Soap firm in a lather over Nigeria unrest
IMPERIAL LEATHER maker PZ Cussons is expected to reveal on Thursday that unrest in Nigeria - one of its most important countries - continues to hamper trading.
Falling oil prices, a weak currency, tensions with Muslim rebels in the North East and a new government coming to power mean that the City is braced for weaker sales in Nigeria, which accounts for around 22 per cent of the group's profits.
By contrast, brokers at HSBC expect its UK washing and bathing unit, which includes Original Source shower gels and shampoo and Carex hand wash, to post earnings of £39.5million this year at a healthy 27 per cent margin.
In the UK the business has been driven by innovation at its older brands such as Imperial Leather soap which has introduced Classic, Signature and Indulgence ranges over the past year.
However, the group said its half-year pre-tax profits to November 30 fell 8.2 per cent to £43.7million. Over the full year, HSBC expects pre-tax profits to fall 8.5 per cent to £105.2million.
