World growth erases rise in raw material costs for BTP

WILLIAM GLEESON

BTP, the chemicals group, saw profit before tax rise 19 per cent in the year to March to pounds 37.3m on the back of strong growth in its world markets and despite raw material price inflation.

John Ketteley, BTP chairman, said: "Despite substantial increases in a number of raw material prices in the second half of the year, improvement in world economic conditions enabled the group to strengthen performance in most markets."

Turnover for the year rose to pounds 346.9m from pounds 289.8m.

BTP was looking to make a few small bolt-on acquisitions to its adhesives and textile coatings operations and was considering a few larger additions to its biocides and fine chemicals operations. Deals are expected to be worth between pounds 3m and pounds 10m.

Stephen Hannam, chief executive, said: "A couple have progressed to the lawyer stage."

Despite this continued upward pressure on the cost base, Mr Hannam was confident BTP would be able to maintain its margins throughout the current year.

BTP is looking to extend dividend cover to about two times earnings per share over the next two years.

The company reported earnings per share for the year ended March 31 of 18.11p, up 16.8 per cent on the previous year, while the dividend was lifted 9 per cent to 10.9p per share over the period.

Peter Clark an analyst with Goldman Sachs said the company's results met City expectations. For the current year, his forecast would stay in the region of pounds 47.5m.