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(Sharecast News) - Chemicals company Synthomer lifted its full-year outlook on Tuesday following a strong first half.
In the six months to 30 June, underlying operating profit rose 41.7% to 48.6m, with revenue up 6.7% at 954.3m and all divisions contributing growth.
Revenue in Coatings & Construction Solutions (CCS) was up 33.3% at 46m, while revenue from Adhesive Solutions (AS) edged up 3.7% to 36.7m. The Health & Protection and Performance Materials business (HPPM) saw revenues rise 13.7% to 24.9m.
Earnings before interest, tax, depreciation and amortisation increased 16.4% to 96.7m.
Synthomer said it now expects its FY26 performance to be "slightly ahead" of market expectations for EBITDA of 162m. This reflects a strong first half, led by strategic growth and self-help, supporting further progress in the second half despite ongoing geopolitical uncertainties, it said.
Chief executive Michael Willome said: "Synthomer has delivered a strong performance so far in 2026, with the majority of the progress we have made coming from our sustained efforts to become a more speciality-focused company and our consistent work to 'control the controllables'. This includes our focus on growing our higher margin products and accessing new markets, customer-led innovation, optimising our regional manufacturing strategy and further cost and complexity reductions.
"While our agility and ability to deliver helped our customers navigate the challenging operating conditions in Q2, the market environment will continue to require us to be fast and bold. We are confident that by remaining true to our speciality strategy, we will continue to strengthen our balance sheet and deliver further sustainable earnings growth."
At 1130 BST, the shares were up 5.4% at 93.78p.
Broker Peel Hunt, which rates the shares at 'buy' with a 200p price target, said H1 EBITDA was ahead of its estimate of 88m. It increased its 2026 EBITDA forecast from 160m to 165m.
"The route to the medium-term targets, coupled with debt normalisation, is looking increasingly well established," it said. "We view 200p as a realistic next-step target."
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