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.
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)