YULE Catto's 27% advance in pre-tax profits to #17.8m last year owed

much to the agricultural division.

At the trading level, the picture was rather different, with the

biggest division, speciality chemicals registering a 35% gain to #13.2m.

Building products advanced 44% to #4.7m. Yule's expansion has been

fuelled by acquisitions and financing costs were up sharply in the year,

from a credit of #226,000 to a #2.78m debit. The agricultural division

scored from high commodity prices and saw more than trebled profits of

#2.69m but a downturn is forecast for the second half of 1989.

Though raw material prices escalated, all the chemical companies

achieved higher profits and across the group, growth accelerated in the

second half.

Despite Yule's many acquisitions over recent years, shareholders'

funds are only #43m, which the group says does not fully represent the

underlying value of its businesses. The low figure is a consequence of

most of its purchases being for cash and of the writing off of goodwill

on acquisitions.

The final dividend of 2.2p raises the total by 27% to 3.8p and Yule

shares gained 4p to 133p, where they yield 3.8%.