Synthomer plc

Synthomer raised its full-year outlook to slightly ahead of market expectations after reporting first-half revenue and earnings growth that beat forecasts. Revenue from continuing operations rose 6.7% to £954 million, EBITDA increased 13%, and the EBITDA margin expanded 80 basis points to 10.1%. The company attributed approximately £8 million of the EBITDA improvement to recurring specialty growth, new products and cost measures, while a further £6 million was linked to market disruption in the second quarter that is not expected to recur. Synthomer now expects year-end covenant leverage to decline to between 4.0 times and 4.35 times, down from 4.9 times at June 30, and forecasts positive free cash flow for the full year. The company also expects its broader disposal program to generate £150 million to £200 million in proceeds as it continues to reshape its portfolio away from base chemicals.