City browned off with PZ Cussons as sales of fake tan fall

Investors washed their hands of PZ Cussons today, after the Imperial Leather soaps and St Tropez self-tan maker warned that Brits spent less on tanning products last summer.

The home products giant said a poor summer “adversely affected” UK sales of its fake tan goods in the six months to November 30.

It also flagged up a tough market in Nigeria, where low oil prices have contributed to reduced income from the country. PZ Cussons incurred an exceptional cost of £15.3 million relating to foreign exchange losses in the African nation after the devaluation of the naira.

Pre-tax profits fell 37.8% to £24.9 million in the half year, and the firm said revenue decreased to £378.2 million from £385.9 million.

Chairman Caroline Silver said: “The group has faced a backdrop full of challenges… this was by no means unexpected and so, despite this, the results reflect a solid performance with revenue and profit only slightly lower than the previous period.”

She added that the company remains on track to deliver full-year expectations.

But the City was unimpressed, and the shares dropped 27.2p, or more than 8%, to 309.3p.