Pre-close Trading Update

RNS Number : 1145O

Yule Catto & Co PLC

24 June 2010

 



24 June 2010

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 profit before tax for the first half of 2010 to be substantially ahead of last year.

Polymer Chemicals is the Group's main business, accounting for 88% of divisional operating profit in 2009 with 50% of its revenue in Asia and emerging markets.  The business has continued to enjoy good volumes through the second quarter.  Monomer prices continued to rise through the quarter and the business has continued to seek to recover these increases in the market place with good success.  Overall, this is expected to produce a first half operating profit for Polymers well ahead of the prior year.

Pharma Chemicals has seen good demand during the first half year, but the business mix generated lower margins which will result in the first six months operating profit being below last year's level. The division currently has a very strong order book, and should see an improved product mix in the second half.

William Blythe, the Group's only remaining Impact Chemicals business, has seen improved volumes, and as expected is trading strongly ahead of the prior year.

The Group received £11m from the sale of Finewaters, its downstream adhesives business in June, and net debt at the half year will be below the opening position of £88m.

Yule Catto expects to announce its 2009 half year results on 27 August 2009.

ENQUIRIES:

Yule Catto & Co plc	Tel: [phone]
Adrian Whitfield, Chief Executive
David Blackwood, Finance Director
Hogarth	Tel: [phone]
John Olsen
Andrew Jaques
Ian Payne

 

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