Q4 and FY trading update

RNS Number : 6689U

Synthomer PLC

20 January 2017

 

Official Entity Name: SYNTHOMER PLC

LEI: 213800EHT3TI1KPQQJ56

20 January, 2017

Synthomer plc

Q4 and FY trading update

Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the year ended 31 December 2016.

Europe and North America

The positive trends experienced in our Europe and North America business during the first three quarters of the year continued through Q4 leading to an overall performance ahead of our original expectations. We saw better than expected results across all business segments and further benefits from the ongoing focus on efficiency, new product initiatives, a strengthened procurement function and investment in business development activities.

Asia and Rest of World

Asia and Rest of World also performed modestly ahead of our expectations in Q4 with the competitive dynamics in our Asian Nitrile business continuing to evolve following the introduction of additional industry capacity in the second half of the year. Full year 2016 volumes and margins for this business are now likely to be sequentially ahead of FY 2015.

Hexion PAC

The integration and trading performance of Hexion PAC continues to progress in line with our expectations. The underlying annual EBITDA and expected synergies remain unchanged from the guidance given to the market in March 2016.

Full Year 2016

Due to the combination of a stronger trading performance in Europe and a slower evolution of the Asian Nitrile dynamics during Q4, we now expect 2016 performance on an underlying constant currency basis to be ahead of the top end of current market expectations.(1)

In addition, the Group will also benefit from the translation effect related to the ongoing weakness of sterling. Average YTD FX rates were €1.22 and $1.35, and are expected to provide a translational benefit of approximately £12m for the full year.

In reported currency, taking into account both these factors, the Board now anticipates that FY 2016 PBT will be approximately £120m.

2017 outlook

Looking forward to 2017, we still expect to see resilient trading in Europe although the raw material and macroeconomic environments remain volatile. We also expect our Asian Nitrile business to be further impacted by the introduction of the additional industry capacity in 2016. This will be partially offset by a full year of Hexion PAC included in the Group's results.

The Group will provide further detail on the outlook for 2017 with its 2016 Full Year results on 6 March 2017.

1.    FY 2016 Consensus: Constant Currency Profit before Tax between £92.0m - £103.9m with consensus at £98.3m (Compiled by Teneo Blue Rubicon)

-ENDS-

Enquiries:                                          

Stephen Bennett, Chief Financial Officer                             [phone]

Charles Armitstead, Teneo Blue Rubicon                             [phone]

The Company will hold a conference call for investors and analysts at 0900 BST today. 

Please dial [phone] entering conference ID: 61421287# to gain access to the call.

The Company considers this announcement to contain inside information

 

END

 

 

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