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The Markets
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Fashion & brands

St Tropez helps PZ Cussons amid currency turmoil

Soap group says Imperial Leather brand boosts sales.

Fake tan favoured by supermodel Kate Moss brightened up like-for-like annual profits at PZ Cussons (LON:PZC), but currency woe weighed.

Imperial Leather soap maker Cussons said its beauty arm, which makes tanning products such as St Tropez and Sanctuary, increased profits against a year ago.

New St Tropez products such as a gradual tan in shower lotion had very strong post-launch sales.

Cussons also said its UK washing and bathing division increased revenue and profit as most of its brands underwent a revamp.

Imperial Leather benefited from the relaunch of the entire range under Classic, Signature and Indulgence tiers.

Carex also did particularly well as fun hand wash products for children were extended into wipes and gels.

A brand new range of Carex body wash products was also launched.

Performance in crisis-hit Greece, which makes up 6% of group revenue, was robust with "good" profit growth.

Cussons said revenue in the year to May 31 rose 0.7% at constant currencies but fell 4.9% on a reported basis.

Operating profit lifted 1.8% before exchange rate movements and 2.7% on a like-for-like basis, but dipped 1.7% otherwise. Pre-tax profits fell 1.9% at constant currencies.

Chairman Richard Harvey said: "Performance since the year-end has been in line with expectations. Whilst the outlook remains challenging, the group's focus on its values, robust long-term strategy, our innovative product pipeline, and the strategic steps we have taken, provide a strong and exciting platform."

The group boosted its total dividend per share by 3.1% to 8p. Shares fell 4.1p to 355.9 around midday in London.

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