March 4 (Reuters) - Synthomer Plc shares fell more than 10 percent on Monday, after the polymer maker and supplier said volumes were being hurt by declining raw material prices and demand.
The company’s shares are experiencing their worst single day drop in nearly three years.
Synthomer said that operating profit for the full year in Europe and North America, its biggest markets, fell 5 percent because of currency headwinds and a marked drop in raw material prices.
Full-year overall profit before tax rose about 4 percent to 135.1 million pounds ($178.89 million) as growth in Asia and other markets offset other areas of weakness.
The company added that volatility in raw material prices, foreign exchange rates, trade wars and Brexit continues to impact the commercial environment.
UK chemicals companies face being shut out of a common European Union products registry after Brexit and would need to pay around half a billion pounds to set up a British counterpart, the Chemicals Industry Association’s head had told Reuters.
Chief Executive Officer Calum MacLean told Reuters that since the company only has about 10 percent production in the UK, it could transfer most of the registrations into a European entity and therefore it will have little or no impact, even in the case of a hard Brexit. ($1 = 0.7552 pounds) (Reporting by Sangameswaran S in Bengaluru; Editing by Bernard Orr)