Synthomer Share Discussion Threads

[eigthwonder] 15/4/2024 11:59

Part of a wider programme, more positive than negative I think. Worth catching the webcast of the last set of results - sensible self-help stuff and if watch to the end, has the chance of upgrades at the mid-year if early trends remain intact IMO.

[cestnous] 15/4/2024 11:34

That disposal smells of desperation but I’m staying for future rises

[johnrxx99] 15/4/2024 09:52

The disposals of industial sidelines continue. Will take a hit to NAV but future will be brighter.

[johnrxx99] 14/4/2024 08:22

This company lacked a decent thread so here it is. I picked up this one from CR's blog and ir could be a good one, who knows.

DYOR of course and fingers crossed. I have a very small holding.

[johnrxx99] 14/4/2024 08:20

High-performance, highly specialised polymers and ingredients help customers make products that bind the world together, so they say.

It has had a terrible time over the last few years, Covid related, but a new CEO is hopefully turning things around. Focusing on key divisions, it is divesting and reducing debt. Look at the website for more.

[queenbreguet] 12/4/2024 08:30

The market appears to like the announcment re the pricing of the senior note offering.

[mirabeau] 06/4/2024 12:28

Interesting and it seems informed comments from ION, dated end Fed 2024 :. It seems more disposables to reduce debt is on the cards and maybe a potential bid thrown into the pot to keep things bubbling :

--


Synthomer lines up European carveouts for 2024, sources say

29th February 2024 07:49 AM

By Kezia Joseph and Georgina Barnard

Synthomer [LON:SYNT] is exploring several carveouts of its European assets, according to three sources familiar with the situation.

The British chemicals business is looking to divest its Compounds and Paper Latex units, both of which sit within the wider Paper, Carpet & Foam division, according to all of the sources, with banks believed to have been selected to run an auction.

According to one of the sources, Synthomer’s Compounding business is being marketed off EBITDA of GBP 10m, and the unit has sites in the Netherlands and Germany.

One of the sources added that Synthomer may also consider offloading its Additive Solutions unit.

The potential carveouts would follow Synthomer’s attempted sale of its William Blythe division last year. The inorganic materials unit was expected to be marketed off EBITDA of GBP 7m – GBP 8m, but interest in the sale has since waned.

As previously reported, Synthomer’s SBR Latex and Acrylic Monomers operations have also been flagged as potential exit options. These units sit within Synthomer’s Health & Protection and Coatings divisions, respectively.

The potential divestments come as Synthomer reported a drop in revenue across the board for its various units, according to its most recent financial report.

Synthomer’s Coatings & Constructions Solutions division saw revenue drop to GBP 55.1m in 1H23 from GBP 80.3m the previous year while Health & Protection and Performance Materials saw revenue fall to GBP 11.3m in 1H23 from GBP 59.2m a year earlier, according to the company’s half-year 2023 report. Synthomer’s EBITDA fell to GBP 72m for 1H23 from GBP 162.8m a year earlier.

In 2019, Synthomer launched a strategic review of its SBR latex operations, following which it decided to close its facilities in Finland and reduce production in Germany in response to declining demand. SBR latex is used for the coating of graphic and packaging paper, and the move to electronic media has put a strain on the paper market.

At the end of 2022, Synthomer sold its OMNOVA laminates unit to Surteco Group [ETR:SUR].

The company’s share price sits at 146.8p as of today (February 29). The shares are down 20% year-to-date, for a GBP 240m market cap.

Last month, this news service flagged Synthomer as a potential takeover target for 27% shareholder Kuala Lumpur Kepong, which attempted to acquire the business last year.

Synthomer declined to comment.

-

[wigwammer] 05/4/2024 12:26

The chair - Caroline Johnstone - has been in position since 2020. She oversaw the Eastman acquisition and the whole overleveraging of the balance sheet, despite being gifted a huge covid related profit windfall. She took a material pay increase last year. She really needs to stand up and explain to shareholders why she should be kept on, It appears atrocious given what the share price has done over her tenure. IMO

[eigthwonder] 31/3/2024 08:56

Well, I would vote against anyone who was in situ when the Eastman deal was signed off for a start. And purely on historical track record - Smiths Group when it was bad, Xaar when it started going bad and Essentra when it was bad - Lily Liu, like a lower league football manager who keeps finding employment, manages rise the greasy pole despite poor results.

[meanreverter] 30/3/2024 21:11

I have the opportunity to vote on the resolutions for the AGM — in particular, regarding the re-election of certain directors. Now, I do not know anything about these directors. Does anyone on this BB who knows more than I do about the directors of SYNTH care to share their views?

[chris szabo] 28/3/2024 14:42

sure looks like it

[queenbreguet] 28/3/2024 11:36

Bid coming ??????

[bigbigdave] 26/3/2024 07:25

*HSBC RAISES SYNTHOMER PRICE TARGET TO 250 (160) PENCE - 'HOLD'

[queenbreguet] 18/3/2024 14:38

Market makers are hovering up stock

[hamhamham1] 15/3/2024 12:41

Lovely jubbly

[lawson27] 15/3/2024 11:45

Breaking out nicely, GLA

[cyberbub] 13/3/2024 11:22

I bought in yesterday. The post-consolidation £100/share peak just a couple of years ago has been diluted by the rights issue down to 1500p. It seems clear now that the company will survive - whether it can return to 1500p is doubtful, but looking at the numbers and the actions being taken, in yesterday's results RNS, I would think that 800-1000p is achievable within a couple of years? Given that Mr Market looks forward and not backwards, making a run for 400p in the short term, especially as any remaining shorts close, seems quite achievable to me. There will probably be speculation about a takeover too IMO, while the valuation is so low. And then when the H1 results are out at the end of the summer, if progress continues, could easily push further northwards IMO.

Just my view, NAI DYOR

[hamhamham1] 13/3/2024 11:09

Lovely jubbly

[cyberbub] 13/3/2024 09:30

Not too late to average down...

[1knocker] 13/3/2024 09:18

So far so good. I expected a dip as a reaction to yesterday's big rise, but so far the share price continues to rise today.

I had only bought a small initial position (now 90% down), so the percentage movements do not translate into many pounds, but any up movement beats down even though I shall never see much of my money back.

[queenbreguet] 12/3/2024 13:33

Do your own research but take a look at TIFS. This market is so strange at the moment.
VG set of results.

[hamhamham1] 12/3/2024 12:33

When China actually starts to recover, then this will really pop.

[meijiman] 12/3/2024 12:22

Well it was priced as though it was going bust, so if it isn't, a big recovery is justified. I think there is much more to come here.

[geniechem] 12/3/2024 12:04

I do not understand the rise when the results to me seem so poor.