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:
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Investors: Faisal Tabbah, Vice
President Investor Relations
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Tel: +44 (0) 1279 775 306
|
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Media: Nick Hasell, FTI
Consulting
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Tel: +44 (0) 203 727 1340
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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
or search for Synthomer on LinkedIn.