KPC PEEL HUNT buy 4% stake (17.35 million shares)in ELEMENTIS the chemical maker on behalf of mystery client has sparked a buying spree. This purchase followed at 12 million purchase a few minutes earlier and it has been all buy of this share since. Is this a share that is about to bounce.

Elementis Trading Update
PRN
28 October 2016
Elementis Trading Update
Elementis plc (ELM.L, Elementis or the Group), the Global Specialty Chemicals Company, today issues a trading update for the three months ended 30 September 2016.
Commenting on the Groups performance Chief Executive Officer, Paul Waterman, said:
We continue to focus on prioritising our strategic agenda, which we will present in more detail at the Groups Capital Markets Day presentation on 14 November 2016. I am pleased to report continued progress in Specialty Products and while trading conditions for Chromium continued to be challenging, overall Group earnings per share for 2016 are expected to be in line with market expectations.
Specialty Products performance in the period was positive, with strong growth in Personal Care and improved performance in Latin America coatings.
In Chromium, although the environment internationally remains challenging, contribution margins in North America and the rest of the world were stable. We continue to look at options to increase efficiency to help offset the competitive effects of a stronger dollar.
Cash generation continues to be an important component of the Groups performance and, as previously stated, the net cash balance at the end of the year is likely to be higher than at the same time last year which, under our progressive dividend policy, will have a positive effect on the special dividend.
Specialty Products sales were 6 per cent higher than in the same period last year on a constant currency basis, and 4 per cent on a reported basis. The remainder of this business commentary refers to constant currency sales.
In Coatings, Asia Pacific sales were 5 per cent ahead of the prior year as demand in China continued to reflect solid underlying growth. Sales in Latin America showed significant growth in the period, despite ongoing economic challenges in Brazil. The business benefited from new business wins at key accounts in Brazil, Mexico and Chile, which resulted in sales being 38 per cent higher than in the same period last year. Sales in North America were at a similar level to the comparator period, as overall demand continued to be negatively influenced by the impact of the strong dollar on North American exporters. In Europe, following a relatively strong second quarter (+4 per cent), sales in the period were 5 per cent lower than in the same period last year. We saw reduced consumption across Europe through our distributor channel whilst sales to Eastern Europe were also lower.
In Personal Care, where the Group has recently added more resources, sales were 38 per cent higher than in the same period last year. Excellent progress was made in growing sales of hectorite products in colour cosmetics and antiperspirants, while expanding sales geographically also showed good progress, particularly in Italy, China, India and Brazil.
In Oilfield Drilling, sales were 4 per cent lower than in the same period last year as demand patterns continued to remain relatively stable.
In Chromium, sales were 4 per cent lower than in the same period last year, on 3 per cent higher volumes, which was due to a continuation of the more challenging environment outside of North America, as reported in previous announcements. Compared to the second quarter, contribution margins in the period were relatively stable in North America and improved for sales outside of the region, as a result of a better product mix.
Consistent with the strategy to reduce activity in Surfactants over time, sales in the period were 14 per cent lower than in the same period last year and operating profit was consistent with the previously reported near break-even run rate in the first six months of the year.
The Groups tax rate for the full year is expected to be lower than it was for the first six months of the year, due to changes in the geographic mix of profits, but overall Group earnings per share for 2016 are expected to be in line with market expectations. The Groups balance sheet remains strong, with robust operating cash generation continuing to be a positive feature of the Groups performance. Consequently, the Groups year end net cash balance is expected to be higher than the $74 million reported at the end of 2015.
END

Market Buzz
Broker tips: Elementis
Wed, 09 November 2016

(ShareCast News) - Elementis shares were given a boost on Wednesday after Berenberg raised its rating on the stock to 'buy' from 'hold' and raised the target price to 270p from 200p.
The upgrade comes after the specialty chemicals company said in a trading update that it expects full year earnings to be in line with expectations after a third quarter 38% jump in personal care sales offset a 4% decline sales at both its chromium and oilfield drilling businesses.

"Since our downgrade to 'hold' in April, consensus 2016 and 2017 earnings estimates for Elementis have fallen by 20%, primarily on 700 basis point earnings before interest and tax margin compression in the chromium division," Berenberg said.

"Q3 results, with 38% growth in personal care and abovemarket growth in coatings additives, mark the turning point in this cycle of downgrades. Elementis will, in our view, generate the best organic growth of UK chemicals in 2017 (circa 5% versus circa1%)."

