RISING raw material costs hit profits at William Blythe chemicals.

The firm, which operates plants at Hapton and Church, saw profits fall from £5.5 million in 1994 to £4.7 million last year despite an eight per cent increase in turnover.

Parent company Holliday Chemical Holdings saw group profits fall to £15.4 million from £19.3 million on turnover of £158 million.

Chairman Dr Michael Peagram blamed rising costs and tough market conditions but said trading in the first two months of the year had shown signs of improvement.

"In all areas we are working to strengthen our market position and we remain well placed to meet an upturn in demand," said Dr Peagram.

The final dividend remains unchanged at 3p.

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