Elementis plc
Annual Report
and Accounts 2025
Elevate
Elementis
Strategic Report
4
Elementis in brief
5
Leveraging our global footprint
6
Investment case
7
Chair’s statement
10
Chief Executive Officer’s review
14
Strategy
22
Q&A with Luc van Ravenstein,
Chief Executive Officer
26
Our business model
32
Business performance overview
35
Market trends and opportunities
38
Key performance indicators
40
Risk management
44
Principal risks and uncertainties
50
Finance report
56
Viability and going concern statement
57
Sustainability
58
Foreword
59
Governance
60
Materiality
61
Sustainability strategy
62
Environment
75
People
84
Responsible business
88
Non-financial and sustainability
information statement
Corporate Governance
90
Chair’s introduction to governance
92
Board of Directors
96
Division of responsibilities
97
Board in action
98
Key activities in 2025
100
Section 172(1) statement
104
Workforce engagement
106
Board performance review
107
Nomination Committee report
111
Audit Committee report
117
Compliance statement
121
Directors’ Remuneration report
144
Directors’ report
148
Directors’ responsibilities
Financial Statements
150
Independent Auditor’s report
158
Consolidated income statement
158
Consolidated statement of
comprehensive income
159
Consolidated balance sheet
160
Consolidated statement of
changes in equity
161
Consolidated cash flow statement
162
Notes to the consolidated
financial statements
202
Company balance sheet
203
Company statement of
changes in equity
204
Notes to the company financial
statements of Elementis plc
208
Alternative performance measures
and unaudited information
210
Five-year record
Shareholder Information
212
Notes on ESG reporting
methodologies
213
Environmental data
216
Shareholder services
217
Corporate information
218
GRI index
220
SASB index
221
Glossary
Awards and recognition
EcoVadis Silver
– Positions us in
the top 15% of
companies rated
2025 Coatings
Industry Ringier
Technology
Innovation Award
#1 most popular
rheological additive
supplier worldwide
in coatings
#1 most popular
rheological additive
supplier worldwide in
adhesives & sealants
Constituent member
FTSE Women
Leaders –
Ranked 39
th
In this report
Cover image
Powder coating additives,
as shown on the front cover,
are used in industrial
applications and are a key
growth market for Elementis.
Strategic Report
The Strategic Report was approved by
the Board of Directors on 4 March 2026
and is signed on its behalf by:
Luc van
Ravenstein
CEO
Kath
Kearney-Croft
CFO
2
Elementis plc
Annual Report and Accounts 2025
Elementis
is a global specialty chemicals business
which develops high-performance additives that
are essential to the function and feel of formulations
across personal care and coatings applications.
Though our ingredients may be used in small
quantities, they deliver outsized impact – enhancing
texture, stability and performance, delivering value
to our customers and improving people’s lives.
Our purpose –
Unique chemistry, sustainable solutions
Our strength lies in our unique chemistry and deep application expertise,
which allows us to tailor solutions that meet the evolving needs of our customers.
We are committed to delivering these in a sustainable and responsible way,
for the benefit of all our stakeholders.
Our values
Safety
Our way of life
Solutions
Creating value
for our customers
Ambition
Passion for
excellence
Respect
We do the
right thing
Team
The power of
collaboration
Our values shape our culture and guide everything we do.
Safety
is our
foundation – an everyday commitment to protecting our people. We pursue
excellence with
ambition
, creating
solutions
that deliver real value.
Respect
defines how we engage – with colleagues, customers, communities,
and the environment. And
teamwork
drives our success, turning collaboration
into exceptional outcomes.
