Last checked at 27 Apr 2017 07:00
April 27th 2017
Synthomer plc
Q1 Trading update
Progress in Q1, in line with expectations; 2017 outlook reaffirmed
Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the first quarter ended March 31st, 2017.
Trading
Europe and North America
The Europe and North America segment delivered a solid performance with results ahead of Q1 2016 reflecting the acquisitions of both PAC and Perstorp Oxo Belgium, and robust trading in the heritage business. Substantially higher volumes predominantly reflected the positive impact of PAC following its full integration into the business. Unit margins were also up on 2016, in line with expectations. Whilst raw material prices have been volatile, we continued to effectively manage these movements and remain confident of being able to do so going forward.
Asia and Rest of World
Overall performance of the Asia and Rest of World segment was in line with our expectations. Nitrile margins remained stable relative to Q4 2016, albeit lower than the strong comparative Q1 2016 as expected. Volumes were lower than the comparative period reflecting the sale of our South African business in August 2016, and some short term destocking in March following continued raw material price volatility. The underlying trends remain unchanged from our 2016 FY results in March.
Financial Position
Net debt increased from £150 million at the year end to £257m at 31 March 2017. This was due to the acquisition of Perstorp Oxo Belgium for €78m (£65m) in March with the balance accounted for by working capital in a volatile but net rising raw material price environment.
2017 outlook reaffirmed
Overall, the Group continues to trade in line with the Board's expectations, and accordingly the view for Full Year 2017 remains unchanged.
-ENDS-
Enquiries:
Calum MacLean, Chief Executive Officer +44 1279 436 211
Stephen Bennett, Chief Financial Officer
Charles Armitstead, Teneo Blue Rubicon +44 203 603 5220
The Company will hold a conference call for investors and analysts at 0800 BST today.
Please dial + 44 808 237 0030 entering conference ID: 70430346# to gain access to the call.