Synthomer Shares Surge: Reaffirms Outlook Amid Refinancing Efforts

Synthomer (LON: SYNT) saw its share price jump on Thursday morning after the company provided a trading and refinancing update, confirming its performance expectations for the year ended December 31, 2025.

The company anticipates revenue of approximately £1.74 billion and EBITDA in the range of £135-138 million. This announcement underscores the resilience of Synthomer’s operations despite challenging market conditions.

The specialty chemicals company demonstrated robust operational execution and successfully implemented cost reduction programs to offset softer end-market demand following global tariff changes. T

his proactive approach enabled Synthomer to achieve resilient earnings, an improved EBITDA margin, and positive free cash flow for the year.

Synthomer’s covenant net debt to EBITDA ratio stood at 4.7-4.8x as of December 31, 2025, comfortably below the required threshold of 5.25x. The company’s liquidity position remains strong, with £385 million in undrawn committed facilities and cash. This provides Synthomer with financial flexibility as it navigates ongoing market uncertainties.

Trading since the start of 2026 is in line with company expectations, with momentum building. Synthomer is actively managing the impact of the military action in Iran, passing through significant increases in raw materials and energy costs via pricing adjustments. Sales volumes in several product areas are increasing, benefiting from the company’s regional manufacturing footprint which has helped in maintaining a robust supply chain.

Synthomer is actively engaged in discussions with its lenders to amend key covenants and extend the maturity of its revolving credit and UK Export Finance debt facilities, which are due in the second half of 2027. These discussions are progressing constructively, alongside the company’s divestment program.

While exploring options to further reduce leverage and support its speciality chemicals strategy, the board does not intend to issue new equity and is focused on concluding the debt refinancing process alongside the divestment program.

Kuala Lumpur Kepong Berhad Group (KLK), Synthomer’s largest shareholder, continues to support the company’s strategy and operational delivery. This backing provides additional stability and confidence as Synthomer executes its plans.

The company will publish its 2025 results in late April 2026, pending the completion of the debt refinancing process. Investors will be keen to assess the full financial details and the impact of the refinancing on Synthomer’s future prospects.