Revenue
$597.5m
2024: $603.8m
Adjusted operating
profit margin
21.2%
2024: 19.7%
IFRS profit
before tax (“PBT”)
$89.9m
2024: $74.3m
Total recordable
incident rate (“TRIR”)
0.44
2024: 0.21
Scope 1 & 2 emissions
(tCO
2
e) change
-14.0%
2024: +17.2%
Employee
engagement
4.04
2024: 3.91
Adjusted
PBT
$107.5m
2024: $96.7m
Adjusted earnings
per share (“EPS”)
13.7 cents
2024: 12.0 cents
Adjusted return on capital
employed (“ROCE”)
30%
2024: 29%
Financial highlights
Non-financial highlights
Cautionary statement
The Annual Report and Accounts for the financial year ended 31 December 2025,
as contained in this document (“Annual Report”), contains information which viewers or readers might
consider to be forward-looking statements relating to or in respect of the financial condition, results,
operations or businesses of Elementis plc. Any such statements involve risk and uncertainty because
they relate to future events and circumstances. There are many factors that could cause actual results or
developments to differ materially from those expressed or implied by any such forward-looking statements.
Nothing in this Annual Report should be construed as a profit forecast.
Unless otherwise stated, comparative financial results, cashflows and ESG metrics have been re-presented
in this Annual Report and Accounts following the sale of the Talc business.
All financial results and cashflows labelled as “Adjusted” within this Annual Report and Accounts refer to
alternative performance measures (“APMs”) on pages 208-209 for explanations and definitions.
Read more about how our purpose guides our strategy, culture and values on pages 14-21 and 75-83
3
Elementis plc
Annual Report and Accounts 2025
Strategic
Report
Corporate
Governance
Financial
Statements
Shareholder
Information
Our customers
67%
of revenue generated
via direct customers
33%
of revenue generated
via distributors
Group revenue
37.6%
Personal Care
62.4%
Coatings
Group adjusted operating profit
50.8%
Personal Care
49.2%
Coatings
Group adjusted operating profit margin
32.4%
Personal Care
18.9%
Coatings
everyday names, but there
is a little bit of Elementis in
many everyday items.
We create specialty chemicals
using our deep expertise in the
science of how materials flow and
feel (rheology) and in combining
ingredients in the right way to make
products that perform better, feel
nice and last longer (formulation
solutions). This helps us to deliver
crucial end-product attributes for
our customers in the personal care
Our markets
What we do
Personal Care
We are a leading supplier
of natural rheology modifiers
and antiperspirant actives.
We offer a wide range of
products to customers across
personal care, home care,
industrial cleaning, agriculture
and pharma. Our products
help make skin creams
smoother, antiperspirants
work longer, home care
products more natural
and plant-based cosmetic
ingredients more efficient.
Coatings
We supply a broad range
of rheology modifiers and
other specialty additives to
manufacturers of industrial
coatings, decorative paints,
additives for oil and
gas drilling stimulation
fluids and adhesives and
sealants. Our products help
make industrial coatings last
longer, decorative paints more
stain resistant and sealants
apply more evenly.
See pages 32-33 for more
See page 34 for more
Elementis in brief
For references to APMs, please refer to pages 208-209 for explanations and definitions.
4
Elementis plc
Annual Report and Accounts 2025
Americas
Newberry Springs,
California
The Newberry Springs plant
beneficiates hectorite ore and
processes it into high-value
specialty additives used in Personal
Care and Coatings applications.
Asia
Anji, China
The Anji site is part of Elementis’
China manufacturing footprint
and supplies global customers.
It sits within Elementis’ expanding
Asia strategy – particularly around
advanced thickener technologies.
43%
of Group revenues
6
Manufacturing sites
2
R&D centres
2
Offices
318
Employees
Americas
34%
of Group revenues
2
Manufacturing sites
3
R&D centres
4
Offices
280
Employees
Europe
23%
of Group revenues
4
Manufacturing sites
3
R&D centres
4
Offices
391
Employees
Asia
Europe
Livingston,
Scotland
The Livingston plant
manufactures a
range of clay and
synthetic-based
rheolgical modifiers.
Leveraging our global footprint
Manufacturing
R&D Centres
Hectorite mine
With a global footprint spanning four continents,
we’ve built the manufacturing resilience and
flexibility to operate seamlessly while delivering
a true local-for-local model.
