Post-close update for the year ended 31 Dec 2022
31 January 2023
Synthomer plc
Post-close update for the year ended 31 December 2022
Synthomer plc ('Synthomer' or the 'Group') today announces full year 2022 revenue of £2.6bn and expected underlying EBITDA in the range of £262-268m, consistent with the Board's expectations as set out in mid-December 2022 and company-compiled consensus of £268m1. As anticipated, net debt was just over £1bn as at 31 December 2022.
The deterioration in macroeconomic conditions through the second half of 2022 reduced demand in Synthomer's construction and coatings end markets, as previously indicated. This was most pronounced in the Group's European businesses, but Synthomer's operations outside Europe including its Adhesives division were also affected in the last quarter of the year. As previously indicated, whilst underlying end market demand for medical gloves remains robust, the Group does not expect the current period of destocking, and hence low nitrile butadiene rubber (NBR) production levels, to abate before the end of 2023.
Synthomer is making good progress on its plan to deliver cash savings of between £150m and £200m by the of end 2023 from strategic initiatives and operational actions to reduce costs, capital expenditure and working capital, with year end inventory levels for example reduced by c.£80m or c.16% for the continuing Group versus 30 June 2022.
The Group's divestment of its Laminates, Films and Coated Fabrics business is on track to complete in Q1 2023 following shareholder approval, with the net proceeds of c.US$245m (c.£198m) to be used to reduce debt. Discussions are progressing with the Group's banking syndicate to extend the duration of Synthomer's core financing arrangements.
Synthomer will update the market further when it reports Full Year 2022 results on Tuesday 28 March 2023.
1 Company-compiled consensus of analysts that have published since the mid-December update on an including Laminates, Films and Coated Fabrics basis.
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Further information: |
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Tim Hughes, President, Corporate Development |
Tel: +44 (0) 1279 775 306 |
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Faisal Tabbah, Vice President Investor Relations
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Charles Armitstead, Teneo |
Tel: +44 (0) 7703 330 269 |
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