|SYNT Synthomer on the verge of a breakout, buy volume moving up nicely, forward P/E to 2019 16.2. Brokers recently upgrading target share price (used to be called YULE CATTO)
Long Term chart
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.
Valuation 2017e 2018e
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|
|Today record results were announced, together with another addition to the stable in the shape of Perstorp. The results are at
http://www.investegate.co.uk/synthomer-plc--synt-/rns/final-results/201703060700095473Y/. Suffice it to say SYNT is firing on all cylinders with the dividend over the full year increased by over 30% according to my calcs. Of course the slump in sterling has helped.
Here's what they say about the acquisition:
Perstorp Belgium is highly complementary to Synthomer's existing markets and customers. The Group will focus on expanding Perstorp Belgium's market position by developing closer relationships with customers through leveraging its existing sales and technical services infrastructure, and driving operational performance.
The traditional mkt reaction of a share price fall has duly appeared, but to ltbh people like yours truly short term fluctuations are no problem.|
|Same here, the Missus has good chunks in both ISA and SIPP and I have some in SIPP. Been in and out of this for many years, first bought Yule Catto about 15 years ago, been a good one for us. Like the new management and although we are well under £2 cost going to hang on for a while to see how the Hexion deal works out, also think there could be further acquisitions on the back of these figures, also could become a TO target. Did sell a few at 430 y'day morning which will buy back if there's a fall back.
Nice to see a bit of activity on the board, it's usually very quiet, not on many PI's radar I guess.
all the best and DYOR.
|Agreed, looking good.
The wife has had a reasonable stake in them for some years now.
|Excellent trading update this morning with the company apparently firing on all cylinders, but extremely quiet on this board (as usual). Sold 2.5K SYNT @ £3.838 a short while ago to lock in some profits as it seemed to be unable to break out above £3.90 peak until today (with the benefit of hindsight a mistake). However following the positive results I intend to let my remaining 13.5K stake in SYNT continue on its hopefully positive and upward trajectory!|
|Nice update yesterday, debt reduced by £56 million - 25%!
Solid company with more to come from Hexion integration, seems under the radar|
|Buying a US based $ earning company at $1.44/£ looks inspired timing or just lucky? had these a while and done well, was thinking of selling, but will wait to see the effects of Hexion on the annual results and share price next year.|
|Pushing to new ATH ahead of results next Tuesday. My target 395 - 402 if results please the market.|
|We have a mini breakout today, but will it become a confirmed major breakout that is the question?|
|Got this from Recognia via TD Direct
Bullish SYNT forms “Continuation Diamond (Bullish)” pattern
Long-term opportunity (More than 9 months) recognized 08 Jul 2016
+10.04 (2.8%) stock price change since the Technical Event at 342.66|
|Good news re acquisition completion with a neatly hedged exchange rate back in March. Trading outlook in line with expectation but should benefit considerably from the weaker £.
Solid company. Should rebound rapidly to previous highs.|
|Thanks stevemarkus, yes, you maybe right, I guess only time will tell.|
|I expect it is more to do with the warning from Elementis this morning. However the companies are very different, so I don't think it's anything to worry about.|
|Amazing, the company decides to retain their auditors after a competative tendering process and the share price drops like a stone!!! I wonder if the share price is being manipulated for some reason???|
Released : 21/03/2016
RNS Number : 6687S
21 March 2016
21 March 2016
Acquisition of HEXION Performance Adhesives & Coatings
Synthomer plc (LSE:SYNT) ('Synthomer' or the 'Group'), a leading speciality chemicals company, today announces the acquisition of HEXION Performance Adhesives & Coatings ('HEXION PAC'), a business of HEXION Inc., a global chemical company based in Columbus, Ohio in the USA. The total consideration is $226 million (£156 million*) which is being funded from both existing cash resources and utilisation of additional credit facilities. The acquisition is expected to complete during the summer 2016 following receipt of regulatory approvals and satisfaction of other closing conditions.
Hexion PAC develops, manufactures and markets a wide array of dispersions, additives, powder coatings and speciality monomers, supplying a global customer base across a broad range of end-use including coatings, adhesives and for building and construction applications. The business employs approximately 750 employees and operates 7 sites across Europe, the USA and Asia. In the year to 31 December 2015, HEXION PAC, generated sales of $370 million and EBITDA of $30 million. At 31 December 2015, HEXION PAC had gross assets of $149 million. It is expected that the acquisition will be earnings enhancing for Synthomer in the first full year. The existing leadership team of Hexion PAC will transfer with the business to Synthomer.
