Trading Update

RNS Number : 3366V

Yule Catto & Co PLC

11 January 2012

 



11 January 2012

Yule Catto & Co plc

Trading Update

Yule Catto & Co plc ("Yule Catto" or the "Group"), the international producer of speciality chemicals, today issues a trading update ahead of its preliminary results announcement for the year to 31 December 2011.

Profitability has remained very much in line with the Board's expectations at the time of the third quarter interim management statement.

Along with most of the chemical sector, the Group has seen further reductions in demand in the fourth quarter.  Following the modest volume reductions reported for the third quarter, percentage volume declines in the fourth quarter have been in the mid teens. These volume declines have been largely offset by continued margin management.

Net debt has fallen substantially with lower working capital requirements and proceeds from the sale of the Pharma division.  Year end net debt is expected to be comfortably below £200M.

Synergy delivery from the acquisition of PolymerLatex continues to progress well and to plan.  The Group exited the year with an annualised run rate of £15m, and remains on track to deliver the planned annual synergies of at least £20m in the second 12 months post acquisition. The Board expects the impact of these synergies to add some £14M of profit in 2012 compared to 2011.

The Board expects full year underlying profit before tax to be in line with current market expectations.

The Group expects to announce its 2011 full year results on 14 March 2012.

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Enquiries:

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

 

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