Synthomer PLC
LSE:SYNT
Synthomer PLC
Synthomer Plc engages in the development, marketing, and sale of polymer products derived from petrochemical monomers. The company is headquartered in Harlow, Essex and currently employs 4,632 full-time employees. The firm's Performance Elastomers segment is focused on healthcare, paper, carpet and foam markets through its water-based Nitrile Butadiene Rubber latex (NBR) and Styrene Butadiene Rubber latex (SBR) products. Its Functional Solutions segment is focused on coatings, construction, adhesives and technical textiles markets through its water-based acrylic and vinylic based dispersions products. Its Industrial Specialities segment is focused on specialty chemical additives and non-water-based chemistry for a range of applications from polymer additives and laminates and films to emerging materials and technologies. Its Acrylate Monomers is focused on the production of acrylate monomers, which are sold to external customers in European markets as well as its European Functional Solutions dispersions business. The company also operates Adhesive Technologies division.
Synthomer Plc engages in the development, marketing, and sale of polymer products derived from petrochemical monomers. The company is headquartered in Harlow, Essex and currently employs 4,632 full-time employees. The firm's Performance Elastomers segment is focused on healthcare, paper, carpet and foam markets through its water-based Nitrile Butadiene Rubber latex (NBR) and Styrene Butadiene Rubber latex (SBR) products. Its Functional Solutions segment is focused on coatings, construction, adhesives and technical textiles markets through its water-based acrylic and vinylic based dispersions products. Its Industrial Specialities segment is focused on specialty chemical additives and non-water-based chemistry for a range of applications from polymer additives and laminates and films to emerging materials and technologies. Its Acrylate Monomers is focused on the production of acrylate monomers, which are sold to external customers in European markets as well as its European Functional Solutions dispersions business. The company also operates Adhesive Technologies division.
Record Results: Synthomer reported a record year in 2021, with sales up 47% to £2.3 billion and EBITDA doubling to £522 million, led by exceptional demand in Performance Elastomers.
NBR Normalization: NBR margins and volumes, which spiked during the pandemic, have now returned to normal levels, with destocking expected to continue into the first half of 2022.
Strategic Acquisitions: The Eastman Adhesive Resins (Adhesive Technologies) and OMNOVA acquisitions were highlighted as transformational, enhancing growth platforms and geographic reach.
Strong Cash Flow & Balance Sheet: Free cash flow more than doubled to £300 million, helping reduce net debt to £114.2 million and leverage to 0.3x EBITDA at year-end, positioning the company well for further investments.
Capital Allocation & Outlook: CapEx is guided to £130 million in 2022, focused on maintaining flexibility and supporting growth, while leverage is expected to rise temporarily to 2.5x post-acquisition and then return to target range (1–2x) within 12–24 months.
Outlook: Management expects a gradual normalization in NBR and continued growth across other divisions, with early signs of margin stabilization and an encouraging start to 2022, especially in margins.
