LONDON—Synthomer P.L.C. has upgraded its earnings forecast on the back of "strong trading momentum across the business," the group said in a trading update for the year ended Dec. 31.
Buoyed by stronger trading across its three main divisions, Synthomer now expects 2020 EBITDA of around $310 million, about 10 percent ahead of the guidance provided in an Oct. 14 trading statement.
The recent Omnova acquisition, investment in new capacity, efficiency measures and continued strength in performance elastomers "will underpin strong EBITDA growth in 2021," the English group said on Jan. 14.
During the final quarter of 2020, the Performance Elastomers unit continued to "perform strongly," with the nitrile latex business continuing to exceed expectations.
Conditions in the SBR latex business also continued to strengthen, with all SBR segments except paper trading ahead of the comparative period in 2019, Synthomer added.
The group's Functional Solutions business, meanwhile, delivered "sustained improvement" in the final quarter with consumer-facing and industrial end markets remaining strong—except for the oil and gas market.
Industrial Specialties also had a strong finish to the year, with the laminates and films business, which serves the home improvement and recreational vehicles market, performing ahead of the prior-year period.
While Synthomer will continue adapting its operations to the ongoing COVID-19 pandemic to ensure the safety of all employees, it did not expect any significant disruption to business.
"In a very challenging year, Synthomer has delivered a strong performance," said Caroline Johnstone, chair of Synthomer. "This is a testament to the strategy that we have been consistently executing and the investments that we have made."
Synthomer issued the trading update ahead of announcing full-year results on March 4.