Synthomer Regulatory News (SYNT)

Synthomer plcTrading and refinancing update

· 2025 performance reconfirmed with positive cash, robust earnings and improved margin performance

· 2026 started as expected; in line with prior year and with momentum building

· Focused on refinancing discussions and divestment programme, which are both progressing constructively

Synthomer plc ("Synthomer" or the "Company") today announces that the year to 31 December 2025 audit process is well-advanced, with no change to the expectations indicated in the 29 January 2026 trading update of continuing revenue of c.£1.74bn and continuing EBITDA in the range of £135-138m.

Strong operational execution, together with expanded 'self-help' cost reduction programmes, enabled the Company to mitigate the impact of softer end-market demand since global tariff changes were announced and deliver resilient earnings and an increased EBITDA margin as well as positive Free Cash Flow in 2025.

Synthomer's covenant net debt:EBITDA was 4.7-4.8x as at 31 December 2025, well within the requirement of less than 5.25x, and the Company's liquidity (undrawn committed facilities and cash) was £385m.

Overall trading since the start of 2026 is in line with the Company's expectations and momentum continues to build. While the consequences of the military action in Iran remain uncertain, Synthomer is passing through the significant increases in underlying raw materials and energy costs since the start of the conflict via pricing adjustments, while sales volumes in several product areas are increasing, benefitting from our regional manufacturing footprint. The Company's joint venture manufacturing operation and sales office in the Middle East are both currently operating as usual, and our global supply chains have remained robust to-date although we are monitoring the situation closely.

The Company continues to focus on delivering further year-on-year progress in 2026 driven primarily by its self-help actions.

As previously announced, the Company remains actively engaged with its lenders with the objective of amending the key covenants and extending the maturity of its revolving credit and UK Export Finance debt facilities, which are due in H2 2027. These discussions are proceeding constructively, alongside our ongoing focus on delivering the broadened divestment programme. While the Company continues to explore options to support further leverage reduction and underpin the sustained delivery of the speciality chemicals strategy, the Board does not currently intend to issue new equity and is focused on concluding the debt refinancing process alongside the divestment programme. Kuala Lumpur Kepong Berhad Group ('KLK'), Synthomer's largest shareholder, remains very supportive of Synthomer's strategy and operational delivery.

Given the debt refinancing process above, the Company will publish its 2025 results in late April 2026.

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Synthomer plc is a leading supplier of high-performance, highly specialised polymers and ingredients that play vital roles in key sectors such as coatings, construction, adhesives, and health and protection - growing markets for customers who serve billions of end users worldwide. Headquartered in London, UK and listed there since 1971, we employ c.3,800 employees across our five innovation centres of excellence and 29 manufacturing sites across Europe, North America, Middle East and Asia. With more than 6,000 blue-chip customers and £1.7bn in continuing revenue in 2025, our business is built around three divisions, serving customers in attractive end markets where demand is driven by global megatrends including urbanisation, demographic change, climate change and sustainability, and shifting economic power. In Coatings & Construction Solutions, our specialist polymers enhance the sustainability and performance of a wide range of coatings and construction products. We serve customers in applications including architectural and masonry coatings, mortar modification, waterproofing and flooring, fibre bonding, and energy solutions. In Adhesive Solutions our products help our customers bond, modify and compatibilise surfaces and components for applications including tapes and labels, packaging, hygiene, tyres and plastic modification, improving permeability, strength, elasticity, damping, dispersion and grip. In Health & Protection and Performance Materials we are a world-leading supplier of water-based polymers for medical gloves, and a major European manufacturer of high-performance binders, foams and other products serving customers in a range of end markets. Our purpose is creating innovative and sustainable solutions for the benefit of customers and society. Around 20% of our sales volumes are from new and patent protected products. At our innovation centres of excellence in the UK, China, Germany, Malaysia and Ohio, USA we collaborate closely with our customers to develop new products and enhance existing ones tailored to their needs, with an increasing range of sustainability benefits. Our 2030 decarbonisation targets have been approved by the Science Based Targets initiative as being in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement, and since 2021 we have held the London Stock Exchange Green Economy Mark, which recognises green technology businesses making a significant contribution to a more sustainable, low-carbon economy. Find us at www.synthomer.com or search for Synthomer on LinkedIn. Legal Entity Identifier (LEI): 213800EHT3TI1KPQQJ56.