Synthomer said on Wednesday that it has suspended dividend payments until the end of 2023, sending shares in the chemicals company tumbling.
Ahead of an investor seminar, Synthomer said its key priority is to return leverage to within its target range of 1-2 x.
“The company is in discussions with its banks to ensure that there is sufficient headroom for its covenants going forward,” it said. “As part of the waiver process, the board has suspended dividend payments until the end of 2023, including the payment that is due this November.”
Synthomer said it would set out medium-term financial targets at the seminar. These include an EBITDA margin of 15%+ and return on invested capital in the mid-teens percentage.
At 0845 BST, the shares were down 11.5% at 85.36p.
