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SYNT Synthomer Plc

248.20
6.80 (2.82%)
Last Updated: 10:11:09
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Synthomer Plc LSE:SYNT London Ordinary Share GB00BNTVWJ75 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  6.80 2.82% 248.20 99,465 10:11:09
Bid Price Offer Price High Price Low Price Open Price
247.00 248.00 249.40 240.00 242.00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Chemicals & Chem Preps, Nec 2.59B -32.5M -0.1987 -12.43 404.01M
Last Trade Time Trade Type Trade Size Trade Price Currency
10:13:33 O 200 247.6501 GBX

Synthomer (SYNT) Latest News

Synthomer (SYNT) Discussions and Chat

Synthomer Forums and Chat

Date Time Title Posts
26/3/202407:25Synthomer1,626
07/8/201818:23Synthomer (SYNT) One to Watch on Monday 1

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Synthomer (SYNT) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
10:13:34247.65200495.30O
10:13:31247.657001,733.55O
10:09:49248.206001,489.20AT
10:09:48247.4041101.43AT
10:09:48247.4041101.43AT

Synthomer (SYNT) Top Chat Posts

Top Posts
Posted at 12/3/2024 11:24 by 1knocker
The raise was left far too late. Look at the post raise state of the balance sheet. The patient was already at death's door before anyone dialled 999.
The amount raised was not an operation, just a band aid on the wound.
Common sense says it either gets taken over for a song, or goes under after languishing for another year or so.

One of the few companies which has survived the catastrophy of a gung ho, buy at any price, CEO and complacent BOD is Smiths News. Against the odds a new team managed to ditch all the expensive acquisitions, returned to its old (highly profitable) business, has paid off debt hand over fist, and the share price is way up again and it is paying big dividends once more.

But that is the exception. This looks more like Marconi. or RBS, to me.
Posted at 22/2/2024 14:43 by libertine
22 February 2024
Synthomer still a ‘buy’ for Peel Hunt but disposals are needed
Disposals are needed at Synthomer (SYNT) to catalyse a rerating of the chemical company’s shares, says Peel Hunt.

Analyst Harry Philips retained his ‘buy’ recommendation but reduced the target price from 320p to 250p on the Citywire Elite Companies A-rated stock, which shed 2.4%, or 3.7p, to 151p on Wednesday. The shares are down 86% over the past year after swinging to a loss-making position and being forced to go cap in hand to the market in a £276m raise.

Philips said ‘disposals are needed to accelerate the deleveraging process’.

‘In our view, the company has raised just enough, but without disposals, a rerating to our 250p target price is unlikely to happen organically in the short to medium term,’ he said.

‘We see the stock as an eyes-open “buy” that still has bumps and challenges, but also has a platform.’
Posted at 07/2/2024 10:59 by libertine
EXPERT VIEW
06 FEB, 2024

Berenberg recommends ‘buy’ Synthomer
Specialist chemicals group Synthomer (SYNT) is at ‘the right time in the cycle for some action’, according to Berenberg.

Analyst Sebastian Bray retained his ‘buy’ recommendation and target price of 320p on the Citywire Elite Companies A-rated stock, which fell 5.1% to 143.1p on Monday.

Bray said the ‘key message’ from the trading update this month was that debt is down, with the corollary being that the shares increased ‘despite continued headwinds to the adhesives unit’ that saw earnings decrease modestly below consensus expectations.

‘Rising China chemicals imports and a recent bottoming of base chemicals prices in our view signal the start of a recovery in demand for chemicals in 2024,’ said Bray.

‘The pick-up in Synthomer’s volumes of nitrile latex in the fourth quarter appears consistent with the beginnings of a modest recovery, as reflected in the 12% rally in TopGlove shares since the start of December.’

He added that Synthomer is one of the ‘most levered to a macro recovery in European chemicals’.
Posted at 12/1/2024 09:38 by libertine
Berenberg cuts Synthomer price target to 320 (400) pence - 'buy' ?????????

Berenberg lowers target price on Synthomer

Fri, 12th Jan 2024 10:05
Analysts at Berenberg lowered their target price on chemicals business Synthomer from 400.0p to 320.0p on Friday as it lowered its operating profit expectations for 2023-25.

Berenberg stated that cyclical stocks with high indebtedness "do not put investors at ease", noting that the more than 80% decline in Synthomer shares over the last 12 months was "a case in point". However, the German bank said it was "more optimistic".

"The firm has a leverage problem, although not a liquidity issue. Last year's £276.0m rights issue has bought time to recover," said Berenberg. "Construction market headwinds mean that the company will, in our view, show minimal progress in organically cutting its absolute net debt pile, even allowing for self-help."

Berenberg, which reiterated its 'buy' rating on the stock, noted that the moment a cyclical recovery, fast or slow, materialises, Synthomer shares should jump - perhaps as drastically as they have fallen.

"We have reduced our operating profit forecasts by a high-single-digit percentage on average for 2023-25, mainly reflecting lower construction-linked margins and volumes. Shares trade on 2025 price-to-earnings ratio of 4.2x, compared to long-run average of around 11.0x. Our price target would imply circa 9.0x," added Berenberg.
Posted at 11/1/2024 13:36 by darrin1471
LOTM "They allowed the £1B purchase to go ahead without proper financing to be in place at the time. A criminal decision."

At the time of the acquisition (28/10/2021) BofE rates were 0.1%, we were exiting covid and the SYNT share price was near all time highs.

