Shares in specialty chemicals company Elementis (ELM) soared a staggering 177% to 50.8p on Thursday after it revealed it had barely been affected by the coronavirus outbreak.
The FTSE 250 firm said in a trading update it had experienced a 'solid' start to the year with limited impact on production and demand from the pandemic.
It added that all of its sites around the world remained open and were operating at normal levels, with trading and performance in line with expectations.
However, the company scrapped its final dividend, saving $33m in the first half of this year, and said future dividend decisions will be made 'when conditions normalise'.
REASSURING THE MARKET
Elementis also reassured investors over its financial position and 'very ample' liquidity, with over $300m immediately available to the company.
It has also secured a relaxation of its banking covenants from 3.25x to 3.75x net debt/EBITDA.
The firm's total net debt, excluding lease liabilities under IFRS 16, was $454m at 31 December 2019, representing a ratio of 2.7x EBITDA.
Elementis CEO Paul Waterman said, 'While our business performance to date is in line with our expectations, we are acutely aware of the increased level of market and macroeconomic uncertainty.
'Our focus remains on what we can control, namely active cost and cash management.
'The relaxation of our banking covenants and the decision to suspend the final dividend will create material additional financial headroom to counter the potential impacts of the global coronavirus crisis.'
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