LONDON (ShareCast) - (Sharecast News) - Synthomer reported a 9.4% improvement in its full-year revenue on Monday, to £1.6bn, with underlying profit before tax rising 3.9% to a record £135.1m.
The FTSE 250 chemicals company said that reflected the benefits of its geographic diversity and product differentiation.

It said operating profit in its Asia and Rest of World geography was 30% higher in the year ended 31 December, reflecting further volume improvements in Nitrile latex, as well as margins.

In Europe and North America, its operating profit was 5% lower, which the board put down to a £5.3m US dollar transactional currency impact.

The group claimed to have absorbed £10.1m in US dollar currency transactional headwinds.

Its IFRS profit before tax was ahead 39.2% at £120.3m.

Synthomer reported that its 90 kilotonne expansion in Nitrile latex was delivered safely, on time and on budget, and also reported a decent return on its research and development investment, with new products representing 21% of the firm's total sales volumes, up from 20% in 2017.

Underlying earnings per share were 6.8% higher at 32.8p, with the board also confirming an increased dividend per share, rising 7.4% to 13.1p in line the company's with dividend policy.

The company had "good" liquidity and a low leverage, which the directors said allowed for investment in growth on both an organic basis and through mergers and acquisitions, with its net debt-to-EBITDA ratio standing at 1.2x.

"I am pleased to report a year of good progress, highlighted by a fourth consecutive year of growth in underlying profitability," said Synthomer chairman Neil Johnson.

"Progress has been underpinned by capital investment in higher growth markets, a focus on innovation, and our disciplined mergers and acquisitions strategy, overcoming a challenging market environment."

Johnson said looking forward, the group's leading market positions, incremental low cost production capacity, geographic diversity and product differentiation ensured it was "well-placed" to navigate the current global political and economic uncertainties.

"Given this, we are confident of making further progress in 2019 and the board's expectations remain unchanged."

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