Does anyone have any feelings for Yule Catto?

I sold short on CFD a few weeks back but now they seem to be on the way back up.
They seem to be building support at 240 and are testing the 270.

If any has any opinions on which way they're heading, I greatly appreciate.

Graham

Interim Results for the six months ended 30 June 2012

SOLID PERFORMANCE IN CHALLENGING MARKET CONDITIONS

H1 HIGHLIGHTS *
· Solid Group performance despite challenging macroeconomic conditions and tough trading environment in Asian nitrile markets

· Strong performance in Europe and North America reflecting underlying profit growth and the benefits of the PolymerLatex acquisition synergies

· £9 million of synergies from PolymerLatex in H1; on track to deliver £25 million of total synergies by March 2013

· Asia and ROW impacted by previously announced competitive environment in nitrile latex, with continued good levels of growth across other businesses

· 83.3% increase in interim dividend reflects commitment to deliver a progressive dividend policy

· Strong balance sheet; Net debt reduced to £174 million (H1 2011: £240 million)

· Board strengthened by appointments of Ishbel Macpherson and Dr. Just Jansz

* All numbers on an underlying basis. 2011 comparatives, other than EPS, are adjusted to a pro-forma basis

Commenting on the results, Adrian Whitfield, Group Chief Executive, said:

"We have delivered a solid set of results in a challenging environment driven by a strong performance in Europe and North America, which accounted for 84% of our profits. The PolymerLatex acquisition has significantly enhanced our product portfolio and reach, as well as provided additional cash resources which we are using to invest in emerging markets and innovation to position us for future growth.

As previously announced, the nitrile latex business experienced a difficult competitive environment, driving a weaker performance in that part of our Asia and ROW business, with the rest of the portfolio making good progress.

Assuming there is no further deterioration in the global economy, the Board's expectations remain unchanged from the June trading update, for full year underlying profit before tax ahead of 2011 pro-forma of £96 million."

So what do you read into that, HC?

No idea! I quite like this company as it seems to be well run by a competent management. Cynic recently said that he had seen a noticeable increase in bulk chemical trading recently, so this may be a medium term, relatively safe investment, though I have very little knowledge of the chemicals industry. On my watchlist, but not holding atm.

Thanks. I used to be quite good at envisioning
where this one was going but of late I seem to
have lost my touch (market conditions) and haven't
held for a while.

UBS note:
"Yule Catto reported H1 turnover which missed by 4%, with volumes down 9.5% yoy (UBSest neg4%), and pricing slightly better. Volumes in Europe/NAFTA reported down 11.5%, and down 4.2% in Asia. However, the worse than forecast European performance reflects both cyclical headwinds in construction as well as deliberate price over volume. Hence margins progressed nicely.

At EBIT and PTP levels, Yule beat by 7%/8% via impressive y/y 300bps op.mrg improvement (12.7% from 9.7%) in Europe/NAFTA. 1) price over volume 2) synergies from the PolymerLatex deal (9m sterling increment to EBIT/ H1) and 3) sharply falling petrochemical raw material prices towards the end of Q2 led to a strong performance in the operations outside Asia/RoW. Asian EBIT down 42% as forecast (400bps jmrg compression to 6.7%), due to Nitrile Latex oversupply.

Interim divi of 2.2p, up 83% yoy. Mgmt guides FY DPS of 5.5p (UBSe 5.97p). Equity FCF (neg 14m Sterling) came in as per seasonal weakness, but net debt already reached our FY forecast of 174m Sterling. Outlook calls for FY PTP ahead of 96m Sterling vs cons 97m and UBSe 90m –a relief given recent share weakness.

Shares trade on 7.1x PE and 6.1x EV/EBITDA vs UK chems on 13.5x and 8.8x, respectively. We view Yule as a valuation call with self-help appeal in 2012. From H2 2013, we would expect cyclical recovery in the ailing Nitrile Latex ops."

YULC

Brokers giving YULC a lot of support.

Forward P/E of just over 7.

Way too cheap.

Yule Catto & Co PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Peel Hunt
28-08-12 BUY 99.00 20.84 4.00 106.50 22.98 4.50
N+1 Brewin [W]
28-08-12 HOLD 95.90 20.30 5.00 99.00 20.90 5.50
Canaccord Genuity Ltd
28-08-12 BUY 103.30 21.90 5.50 105.10 22.20 6.00
Numis Securities Ltd
28-08-12 BUY 98.00 21.20 5.50 117.00 25.40 7.00
Westhouse Securities [W]
28-06-12 None

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 100.14 21.33 5.04 109.66 23.55 5.89
1 Month Change 1.24 0.20 0.56 -3.22 -0.82 0.74
3 Month Change -12.50 -2.72 0.42 -15.10 -3.13 0.44

Notes to forecasts
(27 Jun 2012) W flag refers to outlook


GROWTH
2011 (A) 2012 (E) 2013 (E)

