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Is the falls due to increased debt ?
I rarely look at this site so I have just seen your comments. Part of the reason why it has been a good long term investment was the rerating of the shares which may have had in part something to do with the change of name. When I purchased shares in PZ Cussons over twenty years ago the PE was around seven.
Hi sheffieldowls, I just saw your previous comments that you have bought them long time ago and really cheap, well done for holding! As for a possible offer, I would also prefer a share offer rather than cash, although that is just speculation. I cannot see anything coming until after the summer though. What is most important now is good results to come in 4 weeks with profit over 80 million for the year with some improvement in the UK (as Nigeria weakness is already priced in, so will not come as a surprise). I believe that it can be possible given the good weather could help sales of St Tropez & I also noticed a lady buying a few PZC products last time I went to the supermarket, so here's hoping!
It is true that PZ Cussons has underperformed in recent years however over the long term this company has been an excellent investment with year on year increases in its dividend. I have mixed feelings about any takeover approach because with a holding of 250000 shares I would have a significant tax bill if a cash offer was ever made for this company.
someone come and buy this out! Save us from the misery of holding it! I hope someone out there listens and takes it over. AMEN
I also think a takeover is a real possibility. Expecting this share to do better in the 2nd half of the year
the way the sp is behaving I think you have an interesting point!
I wonder whether PZC could now be a take over target
This share is over sold now!
Given all the headwinds in Nigeria the results looked good. Apparently the self tanning shower gel ala Kate Moss is flying off the shelves. With luck we have seen the last of the downgrades. If the Nigerian currency stabilises this stock could motor. And 42 years of dividend increase- must be some sort of record.
PZ Cussons upgraded after milk deal: PZ Cussons, the Owner of PG Tips and Domestos bleach, has signed a deal to take full control of a milk joint venture in Nigeria. The FTSE 250-listed consumer goods company has paid £21 million in cash for Glanbia’s 50% stake in Nutricima, which makes evaporated milk and milk powder for the Nigerian market. The Nutricima business generated earnings of £74.4 million and pretax profits of £3.2 million in the 12 months to the end of May last year. Cussons’ sales in Nigeria have suffered amid unrest in the north of the country. The economy is also highly reliant on the price of oil, which has collapsed since June last year. This has caused a sharp devaluation in the value of the naira. The company has had a presence in Africa for more than 100 years and the region contributes about a third of the group’s profits. Cussons’ shares have performed well this year, rising by 11%, compared with a wider FTSE 250 that is up 6.5%. We downgraded the shares to an avoid last year as we waited until we saw the results of Nigeria’s election and how much profits have been impacted from the falling oil price. The election passed peacefully and we now wait for the trading update on June 11 to get a clearer picture of the profitability. The group has a proven track record over the long term, with a forecast dividend of 8p offering a prospective yield of 2.4%. The payout has increased 40% over the past four years and analysts expect it to increase by more than inflation in the future. The shares are highly rated, trading on 17.4 times forecast earnings, and there is still the issue of how the Nigerian economy will navigate much lower oil prices. However, given the improved political backdrop, we upgrade to a hold. PZ Cussons at 342p-½p. Questor Says “Hold”.
Avoid PZ Cussons as Africa hits profits: PZ Cussons, the FTSE 250-listed consumer goods giant, has grown rapidly thanks to its exposure to emerging markets. However, falling profits in Nigeria dragged the group down in the first half of its financial year, and broker downgrades sent the shares 1.3% lower. Cussons’ sales in Nigeria suffered as Islamist extremists continued to cause widespread disruption in the north of the country. The economy is also highly reliant on the price of oil, which has collapsed since June. This has caused a sharp devaluation in the value of the Nigerian currency, the naira, which has fallen 9.5% since the end of March. Brandon Leigh, Cussons’ Chief Financial Officer, said profits from Nigeria are typically weighted towards the second half of the company’s financial year, as consumers have more to spend after the harvest is brought in. However, sales in the six months to March will be hit by the loss of a week’s trading as people travel home to vote in the Presidential elections, while profits will be reduced by the falling value of the naira. Mr Leigh said the European beauty division saw limited growth in Europe, but a stronger performance in the U.S. and Australia. The St Tropez range of self-tanning products, which is advertised by model Kate Moss, continued to grow profits across Europe. Sales in Poland were steady but the company warned that full year profits there would be lower following the sale of its Polish homecare brands to Germany’s Henkel for £46.6 million in February. The group has a proven track record over the long term, while a forecast dividend of 8.4p offers a yield of 2.5%. The payout has grown 40% over the past four years and analysts expect it to increase more than 10% in the next two years. Based on the current high-growth price earnings rating of almost 18 times and the illiquid nature of the shares – the founding family still owns a 35% stake in the business – Questor cannot advise a purchase at the current level. PZ Cussons at 314.2p-1.6p Questor Says ‘Avoid’.
