Synthomer (SYNT) Trading Update summary

Financial performance and trading update

• 2024 revenue expected at approximately £2.0bn, up from £1,940.6m in 2023, with EBITDA in the range of £145-148m, meeting expectations.

• Continuing Group volume improved in H2, with Q4 growth led by nitrile latex for gloves and construction markets.

• Strong Q4 gross margin performance attributed to cost-saving and reliability programs, and strategic capital reallocation to higher-margin specialty solutions.

• Year-end net debt projected at around £597m, reflecting reduced receivables financing and pension contributions.

• Confident in further earnings progress for 2025, even if end-market demand remains flat, with medium-term ambition to more than double earnings.

Strategic and operational highlights

• Multi-year self-help and cost-saving initiatives contributed to robust earnings despite lack of end-market recovery.

• Ongoing strategic repositioning towards specialty, resilient solutions to support growth and margin ambitions.

• Investments in people and assets continued to support operational progress.

• Specialty businesses exited 2024 with strong margins and ongoing volume improvement in Health & Protection.

Company profile and sustainability

• Synthomer is a leading supplier of specialised polymers for coatings, construction, adhesives, and health sectors, with c.4,000 employees and over 30 manufacturing sites globally.

• Around 20% of sales volumes are from new and patent-protected products, with a focus on innovation and sustainability.

• 2030 decarbonisation targets approved by the Science Based Targets initiative; holds the London Stock Exchange Green Economy Mark.

• Business built around three divisions serving markets driven by urbanisation, demographic change, climate change, and sustainability.