Interim Results

YULE CATTO & COMPANY PLC
2 September 1999


FINANCIAL HIGHLIGHTS

                                                      1999            1998
Six months to 30 June               Notes             £000            £000

Total turnover                                     260,352         262,236
Ebitda                                1             41,659          39,428
Total operating profit                2             33,339          32,608
Profit before taxation                2             27,409          26,659

Net (borrowings)/cash                             (164,358)       (188,695)
Free cash flow before dividends                        167            (958)

Adjusted earnings per share                           12.6p           13.2p
Earnings per share - FRS3                              9.1p           10.4p
Dividends per share                                    4.5p            4.4p

Notes:

1.  Earnings before interest, tax, depreciation and amortisation.
2.  Before amortisation of goodwill.


CHAIRMAN'S STATEMENT

Overview

Satisfactory progress in developing the group's business continues to be made.
Profits finished just ahead of the previous period, constrained by the
strength of sterling and by the timing of several projects.  With a greater
number of shares in issue, earnings per share are 12.6 pence compared with
13.2 pence in 1998.  Your board has declared an interim dividend of 4.5 pence
per ordinary share, up from 4.4 pence in 1998.

Trading conditions in the chemical industry have shown some improvement in
recent months following a particularly slow start to the year.  Market shares
have been successfully maintained and margin development has compensated for
reduced customer offtake in some areas.  Turnover for the six months to 30
June was £260.4 million, slightly below last year's comparative result.  This
primarily stems from the planned contraction of certain marginal business,
principally in the area of textile dyes.

Review of Operations

The group's operations are organised in four distinct categories and reports
for each sector follow:

Polymer Chemicals

Turnover £86.0 million             Profits £13.9 million

A favourable mix of business helped this division to higher margins and
profitability in the period.  Sales of synthetic latices advanced, with
a greater emphasis on speciality grades producing higher returns.  Emulsion
resins also performed well in the period and, both in the UK and overseas,
sales of these products should maintain satisfactory growth.  The broadening
range of auxiliary polymers enjoyed buoyant demand, in particular from the
North American market.  The only areas of pronounced weakness in this division
are sales to the carpet and textile sectors which are currently experiencing
a marked slowdown throughout Western Europe.  Trading conditions remain
generally satisfactory for this division and further progress is expected
over the coming months.

Pharma & fine chemicals

Turnover £53.7 million             Profits £10.9 million

Good work continues in formulating new generic products to expand the
company's product portfolio and in developing new business in ethical
intermediates for the pharmaceutical majors.  Postponements of several planned
projects by customers have hampered progress and the scheduled sales may not
be fully recovered by year end.  The division is strengthening its sales and
technical resources in view of the many opportunities which have been
identified and long term prospects for our pharmaceutical activities are
excellent. 

The flavours and fragrances business is growing satisfactorily and a new
esters plant for fragrance chemicals has been opened at the Seaton Carew
factory.  Our Dutch subsidiary has recently launched an important new jasmine
fragrance and this product is expected to make a significant contribution to
profit over the next few years.

Performance chemicals

Turnover £73.1 million               Profits £8.8 million

Turnover of ultramarine pigments showed a strong advance in the first half of
the year.  Asian markets are now recovering well, more than compensating for
sluggish markets in Western Europe.  For pigments used in industrial
applications our business is acknowledged the worldwide market leader.
the consumer chemicals activity has benefited from an improved mix of
business, resulting in higher profitability on relatively static sales.
Following a slow start in the first quarter, sales of inorganic metal salts
have improved and some progress over last year's results should be achieved in
the second half.  Overall, profits in this division are growing and margins
have improved, helped by selective rationalisation of unprofitable business in
textile dyes.

Building products

Turnover £47.5 million               Profits £2.5 million

This business is seasonally weighted to the second half of the year as
contracts starting in Spring are completed in the Autumn.  Order books and
work in hand are running well ahead of last year and profits for the full
year should demonstrate encouraging progress.  The bias to
second half profitability is more pronounced this year as building programmes
were disrupted by severe weather conditions in the early months of the year.
Companies in this division are currently operating at full capacity to reduce
the backlog of delayed projects.  As seasonal working capital unwinds, the
division will generate its usual strong cash flow towards the year end.

