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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
Trouble brews in B&M as bargain shops take a hitOpinion Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
