Synthomer plc

On a continuing-business basis, revenue increased 6.7% reported to GBP 954 million and 5.1% in constant currency. Group EBITDA rose 13%, EBIT rose 36% to almost 42% depending on the basis cited, and EBITDA margin improved by 80 basis points to 10.1%; gross margin expanded by nearly 200 basis points. Group PBT increased by GBP 11.4 million to GBP 12.7 million. Net debt was GBP 671 million at June 30, with covenant leverage at 4.9x. For the full year, special items are expected to be GBP 60 million to GBP 65 million, CapEx around GBP 70 million, and interest costs around GBP 73 million to GBP 75 million in the income statement, with cash interest around GBP 65 million. Management raised full-year 2026 outlook to ahead of current market expectations, expects free cash flow to be positive for the year excluding receivables-finance movements, and now sees year-end leverage at 4x to 4.35x after the Acrylate Monomers disposal.

Michael Willome framed the half as proof that Synthomer’s multi-year shift toward a more specialty-focused business is working. He highlighted new products, new markets, and regional balance as the main growth engines, while stressing that the company’s supply chain, procurement, and in-region manufacturing footprint helped it navigate a complex market. His tone was confident and upbeat, but he repeatedly separated sustainable gains from temporary Q2 tailwinds and said the company should not rely on those one-off benefits repeating.

Iain Torrens focused on the mechanics behind the improvement: continuing-business revenue of GBP 954 million, EBITDA growth of 13%, and margin expansion to 10.1%. He said the Acrylate Monomers business was treated as discontinued, which affected comparability, and noted that H1 special items were GBP 36.4 million, with full-year special items expected at GBP 60 million to GBP 65 million, about two-thirds amortization of acquired intangibles. He also walked through liquidity and leverage, citing GBP 671 million net debt, about GBP 270 million committed liquidity, factoring of about GBP 150 million at June 30, H1 CapEx of GBP 33.5 million, and an expected year-end leverage range of 4x to 4.35x.

Analysts focused on how much of the H1 uplift was recurring versus temporary, the scale of the divestment pipeline, reliability issues in Adhesive Solutions, factoring levels, and whether Q2 benefits from Iran-related supply disruption could reverse. Management said about GBP 8 million of EBITDA improvement looked recurring, while about GBP 6 million came from Q2 market disruption and would not be assumed in H2; it also said the GBP 150 million to GBP 200 million divestment proceeds assumption still stood. On reliability, management estimated about GBP 10 million gross margin impact from issues in Middelburg and Longview in H1 but said those problems should not recur in H2. On factoring, management said the higher balance reflected invoice values and funding cost optimization, and that the company has room to manage it dynamically.