Through our operations,
we supply our products
to customers in
94
countries
5
Elementis plc
Annual Report and Accounts 2025
Strategic
Report
Corporate
Governance
Financial
Statements
Shareholder
Information
Elevate
Elementis
A new strategy and ambitious medium-term
targets, launched to accelerate sustainable
growth, enhance choice for customers
and create a simpler, leaner Elementis.
3
Strategic
priorities
4
Medium-term
targets
Consistent
track record
We have a proven track record of delivering
attractive returns, underpinned by high
recurring revenues, disciplined cost control,
a strong balance sheet and robust cash
generation, enabling ongoing investment
and shareholder return optionality.
30%
Dividend
payout ratio
c. $80m
returned to
shareholders in 2025
Access to
high-grade
hectorite
We own one of the largest known commercial
high-grade hectorite mines in the world,
giving us a strategic advantage in producing
premium, high-performance additives for
demanding applications.
>50
Years of estimated
hectorite reserves life
Global scale
and market
leadership
With operations across four continents,
we combine global reach with leadership
in rheology and formulation technologies
to serve diverse customer needs in
personal care and coatings.
8
Research and development
(“R&D”) centres globally
Deep technical
expertise and
customer
intimacy
Decades of scientific expertise, a commitment
to investing in R&D and close customer
collaboration enable us to anticipate trends
and deliver tailored, sustainable solutions,
while enhancing service and delivery levels
to become the first choice for customers.
20%
Innovation Revenue
medium-term target
A responsible
and more
sustainable
business
Sustainability is central to how we operate.
We are recognised for our environmental
and social credentials and are making
good progress towards our net zero by
2050 ambition.
59%
Revenue from natural or
naturally derived products
Investment case
We have a compelling
investment proposition
to deliver attractive
shareholder returns.
We are leaders in rheology
and formulation solutions with
a proven track record of delivery
and operating in attractive end
markets that have long-term
growth potential.
Having simplified Elementis
and transformed the business
into a premium pure-play
specialty additives player,
there are excellent opportunities
to further consolidate our
position in existing markets,
to enter adjacent markets,
and to build on our leading
position by investing in
organic-led innovation growth,
alongside disciplined and
accretive mergers and
acquisitions (“M&A”).
6
Elementis plc
Annual Report and Accounts 2025
I am pleased to report that, in a soft demand
environment, the Group has delivered a strong
strategic and financial performance.
Starting first with our strategic highlights.
The divestment of the Talc business in 2025,
together with the sale of the Chromium
business in 2023, has sharpened our focus
and created a specialty chemicals group
distinguished by clear core competencies,
unique capabilities as well as industry-leading
margins. With a focus on personal care and
coatings, the Group is well positioned to
deliver sustained organic growth and
long-term value for shareholders.
We welcomed new executive leadership
this year with Luc van Ravenstein appointed
as Chief Executive Officer (“CEO”) and Kath
Kearney-Croft as Chief Financial Officer
(“CFO”). In addition, Stijn Dejonkheere,
formerly head of our Personal Care business,
was promoted to the newly created role
of Chief Commercial Officer, assuming
responsibility for both our Personal Care
and Coatings businesses.
Under Luc’s leadership, we launched
our new Elevate Elementis strategy and
medium-term targets in July 2025 – a bold
plan designed to accelerate sustainable
growth, enhance customer value, and
become a simpler and more agile business.
I am confident this strategy will elevate
Elementis to the next level and strengthen our
position as a leader in specialty chemicals.
Our strategic efficiency initiatives made an
important contribution to our performance
this year. Most notably, the Fit for the Future
programme delivered significant streamlining
of the Group’s administrative and transactional
activities. These functions have now been
consolidated in Porto, Portugal, where over
100 new colleagues support this critical
work. Alongside this, the consolidation of
our manufacturing footprint enabled us to
achieve our cost savings target and improve
profitability margins despite a subdued
demand environment. Furthermore, our
strengthened balance sheet and robust cash
conversion provide the Group with greater
flexibility and optionality to deliver future
shareholder returns.
