Synthomer trading in line with management expectations

(Sharecast News) - Synthomer said on Tuesday that trading in the first four months of the year has been "broadly consistent" with the board's expectations, reflecting "the continued challenging macroeconomic conditions" described in its full-year results in March. In an update ahead of its annual general meeting, the company said recent trading in the Coatings & Construction Solutions (CCS) division has improved modestly, largely offsetting ongoing challenges in Adhesive Solutions (AS).

"As previously indicated, we do not expect the unprecedented period of medical glove destocking, and hence low nitrile butadiene rubber production levels in our Heath & Protection and Performance Materials (HPPM) division, to abate before the end of 2023," it said.

"We continue to execute against our refreshed strategy, with a focus on the operational, cost and working capital management actions which we expect to underpin progress in the second half of 2023, supplemented by the anticipated start of an improvement in market conditions, although visibility of this is currently limited."

Synthomer supplies high-performance, specialty polymers and ingredients for coatings, construction, adhesives, and healthcare end markets.