Synthomer

Synthomer

Synthomer Socially Speaking

Synthomer News, Fundamentals and Discussion on:

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Synthomer on Social Media


Synthomer RNS, News & Media


Headline
27 Mar 2017
RNS press release - Annual Financial Report from Proactive Investors
6 Mar 2017
News - Synthomer buys Perstorp Belgium as it reports growth in full year profit from Proactive Investors
6 Mar 2017
RNS press release - Acquisition of Perstorp Belgium from Proactive Investors
6 Mar 2017
RNS press release - Final Results from Proactive Investors
23 Feb 2017
RNS press release - Amendment TR-1 notification from Proactive Investors
6 Feb 2017
RNS press release - Holding(s) in Company from Proactive Investors
20 Jan 2017
News - Synthomer hits new highs after raising profits guidance from Proactive Investors
20 Jan 2017
RNS press release - Q4 and FY trading update from Proactive Investors
13 Dec 2016
RNS press release - Holding(s) in Company from Proactive Investors
1 Dec 2016
RNS press release - Capital Markets Day from Proactive Investors
28 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
18 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
16 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
10 Nov 2016
RNS press release - Holding(s) in Company from Proactive Investors
9 Nov 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
9 Nov 2016
RNS press release - Q3 Trading update from Proactive Investors
3 Oct 2016
RNS press release - Holding(s) in Company from Proactive Investors
26 Sep 2016
RNS press release - Holding(s) in Company from Proactive Investors
14 Sep 2016
RNS press release - Holding(s) in Company from Proactive Investors
14 Sep 2016
RNS press release - Holding(s) in Company from Proactive Investors
11 Aug 2016
RNS press release - Disposal from Proactive Investors
9 Aug 2016
RNS press release - Interim Results for six months ended 30 June 2016 from Proactive Investors
7 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
7 Jul 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
5 Jul 2016
RNS press release - Holding(s) in Company from Proactive Investors
1 Jul 2016
RNS press release - Completion of acquisition and trading update from Proactive Investors
31 May 2016
RNS press release - Audit Tender from Proactive Investors
16 May 2016
RNS press release - Holding(s) in Company from Proactive Investors
9 May 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
28 Apr 2016
RNS press release - Result of AGM from Proactive Investors
28 Apr 2016
RNS press release - Q1 Trading update from Proactive Investors
21 Apr 2016
RNS press release - Holding(s) in Company from Proactive Investors
20 Apr 2016
RNS press release - Director Declaration from Proactive Investors
11 Apr 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
11 Apr 2016
RNS press release - Director/PDMR Shareholding from Proactive Investors
31 Mar 2016
RNS press release - Annual Financial Report from Proactive Investors
21 Mar 2016
RNS press release - Disposal from Proactive Investors
15 Mar 2016
RNS press release - Holding(s) in Company from Proactive Investors
2 Mar 2016
RNS press release - Preliminary Results for the year ended 31 Dec 2015 from Proactive Investors
10 Feb 2016
RNS press release - FRS 101 Notification from Proactive Investors
5 Feb 2016
RNS press release - Holding(s) in Company from Proactive Investors
5 Feb 2016
RNS press release - Holding(s) in Company from Proactive Investors
18 Nov 2015
RNS press release - Director/PDMR Shareholding from Proactive Investors
6 Nov 2015
RNS press release - Q3 Trading Update from Proactive Investors
1 Oct 2015
RNS press release - Holding(s) in Company from Proactive Investors
13 Aug 2015
RNS press release - Holding(s) in Company from Proactive Investors
11 Aug 2015
RNS press release - Half Yearly Results from Proactive Investors
10 Jul 2015
RNS press release - Director/PDMR Shareholding from Proactive Investors
9 Jul 2015
RNS press release - Holding(s) in Company from Proactive Investors

