In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction ....

27 Jun 2016
N+1 Singer - MS - Chemicals - International exposure and strong balance sheets underpin sector confidence
Victrex plc (VCT:LON), 808 | Elementis plc (ELM:LON), 123 | Synthomer plc (SYNT:LON), 81.2 | Croda International Plc (CRDA:LON), 2,718

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N+1 Singer - MS - Chemicals - International exposure and strong balance sheets underpin sector confidence
Victrex plc (VCT:LON), 808 | Elementis plc (ELM:LON), 123 | Synthomer plc (SYNT:LON), 81.2 | Croda International Plc (CRDA:LON), 2,718
- Published:
27 Jun 2016 -
Author:
Singer CM Team -
Pages:
3 -
In the wake of the EU referendum result, our view of the UK chemicals sector remains relatively upbeat. The companies we cover (Croda, Elementis, Scapa, Synthomer, Victrex, Zotefoams) generally have limited domestic exposure and plenty to gain on transactional and/or translational FX exposure. The main beneficiary of FX is Victrex, where as a rule of thumb, we would expect a 10% sterling devaluation to increase Group PBT by 10%, all else being equal. An isolated period of disruption/ contraction ....