McGough has now published some 26 poetry books for children, including “the odd story book”, such as the best-selling Moonthief.McGough is passionate about his verse for youngsters. Including the impact of the new Boots business, which will cost the group £150m to restructure, it expects to achieve net income growth of low double digits and net revenue growth in the mid teens. Its relentless focus on improving its products drove net revenues 5 per cent higher to £1.1bn in its fourth quarter at constant exchange rates. For the year the increase was 6 per cent to £4.2bn, which delivered a 16 per cent increase in pre-tax profits to £876m.Housewives (and husbands) can now use a 5-in-1 Finish Powerball in their dishwasher or call on Vanish Crystal White powder to attack even dried-in stains. And after the completion of its £1.9bn acquisition of Boots’ over-the-counter healthcare business last week, spotty teenagers can look forward to more ways to banish their acne with new varieties of Clearasil while popping Nurofen to dull any aches and pains.The only potential headache for investors is that the group’s markets in Western Europe are growing more slowly than they have done for years. The tough trading backdrop combined with the challenge of integrating the Boots acquisition gives less clarity than usual about the outcome for 2006.Conversely, Reckitt is confident that its cost-saving programme will compensate for any more pain on the raw materials front.
It was Clearastill that Reckitt, whose products seek to make our homes shine brighter and whiter, is set for another year of industry outperformance when the group Resolved to deliver operating margins of 22 per cent by 2008.
Shareholders in the group have cleaned up since it was created just over six years ago by the merger of Reckitt & Coleman with Benckiser of the Netherlands. Its shares rallied 21p to 298.5p.And finally, Bulletin board chat sent a number of other small stocks higher as retail investors bought into Advanced Fluids, up 0.75p to 5.25p, and Ekay, up 2.5p to 26.5p. The latter delighted investors by saying its debut results, due on 20 February, would be better than expected.. Reckitt Benckiser showed a clean pair of heels to its rivals in the consumer goods world yesterday with another set of sparkling results.
Doubts that the soaring cost of raw materials in 2005 had hampered the group’s progress Vanished after Reckitt announced it had Finished the year by hitting its 20 per cent operating margin target one year early. The chief executive, Mike Lynch, is on a roadshow, presenting to institutional investors, and it appears to have had the desired effect. Autonomy shares surged 40.25p to 469.25p to become the best performer in the FTSE 250.The casino operator London Clubs International was also higher in heavy volume, with more than 7 million shares changing hands. LCI stock, the subject of persistent takeover rumours, rose 7p to148p.Among smaller companies, Gaming VC rose 28.5p to 416p, a rise of 5.3 per cent, as traders and market makers said a bid could be on the way, possibly valuing the company at 550p a share.nCipher, the software group focused on cryptographic solutions, received a bid – three weeks after the company confirmed it had received an approach. A subsidiary of its US rival Safenet has offered £86.1m for the company, valuing each share at 300p, and the board of nCipher has agreed to the deal.
Shares in Woolies climbed 1.25p to 35.75p as almost 65 million shares changed hands. French Connection dropped 10.25p to 250p.Shares in the software house Autonomy rocketed as brokers and analysts warmed to Monday’s record results. This time the talk centred on the Icelandic investment group Baugur, rumoured to hold a 10 per cent stake in the company as well as selling down its holding in French Connection. Rio was down 74p to 2781p, BHP closed 37p lower at 976.5p, Kazhakmys fell 32.5p to 819.5p and Anglo American dropped 75p to 2,012p.Second-line miners also felt the squeeze on commodities, with Randgold falling 46.5p to 982p and Vedanta Resources tumbling 37p to 978p. Among smaller miners, Griffin Mining reported good drilling results from its Caijiaying site in northern China but was unable to resist the overall sell-off. Its shares fell 1.75p to 59p.Woolworths was again well bid after yesterday’s talk of WH Smith launching a bid for the group.
