Shares of Synthomer PLC (LON: SYNT) soared 30% this morning after the chemicals company upgraded its annual earnings guidance and reinstated its dividend.
The Essex-based company saw demand for its latex products soar amid the pandemic. Synthomer now expects earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ending December at about £232 million. This is around 10% higher than previous guidance.
“This is a very encouraging performance with all business divisions performing ahead of prior year. Alongside this strong momentum, we have made significant strategic progress, with a decision to close our site in Oulu and the integration of Omnova continuing ahead of our initial expectations, chief executive Calum MacLean said.
“This underpins our confidence for the remainder of this year and beyond leading to an upgrade to our guidance for the full year and reinstating our interim dividend”.
As a result, the company decided to reinstate the interim dividend and to pay 3p per share on 10 November.
“The board has also fully reinstated its existing dividend policy and intends to pay a final dividend in line with its capital policy,” the company said in the statement.
Synthomer share price rallied about 30% to 433.4p, which is a fresh 2-year high for SYNT.
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