Turning to our financial performance.
Despite a challenging macroeconomic
backdrop and specific weakness in certain
end markets, the Group delivered a robust
financial performance. While revenue was
slightly down at $597.5m, adjusted operating
margin was up strongly to 21.2%. This reflects
management’s success in driving pricing
optimisation, enhancing supply chain
resilience, and delivering efficiencies
across our back-office operations.
In 2025, we returned $79.1m to our
shareholders compared to $18.8m in the
prior year. This amount included $25.3m in
relation to our ordinary dividend payments,
as well as $53.8m paid out via our first share
buyback programme following the sale of the
Talc business.
2025 has been a strong year for
Elementis, and I leave knowing that the
business is in capable hands and well
positioned for the next phase of its growth.”
John O’Higgins
Chair
2025 in
review
Chair’s statement
7
Elementis plc
Annual Report and Accounts 2025
Strategic
Report
Corporate
Governance
Financial
Statements
Shareholder
Information
Positioning the business for
long-term success
In May 2025, we announced the simultaneous
sale and completion of our Talc business to
IMI Fabi S.p.A, a global talc manufacturer.
This divestment, which followed a strategic
review of the business, completed the
transformation of Elementis into a pure-play
specialty chemicals company.
Concurrent with the sale of Talc and in
recognition of Elementis’ robust balance sheet
and the strong confidence in the streamlined
Group’s prospects, the Board announced its
intention to return £40.0m ($53.8m) of the
net cash proceeds from the transaction to
shareholders by way of our first share buyback
programme. The programme successfully
completed in December and led to the
purchase of 24.6m shares. Of this amount,
1.6m shares were held in treasury and made
available to meet existing share-based awards
requirements during the year.
While the focus of our new Elevate Elementis
strategy is on organic growth, we will take
a disciplined yet opportunistic approach to
acquisitions. Specifically, we will seek bolt-on
technologies that strengthen our specialty
additives portfolio and accelerate sustainable,
long-term value creation. Consistent with this
approach, we were delighted to announce in
November 2025 the acquisition of Alchemy
Ingredients Limited (“Alchemy”) – a highly
complementary business specialising in
sustainable formulation solutions for the
personal care rheology market. The
acquisition brings exciting new products
and technologies to Elementis’ portfolio
that will further enhance our expertise in
formulation solutions and rheology.
Elementis will enable Alchemy to build
on its success to date by leveraging its
global sales and distribution network
alongside its complementary technology
and application knowledge.
Financial strength and
shareholder returns
Elementis’ balance sheet has fundamentally
transformed over the last few years. Today,
our leverage stands at 1.3x, compared to an
all-time high of 3.2x in 2020, a level that now
reflects the benefit of prudent financial and
cost management, as well as the strategic
divestments that we have completed during
this time. Our strengthened balance sheet
combined with our robust three-year cash
generation gives us the flexibility to invest
for growth, while preserving optionality to
return excess cash to our shareholders.
We are pleased to announce that the Board
has recommended a final dividend for 2025
of 3.0 cents per share (2024: 2.9 cents),
resulting in a full-year dividend of 4.3 cents per
share, compared to 4.0 cents per share last
year. The payout ratio of 31% in 2025 is in line
with the Group’s dividend policy that targets a
payout ratio of around 30% of adjusted
earnings.
Moving towards a sustainable future
The divestment of our Chromium and Talc
businesses has substantially changed our
environmental sustainability profile. To put
this in perspective, Elementis’ greenhouse
gas (“GHG”) emissions intensity (Scope 1 & 2
market-based) in 2019 was 400 tCO
2
e/$m
revenue. Following the sale of both
businesses, it is currently 94 tCO
2
e/$m,
a 77% reduction.
Aligned with our purpose, our streamlined
portfolio enhances our focus on developing
high-performance additives that deliver
better, more sustainable outcomes for both
the environment and society. By innovating
products that support our customers on
their own sustainability journeys, we unlock
new opportunities for growth and innovation.
