Synthomer PLC

Latest Results (23.12.2025):

Synthomer PLC — results for the year ended 31 December 2024 (FY 2024, covering Q4 2024): FY24 showed volume recovery and margin improvement driven by self‑help and strategic reallocation. Group revenue was £1,986.8m (+5.1% constant currency), EBITDA £146.6m (+9.2% cc) and underlying operating profit £50.4m (+54.5% cc). Statutory results include Special Items and financing effects that produced a statutory loss and wider EPS movement; free cash flow was negative in the year but management says it was broadly neutral excluding receivables financing movements and one‑off pension timing. Management expects further progress in 2025 from £25–30m of self‑help and strategic benefits.

Top‑line and volumes

Revenue: £1,986.8m (2023: £1,940.6m), +5.1% constant currency. Volumes up c.8.4% overall with mixed end‑market recovery — coatings/construction weaker, adhesives and health & protection stronger.

Profitability and margins

EBITDA £146.6m (2023: £137.4m), +9.2% cc; EBITDA margin 7.4% (2023: 7.1%). Gross profit margin improved c.150bps, driven by speciality skew and higher capacity utilisation.

Underlying vs statutory

Underlying operating profit £50.4m (2023: £33.4m). Statutory continuing operating loss £24.1m (2023: £39.5m) after Special Items (amortisation of acquired intangibles, restructuring, impairments, pension past‑service costs, etc.).

Earnings per share

Underlying EPS (2024) (basic) (2.5)p vs (35.1)p in 2023 (comparable basis). Statutory basic EPS (2024) (44.4)p (2023: (78.5)p comparable).

Cash, debt and liquidity

Free Cash Flow £(54.7)m; management notes FCF was broadly neutral excluding receivables financing movement and pension contributions. Net debt at £597.0m (2023: £499.7m). Undrawn committed liquidity >£470m at year‑end.

Debt profile and covenants

€350m bond refinancing completed in 2024 (new maturity 2029); next major debt maturity now 2027 for other facilities. Covenant net debt:EBITDA 4.6x at 31 Dec 2024, within the temporary covenant requirement (<=5.75x).

Division highlights

Coatings & Construction Solutions: revenue down modestly; volumes +2.4% but weak construction demand and higher operating costs limited performance. Adhesive Solutions: strong recovery — volumes +9.0%, EBITDA +57.1% cc as reliability and cost programmes regained share. Health & Protection & Performance Materials: volumes +14.1%, EBITDA +40.3% cc, driven by nitrile latex demand for gloves (unit margins still below pre‑pandemic).

Self‑help and strategy

Self‑help delivered c.£26m in 2024 (procurement, reliability and cost actions). Management expects a further £25–30m of benefits in 2025, with confidence of positive FCF and deleveraging in 2025 even without significant market improvement.

Portfolio & operational progress

Compounds divested (April 2024); site footprint reduced to 31 (from 43 pre‑strategy). Zero‑capital US nitrile latex partnership signed; China Innovation Centre opened; ISCC+ site certification achieved to support sustainability offerings.

Key near‑term outlook

Trading since start of 2025 is in line with expectations (management assumed a muted start vs 2024 Q1). Company remains focused on driving specialisation, converting volume recovery into higher profitability and delivering further self‑help gains through 2025.