- Synthomer
- 05 August 2025 08:49:06
Source: Sharecast
Synthomer said it had reached an agreement with its banking syndicate to extend covenant waivers through to the end of 2026. Under the revised terms, net debt-to-EBITDA thresholds will be raised significantly, allowing it more breathing room amid what it described as "weaker-than-expected trading conditions and ongoing geopolitical uncertainty".
Synthomer also said revenues had fallen 9.8% to £925.2m in the six months ended 30 June, with volumes down 7.1%, driven by volatile end-market demand following recent tariff changes.
However, underlying earnings rose 5.4% to £77.8m, with margins improving by 110 basis points to 8.4%, supported by £17m in cost savings and pricing discipline.
Synthomer said its adhesive solutions division delivered the strongest performance, with EBITDA up 65% and margins nearing 12%, while its health and protection division also saw gains, aided by higher-margin glove products and new income streams from a US technology partnership. Its coatings and construction arm saw mixed conditions, with energy solutions impacted by reduced oil and gas drilling activity.
The London-listed firm, which also said net debt rose from £560.6m to £638.3m, added that it continues to expect a H2 improvement in performance, supported by restructuring benefits and stabilising demand in key markets.
CEO Michael Willome said: "While our 'in region for region' manufacturing strategy means we face limited direct tariff impact, the ongoing uncertainties around the global trade environment create volatility in end-market demand. We continue to focus on managing our costs and our balance sheet to ensure we emerge from this turbulent period for our industry in a strong position."
As of 0840 BST, Synthomer shares had sunk 11.17% to 70p.
Reporting by Iain Gilbert at Sharecast.com