PZ Cussons takes a £17m hit but financial position remains strong

CONSUMER products company PZ Cussons says trading for the year ended May 31 has been in line with expectations but has been hit by a £17m exceptional charge in Nigeria.

The listed Manchester company said its performance in Europe and Asia offset more difficult trading conditions in Africa.

The £17m is expected in relation to settling a brought forward dollar liability in Nigeria in the secondary market.

The charge will be accounted for as it is realised with about £7m being taken in the year to May 31 2016.

Ahead of its final results which will be published on July 26, the company said its financial position remained strong.

A statement said: “Performance in Europe and Asia is expected to be strong driven by the continuing brand renovation and innovation programme underpinned by strong cost control.

“In Nigeria, which represents approximately 25% of group profits, trading conditions are expected to continue to be challenging, with a range of potential outcomes for the new financial year dependent on the translational and transactional impacts of any movement in the naira exchange rate.

“The group remains well placed to benefit from its position in Nigeria once growth returns to the market.”