CHEMICALS group ICI said that price rises and a business shake-up had helped it lift annual profits and sales.

The group, which employs about 350 people through its Uniqema division on Teesside, said price increases and benefits of its restructuring had more than offset rising raw materials costs.

While annual group sales including currency movements fell four per cent to £5.6bn, comparable sales lifted seven per cent. Pre-tax profits before goodwill and one-off items for the year to December 31 climbed 16 per cent to £397m.

Wilton-based Uniqema, which makes ingredients for items such as paint and lipstick, posted an annual trading profit of £19m for past year compared with £8m in 2003.

The Dulux paints company has been working to bounce back from a series of disappointments in the past two years after tough economic conditions and problems at key divisions affected its performance.

It said it had ended 2004 with another strong quarter and its restructuring had remained on track. But it warned further price increases were necessary to offset rising raw material costs.