Synthomer Regulatory News (SYNT)

15 May 2008 07:00



Yule Catto & Co plc 

AGM Statement and Trading Update

At today's Annual General Meeting of Yule Catto & Co plc to be held at 12.00 noon at Saddlers' Hall, 40 Gutter Lane, London EC2V 6BR, Anthony Richmond-Watson, Chairman, will make the following statement, which comprises Yule Catto's Interim Management Statement for the period from 1 January 2008 to date.

"2007 was a good year for the Group. We made steady progress across all of our divisions in both our operational performance and strategic plans to develop the Group for the future. This showed through in the financial results.

"The Polymers business had another good year of growth in volumes and profit. Our strategy in Polymers remains focused on geographical expansion around our existing business hubs and developing market sectors where our product technology and manufacturing capabilities give us real competitive advantage. We are investing heavily in additional Nitrile capacity in Malaysia to take full advantage of the continued growth in this product and the Asian region.

"Our Pharma business continued to grow the range of generic and ethical products that it plans to manufacture by registering further drug master files in the year. As we had previously indicated Pharma earnings declined, in part due to the phasing of orders in the second half of the year. We announced plans to exit our Italian site to improve the operational cost base and the productivity of the business. This exit is proceeding to plan.

"Impact Chemicals has had a challenging year, but has delivered significant improvement. We are clearly seeing the benefits of our strategy to raise the performance of these businesses through restructuring and focussing on market segments offering better margins and growth.

"Overall, underlying Group profit before taxation increased some 10% to £34.5 million, and earnings per share by 18% to 17.3 pence per share.

"This has been a year in which much has been achieved. On behalf of the directors and shareholders, I would like to thank all our employees everywhere for their commitment and contribution towards the company's success.

Management Changes

"Alan Maddy, Chief Executive of the Polymer Division, will be retiring in August this year after 38 years with the Group. He is replaced by Derick Whyte, who was previously CEO of the Impact Division. Adrian Whitfield has assumed direct management control of the Impact businesses.

Board Changes

"David Blackwood joined the Group and the Board as Finance Director in October last year. Sandy Dobbie and Jez Maiden were appointed independent non-executive directors in August; their appointments arise out of our regular review of the board's composition. In the coming year we expect to address such issues further.

As far as my position as Chairman is concerned, I have decided that now is an appropriate time for the Board to initiate a process to appoint my successor.

"Messrs. Blackwood, Dobbie and Maiden seek election today having been appointed since the 2007 AGM. Dato' Seri Lee Oi Hian, Dato' Lee Hau Hian, Alex Catto and myself are also standing for re-election at today's meeting

Interim Management Statement

"2008 has started positively, with our un-audited management accounts showing revenues and profits in-line with our expectations and ahead of last year.

"Polymer Chemicals made a solid start to the year, ahead on sales and profit, supported by the expanded nitrile capacity in Malaysia, where we remain on track to further expand nitrile capacity by approximately 60% during the second half of the year.

"Pharma Chemicals experienced a very strong first half in 2007 based in the main on customer order phasing. Profit for the first quarter of this year is consequently below last year, but the results are in line with our expectations.

"The results for Impact Chemicals are ahead of last year as expected, benefitting from the restructuring programme. We have implemented further restructuring at William Blythe in the first quarter, and results there should further improve through the rest of the year.

"Overall the year has started well, though we see general signs of economic weakness around the world. We remain focused on delivering value from the Impact portfolio and improving the Pharma business through the Italian site restructuring programme. The Polymers business has made a solid start to the year, and should show further improvement again this year. Overall, despite the economic concerns we remain confident that 2008 will be a year of further improvement for the Group." 

15 May 2008

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