Cash

The close management of group resources continues to bring down the levels of
debt; net borrowings have fallen to £164.4 million at 30 June 1999.  There is
a degree of seasonality in our June borrowing position and and more progress
in reducing debt will be evident by the year end.  For the period under
review, interest payable was covered more than five times by the available
operating profits.

The group is presently finalising arrangements to secure long term finance
through a private placement of £100 million in the form of Guaranteed Senior
Unsecured Loan Notes.  These Notes, repayable between 2008 and 2010, will be
issued to institutional investors in the USA and UK.  This will reduce the
group's dependence upon short and medium term facilities provided by banks.

Dividend

The interim dividend of 4.5 pence per ordinary share will be paid on 24
November 1999 to members on the register at the close of business on 8
October 1999.  A dividend reinvestment plan has been established which gives
shareholders the opportunity to use their cash dividend to buy shares in Yule
Catto & Co plc through a special low cost dealing arrangement.  Details of
the plan have been sent to shareholders with this report.

Year 2000 Compliance

The teams appointed to identify and address the Millennium issues have
substantially completed their task and  extensive testing of computer
equipment and electronic systems has been undertaken.  Work will continue
over the remaining months to ensure that, as far as possible, all
eventualities involved with the year 2000 date change have been covered.
Contingency plans will be updated and expanded continuously through to the
year end.  Whilst the assurances provided are invariably qualified we have
obtained confirmation from principal customers and suppliers of their
confidence that their systems will cope with this well signposted event.

Outlook

Significant merger and acquisition activity continues to take place within the
chemical industry globally and we are well placed to benefit from trading
opportunities created by these structural changes.  Our operations are
recognised as efficient and cost effective producers, concentrating on market
niches which depend upon proactive technical support and strong customer
relationships.  The current year is proving to be a year of consolidation for
the group and we remain confident of our continuing ability to deliver real
value to our shareholders over the long term.



Catto
2 September 1999


CONSOLIDATED PROFIT & LOSS ACCOUNT
for the six months ended 30 June 1999
                                              Continuing operations    
                                        6 months    6 months     12 months
                                           ended       ended         ended
                                         30 June     30 June   31 December
                                            1999        1998          1998
                                       Unaudited   Unaudited       Audited
                                            £000        £000          £000
Total turnover
Continuing operations                    260,352     172,067       346,294
Acquired operations                            -      90,169       185,982
                                         -------     -------       -------
                                         260,352     262,236       532,276    
                                         -------     -------       -------
Operating profit
Continuing operations                     33,339      18,917        41,004    
Acquired operations                            -      14,404        27,522
Exceptional items                              -        (713)       (4,610)
                                         -------     -------       -------
Total operating profit                    33,339      32,608        63,916

Amortisation of goodwill                  (5,294)     (4,111)       (9,699)
Net interest paid                         (5,930)     (5,949)      (12,947)
                                         -------     -------       -------
Profit on ordinary activities
  before taxation                         22,115      22,548        41,270
Taxation on profit on
  ordinary activities                     (7,538)     (7,731)      (14,807)
Minority interests                          (482)       (384)       (1,046)
                                         -------     -------       -------
Attributable profit                       14,095      14,433        25,417
Ordinary dividends                        (6,941)     (9,581)      (19,726)
                                         -------     -------       -------
Retained profit                            7,154       4,852         5,691
                                         =======     =======       =======

Adjusted earnings per ordinary share        12.6p       13.2p         26.8p

Earnings per ordinary share - FRS3           9.1p       10.4p         17.5p

Dividends per ordinary share                 4.5p        4.4p         11.0p


CONSOLIDATED BALANCE SHEET
as at 30 June 1999
                                         30 June     30 June   31 December
                                            1999        1998          1998
                                       Unaudited   Unaudited       Audited
                                            £000        £000          £000
Fixed assets
Tangible assets                          143,730     142,400       147,346
Intangible assets                        191,985     191,281       197,299
Investments                               25,158      22,711        21,488
                                         -------     -------       -------
                                         360,873     356,392       366,133
                                         -------     -------       -------
Current assets
Stocks                                    58,373      66,401        59,600
Debtors                                  108,495     109,011       102,923
Bank and cash balances                     6,960      10,100         9,690
                                         -------     -------       -------
                                         173,828     185,512       172,213
Creditors - due within one year
Borrowings                               (40,816)    (47,964)      (35,574)
Dividends                                (17,110)    (10,303)      (10,169)
Other creditors                         (105,969)   (105,874)     (114,929)
                                         -------     -------       -------
Net current assets                         9,933      21,371        11,541    
                                         -------     -------       -------

