Synthomer (SYNT)

Sector:

Industrial Chemicals

Index:

FTSE Small Cap

180.00p
   
  • Change Today:
      7.20p
  • 52 Week High: 334.00p
  • 52 Week Low: 122.50p
  • Currency: UK Pounds
  • Shares Issued: 163.57m
  • Volume: 560,397
  • Market Cap: £294.42m

Synthomer trading as expected despite some slowing demand

By Josh White

Date: Wednesday 15 Nov 2023

LONDON (ShareCast) - (Sharecast News) - Synthomer updated the market on its trading from 7 September to 31 October on Wednesday, reporting that its overall trading aligned with expectations.
The London-listed firm said that the trends seen in the first half remained consistent despite challenging macroeconomic conditions in the chemicals industry.

Its speciality businesses showed resilience in terms of pricing and volumes compared to their base chemical products, which were facing increased global competition and negative operating leverage.

In October, Synthomer completed a £276m rights issue, enabling it to intensify its focus on implementing its speciality solutions strategy.

At the same time, it said it was managing cash and addressing short-term macroeconomic uncertainties.

The group said its efforts to reduce cost and complexity involved exiting loss-making paper and carpet activities in the United States.

It added that the reorganisation of its SBR manufacturing in Europe had been completed, allowing it to initiate the divestment process for its European paper and carpet operations ahead of schedule.

Additionally, it made a modest increase in investment to foster growth in its speciality end markets, with a particular emphasis on Asia and the US.

Looking to the rest of 2023, Synthomer said it anticipated no improvement in customer demand, with the possibility of a slight slowdown in activity in specific base chemical areas if third-quarter market trends persisted.

Nevertheless, the group said it was optimistic about making sequential progress in the second half compared to the first, primarily due to the implementation of its previously announced self-help measures.

"Although the demand environment continues to be subdued across most of our end markets, the relative strength and resilience of our speciality businesses underscores the logic of our strategy," said chief executive officer Michael Willome.

"By focusing on these parts of the portfolio, we will continue to reposition the group to deliver on its substantial potential for value creation.

"We are confident that Synthomer's earnings power in the medium term is more than double recent run-rate levels, driven by improved market conditions, operational and commercial excellence and our ongoing strategic evolution to become a true speciality chemicals business."

At 1025 GMT, shares in Synthomer were down 1.24% at 207.6p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Synthomer Market Data

Currency UK Pounds
Share Price 180.00p
Change Today 7.20p
% Change 4.17 %
52 Week High 334.00p
52 Week Low 122.50p
Volume 560,397
Shares Issued 163.57m
Market Cap £294.42m

Synthomer Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
63.99% above the market average63.99% above the market average63.99% above the market average63.99% above the market average63.99% above the market average
46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average46.67% above the sector average
Price Trend
69.68% below the market average69.68% below the market average69.68% below the market average69.68% below the market average69.68% below the market average
6.67% below the sector average6.67% below the sector average6.67% below the sector average6.67% below the sector average6.67% below the sector average
Income Not Available
Growth
12.71% below the market average12.71% below the market average12.71% below the market average12.71% below the market average12.71% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average

Synthomer Dividends

  Latest Previous
  Interim Final
Ex-Div n/a 01-Jun-22
Paid n/a 05-Jul-22
Amount 0.000p 21.30p

Trades for 31-Oct-2024

Time Volume / Share Price
16:35 69,765 @ 180.00p
16:35 1,935 @ 180.00p
16:35 2,074 @ 180.00p
16:35 441 @ 180.00p
16:35 470 @ 180.00p

Synthomer Key Personnel

CFO Lily Liu

Top of Page