REG - Synthomer PLC - Trading and refinancing update

SynthomerAnnouncement

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RNS Number : 2207X  Synthomer PLC  19 March 2026

Synthomer plc

Trading and refinancing update

 

·    2025 performance reconfirmed with positive cash, robust earnings and
improved margin performance

·    2026 started as expected; in line with prior year and with momentum
building

·    Focused on refinancing discussions and divestment programme, which
are both progressing constructively

 

2025 results and current trading in 2026

 

Synthomer plc ("Synthomer" or the "Company") today announces that the year to
31 December 2025 audit process is well-advanced, with no change to the
expectations indicated in the 29 January 2026 trading update of continuing
revenue of c.£1.74bn and continuing EBITDA in the range of £135-138m.

 

Strong operational execution, together with expanded 'self-help' cost
reduction programmes, enabled the Company to mitigate the impact of softer
end-market demand since global tariff changes were announced and deliver
resilient earnings and an increased EBITDA margin as well as positive Free
Cash Flow in 2025.

 

Synthomer's covenant net debt:EBITDA was 4.7-4.8x as at 31 December 2025, well
within the requirement of less than 5.25x, and the Company's liquidity
(undrawn committed facilities and cash) was £385m.

 

Overall trading since the start of 2026 is in line with the Company's
expectations and momentum continues to build. While the consequences of the
military action in Iran remain uncertain, Synthomer is passing through the
significant increases in underlying raw materials and energy costs since the
start of the conflict via pricing adjustments, while sales volumes in several
product areas are increasing, benefitting from our regional manufacturing
footprint. The Company's joint venture manufacturing operation and sales
office in the Middle East are both currently operating as usual, and our
global supply chains have remained robust to-date although we are monitoring
the situation closely.

 

The Company continues to focus on delivering further year-on-year progress in
2026 driven primarily by its self-help actions.

 

Update on refinancing discussions

 

As previously announced, the Company remains actively engaged with its lenders
with the objective of amending the key covenants and extending the maturity of
its revolving credit and UK Export Finance debt facilities, which are due in
H2 2027. These discussions are proceeding constructively, alongside our
ongoing focus on delivering the broadened divestment programme. While the
Company continues to explore options to support further leverage reduction and
underpin the sustained delivery of the speciality chemicals strategy, the
Board does not currently intend to issue new equity and is focused on
concluding the debt refinancing process alongside the divestment programme.
Kuala Lumpur Kepong Berhad Group ('KLK'), Synthomer's largest shareholder,
remains very supportive of Synthomer's strategy and operational delivery.

 

Given the debt refinancing process above, the Company will publish its 2025
results in late April 2026.

 

 

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 £1.7bn in continuing revenue in 2025, 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. Legal Entity
Identifier (LEI): 213800EHT3TI1KPQQJ56.

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