Synthomer ups full-year earnings guidance, shares spark

Synthomer has upped its 2021 earnings guidance following a strong start to 2021, sending shares in the FTSE 250 chemicals specialist higher.

Updating on first-quarter trading, Synthomer said it had seen “strong trading momentum” across all three of its business units.

In particular, its Nitrile Latex division had reported volumes and unit margins “significantly” ahead of the previous year, helped by exceptional demand durin the Covid-19 pandemic, and the overall performance was ahead of internal forecasts.

As a result, Synthomer upped its guidance for full-year earnings.

It noted: “While macroeconomic conditions remain uncertain, given the ongoing Covid-19 pandemic, we are encouraged by a further strengthening of underlying trading conditions and the strong performance across all our divisions during the first quarter.

“Accordingly, the board now expects 2021 earnings before interest, tax, depreciation and amortisation to be in excess of £450m, reflecting a further rise in the one-off profitability of our Nitrile Latex business and the strengthening of the underlying trading conditions.”

Synthomer’s expectation was that the Nitrile Latex business will return to more normalised levels in 2022 remains unchanged.

As at noon GMT, shares in Synthomer were up 4% at 499.95p.