Synthomer PLC Q3 Trading update (4119G)
06 November 2018 - 6:00PM
UK Regulatory
TIDMSYNT
RNS Number : 4119G
Synthomer PLC
06 November 2018
November 6(th) 2018
Synthomer plc
Q3 Trading update
Solid Q3 performance; Full Year 2018 outlook unchanged
Synthomer plc ('Synthomer' or 'the Group') today issues a
trading update for the third quarter ('Q3') ended September 30(th)
2018.
Trading
Europe and North America:
Europe and North America reported a solid quarter's results.
Excluding sales volumes associated with Pischelsdorf, which was
acquired in February 2018, volumes were slightly lower than the
comparative Q3 period. Unit margins, excluding Pischelsdorf, were
slightly above Q3 2017, with all segments apart from Paper showing
a positive movement reflecting the benefits of further investment
and increased efficiencies across the business.
Asia and Rest of World:
Asia and Rest of World continued to grow in line with our
expectations. Nitrile Latex volumes were slightly ahead of a strong
comparative period in Q3 2017. Nitrile Latex unit margins were also
higher than the comparative period and in line with unit margins in
H1 2018.
The expansion of our Pasir Gudang Nitrile Latex plant was
successfully commissioned on time during September 2018. The plant
will produce saleable products for customers and make a small
contribution to the Group in Q4. Demand for Nitrile Latex remains
robust and we have initiated our preliminary work for a further
60kt expansion at Pasir Gudang during 2020.
Financial Position
At September 30(th) , the Group had net debt of GBP256m (Q3
2017: GBP232m), with the increase since June 30(th) reflecting the
planned step up in capital expenditure in H2 2018 (GBP20m), further
investment in working capital (GBP40m) and the 2017 final dividend
(GBP29m). Going forward, working capital is expected to remain at
circa 10% of sales.
FY 2018 Outlook Unchanged
Synthomer's product and geographic diversity means that we are
well positioned to withstand the challenging macroeconomic and
political environment and, along with the good performance in the
first 9 months of the year, the Board's expectations for Full Year
2018 remain unchanged.
Organisational Structure Change
In order to accelerate sales growth, sharpen our commercial
focus and drive operational efficiencies, the Group will be
reorganised from January 2019. Three new business groups will be
created: Performance Elastomers (Styrene Butadiene Rubber and
Nitrile Butadiene Latex), Functional Solutions (Dispersions) and
Specialities.
The new structure will enable Synthomer to better leverage its
global product portfolio and customer relationships, better exploit
its R&D capability within chemistries, and bring greater
operational focus to production sites.
The new structure combines sales, marketing, research and
production by business group into dedicated global teams whilst
retaining very strong regional strength and local focus. The Group
will report FY 2018 numbers under the existing geographic reporting
structure and at the same time publish certain segmental
information under the new structure, which will then be adopted on
a permanent basis going forward.
ENDS
Enquiries:
Calum MacLean, Chief Executive Officer +44 1279 436 211
Stephen Bennett, Chief Financial
Officer
Charles Armitstead, Teneo +44 203 603 5220
The Company will hold a conference call for investors and
analysts at 0800 GMT today.
Please dial +44 3333000804 entering conference ID: 31828488# to
gain access to the call.
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END
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