5th Aug 2021 08:58
(Alliance News) - Synthomer PLC on Thursday reported a swing to half-year profit and the eventual departure of Chief Financial Officer Steve Bennett.
Pretax profit for the six months ended June 30 was GBP254.4 million, improving dramatically from a loss of GBP4.7 million a year before.
The Essex-based chemicals company reported revenue of GBP1.23 billion, a rise of 68% from GBP733.7 million.
Earnings before interest, tax, depreciation and amortization was GBP322.7 million, more than tripled from GBP100.2 million.
"This is an outstanding first-half result, driven by both organic and inorganic investments, strategic initiatives as well as a significant improvement in demand versus the first half of 2020. All divisions have performed strongly, reporting results that are well ahead of the first half of 2019," said Chair Caroline Johnstone.
Synthomer declared an interim dividend of 8.7 pence, more than doubled from 3.0 pence for the same period last year.
Going forward, Synthomer expects growth across its three core divisions to continue in the second half of the year, with ongoing high levels of demand for nitrile butadiene rubber as a consequence of the COVID-19 pandemic.
As a result, the board expects full-year Ebitda to be in excess of GBP500 million. Ebitda was GBP259.4 million in 2020.
"Looking ahead, the outlook remains encouraging, with good demand across all divisions and the ongoing benefits of the OMNOVA integration, new capacity investment and further efficiency measures. Our rapid deleveraging and strong balance sheet also position us well to take advantage of growth opportunities," the firm said.
Also on Thursday, Synthomer announced that Bennett will step down as CFO in due course. Bennett has a 12 month notice period and has agreed to remain in his role until a successor is appointed to ensure a smooth transition. The board has initiated a process to appoint Steve's replacement involving both internal and external candidates, the firm said.
Shares in Synthomer were down 0.8% to 539.00 pence each in London on Thursday morning.
By Amrit Sahota; [email protected]
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