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Annual Results

Synthomer clinches deal, lifts FY pretax profit

06 March 2017 07:20

Synthomer is acquiring Perstorp Oxo Belgium AB for an enterprise value of €78m, which will be fully funded from existing financial resources. It also posted an improved FY pretax profit.

"The acquisition of Perstorp Belgium represents another step forward in our strategy to continue to grow and develop Synthomer," said CEO Calum MacLean in a statement.

"The business is an excellent fit and provides increased access to new products and customers. We look forward to welcoming our new colleagues and integrating the business with Synthomer through the remainder of this year."

Meantime, Synthomer's FY pretax profit was £122.2m, from £95.3m, on revenue up to £1.04bn, from £870.1bn.

Final dividend was 7.8p a share, from 5.4p, taking the total to 11.3p, from 8.6p.

Synthomer said 2016 had been another strong year for the company, reflecting its strategy to grow the core business and invest in its platform for future growth.

"Both the Europe & North America and Asia & Rest of World segments delivered organic growth and our first bolt-on acquisition, PAC, made a strong contribution in the second half of the year," said chairman Neil Johnson.

"We also benefitted from favourable currency translation as a result of the weakening in Sterling."

Looking ahead, Synthomer expected to continue to see resilient trading in Europe, although the raw material and macroeconomic environments remained volatile.

2Whilst we envisage our Asian Nitrile business will be further impacted by the introduction of the additional industry capacity in 2016, this will be partially offset by a full year of PAC and 10 months of Perstorp Belgium included in the 2017 results," he added.

"Despite these uncertainties and challenges, the Board's expectations remain unchanged from the trading update on 20 January and we remain confident in delivering long term growth in profitability and shareholder value."

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