Final Results

PZ CUSSONS PLC
09 September 2003


                                                              9th September 2003

                                 PZ CUSSONS PLC

                            PRELIMINARY ANNOUNCEMENT

Highlights

•   Operating profits increased by 16.9% to £54.7m from £46.8m

•   Net investment losses of £3.5m against income of £2.4m, as a result of
    the decline in the value of the equity investment portfolio

•   Pre-tax profits increased by 4.0% to £51.2m from £49.2m

•   Diluted earnings per share increased by 9.4% to 71.18p from 65.09p

•   A net funds position of £72.1m after spending £11.3m on the purchase of
    Original Source and £17.6m on the share buy back programme

•   Dividend increase for year proposed of 10.5% to 29.00p from 26.25p

Performance by region
                            Turnover (£m)                       Operating
                                                                profit (£m)
                       2003               2002               2003         2002

Europe                204.0              194.8               24.2         20.4

Africa                145.3              150.5               22.8         19.5

Asia                  116.6               95.4                7.7          6.9
                      -------           -------             -------      -------
                      465.9              440.7               54.7         46.8
                      =======           =======             =======      =======

The focus on increasing operating margins and pursuing growth in all units
formed the basis of the improved results. This improvement has been achieved
despite the strength of sterling against the dollar and the naira, the impact of
which has been to reduce turnover by £30m and profitability by £2.9m, largely in
the African region. Property sales profits of £2.8m have largely negated the
increased insurance costs previously reported of £3m. Insurance costs are now
moving down to more normal levels.

Europe

Turnover and profitability have continued to improve in the UK. The relaunch of
the major brand, Imperial Leather, in 2001, emphasising lather delivery, has
continued with new innovative products, in particular the new Bathtime range.
2004 should see Imperial Leather sales increasing by more than one third from
the relaunch. The Carex range has also achieved growth. Both brands have been
supported by television advertising and other avenues of communication including
sampling, poster, magazine and radio campaigns. Imperial Leather successfully
sponsored the 2002 Manchester Commonwealth Games for which the UK subsidiary has
received a number of industry awards. In late September 2002, the Original
Source brand was purchased and to date sales have exceeded expectations. The
range is now being extended to include Foamburst shower products and soap.

Poland continues to be a difficult market, however the relaunch of the major
brands, in particular the detergent brand 'E' and the personal wash brand
Luksja, together with the strengthening of the marketing and sales teams, are
now resulting in much improved performance.

The Greek subsidiary again achieved increases in turnover and profitability with
the Minerva and Horio olive oil ranges performing strongly.



Africa

Sales and profits continued to move strongly forward in Nigeria although these
improvements were restricted in sterling by the weakening of the naira by more
than 20% in the year. The naira has now been relatively stable since August
2002. The elections in 2003 have seen the reappointment of President Obasanjo's
civilian government and despite certain isolated disturbances, on the whole
progress continues to be made in the economy, resulting in improved consumer
spending power. Investment in the Nigerian factories continued with capacity at
the detergent and soap factories being expanded. The new HPZ refrigerator and
air conditioner factory was successfully completed and projects to manufacture
white detergent powder and a new feminine hygiene range at the Ikorodu site are
now fully operational.

The results for Ghana and Kenya are similar to last year. The sale of
non-operational properties in Cameroun resulted in profits of £2.4m.

Asia

The region has continued to achieve significant growth and profit increases,
although at a lower rate than last year, with margins reducing as a result of
large increases in raw material prices, in particular palm oil.

The expansion programme in Indonesia has resulted in greater factory capacity
and considerable progress with the ongoing strategy of increasing distribution
and introducing new extensions to the successful brand ranges of Cussons Baby,
Kids and Sweet Seventeen.

In Australia sales of the principal brands Radiant, Morning Fresh and Imperial
Leather have been strong and profitability has continued to improve.

Sales growth in Thailand whose major brand is Imperial Leather soap, slowed in
the second half and margins suffered from high palm oil prices.

The Middle East maintained its profitability despite the instability in the
region, and China incurred losses although somewhat lower than in 2002.

Investments

As indicated previously, the overall fall in world stock markets impacted
significantly in the first half of the year and resulted in losses of £3.6m on
the portfolio. Recent months have seen an increase in value of the portfolio.

Purchase of own shares

The company has continued to purchase its own shares in the market with the
objective of improving earnings per share. During the year 1,025,000 ordinary
shares and 1,175,000 'A' ordinary shares were purchased at a total cost of
£17.6m. It is proposed to ask shareholders for authority to purchase up to a
further 10% of the ordinary and 'A' ordinary shares now in issue, together with
the non-equity preference share capital.

