- Despite the disappointing performance in 2016 there are a number of factors which leave us well placed in 2017 including:
- The previously announced operational improvement programme remains on track to deliver annualised savings of at least US$20m from 2018, with US$15m expected in 2017.
- The Novero integration is now complete and Novero is expected to deliver modest profitability in 2017.
- Actions taken to gradually improve operational efficiency and profitability in the Performance Materials division and specifically Precision Metals.
- A review of the growth and value creation options for the Performance Materials division.
Tony Quinlan, Chief Executive Officer, commented
"2016 was a disappointing year, where challenging conditions in certain key end markets were compounded by discrete but material inefficiencies in our own operations. These overshadowed a solid performance in much of our business.
We have taken corrective actions, including putting in place a substantially new leadership team and establishing a clearer structure to optimise our strong technology and engineering. We are reducing overheads and driving a forensic approach to improving the efficiency and profitability of our operations. In the near-term, we are wholly focused on delivering a strong profit uplift alongside establishing a business model which can deliver long-term, sustainable, revenue and earnings growth. The rights issue announced today is a key step in strengthening the group balance sheet in order to support this growth."