Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Synthomer PLC    SYNT   GB0009887422

SYNTHOMER PLC (SYNT)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

Synthomer : Chemicals maker Synthomer sees 2016 profit ahead of estimates

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/20/2017 | 05:03pm CEST

(Reuters) - Chemicals maker Synthomer estimated 2016 profit ahead of market expectations after stronger-than-expected performance in Europe and Asia and a weak sterling boosted fourth-quarter trading, pushing its stock to a record high.

The company, which supplies speciality emulsion polymers used in construction, textiles and latex gloves, said it now expected 2016 pretax profit of 120 million pounds, which at least two analysts said beat their estimates.

Canaccord Genuity raised its full-year earnings expectations by about 8 percent for 2016 and 3 percent for 2017. It also hiked its target price to 425 pence from 410 pence.

Synthomer, which counts the euro <EURGBP=> as its largest trading currency, said currency translation was expected to boost 2016 results by about 12 million pounds. The sterling fell to a multi-year low after Britons voted to leave the EU.

"However, this could easily unwind within the next 6 months if the sterling strengthens, and capacity discipline in the nitrile market disappears," Derek Mitchell, Senior Fund Manager at Royal London Asset Management, one of Synthomer's top 10 investors said.

BEYOND CURRENCY

Synthomer's core business also reported better-than-expected trading over the fourth quarter ended Dec. 31.

The company's North America and Europe business, which accounts for three-fourths of its trading profits, benefitted from strong performance across segments.

Its Asia nitrile business also performed modestly ahead of expectations as it experienced a slower-than-expected negative impact of additional market capacity.

The dynamic in the Asian nitrile business would be one to watch in 2017, N+1 Singer analyst James Tetley wrote in a client note.

Ahead of Friday's surprise trading statement, analysts' consensus for pretax profit at constant currencies was 98.3 million pounds, according to figures compiled for Synthomer.

The company said it expected its European business to show resilience in 2017 despite volatile raw material and macroeconomic environments, while its Asian nitrile unit would be further impacted by additional industry capacity introduced in 2016.

Synthomer bought U.S.-based Hexion Performance Adhesives & Coatings for $226 million in March to strengthen its presence in the United States and Asia.

"The outlook for Synthomer remains a story of future M&A activity, but with strong fundamentals, management will be backed by shareholders should they need to raise further capital to fund these acquisitions," Royal London Asset Management's Mitchell said.

Synthomer shares were up 11.2 percent at 419.9 pence at 1506 GMT, making them one of the top percentage gainers on London's FTSE midcap index <.FTMC> on Friday.

(Reporting by Esha Vaish in Bengaluru and and Kate Holton in London; Editing by Sunil Nair and Martina D'Couto)

Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRITISH POUND (EUR/GBP) 0.48% 0.8947 Delayed Quote.0.10%
SYNTHOMER PLC -0.77% 515 Delayed Quote.5.62%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SYNTHOMER PLC
07/02SYNTHOMER : Chemical Firm Expanding In Spartanburg
AQ
06/29SYNTHOMER : Expanding Its Manufacturing Operations in Spartanburg County
AQ
06/07SYNTHOMER PLC : Ex-dividend day for final dividend
FA
05/08GLOBAL STYRENE BUTADIENE LATEX MARKE : 9strategy.biz added a depth and professio..
AQ
03/23Chemical companies fear toxic consequences of Brexit
RE
02/05BASF : finalizes the divestiture of its Pischelsdorf production site in Austria ..
AQ
01/08SYNTHOMER : Project to double range of electric vehicles with new batteries
AQ
01/04SYNTHOMER : UCL Home UCL News GBP7m to improve battery technology for electric; ..
AQ
01/03SYNTHOMER : sale
AQ
2017SYNTHOMER PLC : Ex-dividend day for interim dividend
FA
More news
Financials (GBP)
Sales 2018 1 501 M
EBIT 2018 139 M
Net income 2018 78,1 M
Debt 2018 164 M
Yield 2018 2,44%
P/E ratio 2018 17,59
P/E ratio 2019 16,95
EV / Sales 2018 1,30x
EV / Sales 2019 1,21x
Capitalization 1 780 M
Chart SYNTHOMER PLC
Duration : Period :
Synthomer PLC Technical Analysis Chart | SYNT | GB0009887422 | 4-Traders
Technical analysis trends SYNTHOMER PLC
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 5,21  GBP
Spread / Average Target 0,40%
EPS Revisions
Managers
NameTitle
Calum G. MacLean Chief Executive Officer & Executive Director
Neil Anthony Johnson Non-Executive Chairman
Martin Hallam Vice President-Operations
Stephen G. Bennett Chief Financial Officer & Executive Director
Alexander Gordon Catto Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
SYNTHOMER PLC5.62%2 310
ECOLAB7.32%41 466
SIKA AG0.00%21 002
SYMRISE9.72%11 904
JOHNSON MATTHEY PLC22.15%9 294
INDORAMA VENTURES PCL--.--%9 285