Interim Management Statement

RNS Number : 6049Q

Yule Catto & Co PLC

08 November 2012

 



YULE CATTO & CO PLC

INTERIM MANAGEMENT STATEMENT

Continued resilient performance; Intention to change Group name

Yule Catto & Co plc ("Yule Catto" or "the Group") today issues its interim management statement for the period 1 July to 8 November 2012. The Group also announces its intention to change its name to Synthomer plc.

Trading

The Group has continued to perform in line with the Board's expectations since the last update provided at the interim results in August, despite the challenging macro-economic conditions, particularly in Europe.

In Europe and North America, profit to date remains well ahead of prior year.  This has been achieved notwithstanding year to date volumes down 10%, and an adverse translation impact of £4.5 million in the first nine months of the year due to the weaker euro. This performance reflects the continued benefits of good margin management and synergy delivery which the Group has achieved during the period. Demand remains subdued with construction related areas continuing to be particularly affected. 

In Asia and ROW, the non-nitrile businesses continued the positive momentum achieved in the first half.  Our Nitrile business is trading in line with the guidance provided at the interim results.

We continue to make strong progress with synergy delivery from the PolymerLatex acquisition, and remain firmly on track to realise £19 million of synergies in the current year, a year on year improvement of £16 million. The Group continues to expect to deliver the total £25 million of targeted annual synergies by March 2013. 

The Group's financial position remains robust with net debt at the end of September at £160 million, down from £174 million at the half year.

Outlook

The Board's expectations remain unchanged from those stated at the half year.  Full year underlying profit before tax is expected to be ahead of 2011 pro-forma of £96 million.

Intention to change Group name to Synthomer plc

Over the last 5 years the Group has been transformed from a small, diversified chemical business, of which Yule Catto was the holding company, to a much larger, focussed speciality polymer business.  The Group trades under the name Synthomer across the majority of its business, and the Board has therefore decided that now is an appropriate time to reflect this in the Group's name.

The Group will convene an Extraordinary General Meeting in on December 4 where shareholders will be asked to approve this change. If shareholders agree to this proposal, the Group's name will be changed to Synthomer plc before the year end. A circular to this effect will be distributed to shareholders today.

Commenting Adrian Whitfield, Group Chief Executive, said:

"We are pleased to have delivered a resilient performance in difficult market conditions. The Group's strong portfolio of products and leading market positions provide an excellent platform for growth and we remain confident of continuing to deliver value for our shareholders."

Enquiries:

Adrian Whitfield, Group Chief Executive	Charles Armitstead / Rosie Oddy
David Blackwood, Group Finance Director	Pendomer Communications
Tel: [phone]	Tel: [phone]

The company will host a conference call for analysts at 8.00am today. Please contact Pendomer Communications on 020 3603 5220 for dial in details.

 

END

 

 

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