2nd Mar 2016 07:52
LONDON (Alliance News) - Specialty chemicals company Synthomer PLC on Wednesday posted pretax profit growth for 2015 despite revenue falling, thanks to favourable conditions for its nitrile business in Asia and cost-cutting.
Pretax profit rose to GBP95.3 million from GBP86.0 million, despite revenue falling 9.7% to GBP894.0 million from GBP894.0 million. A weak Europe and North America divisional performance weighed on the results, but the good conditions in the high-margin Asian nitrile business and cost cuts made across the business helped keep profit healthy.
Construction and coatings sales were solid across regions, the company said, helping to offset tough conditions in Europe and North America exacerbated by the weak euro.
Synthomer pushed its final dividend up to 5.4 pence from 4.8p, meaning its total dividend will rise 10% year-on-year to 8.6p, in line with its payout policy.
"It has been an excellent year for Synthomer with the group reporting record underlying profit before tax. This result reflects favourable market conditions in our nitrile business in Asia and our ongoing strategic initiatives to invest in future growth through innovation, increased capacity and tight cost control," said Chairman Neil Johnson.
"Looking forward, we remain confident that the group is well placed to perform given the strategy that we have put in place," he added
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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