21st Apr 2021 10:16
(Alliance News) - Synthomer PLC on Wednesday reported "stronger" underlying trading during its first quarter due to the improved performance across all divisions.
The FTSE 250-listed chemicals firm said this is a result of the continued "exceptional" Nitrile Latex business performance during the period.
Synthomer said the positive trends experienced during 2020 continued into the first quarter of 2021, with overall performance ahead of expectations. Both volumes and unit margins were "significantly" ahead of the prior year, it added, driven by "exceptional" demand as a result of the Covid-19 pandemic.
"Whilst macroeconomic conditions remain uncertain given the ongoing Covid-19 pandemic, we are encouraged by a further strengthening of underlying trading conditions and the strong performances across all our divisions during the first quarter," said Synthomer.
Looking ahead, Synthomer said it expects its 2021 earnings before interest, tax, depreciation and amortisation to be in excess of GBP450 million, reflecting a further rise in the one-off profitability of its Nitrile Latex business.
"Our expectation that the Nitrile Latex business will return to more normalised levels in 2022 remains unchanged," it added.
Shares in Synthomer were up 3.3% at 497.60 pence in London on Wednesday morning.
By Zoe Wickens; [email protected]
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