Interim Management Statement

RNS Number : 3806S

Synthomer PLC

07 November 2013

 



7th November 2013

SYNTHOMER PLC

INTERIM MANAGEMENT STATEMENT

Synthomer plc ("Synthomer" or "the Group") today issues its interim management statement for the period 1 July to 6 November 2013.

Trading

The Group has performed broadly in line with the Board's expectations since the last update provided at the interim results in August.

Trading conditions in Europe have remained challenging, particularly in construction related areas, resulting in Europe and North America (ENA) operating profit being slightly below the same period last year. Whilst volumes showed some improvement over the prior year, the softer margins we saw in the first half persisted. In a difficult demand environment, a number of pricing actions have been taken.

In Asia and ROW, trading has remained strong. The solid demand for nitrile products seen during the first half of the year continued throughout the period reflecting the ongoing benefits of new product launches at the beginning of the year.

The Group's financial position remains robust with net debt at the period end slightly lower than the level reported at the interim results. As we approach the end of the year, we expect the seasonal working capital profile of the business to ease, further improving our net debt position.

Outlook

In Europe, where we have seen no material improvement in market conditions to date, we continue to expect second half operating profit to be lower than the first half of the year. This will reflect the impact of normal seasonal factors and is expected to deliver ENA profitability slightly below that achieved in the second half of the prior year. The Board continues to expect Asia and ROW operating profit in the second half to be in line with the first half, substantially ahead of the prior year.

Commenting Adrian Whitfield, Chief Executive Officer, said:

"Whilst challenging market conditions in Europe have persisted, our business has held up well and strong cash generation is enabling us to maintain investment in emerging market growth. The nitrile business in Asia has continued its solid performance and we are encouraged by the demand growth in the region."

Enquiries:

Adrian Whitfield, Chief Executive Officer	Charles Armitstead / Rosie Oddy
David Blackwood, Chief Financial Officer	Pendomer Communications
Tel: [phone]	Tel: [phone]

The company will host a conference call for analysts at 8.30am today. Please contact Pendomer Communications on 020 3603 5220 for dial in details.

 

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