Trading and refinancing update
Synthomer plc confirmed its 2025 performance with continuing revenue around £1.74 billion and EBITDA between £135-138 million, noting positive cash flow and improved margins despite softer end-market demand. The company's covenant net debt to EBITDA was 4.7-4.8x at year-end 2025, well within the 5.25x limit, with liquidity at £385 million. Trading in early 2026 is in line with expectations, with momentum building and efforts to pass on raw material and energy cost increases through pricing. Discussions regarding refinancing debt facilities due in H2 2027 and a divestment program are progressing constructively, with no current intention to issue new equity.
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- Focused on refinancing discussions and divestment programme, which are both progressing constructively
2025 results and current trading in 2026
Synthomer plc ("Synthomer" or the "Company") today announces that the year to 31 December 2025 audit process is well-advanced, with no change to the expectations indicated in the 29 January 2026 trading update of continuing revenue of c.£1.74bn and continuing EBITDA in the range of £135-138m.
Strong operational execution, together with expanded 'self-help' cost reduction programmes, enabled the Company to mitigate the impact of softer end-market demand since global tariff changes were announced and deliver resilient earnings and an increased EBITDA margin as well as positive Free Cash Flow in 2025.
Synthomer's covenant net debt:EBITDA was 4.7-4.8x as at 31 December 2025, well within the requirement of less than 5.25x, and the Company's liquidity (undrawn committed facilities and cash) was £385m.
Overall trading since the start of 2026 is in line with the Company's expectations and momentum continues to build. While the consequences of the military action in Iran remain uncertain, Synthomer is passing through the significant increases in underlying raw materials and energy costs since the start of the conflict via pricing adjustments, while sales volumes in several product areas are increasing, benefitting from our regional manufacturing footprint. The Company's joint venture manufacturing operation and sales office in the Middle East are both currently operating as usual, and our global supply chains have remained robust to-date although we are monitoring the situation closely.
The Company continues to focus on delivering further year-on-year progress in 2026 driven primarily by its self-help actions.
Update on refinancing discussions
As previously announced, the Company remains actively engaged with its lenders with the objective of amending the key covenants and extending the maturity of its revolving credit and UK Export Finance debt facilities, which are due in H2 2027. These discussions are proceeding constructively, alongside our ongoing focus on delivering the broadened divestment programme. While the Company continues to explore options to support further leverage reduction and underpin the sustained delivery of the speciality chemicals strategy, the Board does not currently intend to issue new equity and is focused on concluding the debt refinancing process alongside the divestment programme. Kuala Lumpur Kepong Berhad Group ('KLK'), Synthomer's largest shareholder, remains very supportive of Synthomer's strategy and operational delivery.
Given the debt refinancing process above, the Company will publish its 2025 results in late April 2026.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.