Dividend

The board is recommending a dividend increase of 10.5% for the year.

Outlook

PZ Cussons maintains a strong balance sheet with adequate funds to finance
planned opportunities for growth. The focus continues to be to improve operating
profitability and to pursue growth in all units, in particular:


• the UK, with the expansion of the Imperial Leather range and the development of Original Source

• Nigeria, with the increased factory capacity and the new feminine hygiene range, and

• Indonesia, with new products in the Cussons Baby and Kids ranges.



                                 PZ CUSSONS PLC

       Consolidated profit and loss account for the year to 31st May 2003

                                                             2003         2002
                                                             £000         £000
-------------------------------------------------------------------------------------

Turnover                                                  465,878      440,720
-------------------------------------------------------------------------------------

Operating profit                                           54,691       46,794
Net interest payable / investment income                   (3,541)       2,380
-------------------------------------------------------------------------------------

Profit on ordinary activities before taxation              51,150       49,174
Taxation on profit on ordinary activities                 (16,839)     (16,285)
-------------------------------------------------------------------------------------

Profit on ordinary activities after taxation               34,311       32,889
Equity minority interests                                  (3,758)      (3,794)
-------------------------------------------------------------------------------------

Profit for the financial year                              30,553       29,095
Preference dividends                                         (770)        (770)
-------------------------------------------------------------------------------------

Profit attributable to ordinary capital                    29,783       28,325
Ordinary dividends                                        (11,559)     (10,840)
-------------------------------------------------------------------------------------
Profit for the financial year retained                     18,224       17,485
=====================================================================================

Basic earnings per ordinary share                          71.90p       65.50p


Diluted earnings per ordinary share                        71.18p       65.09p


Dividend for the year per ordinary share                   29.00p       26.25p


The results for both years arise from continuing operations




                                 PZ CUSSONS PLC

                       Balance sheets as at 31st May 2003

                                         The group              Parent company
                                      2003       2002           2003      2002
                                      £000       £000           £000      £000
-------------------------------------------------------------------------------------
Fixed assets
Intangible assets                   10,261          -              -         -

Goodwill                               933        988              -         -
Negative goodwill                   (2,258)    (2,388)             -         -
-------------------------------------------------------------------------------------
                                    (1,325)    (1,400)             -         -
Tangible assets                    149,933    158,821              -         -
Investments:
Subsidiary companies                     -          -        112,740    94,730
Other investments                      209          -            209         -
-------------------------------------------------------------------------------------
                                   159,078    157,421        112,949    94,730
-------------------------------------------------------------------------------------
Current assets
Stocks                             122,515    118,956              -         -
Debtors falling due within
one year                            60,387     50,810         55,292    65,801
Debtors falling due after one
year                                 6,254      8,220          1,520     1,656
Investments                         69,663    106,757         33,954    44,478
Cash at bank and in hand            17,690     10,975              3        27
-------------------------------------------------------------------------------------
                                   276,509    295,718         90,769   111,962
Creditors - amounts falling
due within one year               (114,257)  (112,873)       (69,791)  (62,891)
-------------------------------------------------------------------------------------
Net current assets                 162,252    182,845         20,978    49,071
-------------------------------------------------------------------------------------
Total assets less current
liabilities                        321,330    340,266        133,927   143,801
Creditors - amounts falling
due after one year                 (16,531)   (19,578)        (7,774)   (8,391)
Provisions for liabilities
and charges                        (15,520)   (15,846)             -         -
-------------------------------------------------------------------------------------
Net assets                         289,279    304,842        126,153   135,410
=====================================================================================

Capital and reserves
Equity ordinary share capital        4,073      4,293          4,073     4,293
Non-equity preference share
capital                              7,898      7,898          7,898     7,898
-------------------------------------------------------------------------------------
Total called up share capital       11,971     12,191         11,971    12,191

Reserves attributable to equity
interests:
Capital redemption reserve             671        451            671       451
Revaluation reserve                 33,460     37,303              -         -
Profit and loss account            205,158    211,173        113,511   122,768
-------------------------------------------------------------------------------------
Total shareholders' funds          251,260    261,118        126,153   135,410
Equity minority interests           38,019     43,724              -         -
-------------------------------------------------------------------------------------
                                   289,279    304,842        126,153   135,410
=====================================================================================



