Synthomer PLC (LSE:SYNT), the speciality chemicals group, saw its shares rebound 89% to 34p on Thursday after the company said it does not intend to issue new shares to tackle its debt burden, easing fears of shareholder dilution.
The company said its Middle East operations were continuing as normal despite the regional conflict, and that it was passing on higher raw material and energy costs through price increases.
The stock had fallen sharply from above 55p last month after the board flagged it was considering “a range of options” to reduce debt, including the possibility of raising fresh capital, a prospect that unsettles investors as it can reduce the value of existing shares.
The company said today that refinancing talks with lenders over debt facilities due in the second half of 2027 were “proceeding constructively,” alongside a programme of asset disposals to cut borrowing levels.
It was noted that KLK, the company’s largest shareholder, remains “very supportive” of current strategy and operational delivery.
Synthomer reconfirmed its 2025 performance, with revenue of around £1.74 billion and EBITDA of £135 million to £138 million, and said trading in early 2026 was in line with expectations.
Net debt stood at 4.7 to 4.8 times EBITDA at the end of 2025, comfortably within the maximum of 5.25 times set by its lenders.
Given the debt refinancing process, the company intends to publish 2025 results in late April.