For example, this year we have launched
innovative new biobased products for personal
care applications that help meet consumer
demand for more naturally-derived content.
At the same time, we remain committed to
reducing our emissions footprint – designing
products that use fewer resources and
generate less pollution. In March 2025,
we received validation of our science-based
target (“SBT”) for GHG emissions reduction
from the Science Based Targets initiative
(“SBTi”). As part of our initial actions, we have
been able to significantly expand our purchase
of clean electricity and reduce the intensity
of our fossil fuel consumption through targeted
capital investments. We remain focused
on identifying further emission reduction
opportunities in our operations, supply chain
and product design.
Health and safety is fundamental to our
operations and a core value that guides our
decisions and shapes our culture. Regrettably,
we had four recordable injuries compared to
two in the prior year. While none of these
resulted in time away from work, we recognise
that even one incident is too many. In
response, we doubled audit inspections and
stop work reporting across our sites to
strengthen our focus on prevention and
reinforce safe behaviours. These efforts
reflect our belief that safety is not only
a responsibility, it is essential to how we
operate and grow.
Elementis employees and culture
Our colleagues are our greatest asset.
We cannot deliver on our strategic objectives
without the talent, commitment and
engagement of colleagues across the
business. On behalf of the Board, I want to
extend my sincere thanks to all our teams
for their unwavering dedication during
another year of significant change. This
included the completion of our two-year
Fit for the Future restructuring programme and
the implementation of various supply chain
efficiency initiatives that were first announced
with our November 2023 Capital Markets Day
(“CMD”). Following the launch of our Elevate
Elementis strategy, we also commenced a
broader programme of cost savings and
efficiency measures to help create a simpler,
leaner Elementis – improving agility and speed
of execution to ensure we remain the first
choice for our customers.
Chair’s statement continued
Our colleagues make
our ambitions possible
and the Board deeply
appreciates their
unwavering dedication.”
8
Elementis plc
Annual Report and Accounts 2025
The Board is committed to a high level of
employee engagement. Meeting colleagues
across our locations is always a privilege, and
our biannual engagement survey helps us to
provide timely support and training. This year,
we achieved an overall improvement in our
engagement score – a fantastic result that
reflects the strength of our culture and the
commitment of our people. You can read
more about the results of our Gallup employee
survey on page 82.
Management and Board evolution
In April 2025, we appointed Luc van
Ravenstein as our new CEO following
Paul Waterman’s retirement. Luc is
a well-respected leader with a strong track
record of delivery having successfully led
the growth and improved the operational
and financial performance of both our
Coatings and Personal Care businesses
over the last 14 years.
In September 2025, we announced that
Ralph Hewins was stepping down as CFO,
with Kath Kearney-Croft appointed as his
successor effective 1 January 2026. During
his nine years at Elementis, Ralph has helped
to build strong, modern, global Finance and
IT functions and played a critical role in
deleveraging the business through the sale
of the Talc and Chromium businesses and
improving the operating margins of the Group.
Ralph leaves Elementis with our best wishes.
Kath joined Elementis from Learning
Technologies Group plc, a global provider of
learning and talent solutions, following its
acquisition by General Atlantic earlier in 2025.
She previously served as CFO of Learning
Technologies Group plc since 2021 and brings
over 20 years of experience in senior finance
roles across the UK and US, including
positions at SIG plc, Vitec plc, Rexam PLC
and BOC Group plc. Kath’s extensive
expertise across diverse industries will be a
valuable asset as we execute our plans for
sustainable long-term growth.
The smooth transition to our new executive
team was enabled in no small part by the
outstanding contributions during the year of
our departing CEO and CFO, Paul Waterman
and Ralph Hewins respectively. I would like
to thank them both for their leadership and
dedication during this pivotal period.
With the successful completion of our key
portfolio restructuring priorities and the
leadership transition, I announced in October
2025 my intention to stand down as Chair at
the 2026 Annual General Meeting (“AGM”).
It has been an honour to serve in this role,
and I am confident the Group is well
positioned for a new chapter of growth.
