14th Jan 2021 11:05
(Alliance News) - Synthomer PLC on Thursday raised its earnings guidance for 2020, following stronger trading across its major divisions, particularly in the final quarter of the year.
In addition, the FTSE 250 chemicals firm announced that Chief Executive Officer Calum MacLean will leave the company by January 2022 once a successor is found.
MacLean has been in the role to date for six years since 2015, and prior to that was a board member of UK chemicals firm INEOS Group.
Synthomer said it has started the process to find a new CEO, which is expected to include both internal and external candidates.
"On behalf of the board, I would like to thank Calum for everything that he has done to take Synthomer forward since joining at the start of 2015. His leadership and vision have transformed the business into a truly diversified, differentiated and global company. The next chapter promises to be just as exciting and the board looks forward to working with a new chief executive in due course," said Chair Caroline Johnstone.
Shares in Synthomer were up 3.0% at 459.00 pence on Thursday in London.
For the three months to the end of December, Synthomer reported strong trading across its businesses, with Performance Elastomers benefiting from strong conditions in its SBR latex business and positive trends experienced in its Nitrile latex unit.
In the Functional Solutions division, nearly all of its consumer and industrial end markets have remained strong, with activity above normal seasonal levels and a performance ahead of expectations.
Finally, Industrial Specialities made a robust finish to 2020, performing ahead of the same period the year before.
Looking ahead, for 2020 Synthomer has raised its guidance for earnings before interest, tax, depreciation and amortisation by 10% to GBP255 million, from the GBP232 million provided in mid-October.
This reflects a 43% rise from GBP177.9 million reported in 2019.
"In a very challenging year, Synthomer has delivered a strong performance, testament to the strategy that we have been consistently executing and the investments that we have made over the last five years. As we embark upon a new year and look further ahead to the future, the business is in a strong position," Johnstone added.
By Dayo Laniyan; [email protected]
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