Shares in ICI rose 52 pence sterling (78 cents) to 732 pence on better-than-expected interim figures that indicate its five-year transformation from an industrial chemicals conglomerate into a focused speciality chemicals group is beginning to bear fruit.

Although first-half profits fell £31 million to £167 million, the outcome pleased analysts who had expected a steeper decline to around £130 million. Second-quarter results were markedly better than flat figures reported for the first three months of the year.

New chief executive Mr Brendan O'Neill disclosed plans to let go 600 of its 900 central staff over the next two years as part of further cost cutting measures and expressed confidence in finding a buyer for the group's acrylics business. A buyer is still being sought for the group's 49 per cent stake in Irish Fertiliser Industries jointly owned with the Government.