Synthomer upgrades FY earnings outlook amid strong trading

Chemicals company Synthomer lifted its full-year earnings guidance on Monday as it said trading across the business has remained strong.

It now expects first-half earnings before interest, tax, depreciation and amortisation to be around £320m and FY EBITDA to be in excess of £500m, up from previous guidance of in excess of £450m. The company said that since its last update in April, volumes and unit margins have been ahead of the prior year in all divisions.

"In addition, the Nitrile latex business has continued to perform well, driven by exceptional demand due to the Covid-19 pandemic," it said.

The Nitrile latex business is still expected to return more normalised levels next year, however. Synthomer said it will provide an update on this and its 2021 outlook with its first-half results on 5 August.