Total assets less current liabilities    370,806     377,763       377,674

Creditors - due after one year
Borrowings                              (130,502)   (150,831)     (140,645)
Other creditors                           (1,571)     (1,585)       (1,684) 

Provisions for liabilities and charges    (5,521)     (5,458)       (7,446)
                                         -------     -------       -------
Net assets                               233,212     219,889       227,899
                                         =======     =======       =======

Capital and reserves
Called up share capital                   15,424      15,044        15,408
Reserves                                 213,256     200,000       207,722
                                         -------     -------       -------
Shareholders' funds                      228,680     215,044       223,130
Minority interests                         4,532       4,845         4,769
                                         -------     -------       -------
Capital employed                         233,212     219,889       227,899
                                         =======     =======       =======

CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 1999
 
                                        6 months    6 months     12 months 
                                           ended       ended         ended
                                         30 June     30 June   31 December
                                            1999        1998          1998
                                       Unaudited   Unaudited       Audited
                                            £000        £000          £000

Operating profit                          33,339      32,608        63,916

Share of joint ventures' profit          (10,190)     (8,255)      (17,250)
Movement in working capital and
  provisions                             (11,091)    (10,789)         (244)
Depreciation                               8,320       6,820        15,049 
                                         -------     -------       -------
Cash inflow from operating activities     20,378      20,384        61,471

Interest paid                             (7,967)     (5,949)       (8,785)
Preference dividend paid                       -        (196)            -
Dividends received from joint ventures     1,327       1,605        10,445
Dividends paid to minority shareholders     (886)       (664)       (1,733)
Taxation paid                             (4,683)     (2,998)       (9,959)
Capital expenditure                       (8,002)    (13,140)      (23,663)
                                         -------     -------       -------
Free cash flow before dividends              167        (958)       27,776

Acquisition of investments and businesses      -    (331,056)     (158,702)
Equity dividends paid                          -           -        (6,538)
                                         -------     -------       -------
Cash (outflow)/inflow before financing       167    (332,014)     (137,464)

Financing movements                        2,004     134,987       (37,397)
                                         -------     -------       -------
Movement in net borrowings                 2,171    (197,027)     (174,861)
                                         =======     =======       =======


NOTES TO THE FINANCIAL STATEMENTS
30 June 1999

1.  Analysis of total turnover and profit

                                 Total                 Total
                              turnover    Profit    turnover        Profit
                              6 months  6 months    6 months      6 months
                                 ended     ended       ended         ended
                               30 June   30 June     30 June       30 June
                                  1999      1999        1998          1998
                                  £000      £000        £000          £000

Analysis by activity
Polymer chemicals               85,989    13,853      88,007        13,002
Pharma & fine chemicals         53,688    10,876      48,654        10,979
Performance chemicals           73,143     8,816      81,685         9,083
Building products               47,532     2,480      43,890         2,658
Holding companies                    -    (2,475)          -        (2,192)
Exceptional items                    -         -           -          (713)
Interest payable by
  joint ventures                     -      (211)          -          (209)
                               -------   -------     -------       -------
                               260,352    33,339     262,236        32,608
                               =======   =======     =======       =======

2.  These accounts have been prepared on the basis of the accounting policies
    set out in the group's audited accounts for the year ended 31 December
    1998.  

3.  The financial information for the year ended 31 December 1998 has been
    extracted from the statutory accounts, which have been filed with the
    Registrar of Companies.  The auditors' report on those accounts was
    unqualified and did not contain any statement under section 237 of the
    Companies Act 1985.

4.  This statement will be sent to all shareholders by 3 September 1999 and
    can be obtained by the public from the company's registered office at
    Temple Fields, Harlow, Essex CM20 2BH.

5.  An interim dividend of 4.5p (4.4p) per share, totalling £6.9 million
    (£6.7 million) has been declared by the directors.  

6.  Earnings per ordinary share are based on the attributable profit for the
    period and the weighted average number of shares in issue during the
    period - 154.2 million (139.0 million).

7.  Adjusted earnings per share exclude exceptional items and the amortisation
    of goodwill.