6th Aug 2019 09:37
(Alliance News) - FTSE 250 chemicals company Synthomer PLC said on Tuesday that its forecasts for the full year are unchanged despite revenue falling amid economic uncertainty in the first half of the year.
In the six months to June 30, revenue fell by 8.5% to GBP762.7 million from GBP833.8 million and pretax profit declined by 34% to GBP56.6 million from GBP86.2 million.
Excluding GBP13.6 million worth of special items such as acquisition costs, pretax profit fell by 7.9% to GBP70.2 million from GBP76.2 million on an underlying basis.
There were revenue falls in all three divisions. In performance elastomers by 9.5% to GBP317.1 million from GBP350.3 million, and in functional solutions by 9.9% to GBP327.6 million from GBP363.4 million. The revenue fall in industrial specialities was less dramatic at 1.7% to GBP118.0 million from GBP120.1 million.
Synthomer's interim dividend was left flat year-on-year at 4.0 pence per share.
Shortly after the end of the period, the company announced it would acquire speciality chemicals company OMNOVA Solutions Inc for GBP654.0 million. Synthomer said today that the acquisition will extend "its geographic presence in core markets of the US and China". The acqusition is still subject to regulatory approval and is expected to be completed by early 2020.
Synthomer said market conditions will improve in the second half and its expectations for the full year is unchanged.
Shares in the company were up 1.3% at 283.40 pence each in London on Tuesday morning.
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