freedom-thirty5
04 Mar 2019
RNS: Results for the year ended 31 December 2018 Outlook: Looking forward, the Group’s leading market positions, incremental low cost production capacity, geographic diversity and product differentiation, ensure we are well placed to navigate the current global political and economic uncertainties. Given this, we are confident of making further progress in 2019 and the Board’s expectations remain unchanged.
freedom-thirty5
04 Mar 2019
RNS: Results for the year ended 31 December 2018 “Despite some challenging market conditions in 2018 Synthomer has delivered solid growth in Underlying profitability, achieving our fourth consecutive year of growth and another year of record Underlying profits. ARW delivered especially strong growth in Underlying profits helping to offset the impact of currency and raw material volatility in ENA. Our strategy of driving organic and inorganic growth, complemented by the Group’s geographic diversity and product differentiation, continues to deliver sustainable growth.â€
freedom-thirty5
27 Jan 2019
Tipped by Questor in Telegraph today The Telegraph Questor: Synthomer’s bosses may not have managed Ineos-style growth but the... Questor share tip:
MNKGV
10 Mar 2018
Re: SYNTHOMER BREAKING OUT......... Old Joe, One year on, that one worked out nicely, well done Synthomer.
oldjoe1
17 Mar 2017
SYNTHOMER BREAKING OUT......... SYNT Synthomer on the verge of a breakout, buy volume moving up nicely, forward P/E to 2019 16.2. Brokers recently upgrading target SP. (used to be called YULE CATTO)[link] Term chart</b></u>[link] Plc develops, markets and sells polymer products derived from petrochemical monomers.Its products cover the industries including coatings, building products, gloves, carpets, paper, adhesives, plastics and PVC. <b><u>Valuation 2017e 2018e</u></b>P/E ratio (Price / EPS) 19,1x 17,8xCapitalization / Revenue 1,23x 1,20xEV / Revenue 1,35x 1,28xEV / EBITDA 10,3x 9,47xYield (DPS / Price) 2,40% 2,67%Price to book (Price / BVPS) 4,56x 3,98x
sharegardener
06 Mar 2017
Prelims and acquisition FY figures look good with divi up 30% (''dividend covered 2.5 times by the underlying earnings per share'') and revenue climbing from recent acquisitions (PAC) and 'currency tailwinds'.The analyst presentation, slides and accompanying Q&A webcast gave more detail. Glove market is growing especially in Asia and Malaysian factory capacity is being increased in 2 stages Q2/3 2018 90kTon and further 60kT later.The German factory in Worms is also being expanded (debottlenecking!) to give more acrylics capacity.Todays acquisition announcement is for a bolt-on niche chemical co. Perstorp that will be a 'good strategic fit' with specialist coatings to improve synt offering.However,- goodwill is now £300M on balance sheet + £54M acquired intangibles - debt is climbing (to fund the acquisitions)- the Malaysian factory has 'pioneer status' with low tax rates ending in 2020. Likely climb in tax costs after this.- raw materials costs are rising up to 3x in last 3 months (styrene, butadiene) but these costs can be passed on without harming margin. Working capital hovers around 10% of sales and shouldnt rise much.Overall, growth looks set to continue organically as well as with more acquisitions. Calum Maclean CEO said 'we are ambitious to grow synthomer' - he's on the look out for something big (''larger material transaction'') from a multinational bluechip quality Co. But will be cautious on due diligence and 'will come to market' with well thought through plans as when an appropriate target comes up.I take that to mean a rights issue rather than raising debt. In this regard there are comparisons with RPC.My impression is that gloves are a high volume low margin product where they have capacity advantages but SYNTs main strength is in the specialist chemicals segment. They are also serious about R&D:''To ensure a good understanding of developing technology trends and to underpin the basic science of our product platforms, there is an ongoing program to partner with leading European universities. Funded PhD projects have, for example, looked at new polymer systems, developed an understanding of fundamental film forming and adhesion performance and evaluated novel process technology. As part of the programme, we have recruited two staff members since 2015 with PhDs that were sponsored by Synthomer. In partnership with the Royal Society of Chemistry, we sponsor the award for best Polymer Science PhD thesis from a UK university and support a number of events for young chemists.''Excellent!SG
Meanbugger
20 Jan 2017
Re: Chart breakout? I'm hoping today that the £4 level will be breached. The overcapacity in Asia in nitrile has clearly held the shares back and remains a concern. Nevertheless there are enough positives, especially currency and the Hexion contribution to make this at least a solid hold.
