Business
Pre-Close Trading Update and Board Update
Pre-Close Trading Update and Board Update.
About this update from Synthomer Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 6235L\n Synthomer PLC\n 14 January 2021\n \n \n \n 14th January 2021\n \n Synthomer plc\n \n Pre-Close Trading Update and Board Update\n \n FY2020 EBITDA guidance raised c.10%; FY2020 proforma leverage expected to reduce further\n Calum MacLean to stand down as Chief Executive by January 2022\n \n Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the year ended 31st December 2020 ahead of announcing the Group's Full Year results on 4th March 2021. Synthomer also announces that following 6 successful years, Calum MacLean has informed the Board that he intends to stand down as Chief Executive by January 2022.\n \n Strong trading momentum across the business\n \n Performance Elastomers\n \n Performance Elastomers has continued to perform strongly. The positive trends experienced in our Nitrile latex business during the year continued through the final quarter of 2020 with overall performance ahead of expectations. Similarly, the conditions in our SBR latex business also continued to strengthen, with all SBR segments except paper trading ahead of the comparative period in 2019.\n \n Functional Solutions\n \n Functional Solutions has seen a sustained improvement in the final quarter of 2020 with our consumer facing and industrial end markets remaining strong with exception of the Oil and Gas business unit. We have seen activity levels above normal seasonal levels with overall performance ahead of expectations.\n \n Industrial Specialities\n \n Industrial Specialities also had a strong finish to the year, with our laminates and films business, which serves the home improvement and recreational vehicles market, trading particularly well and the division performing ahead of the equivalent period in 2019. \n \n FY 2020 EBITDA guidance raised and proforma leverage expected to reduce further\n \n The combination of stronger trading across our three major divisions means that the Group now expects its 2020 EBITDA to be approximately £255m, some 10% ahead of the Company guidance of £232m provided in our trading statement of 14th October 2020.\n \n The Group remains highly cash generative and now expects proforma leverage to reduce to circa 1.9x net debt to EBITDA as of 31st December 2020.\n ...