Berenberg also expects the chromium business to recover given that emerging market producers may run out of spare capacity in 2017 and an increase in oil prices is seeing a corresponding rise in the Russian Ruble and Kazakhstani Tenge against the dollar.

The broker also predicts reduced competition and a rise in chromite prices to boost EBIT margins by 180 basis points to 19.5% in 2017.

Berenberg estimates the personal care business will outperform the market with growth rates moving from 10% to "mid-to-high teens".

Reflecting assumed improved sales growth in personal care, Berenberg raised its earnings per share estimates for fiscal years 2016 to 2018 by an average of 5%.

SP back at 2013 level, has been in a range since August between 265 - 290p. Trading Statement on Friday. Long on the spreads initial target 290p tight stop.

Elementis on course to grow operating profit

StockMarketWire.com

Elementis performed in line with expectations in three months to the end of September and saw a continuation of the trends experienced across the first half of the year.

The group said specialty products performed well and in line with expectations:

- Coatings saw a good sales performance across all regions versus last year, however higher raw material costs impacted profit growth.

- Personal Care continued to benefit from increased penetration of the group''s hectorite based products across categories and geographies. The integration of SummitReheis remained on track with synergies well underpinned, and the group continued to implement pricing responses to recover raw material cost inflation. Elementis said it was creating a personal care business of scale.

- Energy has remained strong, reflecting higher activity levels and market share gains. Momentum in the business remained extremely positive.

The group said chromium was on track to deliver full year improvement

It said: 'Chromium has continued to perform well and in line with the trends experienced across the first half of the year.

'Despite unplanned production outages at our Castle Hayne and Corpus Christi facilities during the third quarter we continue to expect an improved full year outcome versus 2016.'

The group said that as previously indicated, the favourable first half conditions in Surfactants had not continued.

It said the sale process for the business was progressing well and it continued to expect resolution in early 2018.

Chief executive Paul Waterman said: 'Elementis has delivered another good revenue performance in the third quarter and overall trading is on track.

'Trends remain similar to those reported in the first half of the year and we remain on course to grow operating profit across all three segments in 2017.

'Going forward, we continue to see significant potential for Elementis as we implement our Reignite Growth strategy.'

Initial target hit.

Stop to 290p

FINANCIAL SUMMARY



















2017



2016





%Change

Revenue



$782.7m



$616.6m





+27%

Profit for the year



$117.6m



$68.1m





+73%

Basic earnings per share◊



25.4c



14.7c





+73%



Total revenue◊∆





$830.3m





$659.5m







+26%

Adjusted operating profit◊∆



$128.1m



$97.0m†





+32%

Adjusted profit before tax◊∆



$115.2m



$92.5m†





+25%

Adjusted diluted earnings per share◊∆



19.5c



17.4c†





+12%

Adjusted operating cash flow∆



$107.1m



$96.0m





+12%

Net (debt)/cash



$(291.1)m



$77.5m





n/s

Dividend per share



8.80c



8.45c





+4%

Apologies for layout above, no idea why this happens just copied and pasted the important paragraphs from this mornings RNS :0(

Elementis plc

AGM Trading Statement

Solid start to the year, confident of further progress in 2018

Elementis has made a good start to the year and is confident of making further financial and strategic progress in 2018.

Solid business performance

· In Personal Care our hectorite based products for the cosmetics market continue to experience growth across new product categories and geographies. Performance in anti-perspirant active ingredients has improved following pricing actions taken in 2017.



· In Coatings performance benefited from growth in EMEA and the Americas, and a steady performance in Asia.



· Energy has remained solid. As expected, growth has moderated against strong comparatives, with good performance in the US and rest of the world, and lower industry activity levels in Canada.



· Chromium continues to deliver resilient performance but exceptional weather conditions at our Castle Hayne plant constrained output in the first quarter. Production has since recovered and we continue to expect full year performance to be in line with 2017.

Sustained cash generation and robust financial platform

Elementis' strong free cash generation continued in Q1 and net debt reduced from the year end, assisted by the completion of the disposal of our Surfactants business in March. Our financial platform is robust and supportive of future growth and continued shareholder value creation.



Commenting on the performance, CEO, Paul Waterman 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."



Enquiries

Elementis plc

James Curran, Investor Relations Tel: 020 7067 2994



Tulchan

Martin Robinson Tel: 020 7353 4200