Yule Catto shares jump on profits

Shares in Yule Catto, the Essex headquartered polymer business, jumped almost 10% this morning after it announced it had doubled profits in 2011.

The price was also boosted by the firm saying it had enjoyed a solid start to 2012.

"Looking forward, we continue to anticipate several years of low growth in western economies with global growth generally driven by emerging markets, where we have a significant and increasing presence," said Chairman Peter Wood.

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Underlying profit before tax at the firm was up 99% to £84.8m in 2011, largely due to its PolymerLatex acquisition in March, which doubled the size of the business.

It announced a final dividend of 2.3p per share, making a total dividend per share for the full year of 3.5p, 35% higher than 2010.

The firm said 2011 had been a pivotal year, with November seeing the sale of its pharmaceutical arm, making it a wholly specialised polymer business.

Going forward Yule said that it anticipated that by the end of March 2013 the annual run rate of synergies will be £25 million from its acquisition of PolymerLatex.

This should result in a benefit to operating profit in 2012 of some £15 million compared to 2011, the firm said.