Shares in the re-shaped ICI rose 36p to 975p despite the disclosure of a sharp reduction in 1997 profits, due mainly to a £190 million "hit" from sterling's revaluation on the currency markets.
Group profits before exceptional charges and tax fell £218 million to £385 million after adverse currency translation, much in line with market expectations. Turnover increased £500 million to £11.06 billion. Total dividends are unchanged at 32p per share.
The bald financial results cover a period of hectic corporation activity that has changed ICI's spots beyond recognition. Around £3.5 billion of businesses was sold last year, mainly in bulk chemicals market, and a further £1.2 billion has been sold since the beginning of this year. ICI still retains a 49 per cent stake in Irish Fertilizer Industries, with NET owning the remaining 51 per cent.
The exit from industrial chemicals has been accompanied by the build-up of speciality chemicals, notably through the £5 billion purchase last May of the National Starch business from Unilever.
ICI chairman, Sir Ronald Hampel said the integration of the former Unilever businesses was progressing "exceptionally well", fully meeting expectations and leading to enhanced earnings.
Year-end debt fell £2.5 billion despite the £5 billion purchase from Unilever and the group could well become debt-free on completion of current disposals. The re-shaping of ICI into a speciality chemicals, paints and materials grouping has encouraged some share analysts to believe "new" ICI should be rated as a growth stock rather than cyclical chemicals group. Sir Ronald said the group was "immeasurably better placed" than a year ago, emphasising the quality of earnings and growth potential of the group's "core" businesses. "We are confident that the quality of new ICI will become increasingly evident as 1998 unfolds," he said.
