Yule Catto's results don't reflect its of German competitor PolymerLatex, which is due to complete at the end of this month. Yet the group still reported decent progress - even after a resilient performance in 2009. Indeed, adjust for a £30m goodwill write-down in 2009, and an £11m gain last year from selling an adhesives business, and pre-tax profit rose 19 per cent to £47m.
Underlying operating profit at the core polymers division grew 10 per cent, on volumes up 4 per cent. The return on sales fell, but that was mainly down to sharp price increases having inflated revenues - Yule Catto largely maintained margins in absolute cash terms. Moreover, finance director David Blackwood says the group has "redoubled" its efforts to pass on raw material costs - which are mainly oil related. Volumes grew most strongly in southeast Asia, led by demand for synthetic rubber gloves - a market in which Yule Catto will have an even stronger position after it has integrated PolymerLatex. Europe was weaker, with a patchy performance following the first-half rebound.
Broker Brewin Dolphin expects adjusted pre-tax profit of £84.2m for 2011, giving EPS of 18p (from £47m and 16.2p in 2010).
YULE CATTO & CO (YULC) | ||||
---|---|---|---|---|
ORD PRICE: | 216p | MARKET VALUE: | £735m | |
TOUCH: | 215.8-216.2p | 12-MONTH HIGH: | 245p | LOW: 104p |
DIVIDEND YIELD: | 1.2% | PE RATIO: | 10 | |
NET ASSET VALUE: | 31p* | NET DEBT: | 68% |
Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p)† | Dividend per share (p)† |
---|---|---|---|---|
2006 | 485 | 14.7 | 1.67 | 5.99 |
2007 | 511 | 34.0 | 11.5 | 6.18 |
2008 | 602 | 38.9 | 14.3 | 2.58 |
2009 | 543 | 7.14 | 2.60 | nil |
2010 | 651 | 57.8 | 22.0 | 2.60 |
% change | +20 | +710 | +746 | - |
Ex-div: 8 Jun Payment: 8 Jul *Includes intangible assets of £124m, or 37p a share †Adjusted for December 2010's rights issue |