Synthomer increases its full year dividend by 30% and pays a special

DividendMax Ltd.

Synthomer increases its full year dividend by 30% and pays a special

Positive H1 in Europe offset by weaker H2 demand; year-on-year improvement in unit margins.

Asia weaker but encouraging H2 trends with nitrile volumes up towards the year end and margins continuing to strengthen.

Strong focus on cost control.

Good progress on product innovation with 7 patent filings in the year; 16% of 2014 sales from products launched in the last five years.

Net debt reduced to £112.1 million:

- Net debt/ EBITDA ratio below 1 times;

Special dividend of 7.8p per share; equivalent to £26.5 million, in line with capital management policy.

Full year regular dividend increased by 30% to 7.8p (interim 3.0p; final 4.8p) consistent with dividend policy.

New CEO in place.

Commenting on the results, Neil Johnson, Chairman, said:

"After a positive start to the year, the economy in Europe faltered, causing demand to weaken during the second half. In Asia, we saw the opposite, with a more intense competitive environment putting pressure on nitrile margins during the first half of the year, but an improving position during the second half. In the context of this challenging environment Synthomer has maintained its focus on cost control, product innovation, investment in R&D and capacity expansions in developing markets. 

We remain cautious on the European economy and its impact on demand, but some benefit from lower raw material prices may help offset any volume weakness. However, the weakness of the euro, will affect the translation of our European business results. In Asia, we expect to see an improved performance from nitrile given the continuing tightening in the supply demand position and improving margins. Overall, the Board is confident the Group is well positioned for future growth.

I am delighted to welcome our new CEO Calum MacLean to the Board. His extensive expertise in our industry and track record of growing businesses will be invaluable and I look forward to working with him and taking Synthomer forward."

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