LONDON (ShareCast) - Speciality chemical firm Yule Catto saw pre-tax profits surge as it made progress in all its division, in particular the Polymer business.

Pre-tax profit rose to £21.5m from £13.6m last year, driven by improvements in its Polymer business and the benefits of restructuring the Impact business. Revenue rose on slightly to £565m from £551m

The group said revenue remains predominately within Europe with some 56% of sales, though it is making progress in other parts of the world, in particular Asia.

“As we look to 2008, we are optimistic that our Polymer business will deliver further improvement. Our Pharma Division will continue to commercialise its strong product pipeline. The restructuring of Impact Division should show further benefits,” it said.

The group added that the closing months of 2007 and the start of 2008 were characterised by concerns of lower economic growth in the USA and parts of Western Europe. “We have, however, made a satisfactory start to 2008 with continuing momentum in our Polymers business,” it said.

Dividend has been raised by 3.2% to 9.6p per share.

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