In its results for the six months ended June 30, the company said normalised trading had returned in June and continued into July, adding that assuming a recovery in demand also continued, the second half of the year was “expected to return to more normalised group [earnings] levels”, adding that they expected group earnings (EBITDA) for 2020 to be “broadly in line with current market consensus” of around £211.3mln.
Synthomer also said they expected to pay a final dividend for the year, having previously scrapped its 2019 final and 2020 interim payouts to preserve cash during the pandemic.
For the six month period itself, the group reported an EBITDA of £100.2mln, 0.5% higher year-on-year, while revenues declined 3.8% to £733.7mln. The company’s volumes in the six months also rose 1.5% to 762.4 kilo tonnes.
"Geographic and end market diversity and product differentiation have underpinned Synthomer's resilient performance with our half year EBITDA in line with last year. Delivering these results whilst also making strong strategic progress is testament to the commitment, dedication and sheer hard work of our employees, and I would like to thank them all for their great contribution in these unprecedented times”, said chairman Neil Johnson.
“We are encouraged by much improved trading in June and July and accordingly we have reinstated guidance and, subject to continued progress, expect to pay a 2020 final dividend", he added.
Synthomer shares jumped 5.6% to 311.9p in mid-morning trading.