LONDON (SHARECAST) - Specialist chemicals maker Yule Catto reported an improved profit performance while sales slipped after a strong performance in Europe and North America and a tough trading environment in Asian nitrile markets.
Pre-tax profit rose to £56m for the six months ended 30 June 2012 from £52.4m the year before. Sales for the period fell to £603.3m from £664.3m.
Yule Catto said it was a solid performance despite challenging macroeconomic conditions and tough trading environment in Asian nitrile markets
"Assuming there is no further deterioration in the global economy, the Board's expectations remain unchanged from the June trading update, for full year underlying profit before tax ahead of 2011 pro-forma of £96m," it said in a company statement.
Yule Catto said £9m of synergies from PolymerLatex were made in the first half and it is on track to deliver £25m of total synergies by March 2013.
Commenting on the results, Chief Executive Adrian Whitfield added: "We have delivered a solid set of results in a challenging environment driven by a strong performance in Europe and North America, which accounted for 84% of our profits."
"The PolymerLatex acquisition has significantly enhanced our product portfolio and reach, as well as provided additional cash resources which we are using to invest in emerging markets and innovation to position us for future growth."
The group has proposed a total dividend of 5.5p and an interim dividend of 2.2p. The board intends to target a dividend cover of three times by 2015.