Jeyes reports 20% growth in profits

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The Independent Online
JEYES, whose cleaners and disinfectants have sanitised millions of homes, is proving its claim that consumers need hygiene products whatever the state of the economy.

The company yesterday continued its growth pattern with half-year pre-tax profits up 20 per cent at pounds 2.1m, on turnover of pounds 35.9m, up 17 per cent.

Jeyes has made several acquisitions since it was bought by its management from Cadbury in 1986, though further purchases are unlikely in the next 18 months, Derrick Broomfield, finance director, said. The company is busily absorbing Globol, a German household products group, which it bought from BP for pounds 18m in July. Globol, which doubled Jeyes' size and took it from the USM to a full listing, does not feature in these results. The purchase will reduce Jeyes' dependence on the UK from about 80 to 50 per cent.

Mr Broomfield said Quickies, the moist wipe brand bought from SmithKline Beecham in March, had been fully integrated into the company.

Earnings per share rose 20 per cent to 9.9p, and despite the Globol acquisition Mr Broomfield said such growth could be maintained for the full year. Alastair Irvine, of Smith New Court, has revised earnings forecasts for the year from 22.6p to 22p. Pre-tax profits for the year will be around pounds 5.6m, he predicts.

The interim dividend is 3.1p (2.6p).

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