Have you read yesterdays RNS from the company as it is far from positive and was probably expected by the market hence the drift down in the share price in recent months. The events in Nigeria must give cause for concern and as you will know this is a major market for this well run company.
Anybody have any ideas why the price just keep dropping ,understand the troubles with the North and of coarse the Ebola outbreak , but this outfit is a world wide exporter of its products . Many thanks wakering123
Interim Results coming out tomorrow, they should be strong and give a boost to the SP, looking good as a mid to long term investment. We should see strong results for 2014.
I intend to charter an aircraft for a round trip from Jersey to Manchester back to Jersey on the 25th of September in order to attend Pz Cussons agm. Anybody interesested in spliting costs, please make contact with me on 01534 862757.
Consumer products giant PZ Cussons is selling its Polish Home Care brands to Henkel for 46.6m pounds. The Polish Home Care brands include laundry detergents, fabric conditioners and washing up liquids. The brands generated revenue of 51.4m in the year ended May 31st 2012. Cussons has decided to sell the brands as it restructures the business to focus on its Personal Care unit. Completion of the transaction is subject to merger control clearances in Poland and Ukraine, which is expected to take about six months. Proceeds of the transaction will be used to reduce existing debt or to support business operations. "I am pleased to be able to announce the exchange of contracts for the conditional sale of our Polish Home Care brands," Chief Executive, Alex Kanellis, said. "On successful completion of the transaction, the divestment will enable us to focus on developing the Personal Care business in Poland and will further strengthen our balance sheet, improving our flexibility to take advantage of new investment opportunities as they arise."
I only hope that if you are correct that any takeover comes with a share as well as a cash offer as I have a quarter of a million shares in PZ Cussons purchased at an average price of around 33p when the ten for one split is taken into account. I dont want to even think about the CGT liability if it was a cash offer. It does look like something is happening however as I see no reason for such a share price movement in recent days.
Am I the only one looking at the SP of PZC and seeing a bid on the horizon?
PZ Cussons: JP Morgan ups target price from 310p to 370p and reiterates a neutral rating. Investec takes target price from 335p to 380p maintaining a hold recommendation.
Revenues for the period were flat with a modest 0.02% climb to �414.8m with business boosted by European and Asian sales offset by tough trading conditions in Nigeria. The group also returned to profitability in Australia after implementing business improvement measures. Operating profit grew 13% to �45.3m, following strong performance in Australia and the UK. The nterim dividend was raised 5.4% to 2.35p per share reflecting confidence in the future. "Our overall performance since the period end has been in line with expectations," Chairman Richard Harvey said. "Whilst trading conditions in most markets are challenging we remain confident of a return to profitable growth for the full year, with the range of potential outcomes being largely dependent on trading in our largest market Nigeria during its peak season over the coming months." The group's annual profits for 2011/12 more than halved after it was hit by exceptional charges worth �43.8m and difficult trading conditions in Nigeria and Australia.
Consumer products giant PZ Cussons posted on Tuesday a rise in profits in line with market expectations. The company, which owns Original Source shampoo, Morning Fresh washing up liquid and Imperial Leather soap, reported a 9.7% increase in profits before tax of �44.1m for the six months to November. The results met forecasts by Panmure Gordon Research which last week said the company would be driven by strong recovery in Asia while affected by social unrest in Nigeria's north. "Closely watched will be the commentary on Nigeria, and while we believe that violence in the north has continued, it appears that fuel subsidies have remained unchanged, avoiding the national strikes that crippled the country last January," Panmure said.
PZ Cussons: Panmure Gordon raises target price from 335p to 360p, while retaining a hold recommendation. Numis downgrades to reduces with a target price of 343p.
Investec has raised its price target for cosmetic products group PZ Cussons from 300p to 335p after the firm confirmed that it is to return to profit growth in the first half. However, the broker kept its 'hold' rating, saying that much depends on how Nigeria (described as "fragile" by PZ Cussons) performs in the second half.
Oh why oh why didn't I just buy some more when they were 348.50 instead of just posting my previous comment here. Up over 3% today alone - something is surely up?