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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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PZ Cussons

October 2002

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

PZ Cussons, the manufacturer and distributor  of cleaning andskin care products, is often overshadowed by its larger rivals, such asProcter & Gamble, Unilever and Reckitt Benckiser.  ButCussons, whose  market value  is £332m, is no slouch. It has a well-known portfolio of brands, including Imperial Leather,Carex and Morning Fresh and over recent years has built up saleschannels across Europe, Africa and Asia.   Last year, it madepretax profit of £49.2m, more than double the £23m posted back in1999.  Diluted earnings rose 16% from 56.1p to 65.1p,  whileits balance sheet must be one of the strongest in the sector, with netcash of £103m.  Much of Cussons’ success can be put ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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