Synthomer 3 Month Chart


Synthomer Discussion on Interactive Investor

SYNTHOMER BREAKING OUT......... by oldjoe1

  Fri, 17 Mar 2017 10:54:00 GMT

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)

https://pbs.twimg.com/media/C7HSm1tWwAEAHZE.jpg

<b><u>Long Term chart</b></u>

LINK

<b><u>Company</b></u>

Synthomer 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 17,8x
Capitalization / Revenue 1,23x 1,20x
EV / Revenue 1,35x 1,28x
EV / EBITDA 10,3x 9,47x
Yield (DPS / Price) 2,40% 2,67%
Price to book (Price / BVPS) 4,56x 3,98x


By oldjoe1

Prelims and acquisition by sharegardener

  Mon, 06 Mar 2017 22:26:00 GMT

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


By sharegardener

Re: Chart breakout? by Meanbugger

  Fri, 20 Jan 2017 07:55:00 GMT

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.

By Meanbugger

Chart breakout? by Meanbugger

  Thu, 28 Jul 2016 09:31:00 GMT

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?

By Meanbugger

NEW ARTICLE: Share of the week: M&A fuels record rally by II Editor

  Thu, 24 Mar 2016 17:29:00 GMT

"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

By II Editor

Columbus opens the door to America by lawdoc

  Tue, 22 Mar 2016 09:47:00 GMT

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.



By lawdoc

Re: Acquisition and Disposal by Meanbugger

  Mon, 21 Mar 2016 10:37:00 GMT

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.


By Meanbugger

Acquisition and Disposal by The buzz

  Mon, 21 Mar 2016 07:33:00 GMT

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 Buzz


By The buzz

Trading Stetement by The buzz

  Fri, 06 Nov 2015 08:01:00 GMT

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 Buzz


By The buzz

Berenberg by nk1999

  Sat, 10 Oct 2015 12:58:00 GMT

From Citywire:

"Synthomer: more to come from the chemicals maker

Chemicals 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.’"


By nk1999

Chinese Slowdown by The buzz

  Fri, 21 Aug 2015 20:37:00 GMT

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 Buzz


By The buzz

Re: Established income payer with solid ... by Boring Bernie

  Wed, 08 Apr 2015 22:55:00 GMT

Dear me

AlBent = Al Bentley

LINK

So blatant with it too. It would be nice to think that ii weren't allowing you to spam the boards for the exchange of a few quid and that you were just spamming ?

BB


By Boring Bernie

Re: Established income payer with solid fina... by Boring Bernie

  Wed, 08 Apr 2015 14:41:00 GMT

i wish you'd stop spamming all the boards with links to a site you're presumably representing in some way.

By Boring Bernie

Re: Final Results by dannysuko

  Thu, 26 Feb 2015 10:25:00 GMT

Well I see the results as a medium positive considering the economic conditions especially in Europe and the Euro currency pain. I do agree that the SD whilst welcome could have been held off or could have been used to pay down debt. but overall, not unhappy with the performance. In these times of huge uncertainty and with Russia, Europe, Syria, the falling price of oil, plus all the other impact news, Synthomer are performing well in comparison. Happy to hold at this time but I do feel 270p will be a big old barrier to get over and expect the price to sit around 250p. However for me, these are just steady eddies who can give me a reasonably decent divi whilst the potential exists for capital increase if the euro zone improves. DS

By dannysuko

Final Results by The buzz

  Thu, 26 Feb 2015 07:57:00 GMT

I thought that the final results were a bit indifferent with lower turnover and profit compared to last year. As expected the dividend had been increased, but what surprised me was the special dividend of 7.8p a share on top of the 7.8p a share ordinary dividend. They still have significant borrowings and it was not all that many years ago that SYNT was financially exposed to its large borrowings. Personally I think that the special dividend is unwarented and that they should first reduce the borrowings further. Does my memory fail me or did not the FD change - is this a sign that he is a weak FD who has given in to pressure to pay out money to share holders despite the borowings? No doubt some in the city will like the dividends, but I am uconvinced that it is wise to pay out too much too soon. ..but then I am a bit cautious. As I said in my last post, I no longer hold shares in SYNT, despite holding them for many years and having far too many only a short time ago.

The Buzz


By The buzz