Croda eyes further progress in year ahead

Speciality chemicals manufacturer Croda Interntional drove full year earnings higher and added that despite persistent economic uncertainty, particularly in Europe, it has made an encouraging start to the year and is confident of further progress in 2013.

Speciality chemicals manufacturer Croda Interntional drove full year earnings higher and added that despite persistent economic uncertainty, particularly in Europe, it has made an encouraging start to the year and is confident of further progress in 2013.

Pre-tax profit rose 6.6% to £253.2m for the year to December 31st 2012 from £237.5m the same time a year earlier following strong final quarter growth from Consumer Care and Performance Technologies. Sales on continuing operations increased 2.3% to £1.1bn.

Sales at Consumer Care rose to £586.4m from £571.4m while Performance Technologies climbed to £382.8m from £373.6m.

Sales at Industrial Chemicals fell to £82.7m from £83.0m previously. The figures reflect high raw material prices and competitive commodity and textile markets, Croda said, although it did see an improving trend in the second half of the year.

Chairman Martin Flower said: "This achievement in tough economic conditions demonstrates the resilience of our Consumer Care and Performance Technologies businesses, with both sectors reporting higher profits and a further improvement in margins."

Earnings per share from continuing operations increased 8.2% to 130.0p. Croda said its balance sheet has been further improved with reductions in net debt and its pension deficit.

"Our progress reflects our focus on sustainable growth through continued product innovation in niche markets and increasing investment in new technologies and emerging markets, particularly in Asia and Latin America," Flower added.

Croda recorded fourth quarter underlying sales growth of 5.7%. The increase in sales and profitability in the fourth quarter was evident in all business sectors, the group explained.

Looking ahead Croda said: "Economic uncertainty continues, particularly in Europe, but we have made an encouraging start to the year and the board is confident of further progress in 2013."

The board is now recommending an increased final dividend of 32.75p compared to 30.25p in 2011. Together with the interim dividend of 26.75p, this makes a total dividend of 59.5p an increase of 8.2% for the year.

CJ

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021