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REG - Synthomer PLC - Covenant update

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RNS Number : 0875P  Synthomer PLC  01 July 2025

Synthomer plc

Covenant update

 

Synthomer plc ('Synthomer' or the 'Group') today announces that it has agreed
with its banking syndicate to extend the period of covenant relaxation through
to, and including, the end of 2026. Given weaker macroeconomic conditions than
anticipated at the last amendment agreed in March 2024 and heightened
geopolitical uncertainties, the extension provides the Group with a longer
period of additional headroom to manage the business through to the expected
recovery in earnings in the medium term.

 

Following the agreement, the net debt:EBITDA covenant ratios required under
the Group's Revolving Credit Facility and the UK Export Finance facilities
have been increased from not more than 4.75x in December 2025, 3.5x in June
2026 and 3.25x in December 2026 to 5.25x, 4.5x and 4.25x respectively. While
the Group expects to be within the 5.0x ratio previously required in June
2025, for prudence this has also been extended by 0.25x.

 

The Group will announce its interim results to the end of June 2025 on Tuesday
5 August.

 

 

Further information:

 Investors: Faisal Tabbah, Vice President Investor Relations  Tel: +44 (0) 1279 775 306
 Media: Nick Hasell, FTI Consulting                           Tel: +44 (0) 203 727 1340

 

Notes

Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56. Classification as per DTR
6 Annex 1R: 3.1.

 

Synthomer plc is a leading supplier of high-performance, highly specialised
polymers and ingredients that play vital roles in key sectors such as
coatings, construction, adhesives, and health and protection - growing markets
for customers who serve billions of end users worldwide. Headquartered in
London, UK and listed there since 1971, we employ c.3,900 employees across our
five innovation centres of excellence and 29 manufacturing sites across
Europe, North America, Middle East and Asia. With more than 6,000 blue-chip
customers and £2.0bn in continuing revenue in 2024, our business is built
around three divisions, serving customers in attractive end markets where
demand is driven by global megatrends including urbanisation, demographic
change, climate change and sustainability, and shifting economic power. In
Coatings & Construction Solutions, our specialist polymers enhance the
sustainability and performance of a wide range of coatings and construction
products. We serve customers in applications including architectural and
masonry coatings, mortar modification, waterproofing and flooring, fibre
bonding, and energy solutions. In Adhesive Solutions our products help our
customers bond, modify and compatibilise surfaces and components for
applications including tapes and labels, packaging, hygiene, tyres and plastic
modification, improving permeability, strength, elasticity, damping,
dispersion and grip. In Health & Protection and Performance Materials we
are a world-leading supplier of water-based polymers for medical gloves, and a
major European manufacturer of high-performance binders, foams and other
products serving customers in a range of end markets. Our purpose is creating
innovative and sustainable solutions for the benefit of customers and society.
Around 20% of our sales volumes are from new and patent protected products. At
our innovation centres of excellence in the UK, China, Germany, Malaysia and
Ohio, USA we collaborate closely with our customers to develop new products
and enhance existing ones tailored to their needs, with an increasing range of
sustainability benefits. Our 2030 decarbonisation targets have been approved
by the Science Based Targets initiative as being in line with what the latest
climate science says is necessary to meet the goals of the Paris Agreement,
and since 2021 we have held the London Stock Exchange Green Economy Mark,
which recognises green technology businesses making a significant contribution
to a more sustainable, low-carbon economy. Find us at www.synthomer.com
(http://www.synthomer.com) or search for Synthomer on LinkedIn.

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