Synthomer PLC Pre-Close Trading Update and Board Update (6235L)
January 14 2021 - 1:00AM
UK Regulatory
TIDMSYNT
RNS Number : 6235L
Synthomer PLC
14 January 2021
14(th) January 2021
Synthomer plc
Pre-Close Trading Update and Board Update
FY2020 EBITDA guidance raised c.10%; FY2020 proforma leverage
expected to reduce further
Calum MacLean to stand down as Chief Executive by January
2022
Synthomer plc ('Synthomer' or 'the Group') today issues a
trading update for the year ended 31(st) December 2020 ahead of
announcing the Group's Full Year results on 4(th) March 2021.
Synthomer also announces that following 6 successful years, Calum
MacLean has informed the Board that he intends to stand down as
Chief Executive by January 2022.
Strong trading momentum across the business
Performance Elastomers
Performance Elastomers has continued to perform strongly. The
positive trends experienced in our Nitrile latex business during
the year continued through the final quarter of 2020 with overall
performance ahead of expectations. Similarly, the conditions in our
SBR latex business also continued to strengthen, with all SBR
segments except paper trading ahead of the comparative period in
2019.
Functional Solutions
Functional Solutions has seen a sustained improvement in the
final quarter of 2020 with our consumer facing and industrial end
markets remaining strong with exception of the Oil and Gas business
unit. We have seen activity levels above normal seasonal levels
with overall performance ahead of expectations.
Industrial Specialities
Industrial Specialities also had a strong finish to the year,
with our laminates and films business, which serves the home
improvement and recreational vehicles market, trading particularly
well and the division performing ahead of the equivalent period in
2019.
FY 2020 EBITDA guidance raised and proforma leverage expected to
reduce further
The combination of stronger trading across our three major
divisions means that the Group now expects its 2020 EBITDA to be
approximately GBP255m, some 10% ahead of the Company guidance of
GBP232m provided in our trading statement of 14(th) October
2020.
The Group remains highly cash generative and now expects
proforma leverage to reduce to circa 1.9x net debt to EBITDA as of
31(st) December 2020.
Outlook
Whilst the Group will continue to adapt its operations in
response to the ongoing COVID-19 pandemic to ensure the safety of
all employees, at this stage it expects no meaningful disruption to
business. The Board is confident that the benefits of the OMNOVA
acquisition, recent investment in new capacity, further efficiency
measures, its proven growth strategy as well as continued strength
in Performance Elastomers, will underpin strong EBITDA growth in
2021.
Board update
Having informed the Board that he would like to stand down as
Chief Executive, Calum MacLean will leave the business by January
2022 when a successor is in place. During his 6 years as Chief
Executive, Calum has driven significant change at Synthomer
presiding over substantial investment and several acquisitions,
notably Omnova in 2020. The process to find a new Chief Executive
is underway and is expected to include both internal and external
candidates. A further announcement will be made in due course.
Commenting Calum MacLean, Chief Executive, said:
"It has been a privilege to lead Synthomer for the last 6 years
and I am proud of what we have achieved. With Omnova fully
integrated, all core parts of the business growing and our
financial outlook strong, now is the right time to hand over to
someone else who can build on this exciting momentum. I look
forward to welcoming my successor into the role when the time
comes."
Commenting, Caroline Johnstone, Chair of Synthomer, said:
"In a very challenging year, Synthomer has delivered a strong
performance, testament to the strategy that we have been
consistently executing and the investments that we have made over
the last five years. As we embark upon a new year and look further
ahead to the future, the business is in a strong position.
On behalf of the Board, I would like to thank Calum for
everything that he has done to take Synthomer forward since joining
at the start of 2015. His leadership and vision have transformed
the business into a truly diversified, differentiated and global
company. The next chapter promises to be just as exciting and the
Board looks forward to working with a new Chief Executive in due
course."
-ENDS-
Further information:
Calum MacLean, Chief Executive Officer
Steve Bennett, Chief Financial Officer Tel: + 44 1279 436211
Tim Hughes, President, Corporate Development
Charles Armitstead/ Matt Denham, Teneo Tel: + 44 7703 330 269/ +
44 7825 735596
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