Upbeat statement lifts Caradon

Shares in Caradon hit a 12-month high yesterday as the building products and cheque-printing group published better-than-expected results and gave an upbeat trading statement.

Pre-tax profits in the six months to June fell from pounds 90.2m to pounds 81.3m, but analysts focused on the 32 per cent improvement in the second half of last year and the prospect of more cost savings to come. The shares rose 28.5p to 249.5p on the news.

Caradon said cost savings of pounds 30m had been achieved in the first half and the target of pounds 50m for the year would be exceeded.

Peter Jansen, chief executive, said he hoped to conclude the sale of Caradon's non-core engineering and distribution subsidiaries and the disposal of its UK-based automotive plastics division by the end of the year.