Congratulations to all of those who had a crystal ball in 2021 and shorted SYNT.
The share price was not a sudden collapse but a long 2 year fall. There was plenty of opportunity to sell. Small investors either took their eye off the ball or stuck their heads in the sand.
I don't have a crystal ball but today the SYNT mkt cap looks good value, higher than average risk with higher than average potential reward.
I still hold no position long or short in SYNT.
Posted at 11/1/2024 10:34 by last of the mohicans
Value destruction here has been incredible.

Is a bit of an understatement!

The share price is currently under 8p (pre consolidation) & before that it had been over £5.

So some poor souls have lost over 98% of there money.

I was in at £3 (pre consolidation) so the share price needs to go to £60 to break even, which simply isn't going to happen.

I've been trading it for several months & mad a decent sum from it, to help bring down that break-even number.

GLA
LOTM
Posted at 27/11/2023 22:40 by darrin1471
wigwammer. Thanks for the heads up on McBride 18 months ago. Last months rise makes it my biggest holding. I continue to hold MCB as I see further upside in re-valuation and even higher profits.

I've had SYNT on a watch list for a few months and now the dust has settled I have taken a deeper look and I quite like the look of what I see.
The strategy of a specialist chemicals company looks sound. The price SYNT paid for Omnova and Eastman’s Adhesive Resins looks reasonable.
The Eastman’s timing is unfortunate but at the time of the acquisition (28/10/2021) BofE rates were 0.1%, we were exiting covid and the SYNT share price was near all time highs.
The sale of non core business and the return of normal trading conditions should lead to a significant recovery.
I hold no position in SYNT at the moment.
Posted at 23/11/2023 21:41 by al101uk
EV=Market Cap+Total Debt-Cash

At interims, they had cash of £232 million
They had Debt of £995 million
Plus £74 million of pension liabilities
and they currently have a market cap of £330 million

I made that north of a billion.

The rights issue has reduced that below a billion since then, so lets adjust that to £880 million. I dumped my shares a while ago so I'm not following as closely as I might and when I saw the £200 million plus payment of debt in the results I put it down to the placing rather than the disposal and didn't look any further. It changes very little.

That's £880 million of enterprise value for a company that had revenue of £1 billion in H1 and managed £49 milion of operating free cashflow. The company is "washing it's face" with share holder cash, it's certainly not throwing off cash at an operating level.

In the companies own words the placing was to stave off a situation where they breached their debt covenants (read the going concern notes in the H1 results), that's hardly the sign of a great business and my point was that the company has a long road to travel before it gets back on it's feet and it needs good to great management to get there imv. There is no evidence that management are up to the task right now.

I've responded to your criticisms of my post, care to respond to any of mine?

To summarise:

1. You didn't take WB's comments in context.
2. Poor management in Synthomer would be a disaster for the business.
3. Trading "within expected boundaries" doesn't warrant share price appreciation given what those boundaries are.
4. Synthomers valuation is far higher than it's market cap.

and I'll throw in:

5. Having creditors breathing down your neck is not a positive for a business trying to restructure.
Posted at 07/9/2023 11:24 by darrin1471
If I bought 10,000 shares today at 42p it would cost me £4200.
Consolidation of share 20 to 1 would leave me with 500 shares worth £8.40 and the total value would remain £4200
6:1 rights issue at £1.97 would mean I could buy (6 x 500) 3000 at £1.97 costing £5910
I would end up with 3500 shares costing £10,110.

Current shares in issue 467m x 42p share price is a mkt cap of £200m
467m shares consolidated at a rate of 20:1 would be 23.35m
23.35 x 6:1 rights issue would be 140m new shares issued as per announcement

As of 8am 26/09/23 shares will be consolidated 20:1. I will end up with 500 shares trading at £8.40 (current price 42p x 20)
If I still hold shares at the close of business of 26/09/23 I will be entitled to the 6:1 rights issue.
On opening on 27/09/2023 share price will fall to £2.88. (((£1.97 x6) + £8.40)/7)
I would have 3500 at £2.88 = £10,800

Valuation would obviously change with share price

I am not in my comfort zone here. Does that sound right?
Posted at 07/8/2022 15:47 by jonwig
This is the IC tip, from Friday (at 211p):

Synthomer (SYNT) is an example of how short-sighted the stock market can be. Demand for PPE during the pandemic turbo-charged performance elastomers (PE) sales. Synthomer's share price almost doubled. Now PE sales are back to pre-pandemic levels, the share price has almost halved, so we are back to where we started.

The difference between now and before the pandemic is inflation. The cash profit (Ebitda) margin dropped from 26.2 per cent to 13.0 per cent. The need to stockpile raw materials to mitigate against supply chain disruption has also tied up more working capital in the business. Free cash has therefore swung from an inflow of £89.5mn last year to an outflow of £62mn.

The combination of the cash outflow and the £759mn acquisition of Eastman’s Adhesive Resins means net debt has risen to £993mn from £355mn. This acquisition enabled the business to launch a new Adhesive Technology division that generated £131mn of revenue last year. This will diversify the business, and Synthomer insists that adhesives is a higher growth segment.

If the investment in Adhesive Technology is a success, then the business will be a better place leaving the pandemic than going in. Cash profit of £173mn is 74 per cent higher than the same period in 2019. The fact the share price sits around half its 2019 level is rather indicative of the global economic slowdown and Synthomer's increased debt.

FactSet consensus expects earnings to rise to 39p in 2023 which gives a very affordable 2023 PE ratio of five. Earnings aren’t going to race forward, but at these prices there looks to be value here. Buy.

I don't hold, but the share price seems weird!
Synthomer share price data is direct from the London Stock Exchange

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