Shares digital

PZ Cussons (PZC) – Interims PTP: £32.5m (£30.2m) Divi: 1.1p (1p)

Half year results were accompanied by news of the acquisition of Sanctuary Spa, a move that should generate significant medium-term benefits from a roll out programme. Perhaps more important, however, is the scope to extend distribution of the Sanctuary brand, already the second best selling health and beauty selection at Boots. By manufacturing in house margins should be enhanced.

Meanwhile, the Nigerian business is benefiting from the strength of the local economy. The company has specialist know-how about that economy and will continue to widen its product range there.

Gillian Hilditch of house broker Cazenove is forecasting earnings of 10.5p, placing the shares on a PE of 18.7 at 196p.

Shares says: Sanctuary deal is interesting but the PE of nearly 20 is demanding.

by: John Marshall