StockMarketWire.com - Chemicals company Synthomer upgraded its annual earnings guidance and reinstated its dividend after demand for its latex products increased amid the Covid-19 crisis.

Earnings before interest, tax, depreciation and amortisation for the year through December was now expected at around £232 million, some 10% higher than previous guidance.

Synthoma said it had decided to reinstate the interim dividend which was suspended in April and would pay out 3p per share on 10 November accordingly.

'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 added.

Synthoma said its performance elastomers volumes and margins were ahead of prior year reflecting strong demand in Nitrile latex following the Covid-19 pandemic and improved conditions in SBR latex through the third quarter.

Functional solutions, meawwhile, continued to benefit from the integration of Omnova and likewise was trading ahead of prior year.

Industrial specialities continued to improve in the third quarter, with current run rate volumes and margins on or above the prior year.

'This is a very encouraging performance with all business divisions performing ahead of prior year,' chief executive Calum MacLean said.

'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.'

'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.'




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