Industrial Specialties business review

Industrial Specialties (IS) contributes to the efficiency of our manufacturing model with sales exclusively from our shared manufacturing sites leveraging available capacity and core chemistries into target markets. Full year sales in Industrial Specialities were down 4.6% to £194.5m (2024: £203.8m) or by 2.4% at constant currency. This comprised growth in core sales offset by a reduction in sales via a supply agreement. Sales volumes were 7.7% higher but price/mix was 10.1% lower, adversely impacted by a higher proportion of by-product and co-stream sales. Q4 sales were 18.6% lower at constant currency against a particularly strong comparator and primarily reflecting the phasing of co-stream sales. Full year adjusted operating profit was £9.0m (2024: £15.5m), with the prior year comparator benefiting from particularly favourable product mix, and IFRS loss was £(1.7)m (2024: £13.6m profit). Assuming current economic conditions continue, we are targeting an organic increase in sales in Industrial Specialties of (3)-3% CAGR 2026-28, which is expected to include an increase in core sales as we target selective growth opportunities.