Chemicals group Yule Catto posted 26 per cent underlying profit growth for the first half, thanks to a strong recovery in its core polymers division. The stand-out growth product was nitrile latex, which is used to make protective gloves for factories in Asia, and the group is now expanding its Malaysian plant to meet demand.
Polymer operating profit margins slipped slightly on a 28 per cent rise in sales, but finance director David Blackwood stressed that the company had worked hard to pass rocketing raw material prices on to clients and the division's profits still rose by almost 20 per cent. Sales were down in the much smaller pharmaceuticals division because of a slow start to the year, but a strong order book suggests the second half will be much better.
What we said:
When: 19 Aug 2010
Price: 217p
Tip performance to date: 0%