An update on Chair succession will follow
in due course.
In recognition of the need to transition to
a Board that is more reflective of the reduced
size of the business, we also announced in
October 2025 that Heejae Chae would step
down as Non-Executive Director (“NED”) at
the end of 2025. In addition, we announced in
February 2026 that having reached the ninth
anniversary of her initial appointment to the
Board as a NED, Dorothee Deuring retired
from the Board. I would like to thank them
both for their contribution to the Board
during their tenures. I am very grateful to all
my fellow Board members – past and present
– for their dedication and their contribution
to Elementis’ transformation.
Looking ahead
The Group has delivered another year
of strong progress and, while the
macroeconomic and geopolitical environment
remains uncertain, Elementis today is stronger,
more focused, and better positioned than ever
before. Our adjusted operating margin has
increased from 15.0% to 21.2% in the past five
years, and the balance sheet is strong and
conservatively managed. We have a clear
strategy, a talented leadership team, and
a culture built on our values of Safety,
Solutions, Ambition, Respect and Team.
The future for Elementis is bright, and I leave
confident that the Company will continue
to thrive and deliver exceptional value to
all stakeholders.
John O’Higgins
Chair
Statement on section 172
of the Companies Act 2006
Section 172 of the Companies Act 2006
requires the Directors to promote the
success of the Company for the benefit
of the members as a whole, having
regard to the interests of stakeholders
in their decision-making.
The Company’s section 172 statement
is set out on pages 100-103 and is
incorporated into this Strategic Report
by reference.
East Windsor, US
9
Elementis plc
Annual Report and Accounts 2025
Strategic
Report
Corporate
Governance
Financial
Statements
Shareholder
Information
I am delighted to present my first Annual
Report and Accounts for Elementis. It is
a privilege to lead such a fantastic company
and the talented colleagues who make it
so special. This has been a transformational
year at Elementis, and I am proud of all that
we have accomplished together.
Having spent 14 years with Elementis
leading both our Personal Care and Coatings
segments, I know the business, our customers
and our colleagues intimately. When I stepped
into the role in April, I had a clear vision
for where we can take this business.
My first priority was completing the sale
of Talc – a milestone we reached in May.
This successful transaction delivered a clean
exit, returned value to our shareholders,
and repositioned Elementis as a pure-play
specialty chemicals company. It also
accelerated the delivery of our 2026 financial
targets, set out at our 2023 Capital Markets
Day (“CMD”), by a full year – an outstanding
achievement.
With this foundation in place, I was pleased to
launch our new Elevate Elementis strategy
and medium-term targets in July 2025 (see
below and pages 14-21 for further details). Our
three priorities – accelerating sustainable
growth, being first choice for customers, and
becoming a simpler, leaner Elementis – are
firmly embedded across the business and
we have already made encouraging progress
across all three areas, but there is much more
to do. I am truly excited about the journey
ahead and look forward to keeping you
updated as we elevate Elementis to the
next level.
Navigating a challenging
operating environment
2025 was another challenging year for global
economies, with persistent geopolitical
uncertainty, US tariff volatility, higher inflation
and trade fragmentation all impacting
consumer and business sentiment.
Within the wider European Chemicals sector,
2025 was another difficult year and we
continued to see the diversified companies
under pressure from Chinese oversupply
and a sluggish global demand environment.
The truly specialty chemicals businesses
performed better though, delivering a positive
performance overall.
Results in line with expectations
Overall Group revenue was slightly down
at $597.5m, compared to $603.8m in the
prior year. We achieved strong growth in
adjusted operating profit and margin of
$126.7m (2024: $119.2m) and 21.2%
(2024: 19.7%) respectively. This, in
combination with lower net finance costs in
the year, meant we were able to generate
adjusted profit before tax (“PBT”) of $107.5m,
up 11.2% from last year, and our adjusted
earnings per share (“EPS”) was up 1.7 cents
to 13.7 cents (2024: 12.0 cents). This is an
outstanding performance in the context of the
challenging operating environment I outlined
earlier, and a testament to the premium
specialty nature of our business.
