Q1 Trading update

RNS Number : 1543M

Synthomer PLC

26 April 2018

April 26^th 2018

Synthomer plc

Q1 Trading update

Solid Q1 performance in line with expectations; 2018 outlook unchanged

Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the first quarter ended March 31^st, 2018.

Trading

Europe and North America

The Europe and North America segment delivered another solid performance. Volumes were higher than the comparative period predominantly reflecting the positive impact of the Speciality Additives and Pischelsdorf SBR latex acquisitions. Unit margins were marginally lower mainly due to the transactional impact of European sales denominated in US dollars.

Asia and Rest of World

The Asia and Rest of World segment remained stable with performance in line with our expectations. Nitrile latex volumes were marginally higher than a weaker comparative period when customer spending was impacted by the volatile raw material environment. Unit margins were broadly in line with Q1 2017. We remain cautiously optimistic on the continued Nitrile latex demand growth and margin development recognising that our 90kt capacity is on track to come on line in late Q3 2018.

Financial Position

Net debt increased from £180m at the year end to £246m at 31 March 2018. This reflected completion of the acquisition of the BASF Austrian SBR business and assets in Pischelsdorf for €29m (£25m) in January and seasonal working capital movements which was, as we saw in 2017, impacted by a rising raw material price environment.

2018 outlook unchanged

Overall, the Group continues to trade in line with the Board's expectations, and accordingly the view for Full Year 2018 remains unchanged.

-ENDS-

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