Synthomer shares jump as UK specialty chemicals firm lifts 2026 outlook
Synthomer shares jump as UK specialty chemicals firm lifts 2026 outlook Aug 4 (Reuters) - Synthomer SYNTS.L raised its full-year earnings and cash flow outlook on Tuesday after reporting higher first half core profit, as the UK chemicals maker reaped the benefits of cost cuts and a shift towards higher-margin specialty products.
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Shares surged as much as 23.4% and were the top gainer on FTSE small caps .FTSC index
Synthomer, which makes polymers for coatings, adhesives and medical gloves, has passed higher raw material and energy costs on to customers since the Iran war broke out, while also pursuing portfolio simplification to boost profits and cut debt.
Underlying core profit for the first half of the year jumped 13.4% to £96.7 million ($129.9 million), after a near 7% rise in revenue to £954.3 million.
Synthomer now expects 2026 core profit to come in slightly ahead of market expectations and forecasts positive free cash flow for the year.
Analysts project 2026 profit of £162 million, according to a company-compiled consensus.
"The route to the medium-term targets coupled with debt normalisation is looking increasingly well set," Peel Hunt analyst Harry Philips said.
J.P. Morgan analysts on the other hand caution that the less certain outlook for the second half may somewhat limit the optimism on Synthomer shares near-term
The company said that the benefits it had seen earlier in the year from temporary disruption to competitors' supply chains, particularly in Asia, would not recur in the second half of the year.
($1 = 0.7445 pounds)
(Reporting by Krisha Bhatt in Bengaluru; Editing by Ronojoy Mazumdar)