REG - Synthomer PLC - Trading update

SynthomerAnnouncement

29/09/2022 07:00

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RNS Number : 0733B  Synthomer PLC  29 September 2022

29(th) September 2022

 

Synthomer plc

 

Trading update

 

Synthomer plc ('Synthomer' or 'the Group') today provides an update on current
trading and its outlook for Full Year 2022.

 

At the time of its interim results in August, the Group reported that
inventory levels of medical gloves remained high post-pandemic with reduced
demand. The associated de-stocking significantly reduced nitrile butadiene
rubber (NBR) production volumes in H1 and delayed a return to pre-pandemic NBR
growth.

 

During the third quarter, this de-stocking has continued with production
volumes further reduced. The Board now anticipates modest profitability in
Performance Elastomers for the second half of the year. Whilst underlying
end-customer demand for medical gloves remains similar to pre-COVID levels,
the destocking impact is not expected to abate before the end of 2023.

 

The Group also highlighted at its interim results the challenging
macroeconomic environment. Since August, macroeconomic conditions have
deteriorated, leading to reduced demand in construction and coatings end
markets. This has impacted trading in Synthomer's European business.

 

As a result of these factors, the Board now expects Full Year EBITDA to be 10%
to 15% below its previous expectations.

 

The Group is focused on deleveraging and cash generation and is progressing a
number of strategic initiatives and operational actions to reduce costs,
capital expenditure and, as indicated in August, working capital.

 

Synthomer will host an event for investors and analysts on 12(th) October 2022
where it will provide an update on strategy and the Group's new Adhesive
Technologies division.

 

-ENDS-

 

Enquiries:

 

Investors: Tim Hughes, Synthomer         07764 859
147

Press: Charlie Armitstead, Teneo            07703 330 269

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