Synthomer PLC Trading statement - Autumn 2023 (4495T)
15 Novembre 2023 - 8:00AM
UK Regulatory
TIDMSYNT
RNS Number : 4495T
Synthomer PLC
15 November 2023
Synthomer plc
Autumn 2023 trading statement
Resilient trading in subdued demand environment, led by
speciality businesses
Synthomer plc ('Synthomer' or 'the Group') today issues its
scheduled update on trading since the half year results were
published on 7(th) September to 31(st) October 2023.
Overall Group trading has been broadly consistent with our
expectations. The key trends set out at the half year results have
continued, with subdued volumes and limited visibility given the
challenging macro conditions throughout the chemicals industry. Our
speciality businesses have continued to deliver significantly more
resilient pricing and volumes relative to our base chemical
products, which are subject to increased global competition and
greater negative operating leverage.
Following successful completion of the GBP276m rights issue in
mid-October we have increased the focus on delivering our
speciality solutions strategy, alongside our ongoing activities to
preserve cash and manage near-term macroeconomic uncertainties. We
have continued to reduce cost and complexity by exiting our
loss-making paper and carpet activities in the US, and the
reorganisation of our SBR manufacturing in Europe is now complete,
enabling the process to divest our European paper and carpet
operations to start ahead of plan. We have also implemented a
modest step-up in investment to drive growth in our speciality end
markets, principally in Asia and the USA.
As previously stated, the Group does not anticipate any
improvement in customer demand for the remainder of 2023, with a
risk of modest further slowdown in activity in certain base
chemicals areas if market trends seen in the third quarter persist.
The Group still expects to make sequential progress in the second
half of 2023 relative to the first, driven principally by our
previously announced self-help measures.
Commenting, Synthomer CEO Michael Willome said:
"Although the demand environment continues to be subdued across
most of our end markets, the relative strength and resilience of
our speciality businesses underscores the logic of our strategy. By
focusing on these parts of the portfolio we will continue to
reposition the Group to deliver on its substantial potential for
value creation. We are confident that Synthomer's earnings power in
the medium term is more than double recent run-rate levels, driven
by improved market conditions, operational and commercial
excellence and our ongoing strategic evolution to become a true
speciality chemicals business."
Synthomer intends to report results for the twelve months to
31(st) December 2023 on 12(th) March 2024.
Further information:
Investors: Faisal Tabbah, Vice President Investor Relations Tel: +44 (0) 1279 775 306
Media: Charles Armitstead, Teneo Tel: +44 (0) 7703 330 269
Notes
Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56.
Classification as per DTR 6 Annex 1R: 3.1.
Synthomer plc is a leading supplier of high-performance
speciality polymers and ingredients for coatings, construction,
adhesives, and healthcare end markets. Headquartered in London, UK
and listed there since 1971, we employ around 4,400 employees
across nearly 40 locations across Europe, USA and Asia. With more
than 6,000 customers and GBP2.4bn in continuing revenue in 2022,
our three divisions are aligned to our end markets which play an
important role in global megatrends including urbanisation, climate
change, and economic and demographic shifts. In Coatings &
Construction Solutions, our tailored solutions enhance the
sustainability and performance of a range of products such as
architectural and masonry coatings, mortar modification, fibre
bonding, waterproofing and flooring, while our energy solutions
promote drilling stability in the challenging operating
environments of the oil and gas industry. Adhesive Solutions is a
leading supplier of products that bond, modify and compatibilise
surfaces and components for a range of end markets including tapes
and labels, packaging, hygiene, tyres and plastics. 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 for a range of niche applications. 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 hubs in the UK,
Germany, Malaysia and Ohio, USA we collaborate closely with our
customers to develop new products tailored to their needs while
also minimising environmental impact. We are working to embed
sustainability in everything we do; we have reduced our scope 1 and
2 carbon footprint by one third since 2019, and 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.
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.
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