Synthomer plc
Autumn 2024 trading statement
Synthomer plc ('Synthomer' or the 'Group') today
issues a scheduled update on trading for the third quarter of
2024.
Overall trading in Q3 2024 was broadly in line
with our expectations. Continuing Group volumes continue to improve
from historically low levels, although at a slower rate than during
Q1 and Q2 2024, reflecting mixed end-market demand trends in the
period. As with the first half of the year, the improvement in
activity levels was led by the Adhesive Solutions (AS) and Health
& Protection and Performance Materials (HPPM) divisions
recovering some of the substantial declines experienced in the
prior year, while Coatings & Construction Solutions (CCS)
volumes were more stable.
Q3 2024 Continuing Group EBITDA was also higher
than the prior year period, principally reflecting ongoing delivery
of our multi-year cost saving and reliability improvement
programmes and higher capacity utilisation, partially offset by
previously disclosed operating cost increases.
We continue to progress our strategic
transformation towards higher margin, more resilient speciality
solutions alongside maintaining our focus on generating cash flow
and reducing leverage. In the period we received an initial
technology licensing fee payment that is the first stage of a
multi-year capital-light partnership which leverages our Health
& Protection intellectual property, technology and
manufacturing expertise for the onshore US market. In the period we
also completed a project to increase the flexibility and efficiency
of our US manufacturing footprint, including exiting our Fitchburg
site, and deliveries began from our project to strengthen our
supply chain for hydrocarbon resin production in Europe.
As previously indicated, we expect to make some
earnings progress (on a Continuing Group basis adjusting for the
divested Compounds business), and to be modestly Free Cash Flow
positive in 2024, despite the absence of a broad-based
macroeconomic demand improvement.
Commenting, Synthomer CEO Michael Willome
said:
"Despite decidedly mixed demand conditions in
our end markets during the third quarter, we remain on track to
deliver underlying earnings progress going forward, driven mainly
by our multi-year self-help programmes. We continue to
strategically reposition the business to deliver our medium-term
ambitions by focusing on our core businesses, enhancing our
operating leverage and relentlessly allocating our capital and
other resources towards optimum value creation."
Further information:
|
Investors: Faisal Tabbah, Vice
President Investor Relations
|
Tel: +44 (0) 1279 775 306
|
|
Media: Nick Hasell, FTI
Consulting
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Tel: +44 (0) 203 727 1340
|
Notes
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 1R:
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.4,200
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.
