PZ Cussons (LSE:PZC) shares rose 9% in early trading after the soap maker returned to profit in the first half of its financial year. It reported a £6.4 million pre-tax profit, a sharp turnaround from last year's £94.2 million loss, despite a 10% drop in revenue to £269.3 million.
PZC has seen a modest loss since my last review, and I'm not too optimistic about its future prospects either. The fund's discount to NAV could look compelling, but it is actually narrow compared to sister funds from PIMCO. California munis have plenty of merit right now for high-income residents, but there are risks to state and local government finances if the economy sours.
PZ Cussons (LSE:PZC) said it still expects profit to be in line with its previous guidance despite a 23% adverse swing in the Nigerian naira since its last update two months ago. The maker of Carex soap, Original Source shampoo and Morning Fresh dishwashing liquid provided no further news on its proposed portfolio transformation, where its St Tropez tanning brand has been put up for sale and options are being evaluated for its Nigeria business.