City briefs: Croda International; SIG; and more

Speciality chemicals company, Croda International, will carry out a strategic review of its Performance Technologies and Industrial Chemicals (PTIC) businesses.

East Yorkshire-based Croda says the review is consistent with its prioritisation of investments in faster-growth life science and consumer markets, which now represent over 80% of the Group’s profitability.

A spokesman for the Group explained: “PTIC delivers industry-leading margins across the cycle through well invested manufacturing, innovation and sales operations, supported by a dedicated and experienced global team.

“It has a highly attractive portfolio, offering customers innovative, sustainable solutions in advanced technologies, and is focused on fast-growth markets in the circular plastic economy, electric vehicles and other renewable technologies.

“This strong technology portfolio supports PTIC’s leading market positions in automotive, polymer and food packaging applications.

“The scope of the strategic review will focus on the businesses and activities within PTIC that do not directly support the Consumer Care and Life Sciences sectors.

“It will consider whether Croda is the best future owner of all the PTIC businesses within the context of opportunities to deploy more capital and resources within PTIC, as well as in Consumer Care and Life Sciences.

“The review will assess whether the full potential of PTIC can best be delivered under Croda, as a stand-alone business, or via a full or partial divestment.” 

Croda says its review is expected to conclude by the end of 2021.

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Buildings materials supplier SIG says it has made an encouraging start to the year, with its Return to Growth strategy continuing to deliver good progress.

Issuing a trading update for 1 January to 30 April 2021, the Sheffield-headquartered company adds that after a solid start in January and February sales volumes then picked up strongly, and March and April traded ahead of management’s expectations.

Performance for the year to date has been ahead of expectations. Group sales were 29% up on 2020 for the four-month period.  They were 4% lower than the same period in 2019, and flat against 2019 in March and April.

The update adds: “We are seeing signs of shortages of materials in certain areas, as reported previously, and input price inflation remains significant in some categories. We have navigated these uncertainties successfully to date, despite some longer delivery times.

“Whilst the evolving COVID-19 backdrop will continue to create uncertainty in the short term, more so in our EU markets than the UK, the strong demand across territories and sectors in the first four months of the year was encouraging and gives the Board increased confidence for the full year performance.

“The momentum we have seen through March and April, together with improving visibility on the near-term order book, means we now expect the Group to deliver an underlying operating profit in the first half, returning the Group to profitability earlier than expected.

“Given the prevailing macro-economic uncertainties, we retain a cautious view of the second half. 

“We do however continue to expect it to be both profitable and cash generative, and in light of the stronger than anticipated recent performance we now expect full year revenues to be slightly ahead of prior expectations, and profits also to be higher than previously expected.”

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Leeds-headquartered Getech, which provides data, knowledge and software to the energy industry, says H2 Green Ltd, its subsidiary in the green hydrogen production sector, has signed an agreement with Element Two Limited to supply green hydrogen to its refuelling stations.

Element Two is a UK-based developer of Hydrogen Refuelling Stations and a retailer of hydrogen fuel.

The firm is investing in prime locations in the North of England, Scotland, and Ireland, with plans to deploy over 800 pumps onto the UK network by 2027 and 2000 by 2030.

H2 Green is a developer of regional hydrogen hubs and is working with multiple land asset owners, across hundreds of locations in the UK, to assess their suitability to become city hydrogen hubs.

It is currently progressing a focus-list of priority hubs, where it will develop and operate green hydrogen production, storage, and distribution.

This strategic agreement provides a path by which Element Two and H2 Green can align their production and distribution strategies across their respective land portfolios – the objective being to accelerate the creation of the UK’s first hydrogen network.

Element Two and H2 Green have agreed mutual options to co-locate their respective hydrogen refuelling stations and hydrogen production and storage assets.