Synthomer PLC Q3 Trading Update (7178E)
November 06 2015 - 1:00AM
UK Regulatory
TIDMSYNT
RNS Number : 7178E
Synthomer PLC
06 November 2015
November 6(th) 2015
Synthomer plc
Q3 Trading Update
Continued progress, in line with full year expectations
Synthomer plc ('Synthomer' or 'the Group') today issues a
trading update for the third quarter ended September 30(th) ,
2015.
Trading
Europe and North America
The Europe and North America segment has continued to perform in
line with the positive trends seen during the first half of the
year. Whilst volumes were lower than Q3 2014 due to ongoing
weakness in our Paper business, we continued to make good progress
driven by a further improvement in Construction and Coatings and
Functional Polymers. The recent falls in raw material prices helped
to deliver a modest improvement in unit margins in Q3 over Q2 and
the comparable period in 2014.
Asia and Rest of World
The Asia and Rest of World segment has continued to perform
strongly in Q3, with both volumes and unit margins higher than in
Q2 and Q3 2014. This ongoing momentum reflects a further rise in
volumes and unit margins in our Nitrile business. Our principal
revenue streams and raw material costs in Asia are US dollar
denominated, and accordingly the recent volatility in the Malaysian
Ringgit has a limited impact on the reported operating profit in
Sterling.
Financial Position
Group debt increased from GBP77.2m to GBP94.8m following the
Final Ordinary and Special dividend payments of GBP42.8m on 3 July
2015, offset by continued strong cash generation of GBP26.0m during
the period.
The Group balance sheet remains strong with the net debt/ EBITDA
ratio below 1x.
Outlook
Overall, the Board's expectations for Full Year 2015 remain
unchanged.
Looking further ahead, in Europe and North America, our strategy
continues to focus on innovation, margin improvement and tight cost
control to drive performance. Consequently, we expect this segment
to continue at similar volumes and margins through 2016.
As stated in our interim results, a number of Asian Nitrile
producers, including Synthomer, have announced plans to increase
capacity during the latter part of 2016 and early 2017. Whilst we
are confident of continued growth in the market and strong demand
going into next year, we expect this planned capacity increase to
impact the supply/ demand balance during the second half of 2016
leading to similar net volumes and margins to 2015 for the year as
a whole.
-ENDS-
ENQUIRIES:
Calum MacLean, Chief Executive Charles Armitstead
Officer
Stephen Bennett, Chief Pendomer Communications
Financial Officer
Tel: + 44 1279 436211 Tel: + 44 20 3603 5220
The Company will hold a conference call for investors and
analysts at 0800 BST today.
Please dial + 44 20 3426 2890 to gain access to the call.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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