Join our community of smart investors

Synthomer synthesises growth

Synthomer has reaped the benefits of investments in innovation and capacity in buoyant Asian markets
August 12, 2015

Capital spending, targeted innovation and a crackdown on fixed costs helped Synthomer (SYNT) post underlying profit growth at the half-year mark for the first time in three years. Coupled with a 7 per cent rise in sales volumes, that prompted investors to lift by 6 per cent shares in the supplier of emulsion polymers used in paper, textiles, latex gloves and construction.

IC TIP: Hold at 350p

Volumes rose 13 per cent in the Asian Nitrile Latex business as demand outstripped supply and the group reaped the rewards of previous investments in Malaysia. Europe and North America also put in decent shifts: strip out the impact of performance bonuses and currency movements and underlying operating profit was broadly flat. That reflected tight cost control and rising sales of higher-margin coatings, functional polymers and foam, offset by tepid European paper and carpet markets.

To continue reading...
REGISTER FOR FREE TODAY
  • Read 3 articles for free each month
  • Educational articles and topical investment guides
  • In-depth podcast episodes by our writers and industry professionals
  • Interactive live webinars on investment themes that matter
Have an account? Sign in