Synthomer Regulatory News (SYNT)

14 Nov 2008 07:00



Yule Catto & Co plc 

Interim Management Statement

Whilst 2008 started positively, the slowdown in the global economy has become ever more evident as the year has progressed.

In Polymer Chemicals, our latex business in both Europe and the Far East enjoyed good volumes particularly in nitrile. The reduced demand from the construction and coatings Industries has resulted in declining volumes in our dispersions business in Europe and South Africa. However, we have continued to see good growth in these products over the course of the year in both the Middle East and the Far East. Margins remained under pressure in the third quarter as monomer prices generally increased, though these costs are now starting to fall.

Whilst we see the Pharma business as non cyclical, we have seen volume reductions through the second half, as customers have de-stocked in response to the economic downturn, and we now expect Pharma full year profits to be below 2007. The Italian plant remains on track for closure in mid 2009 and we expect to see the benefit of that in the business results through next year.

The restructured Impact portfolio continues to perform ahead of last year, and the successful divestments of James Robinson in the first half and Holliday Pigments in the third quarter have allowed us to substantially reduce our Group borrowings.

Overall, in line with our view at the half year, we continue to expect our full year underlying profit before tax to be modestly ahead of 2007.

14 November 2008

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