Synthomer shares tank after profit slump in 2022, warns of subdued demand

(Reuters) - Shares of Synthomer Plc plunged about 14% on Tuesday after the British polymer maker reported a slump in 2022 core profit and said demand remained subdued thus far into the year.

The coatings and constructions solutions maker halved its total annual core profit, including recent disposals, to 265 million pounds ($325.9 million), but in line with its forecast in January.

The year-to-date trading remained challenging, the company said, adding that it does not see any improvement this year to current high levels of destocking and low production of nitrile butadiene rubber used to make gloves.

Synthomer said it expects to emerge from the subdued level of demand in the second half of this year, although visibility is currently limited. Shares plunged as much as 19% to an over-five-month low of 100p in morning trading.

Synthomer had in December agreed to divest its laminates, films and coated fabrics businesses for $267 million to Surteco North America.

($1 = 0.8132 pounds)

(Reporting by Prerna Bedi in Bengaluru; Editing by Dhanya Ann Thoppil)