Synthomer reports strong first half trading despite uncertain markets
Shares in Synthomer PLC rose and then fell on Monday as it flagged an ‘uncertain’ market environment in a mostly upbeat trading statement.
‘The geopolitical context remains volatile, making it difficult to predict the duration of current conditions or longer term end-market trends,’ the London-based developer of polymer chemicals said.
Shares in the firm were down 9.5% at 103.75 pence each in London late Monday morning, after trading as high as 123.95p each earlier.
Ahead of Monday’s annual general meeting, Synthomer said it expects to deliver strong first half revenue, earnings before interest, tax, depreciation and amortisation and margin progress relative to the prior year.
Trading in the first quarter of the year was in line with expectations and ahead of the prior year, with ‘much-improved’ Coatings & Construction Solutions and ‘stable’ Adhesive Solutions performances offsetting a slower start in parts of the Health & Protection and Performance Materials division.
Momentum improved for all three divisions through the quarter and accelerated in April and May.
Synthomer said ‘significant’ increases in raw material and energy costs continue to be passed through to customers, while volumes in a number of product areas increased due to disruption to the global sourcing and distribution networks of competitors, particularly those based in Asia.
As a result, period-on-period volume, margin and Ebitda growth in the second quarter ‘has been ahead of our expectations’.
The group has ‘substantial’ liquidity and covenant headroom it said, following the successful bank debt refinancing and maturity extension announced in April.
Synthomer said the strong trading in the first half of 2026 ‘underpin our confidence in delivering year-on-year progress in 2026.’
Chief Executive Michael Willome said the market environment remains ‘uncertain’ and so ‘our focus is on continuing to deliver our speciality strategy, including divestments, to strengthen our balance sheet and support further improvement in Synthomer’s sustainable earnings potential.’
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