AGM trading statement
Summary by AI BETAClose X
Synthomer plc
AGM 2026 trading statement
Strong H1 trading - market environment remains uncertain
Synthomer plc ('Synthomer' or 'the Group') today issues a scheduled update on trading since the start of 2026, ahead of today's Annual General Meeting (AGM). Results of voting at the AGM will be announced later today.
• On track to deliver strong H1 revenue, EBITDA and margin progress relative to prior year
• Improving trading momentum led by CCS from the start of the year, driven by targeted growth and cost savings
• Progress accelerated in Q2, reflecting Synthomer's robust positioning and pass-through pricing power in a fast-changing operating and commercial environment
• Successful debt refinancing in April provides strengthened financial position to focus on delivering further self-help and strategic transformation objectives, including further non-core divestments
• Expectations of year-on-year progress despite ongoing geopolitical and end-market uncertainties underpinned by the strong trading in H1, strategic delivery and continuing benefits from prior year 'self-help' cost actions
Trading performance
Synthomer achieved strong growth in Continuing Group volume, revenue, EBITDA and EBITDA margin in the first five months of 2026 compared with the equivalent prior year period. Overall trading in Q1 was in line with our expectations and ahead of prior year, with much-improved Coatings & Construction Solutions (CCS) and stable Adhesive Solutions (AS) performances offsetting a slower start in parts of the Health & Protection and Performance Materials (HPPM) division. Momentum improved for all three divisions through Q1, benefitting from some end-market growth and a combination of cost savings and targeted growth actions. These include disciplined investment in key market opportunities such as industrial coatings for data centres in CCS and additional APO capacity in AS.
Trading performance across the Group accelerated in April and May, reflecting substantial changes in our operating and commercial environment following the start of the Iran conflict, for which we are well positioned. Our focus on speed and agility, 'in region for region' manufacturing footprint and strong procurement capabilities enabled Synthomer to deliver for customers in this environment. Significant increases in raw material and energy costs across the Group continue to be passed through to customers. Volumes in a number of product areas, most notably the Health & Protection business, increased due to disruption to the global sourcing and distribution networks of competitors (particularly those based in Asia), as well as some pre-buying by customers to build resilience in their own supply chains. As a result, period-on-period volume, margin and EBITDA growth in Q2 has been ahead of our expectations.
Financial position
Following the successful bank debt refinancing and maturity extension announced in April 2026, the Group has substantial liquidity and covenant headroom. This is notwithstanding the unwind as expected of the £50m receivables purchasing arrangement with KLK and the typical seasonal build-up in working capital in the first half of the year, reflecting the Group's usual H1-weighted activity levels and the recent higher pricing and volumes.
Outlook
The strong trading in H1, together with the continued benefits from prior year self-help actions in H2, underpin our confidence in delivering year-on-year progress in 2026. The geopolitical context remains volatile, making it difficult to predict the duration of current conditions or longer term end-market trends. We therefore continue to focus on delivering for customers and maintaining discipline around cost and capital allocation.
Synthomer's strategic priorities also remain unchanged. Last week we announced the divestment of the Acrylate Monomers business and we continue to progress other non-core divestment processes to accelerate the Group's deleveraging and simplify the business portfolio further.
Commenting, Synthomer CEO Michael Willome said:
"We are very pleased with how the business has performed so far in 2026, reflecting our sustained commitment to our strategic transformation, consistent focus on 'controlling the controllables', all accelerated in Q2 by our agility and ability to reliably deliver for our customers in the disrupted operating conditions resulting from the Iran conflict. The market environment remains uncertain and so our focus is on continuing to deliver our speciality strategy, including divestments, to strengthen our balance sheet and support further improvement in Synthomer's sustainable earnings potential."
Further information:
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Investors: Faisal Tabbah, Vice President Investor Relations |
Tel: +44 (0) 1279 775 306 |
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Media: Nick Hasell, FTI Consulting |
Tel: +44 (0) 203 727 1340 |
Notes
Synthomer's 2026 AGM is taking place at 10.00am BST today at the offices of the Group, 10 Greycoat Place, London SW1P 1SB. Synthomer plans to report interim results on 4 August 2026.
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.
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