14th Oct 2020 10:16
(Alliance News) - Chemical firm Synthomer PLC on Wednesday said it saw strong trading across all three business divisions in the third quarter of 2020 leading to it reinstating an interim dividend.
The Essex-based company also raised 2020's earnings before interest, tax, depreciation and amortisation guidance by 10% to GBP232 million from GBP211 million announced in August.
Performance Elastomers volumes and margins were ahead of prior year reflecting strong demand in nitrile latex following the Covid-19 pandemic, the company said.
Functional Solutions continued to benefit from the integration of USD-based Omnova and is trading ahead of prior year with some market sectors are demonstrating stronger resilience than others.
Industrial Specialities continued to improve following a weak second quarter, impacted by Covid-19. Current run rate volumes and margins are on or above prior year.
Synthomer has decided to reinstate its interim dividend which was suspended in April, declaring an interim dividend of 3.0 pence per share, up from nothing a year prior.
The company's additional nitrile latex capacity is on schedule for operation in the fourth quarter of 2021 to further support the strong demand its has seen following the Covid-19 pandemic.
Chief Executive Calum MacLean said: "This is a very encouraging performance with all business divisions performing ahead of prior year. Alongside this strong momentum, we have made significant strategic progress, with a decision to close our site in Oulu and the integration of OMNOVA continuing ahead of our initial expectations.
"This underpins our confidence for the remainder of this year and beyond leading to an upgrade to our guidance for the full year and reinstating our interim dividend."
Synthomer shares were up 17% at 390.61 pence each in London on Wednesday morning.
By Greg Roxburgh; [email protected]
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