Synthomer extends relaxed covenants as weakness persists

(Sharecast News) - Synthomer said on Tuesday that it has secured an extension to its covenant relaxation agreement with its banking syndicate through to the end of 2026, as it navigates weaker-than-expected macroeconomic conditions and ongoing geopolitical uncertainties. The London-listed chemicals group said the amended terms gave it additional headroom, with net debt-to-EBITDA ratio limits raised to 5.25x for December 2025, 4.5x for June 2026 and 4.25x for December 2026.

Those compared with the previous thresholds of 4.75x, 3.5x and 3.25x respectively.

Synthomer said it still expected to remain within the previously agreed 5x covenant for June, but opted to increase it slightly to 5.25x "for prudence".

The company said the move would provide flexibility to manage the business through to an anticipated recovery in earnings over the medium term.

It said it would report its interim results for the six months to the end of June on 5 August.

At 0930 BST, shares in Synthomer were up 3.29% at 113p.

Reporting by Josh White for Sharecast.com.