Q1 Trading update

RNS Number : 5843W

Synthomer PLC

28 April 2016

 

April 28^th 2016

Synthomer plc

Q1 Trading update

Positive start to 2016, in line with expectations

Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the first quarter ended March 31^st, 2016.

Trading

Europe and North America

The Europe and North America segment performed better than the strong Q1 2015. Whilst overall volumes were slightly lower, reflecting the reduction in paper volumes, unit margins were ahead of unit margins in Q1 2015, with both periods experiencing some modest margin benefit from declining raw material prices. The underlying result also benefitted from a stronger Euro relative to Sterling in Q1.

Asia and Rest of World

The Asia and Rest of World segment has traded ahead of the comparative period in Q1 2015. Higher volumes and unit margins were underpinned by continued growth in the Asian Nitrile business. Q1 2016 unit margins were also in line with Q4 2015.  

As announced on March 14^th, 2016, subject to certain completion conditions, we divested our South African business effective January 1^st 2016.

Financial Position

The Group continues to be cash generative, with net debt reducing from £77.4m to £62.2m as at March 31^st 2016.

As a result of our agreement to acquire Hexion PAC, also announced on March 14^th 2016, the Group's banking facilities will be extended from £210m to £370m. The $226m cash consideration, which has been hedged, will be funded from these extended facilities.

Outlook

Overall, the Business continues to trade in line with the Board's expectations, and accordingly the view for Full Year 2016 remains unchanged.

-ENDS-

ENQUIRIES:

Calum MacLean, Chief Executive Officer	Charles Armitstead
Stephen Bennett, Chief Financial Officer	Teneo
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 [phone] entering conference ID: 93059854 to gain access to the call.

 

END

 

 

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