Norm. EPS -4.98% 35.16% 10.39%
DPS 92.31% 101.60% 16.81%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £116.08m £137.78m £147.83m
EBIT £74.14m £116.80m £117.80m
Dividend Yield 1.52% 3.06% 3.57%
Dividend Cover 6.31x 4.23x 4.00x
PER 10.46x 7.74x 7.01x
PEG -2.10f 0.22f 0.67f
Net Asset Value PS -43.08p p p

RESEARCH ALERT-Barclays raises Yule Catto price target28 Aug 2012 - 08:21

Aug 28 (Reuters) - Yule Catto & Co PLC : * Barclays raises Yule Catto price target to 256p from 255p; rating overweight For a summary of rating actions and price target changes on European companies: Reuters Eikon users, click on [RCH/EUROPE] Reuters 3000Xtra users, double-click [RCH/EUROPE] Reuters Station users, click .1580 ((Bangalore Equities Newsdesk +91 80 4135 5800; within U.S. +1 646 223 8780)) ((Bangalore Equities Newsdesk +91 80 4135 5800; within U.S. +1 646 223 8780))

Broker Views of those with a BUY
target on YULC

Date Company Name Broker Rec. Price Old target price New target price Notes

30 Aug Yule Catto & Co PLC Numis Buy 161.20 233.00 239.00 Reiterates
29 Aug Yule Catto & Co PLC HB Markets Buy 161.20 - - Reiterates
28 Aug Yule Catto & Co PLC Morgan Stanley Overweight 161.20 270.00 270.00 Retains
28 Aug Yule Catto & Co PLC Canaccord Genuity Buy 161.20 290.00 278.00 Reiterates
28 Aug Yule Catto & Co PLC Peel Hunt Buy 161.20 185.00 185.00 Reiterates
28 Aug Yule Catto & Co PLC Barclays Capital Overweight 161.20 255.00 256.00 Reiterates

Nice to see Barclays with a target of 256p.

YULC

Lovely upwards movement.

On a stingy P/E of just 7.4 to
2013. Way way way too cheap.

Yule Catto & Co PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

N+1 Brewin [W]
04-09-12 HOLD 95.90 20.30 5.00 99.00 20.90 5.50
Peel Hunt
31-08-12 BUY 99.00 20.84 5.50 106.50 22.98 6.50
Numis Securities Ltd
30-08-12 BUY 100.80 21.70 5.50 110.20 23.70 7.00
Canaccord Genuity Ltd
28-08-12 BUY 103.30 21.90 5.50 105.10 22.20 6.00
Westhouse Securities [W]
28-06-12 None

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)
Consensus 101.02 21.48 5.50 107.27 22.96 6.50
1 Month Change 2.12 0.35 1.03 -5.49 -1.38 1.37
3 Month Change -11.61 -2.57 0.87 -17.37 -3.69 1.05

Notes to forecasts
(27 Jun 2012) W flag refers to outlook


GROWTH
2011 (A) 2012 (E) 2013 (E)
Norm. EPS -4.98% 36.08% 6.92%
DPS 92.31% 120.00% 18.22%

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £116.08m £132.40m £144.11m
EBIT £74.14m £116.80m £117.80m
Dividend Yield 1.47% 3.24% 3.82%
Dividend Cover 6.31x 3.90x 3.53x
PER 10.77x 7.92x 7.40x
PEG -2.16f 0.22f 1.07f
Net Asset Value PS -43.08p p p

StockMarketWire.com
Yule Catto & Co has continued to perform in line with the Board's expectations since the last update provided at the interim results in August, despite the challenging macro-economic conditions, particularly in Europe.

In Europe and North America, profit to date remains well ahead of prior year. This has been achieved notwithstanding year to date volumes down 10%, and an adverse translation impact of £4.5 million in the first nine months of the year due to the weaker euro.

This performance reflects the continued benefits of good margin management and synergy delivery which the Group has achieved during the period. Demand remains subdued with construction related areas continuing to be particularly affected.

In Asia and ROW, the non-nitrile businesses continued the positive momentum achieved in the first half. The Nitrile business is trading in line with the guidance provided at the interim results.

The group continues to make strong progress with synergy delivery from the PolymerLatex acquisition, and remain firmly on track to realise £19 million of synergies in the current year, a year on year improvement of £16 million.

The Group continues to expect to deliver the total £25 million of targeted annual synergies by March 2013.

The Group's financial position remains robust with net debt at the end of September at £160 million, down from £174 million at the half year.

The Board's expectations remain unchanged from those stated at the half year. Full year underlying profit before tax is expected to be ahead of 2011 pro-forma of £96 million.

Yule Catto & Co plc - Shareholders approve name change to Synthomer plc
Yule Catto & Co plc ("the Company") announces that the resolution proposed at its Extraordinary General Meeting ('EGM') held earlier today to change the name of the Company to Synthomer plc was duly passed on a show of hands.

Adrian Whitfield, Chief Executive, commented:

"I am delighted that our shareholders have voted overwhelmingly in favour of our change of name to Synthomer plc which now gives us a consistent group image around the world."