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Hardware & electrical equipment

Synthomer leaves full-year outlook unchanged after solid third quarter

"Synthomer's product and geographic diversity means that we are well positioned to withstand the challenging macroeconomic and political environment."

Speciality chemical company Synthomer PLC (LON:SYNT) left its full-year outlook unchanged after what it said was a good performance so far this year.

In Europe and North America, like-for-like volumes were slightly lower year-on-year in the third quarter but unit margins were slightly ahead.

READ Synthomer "well-placed to make continued progress"

In Asia and the rest of the world, nitrile latex volumes were up slightly year-on-year and unit margins were also ahead of last year.

The company is to reorganise into three new business groups in an attempt to make its operations more efficient.

New organisational structure

From January 2019, the group’s three business groups will be: Performance Elastomers (Styrene Butadiene Rubber and Nitrile Butadiene Latex), Functional Solutions (Dispersions) and Specialities.

The new structure will combine sales, marketing, research and production by business group into dedicated global teams.

At the end of September, the group had net debt of £256mln, up from £232mln a year earlier, with the increase in the third quarter reflecting the planned step up in capital expenditure, further investment in working capital and the payment of the final dividend in respect of the previous fiscal year.

Shares in Synthomer were up 2.8p at 444.4p in early deals.

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