Chemicals company Yule Catto is in demand today after becoming the latest company to surprise the market with a brighter outlook.
The provider of chemicals to a range of businesses from drugmakers to latex glove manufacturers, is up more than 7% at 139p.
Chief executive Adrian Whitfield says:
"The company had a very good first half despite the difficult economic conditions. All three of our businesses delivered operating profits ahead of last year, and we now expect the results for the full year to be slightly ahead of the boards previous expectations."
Essex-based Yule Catto said underlying pre-tax profits in the first half rose 14% to £19.9m. The company said it has benefited from lower raw matierial prices and from cost cuts to offset falling sales, which were down 9.9% to £269.7m.
Analyst James Knight at Collins Stewart describes the first-half results as "impressive" in the "toughest of environments". He has a "buy" recommendation on the shares and a price target of 197p.
