Synthomer PLC Q1 Trading Update (0778W)
April 21 2021 - 1:00AM
UK Regulatory
TIDMSYNT
RNS Number : 0778W
Synthomer PLC
21 April 2021
21(st) April 2021
Synthomer plc
Q1 Trading Update
Stronger underlying trading across all divisions and continued
exceptional Nitrile Latex performance
Synthomer plc ('Synthomer' or 'the Group') today issues a
trading update for the quarter ended 31(st) March 2021.
Strong trading momentum across all businesses
Performance Elastomers
Performance Elastomers has continued to perform strongly. The
positive trends experienced in our Nitrile Latex business during
2020 have continued through the first quarter of 2021 with overall
performance ahead of expectations. Both volumes and unit margins
were significantly ahead of prior year driven by exceptional demand
as a consequence of the COVID-19 pandemic.
Conditions in our SBR latex business also continued to improve,
with all segments except paper trading ahead of the comparative
period in 2020. Following the strategic review of the European SBR
network we completed the consultation in Marl (Germany) and the
planned closure of the Oulu (Finland) site at the end of Q1.
Functional Solutions
Functional Solutions has seen a sustained improvement in the
first quarter of 2021. Our consumer facing and industrial end
markets have remained robust with our Oil and Gas business
improving month on month. Volumes and unit margins were ahead of
the comparative period supported by the acquisition of and
synergies from OMNOVA and the introduction of low cost capacity in
Europe and the US to drive organic growth in differentiated
applications.
Industrial Specialities and Acrylate Monomers
Industrial Specialities also had a good start to the year with
activity levels and unit margins significantly ahead of prior year
in all major segments including automotive and consumer facing
markets. Acrylate Monomers likewise benefitted from improved demand
and industry supply issues resulting in a significant uplift in
profitability.
Reducing Leverage
The strong trading performance and cash generation has resulted
in a further reduction in proforma net debt:EBITDA to 1.2x at
31(st) March 2021 with anticipated leverage of less than 1.0x
expected by 30(th) June 2021 (31(st) December 2020: 1.8x).
Positive outlook: strong trading increases FY EBITDA
expectations
Whilst macroeconomic conditions remain uncertain given the
ongoing COVID-19 pandemic, we are encouraged by a further
strengthening of underlying trading conditions and the strong
performances across all our divisions during Q1.
Accordingly, the Board now expects 2021 EBITDA to be in excess
of GBP450m reflecting a further rise in the one off profitability
of our Nitrile Latex business and the strengthening of the
underlying trading conditions. Our expectation that the Nitrile
Latex business will return to more normalised levels in 2022
remains unchanged.
Conference call
The company will hold a conference call for investors and
analysts at 0800 BST today:
Dial in number:
UK (Toll free) 0800 640 6441
UK (Local) 020 3936 2999
United States (Local) 1 646 664 1960
All other locations +44 20 3936 2999
Access code: 921802
-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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END
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