Trading update

RNS Number : 0733B

Synthomer PLC

29 September 2022

 

29^th September 2022

Synthomer plc

Trading update

Synthomer plc ('Synthomer' or 'the Group') today provides an update on current trading and its outlook for Full Year 2022.

At the time of its interim results in August, the Group reported that inventory levels of medical gloves remained high post-pandemic with reduced demand. The associated de-stocking significantly reduced nitrile butadiene rubber (NBR) production volumes in H1 and delayed a return to pre-pandemic NBR growth.

During the third quarter, this de-stocking has continued with production volumes further reduced. The Board now anticipates modest profitability in Performance Elastomers for the second half of the year. Whilst underlying end-customer demand for medical gloves remains similar to pre-COVID levels, the destocking impact is not expected to abate before the end of 2023.

The Group also highlighted at its interim results the challenging macroeconomic environment. Since August, macroeconomic conditions have deteriorated, leading to reduced demand in construction and coatings end markets. This has impacted trading in Synthomer's European business.

As a result of these factors, the Board now expects Full Year EBITDA to be 10% to 15% below its previous expectations. 

The Group is focused on deleveraging and cash generation and is progressing a number of strategic initiatives and operational actions to reduce costs, capital expenditure and, as indicated in August, working capital.

Synthomer will host an event for investors and analysts on 12^th October 2022 where it will provide an update on strategy and the Group's new Adhesive Technologies division.

-ENDS-

Enquiries:

Investors: Tim Hughes, Synthomer  07764 859 147 

Press: Charlie Armitstead, Teneo   07703 330 269

 

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