Synthomer Regulatory News (SYNT)

23 Jun 2009 07:00



23 June 2009

Yule Catto & Co plc 

Pre-close Trading Update

Yule Catto & Co plc ("Yule Catto" or the "Group"), the international producer of speciality chemicals, today issues a trading update in advance of entering its close period.

The Board expects underlying half year profit before tax to be ahead of last year.

The Polymers business, following a very slow start to the year, has generally seen volumes circa 15% down on 2008. However, with the benefit of currency movements and management's rigorous focus on cost control, operating profit for the half year will be ahead of 2008. 

Pharma Chemicals has seen variable demand during the first half. The benefit of currency and the restructuring of the Group's Italian plant means that, whilst overall volume has been lower than expected, operating profit will be at a similar level to the first half of 2008.

William Blythe Limited, the Group's only remaining Impact Chemicals business, has seen a reduction in volumes, but following the successful restructuring of this business in the first quarter of last year, operating profit will be ahead at the half year.

The Group remains on track to meet its debt reduction targets.

The overall economic environment remains difficult. The favourable currency situation has started to reverse to some extent, and oil price rises are likely to make the raw material environment more difficult in Polymers in due course. As such, it is difficult to provide guidance for the full year. However, given management's tight focus on cost and the good progress made in the first half, the Board now expects profit before tax for the full year to be ahead of current market expectations although still below that of last year.

Yule Catto expects to announce its 2009 half year results on 24 August 2009.

Yule Catto reported full year underlying profit before tax for 2008 of £32.7M, which excluded the results of the Groups four divested Impact businesses. First half 2008 underlying profit before tax on the same basis was £17.4M.

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