After adjusting for the loss on the sale of
the Talc business of $110.5m in H1 2025,
the statutory loss for the year was $45.5m.
Chief Executive Officer’s review
We are seeing the positive impacts
of our new strategy, and look forward
to another year of delivering value
for all our stakeholders.”
Luc van Ravenstein
Chief Executive Officer
Elevating
Elementis
10
Elementis plc
Annual Report and Accounts 2025
In relation to our divisional performance,
Personal Care represents 37.6% of Group
revenues and 50.8% of Group adjusted
operating profit. Revenues increased 3.3% to
$224.5m (2024: $217.4m), with higher volumes
and pricing helping to offset negative mix
impacts in the year. Revenue was higher
across all regions despite the impact of tariffs,
driven by our positive pricing and proactive
supply chain management actions, which
enabled us to manage our raw materials cost
exposure, while keeping production levels
optimised. These, in combination with our
self-help actions and cost savings, including
the closure of the Middletown AP Actives plant
last year, helped us to deliver higher adjusted
operating profit and margin of $72.8m (2024:
$61.6m) and 32.4% (2024: 28.3%) respectively.
In Coatings, which represents 62.4%
of Group revenue and 49.2% of Group
adjusted operating profit, revenues fell by
3.5% to $373.0m (2024: $386.4m). The
decline, which was in line with management’s
expectations and the weak global demand
environment for Coatings, resulted in lower
volumes across all regions. Offsetting these,
we were pleased to have realised positive
pricing across all regions, and our Energy
business continued to perform strongly
despite the low oil price environment.
As a result of the lower revenues, adjusted
operating profits were lower at $70.4m
(2024: $78.4m) and margins were resilient
at 18.9% (2024: 20.3%) respectively.
Elevating Elementis
A key step in the transformation of the
Company was the sale of the Talc business,
which we completed in May. In July we
launched our new growth strategy, Elevate
Elementis, designed to build on our strong
foundations and take the business to the
next level.
We have identified three clear priorities for
the medium term. These will propel our
performance, drive higher growth and
generate material free cash flow that will
create optionality for reinvestment and
additional shareholder returns.
Accelerate sustainable growth
We will unlock our growth potential by utilising
our premium hectorite asset as well as
our leading capabilities in rheology and
formulation solutions. Together, we call
these our winning differentiators (please
see pages 16-19 for further details).
As recognised experts in rheology, we have
deep technical knowledge and a reputation
for long-standing innovation in personal care
and coatings applications.
Our aim in rheology, which makes up
approximately 60% of Group revenue,
is to build on our existing share of the $4bn
personal care and coatings market, as well
as to enter new and adjacent markets with
an addressable size of $4bn.
To accelerate growth across our portfolio,
we will be using three key levers:
We are increasing our investment in
innovation, with research and development
(“R&D”) spend increasing from 2% to 3% of
Group revenue. In addition, having achieved
a 200 bps improvement in our Innovation
Revenue to 16.4%, our target is to grow this
to 20% over the medium term. Our
approach to innovation will be multi-faceted.
A key focus, however, will be to increase
the penetration of hectorite in our product
portfolio through focused innovation and
the development of new use cases, such as
in agro chemicals, fire retardants, and
household and industrial cleaning products.
Over the medium term, we expect double-
digit growth in revenue from hectorite-
based products
We will enhance customer intimacy
by leveraging our global footprint and
expanding direct account coverage to
enable us to move up the innovation curve
and deliver more impactful higher-margin
products. We will also establish new
warehouses and technical support labs
in Southeast Asia and India
To complement our organic-led innovation
growth, we will selectively pursue bolt-on
M&A opportunities that complement our
portfolio and capabilities, such as the
acquisition of Alchemy in November 2025,
while maintaining balance sheet strength
and financial discipline
Our new strategy will
unlock the full potential
of Elementis and elevate
us to the next level.”
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Elementis plc