(Alliance News) - Synthomer PLC on Thursday announced a GBP276 million rights issue after reporting a sharp drop in its interim profit and revenue in an attempt to stall its debt stack.
Shares in Synthomer were down 30% at 42.70 pence each in London on Thursday midday.
The Essex, England-based chemicals manufacturer said in the six months ended June 30, pretax profit fell by 86% to GBP16.7 million from GBP115.5 million a year prior, as it recorded finance costs of GBP39.0 million.
Revenue from continuing operations fell by 12% to GBP1.08 billion from GBP1.23 billion the year before.
Looking ahead, Synthomer said for the remainder of 2023, it does not anticipate a material recovery in customer demand, but expects around GBP20 million in self-help measures to be delivered in the second half of the year.
Chief Executive Officer Michael Willome said: "All divisions have made progress against their strategic priorities as we continue to reposition Synthomer to deliver on its medium term ambitions, supported by anticipated volume recovery in the coming years."
On Thursday, Synthomer also announced it had proposed a six-for-one rights issue of 140.2 million shares at 197 pence per share to raise approximately GBP276 million in order to focus on its "strategic delivery and long-term value creation" as well as short term cash preservation.
By Sabrina Penty, Alliance News reporter
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Synthomer (SYNT)