Meanbugger
28 Jul 2016
Chart breakout? SYNT shares have been edging up nicely. Interims are due in a couple of weeks and should be encouraging. SYNT is a big beneficiary like most chemical companies from lower sterling. Surely next month the share price will be over £4?
II Editor
24 Mar 2016
NEW ARTICLE: Share of the week: M&A fuels record rally "The market is down this week, but LSE:SYNT:Synthomer is up 12%, making it one of the best-performing stocks right now. The latest surge was triggered by Mergers and Acquisitions (M&A) action, with the chemicals company acquiring an ..."[link]
lawdoc
22 Mar 2016
Columbus opens the door to America Tempus in the Times today has title 'Columbus opens the door to America'. He mentions the deal looks a good one but won't move the dial significantly to double earnings as wished for by the CEO. Believes plenty of firepower left to do more and does not expect the next deal to be too far off.However, he advises to avoid for now as P/E is around 16. That defies logic - I would think the biggest market in the world is now more accessible to SYNT and cost savings from the current deal will be exceeded.
Meanbugger
21 Mar 2016
Re: Acquisition and Disposal Buzz, exiting South Africa may mean taking a loss but it is the right thing to do. UK companies like SYNT and even Barclays are not well placed to deal with the empowerment pressures which are building up. As regards the acquisition, it looks a good fit, it will generate cash and is easily financed with borrowings.SYNT is a funny share. It often looks expensive on a p/e basis but if the news is good it performs well.
The buzz
21 Mar 2016
Acquisition and Disposal Selling off the S African business sounds like a loss to me. S Africa has been in a bad way recently and the Rand collapsing in value. In theory their products should have been getting cheaper. So SYNT is selling off assets at a low part of the economic cycle - but they see things getting even worse.The acquisition of a US business when the £/$ exchange rate is so bad sounds like unfortunate timing. The sum of £156 plus $21m resultant costs needs to be seen in the context of the company's current value of £1,100m. That said they need to find lots of cash to finance the deal. It was not all that many years ago that SYNT was in financial trouble. They recovered and then made a huge special divided. I am wondering if the accounts will be starting to look a bit stretched with this purchase? On the other hand their last acquisition worked out really well SYNT suggest annual synergies of $12m by the end of 2018 - that do not sound to be particularly large. It will be interesting to see what the market makes of it all.The B
The buzz
06 Nov 2015
Trading Stetement It starts off very well - but end warning that the competition will be increasing in the Far East. It is not all that long ago that SYNC had reduced profit caused by over supply from competitors increasing their volumes. It will be interesting to see how the market prices its future earnings.The B
nk1999
10 Oct 2015
Berenberg From Citywire:"Synthomer: more to come from the chemicals makerChemicals makers Synthomer (SYNTS) is a ‘buy’ for Berenberg thanks to potential for expansion in latex glove manufacturing and mergers and acquisitions (M&A).Berenberg analyst Sebastian Bray initiated coverage of the stock with a ‘buy’ recommendation and a target price of 400p. The shares rose 3.3% to 340.6p yesterday.‘Synthomer is the world’s leading supplier of nitrile latex, which is used for the manufacturer of disposable gloves. The disposable market has shown a compound annual growth rate of c.8% over the last decade and we forecast growth of 9% per year to 2017 as healthcare provision in emerging markets improves,’ he said.‘Synthomer also enjoys market-leading positions in speciality chemicals geared to construction in fast-growing parts of Asia and the Middle East, and is implementing a cost-savings programme of c.£9 million a year by 2016.’He added that the company has ‘stated ambition for large M&A, with at least £660 million available for deals’.‘Synthomer has performed well over the last few months and has re-rated significantly…We believe there is more to come.’"
The buzz
21 Aug 2015
Chinese Slowdown Having sold out at a good profit way too soon with SYNT, I have watched the price continue to climb with huge dividend payouts. One of the main drivers has been the improved latex market in the Far East boosting profits. For the sake of those whom I have advised here before, I think that it is worthwhile recognising that the slowing Chinese economy may well have a knock on effect on the Malaysian economy and in particular the price of latex. If demand does not keep up with the forever increasing supply, then SYNT may well find that margins start to shrink and profits fall, With the threat of global slowdown probably limiting SYNT's european demand, I am wondering if the price of SYNT could come under pressure over the next few months. Perhaps a stop loss might be in order??The B
