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23 Jun 2009 07:00
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23 JuneΒ 2009
Yule Catto & Co plcΒ
Pre-closeΒ Trading Update
Yule CattoΒ & Co plc ("Yule Catto" or theΒ "Group"), the international producer of speciality chemicals, today issues a trading update in advance of entering its close period.
The BoardΒ expectsΒ underlyingΒ half yearΒ profit before taxΒ 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.Β
Pharma Chemicals has seen variableΒ demandΒ during the first half. The benefit of currency and the restructuringΒ of the Group'sΒ Italian plantΒ means that,Β whilstΒ overall volume has been lowerΒ than expected,Β operatingΒ profit willΒ be at a similar level to the first half of 2008.
William BlytheΒ Limited, the Group'sΒ onlyΒ remaining Impact ChemicalsΒ business,Β has seenΒ a reduction inΒ volumes,Β but followingΒ the successful restructuring of this business in the first quarter of last year, operating profit will be ahead atΒ the half year.
The Group remains on track to meet its debt reduction targets.
The overall economicΒ environmentΒ remains difficult. The favourable currency situation has started to reverse to some extent, and oil price risesΒ are likely to make the raw material environment more difficult in Polymers in due course. As such,Β it is difficult to provide guidance for the full year. However, givenΒ management'sΒ tight focus onΒ cost and theΒ goodΒ progress made in the first half,Β theΒ BoardΒ now expectsΒ profit before taxΒ for the full yearΒ to be ahead ofΒ current market expectationsΒ although stillΒ belowΒ that of last year.
Yule CattoΒ expects to announceΒ its 2009 half year results onΒ 24Β August 2009.
Yule Catto reported full year underlying profit before tax for 2008 of Β£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 Β£17.4M.
ENQUIRIES:
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Yule CattoΒ & Co plc |
Tel: 01279 442791 |
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Adrian Whitfield, Chief ExecutiveΒ |
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David Blackwood, Finance DirectorΒ |
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Hogarth Partnership Limited |
Tel: 020 7357 9477 |
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John Olsen |
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|
Andrew Jaques |
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|
Ian Payne |
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