The acquisition of HEXION PAC significantly strengthens Synthomer's position in the performance adhesives and coatings market, offering access to new product technologies, customers and markets. HEXION PAC is also highly complementary to Synthomer's existing business both geographically and in the markets in which it operates. Following completion, the Group will have a stronger platform from which to continue its growth aspirations in the Speciality Coatings market. Synthomer expects to achieve approximately $12m of annualised synergies by end 2018 through the integration of HEXION PAC's businesses into the Group. The estimated costs to achieve the synergies are $9m of restructuring costs and $12m of capital costs.
The purchase price represents a pre-synergy multiple of 7.5x and a post-synergy multiple of 5.4x and the Group's pro-forma leverage will increase to approximately 1.5x based on the Group's 2015 year-end numbers.
Calum MacLean, Chief Executive Ofﬁcer of Synthomer, said:
"The acquisition of HEXION PAC represents a further step forward in our strategy to continue to grow and develop the business. This acquisition strengthens our platform for continued growth in the global dispersions and additives market, and in particular expands our presence in the US and Asia. HEXION PAC has a good performance track record and shares our commitment to innovation and emphasis on strong customer relationships. We look forward to welcoming our new colleagues and integrating the business with Synthomer through the remainder of this year."
*Foreign exchange rate for Sterling/US Dollar used is $1.45, being the rate as at 19 March 2016.
- ENDS -
Calum MacLean, Chief Executive Officer
Tel: + 44 (0) 1279 436 211
Stephen Bennett, Chief Financial Officer
Tel: + 44 (0) 1279 775 250
Charles Armitstead, Teneo Strategy
Tel: + 44 (0) 207 240 2484
The Company will hold a conference call for investors and analysts at 0900 BST today:
Dial-in number: +44 (0) 207 1928 000 Conference ID: 75382782
This information is provided by RNS
The company news service from the London Stock Exchange|
|Results tomorrow, will probably drop, usually does.|
|Given the following third qtr trading update the share price drop, in my view, is a complete overreaction; would not be at all surprised if by this time next week the share price has made a full recovery, I think it's a buy at the current price!!! So just added a few more.
Synthomer plc ('Synthomer' or 'the Group') today issues a trading update for the third quarter ended September 30(th) , 2015.
Europe and North America
The Europe and North America segment has continued to perform in line with the positive trends seen during the first half of the year. Whilst volumes were lower than Q3 2014 due to ongoing weakness in our Paper business, we continued to make good progress driven by a further improvement in Construction and Coatings and Functional Polymers. The recent falls in raw material prices helped to deliver a modest improvement in unit margins in Q3 over Q2 and the comparable period in 2014.
Asia and Rest of World
The Asia and Rest of World segment has continued to perform strongly in Q3, with both volumes and unit margins higher than in Q2 and Q3 2014. This ongoing momentum reflects a further rise in volumes and unit margins in our Nitrile business. Our principal revenue streams and raw material costs in Asia are US dollar denominated, and accordingly the recent volatility in the Malaysian Ringgit has a limited impact on the reported operating profit in Sterling.
Group debt increased from GBP77.2m to GBP94.8m following the Final Ordinary and Special dividend payments of GBP42.8m on 3 July 2015, offset by continued strong cash generation of GBP26.0m during the period.
The Group balance sheet remains strong with the net debt/ EBITDA ratio below 1x.
Overall, the Board's expectations for Full Year 2015 remain unchanged.
Looking further ahead, in Europe and North America, our strategy continues to focus on innovation, margin improvement and tight cost control to drive performance. Consequently, we expect this segment to continue at similar volumes and margins through 2016.
As stated in our interim results, a number of Asian Nitrile producers, including Synthomer, have announced plans to increase capacity during the latter part of 2016 and early 2017. Whilst we are confident of continued growth in the market and strong demand going into next year, we expect this planned capacity increase to impact the supply/ demand balance during the second half of 2016 leading to similar net volumes and margins to 2015 for the year as a whole.
|Held for years, always drops on neutral trading updates , dunno why.|
|Target 396. Bought in.|
|Turning into a very good day for SNYNT.|
|£600K buy from the new CEO, impressive! Market likes it, at present anyway.|
|Share price holding up ..... for now. Final div up 30% to 4.8p and a special div of 7.8p gives a decent yield.|
|Richard..........Yup, your right, mainly down on a results day.The better the results, the more it goes down.......Crazy , Ain't it.
p.s.......Raining here on the I.O.M....!
Regards , Moneybags|