Synthomer PLC

Latest Results (21.03.2026):

Synthomer PLC – H1 2025 (six months ended 30 June 2025): The company reported continuing‑operations revenue of £925.2m (down c.8.8% in constant currency and volumes down c.7.1%), with EBITDA of £77.8m (+5.4% in constant currency) and an EBITDA margin of 8.4% (up 110bps versus H1 2024). Underlying operating profit was broadly flat at £28.3m, underlying profit before tax was £1.3m, while statutory results reflect one‑offs and produced a larger loss before tax; free cash flow was negative at £(30.3)m and net debt rose to £638.3m at 30 June 2025.

Financial headline

Continuing Group revenue £925.2m; EBITDA £77.8m (8.4% margin); continuing volumes down ~7.1% and revenue down ~8.8% in constant currency versus H1 2024. Underlying operating profit £28.3m; underlying profit before tax £1.3m; statutory loss before tax substantially larger after Special Items.

Margins & cost actions

Gross margin improved ~110bps versus H1 2024 (and ~400bps since H1 2022). Management reports c.£17m of self‑help benefits realised in H1 2025 and has launched an additional £20–25m cost reduction programme expected to deliver ~£9m in H2 2025 and support the £25–30m of annualised benefits targeted for 2025.

Adhesive Solutions (AS)

AS delivered the strongest divisional performance: revenue ~£298.4m, EBITDA £35.4m and margin c.11.9% (H1 2024 margin 7.1%). Improvements came from reliability and cost programmes and speciality product mix; US APO capacity expansion came on stream in mid‑July.

Coatings & Construction Solutions (CCS)

CCS revenue ~£372.5m and EBITDA £34.5m; margin was weaker due to volume, mix and lower oil & gas drilling activity hitting the high‑margin energy solutions segment. The division has accelerated asset optimisation and inventory measures to rebalance earnings through H2.

Health & Protection & Performance Materials (HPPM)

HPPM revenue ~£254.3m, EBITDA £16.6m (margin ~6.5%). Volumes were down ~10% as glove customers adjusted after tariff‑driven stocking in 2024, but unit margins benefited from favourable mix and new sustainability/biobased initiatives (e.g., bio‑based nitrile latex partnership).

Cash, debt & liquidity

Free Cash Flow was negative £30.3m in H1. Net debt increased to £638.3m at 30 June 2025 (seasonal working capital profile, capex phasing and FX translation). Committed liquidity exceeded £430m at 30 June 2025 prior to the £129m bond repayment in early July.

Covenants & balance‑sheet derisking

Covenant net debt:EBITDA was 4.8x at 30 June 2025. The Group secured covenant relaxation/adjustments through end‑2026 and expects the covenant thresholds to step down through 2026. Management continues portfolio rationalisation and cost actions aimed at deleveraging.

Portfolio & disposals

William Blythe was divested in May 2025 (consideration ~£30m; net cash inflow ~£24.2m; loss on disposal reported). The group has reduced global manufacturing sites to <30 (from 43 in 2022) and is progressing further non‑core sale processes while investing in targeted speciality capacity (US adhesives, Middle East growth, glove supply chain technology partnership).

Earnings, Special Items & EPS

Special Items in H1 2025 included amortisation of acquired intangibles (£22.3m), restructuring/site closure costs (£4.6m), disposal related items and a small SaaS implementation charge; total Special Items reduced underlying to statutory results. Underlying EPS was (3.6)p in H1 2025; basic statutory EPS was a loss of (25.5)p.

Outlook & guidance

For full‑year 2025 Synthomer PLC expects some earnings progress versus 2024 EBITDA (£143.1m continuing group 2024 level) and broadly neutral Free Cash Flow for the year, assuming delivery of the planned self‑help and cost programmes and a subdued end‑market environment through the remainder of 2025.

SHE (safety) update

Synthomer reports a small increase in recordable case rate and some localised process safety events at a few sites in H1; bespoke intervention plans and human‑factor/process‑safety workstreams are in place to address these issues.