Q1 Trading Update

RNS Number : 0602X

Synthomer PLC

25 April 2019

 

25th April 2019

Synthomer plc

Q1 Trading Update

Q1 in line with expectations; Full Year 2019 outlook unchanged

Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the quarter ended March 31st, 2019.

Group performance has been consistent with expectations set out at Synthomer's Full Year results presentation on March 4^th, 2019 and our Full Year 2019 outlook remains unchanged.

Trading*

Performance Elastomers

Performance Elastomers had a solid quarter. Nitrile Butadiene Latex (Nitrile) continued to benefit from the additional 90KT of capacity introduced in Q4 2018 at our Pasir Gudang site. Good demand resulted in higher Nitrile volumes and improved unit margins relative to a strong comparative period in 2018. Styrene Butadiene Rubber market conditions remained challenging with the subdued demand seen in Q4 2018 continuing during early Q1 2019.

Functional Solutions

Functional Solutions made good progress in Q1 2019. Whilst reported volumes were lower than the strong comparative period due to the slower start to the year in Europe and the sale of 51% of our Dubai operations in July 2018, unit margins were stronger. The expansion of our Worms, Germany and Roebuck, USA dispersions facilities are on track to be commissioned in Q2 2019.

Industrial Specialities

Industrial Specialities results were in line with expectations. Compared to a strong Q1 2018, the business experienced a slower start to the year particularly in Europe but we are pleased with the improving trend during Q1, and the end of quarter exit rates.

2019 outlook unchanged

Overall, the Group continues to trade in line with the Board's expectations, and accordingly the view for Full Year 2019 outlook remains unchanged.

-ENDS-

* In January 2019, Synthomer introduced three new business groups: Performance Elastomers (Styrene Butadiene Rubber and Nitrile Butadiene Latex), Functional Solutions (Dispersions) and Industrial Specialities. This is how the Group intends to report on a permanent basis going forward. 

ENQUIRIES:

Calum MacLean, Chief Executive Officer             

Stephen Bennett, Chief Financial Officer

Tim Hughes, Head of Investor Relations

Tel: + 44 1279 436211

Charles Armistead, Teneo

Tel: + 44 20 3603 5220

The Company will hold a conference call for investors and analysts at 0800 BST today:

Dial in number: 08003589473   PIN: 38068114#

 

END

 

 

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