                                 PZ CUSSONS PLC

                           Group cash flow statement

                                                               2003       2002
                                                               £000       £000
-------------------------------------------------------------------------------------

Cash flow from operating activities                          45,438     35,036

Returns on investments and servicing of finance              (6,425)      (545)

Taxation                                                    (15,911)   (16,026)

Capital expenditure and financial investment                (24,469)   (11,720)

Acquisitions and disposals                                        -       (708)

Equity dividends paid                                       (11,105)   (10,464)
-------------------------------------------------------------------------------------

Cash outflow before use of liquid resources and financing   (12,472)    (4,427)

Management of liquid resources                               34,141     24,060

Financing                                                   (19,174)   (19,106)
-------------------------------------------------------------------------------------

Increase in cash in the period                                2,495        527
=====================================================================================



Reconciliation of net cash flow to movement in net funds
                                                               2003       2002
                                                               £000       £000
-------------------------------------------------------------------------------------

Increase in cash in the period                                2,495        527
Cash outflow from financing                                   1,390      6,162
Cash inflow from management of liquid resources             (34,141)   (24,060)
-------------------------------------------------------------------------------------

Change in net funds resulting from cash flows               (30,256)   (17,371)
Currency retranslation                                       (1,047)       (80)
-------------------------------------------------------------------------------------

Movement in net funds in the period                         (31,303)   (17,451)
Opening net funds                                           103,410    120,861
-------------------------------------------------------------------------------------

Closing net funds                                            72,107    103,410
=====================================================================================



                                 PZ CUSSONS PLC

                      Group cash flow statement continued

Analysis of net funds
                              At 31st May      Cash     Exchange  At 31st May
                                     2002      flow   difference         2003
                                     £000      £000         £000         £000
-------------------------------------------------------------------------------------

Cash in hand and at bank           10,975     6,773          (58)      17,690
Overdrafts                        (10,368)   (4,278)       1,636      (13,010)
-------------------------------------------------------------------------------------
                                              2,495

Loans due within one year          (3,954)    1,390          328       (2,236)

Deposits                           80,387   (22,226)      (2,939)      55,222
Other current asset investments    26,370   (11,915)         (14)      14,441
-------------------------------------------------------------------------------------
                                            (34,141)

-------------------------------------------------------------------------------------
                                  103,410   (30,256)      (1,047)      72,107
=====================================================================================





                 Statement of total recognised gains and losses

                                                              2003        2002
                                                              £000        £000
-------------------------------------------------------------------------------------
Profit for the financial year                               30,553      29,095
Currency retranslation                                     (10,507)        554
Deficit on revaluation                                           -      (4,932)
-------------------------------------------------------------------------------------

Total recognised gains and losses for the year              20,046      24,717
=====================================================================================


                                 PZ CUSSONS PLC

NOTES

1  Segmental reporting

                                        Third party               Profit before
                                         turnover                   taxation
                                     2003      2002           2003           2002
                                     £000      £000           £000           £000
-------------------------------------------------------------------------------------
Geographical areas - by origin
Europe                            204,019   194,827         24,183         20,387
Africa                            145,294   150,536         22,763         19,522
Asia                              116,565    95,357          7,745          6,885
-------------------------------------------------------------------------------------
                                  465,878   440,720         54,691         46,794

Investment income                                             (317)         4,444
Interest payable                                            (3,224)        (2,064)
-------------------------------------------------------------------------------------
                                                            51,150         49,174
=====================================================================================

2  AGM and dividend

The board is recommending a final dividend of 21.50p per share which, together
with the interim dividend of 7.50p gives a total distribution of 29.00p, an
increase of 10.5% over the total of 26.25p last year.

The date of the annual general meeting has been fixed for Monday November 3rd
2003 and dividend warrants in respect of the proposed final dividend, subject to
shareholders' approval, will be posted on that day to members on the register at
5.00 pm on 3rd October 2003.

3  Basis of accounts

The 2003 results are an abridged version of the statutory accounts for the year
ended 31st May 2003 which have been approved by the board of directors and which
carry an unqualified audit report. The 2002 results are an abridged version of
the statutory accounts for the year ended 31st May 2002 which carry an
unqualified audit report and which have been filed with the Registrar of
Companies. Neither accounts contain a statement in respect of s.237(2) or (3) of
the Companies Act 1985.



Enquiries 9th September 2003

PZ Cussons Plc
0161 491 8000 Graham Calder
(Between 9.00 am and 5.15 pm) Finance Director




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