Neville Prior

Cornelius’ Partner Synthomer Reaps Rewards of Acquisitions

Neville Prior  2 March 2018 10:29:41 AM
Image:Cornelius’ Partner Synthomer Reaps Rewards of Acquisitions
Synthomer grew its revenues by 42% to a record £1,480.2m in 2017, helped by acquisitions, higher average raw material prices and favourable currency translation. Organic growth from its investment in the Europe and North America (ENA) segment more than compensated for the reduced, but stable, Nitrile latex margins in the Asia and Rest of the World (ROW) segment.  Volumes were higher by 9% to 1,443.8ktes with the increase reflecting a combination of underlying growth and additional volumes from Oxo Belgium (Speciality Additives), which was fully integrated during 2017.  Underlying profit before tax increased from £122.2m to £130.0m, an increase of 6.4% and 3.0% on a constant currency basis. The rise in underlying profit before tax reflects volume and margin growth, the contribution made by Speciality Additives and the depreciation in Sterling.  IFRS profit before tax decreased from £136.7m to £86.4m mainly as a result of one-off items of income in 2016 including the profits on the Malaysian land sales (£33.2m).

Neil Johnson, chairman, said: "The group's solid performance in 2017 reflects both the benefits of recent bolt-on acquisitions made in 2016 and 2017 and continued organic growth in our Europe and North America segment. This progress has more than offset the expected impact of lower Nitrile latex margins in our Asia and Rest of World segment."

"Looking forward, whilst acknowledging the ongoing challenges in our Nitrile latex and constructions and coatings Dispersions markets, we are confident of making further solid progress in 2018, underpinned by underlying growth in both segments, and from integrating our recent acquisitions."

"With our significant organic investment in new capacity being commissioned in late 2018, we remain confident in continuing to deliver growth in profitability and driving further value for shareholders in future years."
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