Business
Q3 Trading update
Q3 Trading update.
About this update from Synthomer Plc
[{"type":"text","content":"\n \nRNS Number : 4119G Synthomer PLC 06 November 2018 \n\nNovember 6th 2018 \nSynthomer plc\nQ3 Trading update\nSolid Q3 performance; Full Year 2018 outlook unchanged\nSynthomer plc ('Synthomer' or 'the Group') today issues a trading update for the third quarter ('Q3') ended September 30th 2018.\nTrading\nEurope and North America:\nEurope 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.\nAsia and Rest of World:\nAsia 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. \nThe 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.\nFinancial Position\nAt September 30th, the Group had net debt of £256m (Q3 2017: £232m), with the increase since June 30th reflecting the planned step up in capital expenditure in H2 2018 (£20m), further investment in working capital (£40m) and the 2017 final dividend (£29m). Going forward, working capital is expected to remain at circa 10% of sales.\nFY 2018 Outlook Unchanged\nSynthomer'...