
Revolution Beauty Group Plc saw its shares collapse 57.66% to 26p after warning that it expected to report a small adjusted EBITDA loss for the six months to August 31st.
The AIM listed group said revenue growth would be “low single digit” reflecting post Covid retailer updates (notably in the USA), cost inflation, supply chain issues and the war in Ukraine.
The group experienced cost inflation across operations, particularly in logistics and freight, together with increased staff costs, while a number of its digital partners have reduced their stockholdings below industry norms impacting sales growth.
Adam Minto, Revolution Beauty CEO, said he: "remains confident in the strength of our long-term strategy and the significant growth opportunities open to us.”
Greggs delivers a tasty trading update
Budget food to go retailer, Greggs PLC (LSE:GRG), pleased the market as a strong set of first half results sent the shares up 2.31% to 2,126p today.
AJ Bell investment director Russ Mould said:
“Greggs’ proposition seems to be holding up well amid cost-of-living pressures.”
“Clearly its relatively cheap offering is resonating with cash-strapped consumers who are perhaps trading down from more expensive options.”
“The danger for Greggs is that people make their own packed lunches at home rather than grabbing food and drink on the go but there is little sign of that shift happening at any scale just yet.”
“Profits are flat but that is probably not a huge concern for investors in the short term. Cost inflation was a factor but of more significance was the one-off reversal in VAT and business rate breaks offered during the pandemic.” Mould added.
Total sales grew 27.1%, with 22.4% like for like sales growth in the first half of 2022.