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Yule Catto takes short-term margin hit

TIP UPDATE: Yule Catto reports strong growth, albeit with a short-term dip in margins as high commodity prices take their toll
May 18, 2011

Rising input prices have been the big challenge for industrial companies this year. Chemicals processor Yule Catto reports passing them on to its customers, but margins have been squeezed in the short term, keeping like-for-like operating profits flat despite a jump in sales in the first quarter of 2011.

IC TIP: Buy at 212p

What we said:

When: 20 Aug 2010

Price: 141p

Performance to date: +50%