THE award-winning former Synetix company helped spark bigger profits for speciality chemicals group Johnson Matthey over the past six months.

The group saw profits jump four per cent to £97.5m on the back of a 28 per cent increase in its catalysts division.

Johnson Matthey is widely credited with getting a good deal when it bought Teesside-based Synetix from ICI for £260m.

It re-named the firm Johnson Matthey Catalysts and is looking to that division for substantial growth over the next few years.

One of the biggest potential markets is in catalysts for gas to liquid applications - such as turning natural gas into clean diesel fuel - which is predicted to be worth £235m by 2010.

Anthony Platts of Teesside stockbrokers Wise Speke said: "Johnson Matthey has made encouraging progress in the first half of 2003-4 with the catalysts and pharmaceutical materials divisions continuing to deliver good growth.

"Profits at the catalysts division rose by 28 per cent, helped by a strong contribution from the award-winning former Synetix business acquired from ICI in November 2002. Synetix was a good company before the acquisition, and it continues to be so for Johnson Matthey.

"Synetix was one of ICI's best performing businesses, but ICI were forced sellers at the time in order to reduce their debt mountain.

"Johnson Matthey effectively picked up the business on the cheap, together with a highly skilled workforce, and intends to build on the strengths and success of the Teesside operation. Catalysts remain very much part of the future for Johnson Matthey. "

Johnson Matthey, which has operations in 34 countries, announced yesterday it planned to sell its ceramics division, which has its UK operations based at Stoke-on-Trent with around 500 staff.