Synthomer climbs on steady FY performance, cost‑saving progress
By Iain Gilbert
Date: Thursday 29 Jan 2026
(Sharecast News) - Chemicals firm Synthomer said on Thursday that full‑year trading was in line with expectations, with solid operational execution and expanded cost‑saving measures helping to offset softer demand following global tariff changes earlier in the year.
Synthomer said revenue was expected to come in lower year‑on‑year, but noted that underlying earnings would land within guidance, supported by improved margins.
The London-listed group generated positive free cash flow, with a second‑half inflow helping to reduce net debt to around £575m, while management noted tight control of profit and cash, alongside a £50m receivables arrangement with major shareholder Kuala Lumpur Kepong Berhad, had kept leverage comfortably within covenant limits.
Margins improved despite lower sales, reflecting the ongoing shift toward higher‑value speciality products and further self‑help savings, particularly in Synthomer's coatings and construction solutions division and SG&A. Adhesive solutions continued to regain share and lift margins, supported by recent capacity investment in Texas.
Trading across CCS was mixed, with coatings improving late in the year but construction and consumer markets remaining subdued, while health and protection volumes began to recover in Q4, though margins remained well below pre‑Covid levels.
Looking ahead to 2026, Synthomer expects year‑on‑year progress, driven by ongoing cost actions, benefits from recent investments in adhesive Solutions, margin gains in speciality businesses and improving health and protection volumes, partly offset by wage inflation and normalised bonus costs.
Chief executive Michael Willome said: "We are pleased with the positive cash, robust earnings and margin performance Synthomer has delivered in 2025 given the persistently adverse market backdrop for the sector. The whole organisation has rigorously prioritised what is within our control - expanding cost savings, accelerating the portfolio transformation towards speciality solutions and closely managing resources to safeguard our financial position in response to the ongoing geopolitical and tariff-related turbulence which has unbalanced demand and supply in our end markets."
As of 0830 GMT, Synthomer shares were up 5.02% at 57.13p.
Reporting by Iain Gilbert at Sharecast.com
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