Synthomer (SYNT) Trading Update summary

Trading performance and market trends

• Q3 2024 trading was broadly in line with expectations, with volumes improving from low levels but at a slower pace than earlier in the year.

• Adhesive Solutions and Health & Protection divisions led the recovery, while Coatings & Construction Solutions remained stable.

• EBITDA increased year-on-year, driven by cost-saving and reliability programs, and higher capacity utilisation, partially offset by higher operating costs.

• End-market demand trends were mixed, reflecting ongoing macroeconomic uncertainty.

Strategic initiatives and operational updates

• Progress continues on strategic transformation towards higher-margin, resilient specialty solutions.

• Received an initial technology licensing fee as part of a multi-year, capital-light US partnership leveraging Health & Protection IP.

• Completed a project to enhance US manufacturing flexibility, including the exit from the Fitchburg site.

• Began deliveries from a project to strengthen the European hydrocarbon resin supply chain.

Financial outlook and guidance

• Modest earnings progress expected for 2024 on a continuing group basis, adjusting for divestments.

• Anticipates being modestly free cash flow positive in 2024, despite lack of broad macroeconomic demand improvement.

• Focus remains on cash generation and reducing leverage.