Interim Results 8th September 2005

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Interim Results8th September 2005
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Highlights

• Total revenue increased by 6 to 290.8M
• Profit before taxation 17.9M
• Earnings per share of 8.2p
• Interim dividend 3.7p
• Strong volume growth in polymers
• Further improvement in pharma development
  infrastructure
• Modest increase in borrowings

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IFRS Restatement of 2004
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IFRS Restatement of 2004

• Balance Sheet
• Borrowings
• Profit before tax impact
• Underlying performance

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IFRS Restatement Balance sheet 01.01.04
5.5

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IFRS Restatement Borrowings
5.6.4
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IFRS Restatement Underlying PBT 2004
5.2
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IFRS Restatement Underlying Performance 2004
5.1
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INTERIM RESULTS 2005
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Turnover by Destination
290.8M
274.5M
6
11
Consolidated Profit and Loss Account
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Operating Profit by Origin
Exchange Rates Average for Period 2005 2
004 Euro 1.47 1.49 Malaysian Ringgit
7.11 6.91
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Daily Exchange Rates
Average for 2005 1.88
Average for 2004 1.84
Average for 2003 1.61
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Consolidated Balance Sheet
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Cash Flow Statement Underlying performance
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Sector review

• Polymer Chemicals
• Pharma Fine Chemicals
• Performance Chemicals

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Divisional overview
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Polymer chemicals
Sales
Operating profit
Operating profit
m
m
179.7
15.4
13.7
153.7
57.6
57.6
57.0

• Turnover up 17
• Good volume growth
• Europe - Dispersions 11
• - Latex 5
• Far East - Dipping Latex 38
• Monomer feedstock availability improving
• Rise in raw material costs reduced in second
  quarter

• Selling prices successfully increased
• Future impact of high oil price unclear
• Carpet compounding operations restructured
• Investment in 2006 for additional European and
  Far East capacity

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Polymer chemicals
Raw material prices
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Polymer chemicals
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Pharma and fine chemicals
Sales
Operating profit
Operating profit
48.7
43.8
8.0
7.0
26.1
m
m

• Growth in omeprazole volume offset by reduced
  selling prices in USA
• Solid performance by traditional generic actives
• Benefits emerging from Zolpidem and Terbinafine
• DMF registration programme accelerating

• New research laboratories in Spain and pilot
  plant in Italy
• Good ethical contracts secured in difficult
  market conditions
• High potency unit approved commissioning
  mid-2006
• Weaker market for Flavours Fragrances persists

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Pharma and fine chemicals
No. of DMF registrations in USA for generic market
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Performance chemicals
Sales
Operating profit
Operating profit
72.2
4.6
67.2
4.1
16.9
m
m

• Progress on reorganisation
• March sale of Brencliffe
• July closure of UK James Robinson site
  announced
• August withdrawal from pigment dispersion
  sector

• Ultramarine sales growing to Far East Europe and
  USA demand solid
• Hair dye actives, photochromics and colour
  developers performing well
• Consumer Chemicals facing weaker market
• Further restructuring of the division in hand

• Good demand for tin, iodine and copper catalysts
• SO2 derivatives market share stabilised

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Dividend
Reduction of 33 rebalances cash applied to
dividends

• Provides capacity for incremental investment in
  growth areas
• Assists funding of working capital in rising raw
  material environment
• Creates clarity and certainty

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Outlook

• Polymer sales show strong growth improved raw
  material availability investment planned to
  enhance capacity
• Volume of generic active ingredients remains
  good new facilities support accelerated product
  development programme
• Reorganisation of Performance Chemicals
  businesses continues to strengthen division
• Active cash management to deliver attractive
  investment opportunities in key areas