Elementis shares gained 1.2% in early London trading after a resilient full-year trading update. The specialty chemicals group now expects FY25 profits to come in slightly ahead of market expectations. Revenues are projected to match the $600 million consensus, while EBITA is forecast to beat the $125 million estimate.

The profit upgrade is a rare event in the current chemicals sector. Jefferies analyst Vanessa Jeffriess attributes the margin improvement to the Elevate Elementis strategy. This includes operational simplification, cost savings, and benefits from the bolt-on acquisition of Alchemy Ingredients. The company's net debt is expected to be around $185 million.

A strong balance sheet leaves clear scope for another share buyback this year, according to Jeffriess. The analyst continues to name Elementis as a key pick in the U.K. Industrials sector. Investors now await the full FY25 results, scheduled for publication on March 5.