Synthomer - comment
Today’s statement confirms what we have said since we took our position. At year’s end, Synthomer would have been close to its leverage covenant without the receivables deal it did in December with its main shareholder. The continued pressure from the banks suggests that the company recognises it will need covenant relief in 2026, and that the banks are pushing back hard. There was no mention of the H2 27 refinance. Synthomer confirmed its 2025 guidance, although two and a half months into its annual audit, anything else would have been a shock. The war in the Gulf is impacting raw material prices, which are then passed on to end users as a matter of course. Synthomer has also said that raw material supplies have not been affected yet.