REG - Synthomer PLC - Receivables purchasing arrangement

SynthomerAnnouncement

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RNS Number : 0195M  Synthomer PLC  18 December 2025

Synthomer plc

Receivables purchasing arrangement

 

Synthomer plc ('Synthomer' or the 'Company') today announces that it has
entered into a trade receivables purchasing arrangement with Rainbow State
Limited, a subsidiary of its largest shareholder Kuala Lumpur Kepong Berhad
Group ('KLK'). The Company has put this temporary arrangement in place with
the support of KLK to provide additional short-term financial flexibility and
ensure a prudent level of banking covenant headroom at year end.

 

Under the arrangement, the Company and KLK have agreed that KLK will purchase
c.£50m of Company trade receivables due on or before 28 February 2026, which
are not eligible for inclusion in the Company's existing committed €200m
non-recourse receivables financing facility. It is anticipated that
receivables purchased under the arrangement and in the existing committed
receivables financing facility together will not exceed €200m (c.£175m).
The purchasing arrangement terms have been agreed on an arms-length basis and
are consistent with terms available from third party market participants for
an arrangement of this nature.

 

Related party transaction

By virtue of KLK and its connected parties' c.27 per cent shareholding in
Synthomer, KLK is considered a related party of Synthomer under the UK Listing
Rules. The board of Synthomer (excluding Dato' Lee Hau Hian and Uwe Halder by
reason of their relationship with KLK) considers that the purchasing
arrangement is fair and reasonable as far as Synthomer shareholders are
concerned, and have been so advised by Rothschild & Co acting in its
capacity as sponsor in relation to this related party transaction.

 

Post-close trading update

Synthomer plans to publish its post-close trading update for the year ending
31 December 2025 in late January.

 

 

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

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.3,800 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.

 

N. M. Rothschild and Sons Limited ('Rothschild & Co'), which is authorised
and regulated by the FCA in the United Kingdom, is acting exclusively for the
Company and no one else in connection with the receivables purchasing
arrangement and will not be responsible to any other person for providing the
protections afforded to its clients or for providing advice in connection with
the receivables purchasing arrangement, the contents of this announcement or
any other matter referred to herein.

 

Apart from the responsibilities and liabilities, if any, which may be imposed
on Rothschild & Co by the FSMA or the regulatory regime established
thereunder, or under the regulatory regime of any jurisdiction where the
exclusion of liability under the relevant regulatory regime would be illegal,
void or unenforceable, neither Rothschild & Co nor any of its affiliates
(nor their respective directors, officers, employees or agents) owes or
accepts any duty, liability or responsibility whatsoever (whether direct or
indirect, whether in contract, in tort, under statute or otherwise) to any
person who is not a client of Rothschild & Co in connection with this
announcement, any statement contained herein, the receivables purchasing
arrangement or otherwise. Rothschild & Co. accepts no responsibility
whatsoever for, or makes any representation or warranty, express or implied,
as to the contents of this announcement, including its accuracy, completeness
or verification or for any other statement made or purported to be made by it,
or on its behalf, and nothing contained in this document is, or shall be,
relied on as a promise or representation in this respect, whether as to the
past or the future, in connection with the Company or the receivables
purchasing arrangement. Rothschild & Co. and its respective subsidiaries,
branches and affiliates accordingly disclaim, to the fullest extent permitted
by law, all and any duty, liability and responsibility whether arising in
tort, contract or otherwise (save as referred to above) in respect of this
announcement or any such statement or otherwise.

 

Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56.

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