REG - Synthomer PLC - Winter trading statement

SynthomerAnnouncement

28/01/2025 07:00

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RNS Number : 8575U  Synthomer PLC  28 January 2025

Synthomer plc

Winter trading statement

 

Robust progress in 2024, in line with expectations

 

 

Synthomer plc ('Synthomer' or the 'Group') today issues a scheduled update on
trading for the twelve months to 31 December 2024.

 

We expect to report 2024 revenue of c.£2.0bn (2023: £1,940.6m) and EBITDA in
the range of £145-148m for the continuing Group (2023: £137.4m), in line
with expectations.

 

Continuing Group volume improved further in H2, albeit at a slower rate than
in the first half, reflecting mixed end-market demand trends over the period.
Within this, volume growth in Q4 improved relative to Q3, led by the nitrile
latex for gloves business in the Health & Protection and Performance
Materials (HPPM) division and construction markets within the Coatings &
Construction Solutions (CCS) division.

 

The Group also delivered a strong gross margin performance in Q4, reflecting
good progress on our multi-year cost-saving and reliability improvement
programmes, as well as the ongoing strategic re-allocation of our capital and
other resources towards the higher margin, more resilient speciality solutions
within our portfolio.

 

Year-end net debt is expected to be c.£597m (H1 2024: £560.6m), principally
reflecting a c.£42m reduction in our utilisation of receivables financing
facilities and the remainder of the previously agreed deferred contributions
to the UK pension scheme in the period.

 

The strong 2024 exit margins in our specialty businesses, coupled with the
ongoing volume improvement in Health & Protection and our operational and
strategic progress over 2024, give us confidence that we will deliver further
earnings progress in 2025, even if end-market demand does not improve. In the
medium term, we remain confident in our ambition to more than double
Synthomer's earnings, through a combination of continued self-help actions,
end-market volume recovery and strategic delivery.

 

Commenting, Synthomer CEO Michael Willome said:

"We are pleased to report robust underlying earnings progress in 2024, even
with the additional operating investments we have made in our people and our
assets. Given the lack of any meaningful recovery in end-market demand during
the year, this was achieved through our focus on delivering our multi-year
self-help programmes, alongside continuing to strategically reposition
Synthomer to achieve our medium-term growth, margin and returns ambitions as
end-market demand starts to improve."

 

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

Financial information provided in this release is preliminary and unaudited.
Synthomer plans to report results for the twelve months to 31 December 2024 on
11 March 2025.

 

Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56. Classification as per DTR
6 Annex 1 R: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
that serve billions of end users worldwide. Headquartered in London, UK and
listed there since 1971, we employ c.4,000 employees across our five
innovation centres of excellence and more than 30 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 2023, 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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