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Synthomer Lifts FY2020 EBITDA View, Sees Strong Growth In FY21; CEO To Stand Down; Stock Up

Shares of Synthomer plc (SYNT.L) were gaining around 4 percent in the early morning trade in London after the specialty chemical company raised its fiscal 2020 EBITDA guidance with strong trading momentum across the business. The company also projects strong EBITDA growth in 2021.

Further, Calum MacLean has informed the Board that he intends to stand down as Chief Executive by January 2022.

In its trading update for the year, the company said it now expects 2020 EBITDA to be approximately 255 million pounds, some 10% ahead of previously issued outlook of 232 million pounds.

The revision in outlook reflects the combination of stronger trading across its three major divisions.

Performance Elastomers has continued to perform strongly, and overall performance is ahead of expectations. Functional Solutions has seen a sustained improvement in the final quarter of 2020.

Industrial Specialities also had a strong finish to the year, with laminates and films business, which serves the home improvement and recreational vehicles market, trading particularly well and the division performing ahead of the equivalent period in 2019.

The company said it remains highly cash generative.

Looking ahead, the company said it now expects no meaningful disruption to business.

The company said its Board is confident that the benefits of the OMNOVA acquisition, recent investment in new capacity, further efficiency measures, its proven growth strategy as well as continued strength in Performance Elastomers, will underpin strong EBITDA growth in 2021.

Regarding the CEO change, the company noted that MacLean, after 6 years as Chief Executive, will leave the business by January 2022 when a successor is in place. The process to find a new Chief Executive is underway and is expected to include both internal and external candidates.

In London, Synthomer shares were trading at 462.80 pence, up 3.86 percent.

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