Shares hit a high as Croda steers clear of the recession

The company, based in Snaith, East Yorkshire, specialises in natural chemicals for anti-wrinkle creams and other skin care products.

The group reported a 10.5 per cent rise in underlying pre-tax profits to 106.4m for the year to December 31. Sales rose 0.6 per cent to

916.2m.

The group has managed to avoid the recession as consumers continue to splash out on top-of-the-range beauty and skincare products.

The firm, which has a growing pipeline of products, said its ingredients represent a very small proportion of the final selling price of a personal care product. But these ingredients are frequently the reason why the product has an effect and the reason why it sells.

Finance director Sean Christie said: "The consumer care part of our business never really even saw a recession.

"Some of the industrial markets got a bit harder in the first half, but from about June onwards we've seen a really strong pick-up in those businesses. As we enter the new year, trading is very strong there as well."

Croda supplies ingredients to skin care and cosmetics companies such as L'Oreal, Chanel, Clarins, Estee Lauder, Boots and Procter and Gamble.

Shares in Croda have increased 60 per cent in the last 12 months, outperforming the FTSE 350 chemicals index by seven per cent.

Last night the group's shares closed the day up seven per cent, a rise of 60p to 901p.

Analysts at Citi said it was a "solid set" of results.

The company has increasingly moved away from commodity chemicals to focus on innovative, higher-margin ingredients used in sun-tan lotions and haircare products.

Croda posted earnings per share up 10.4 per cent to 53p and raised its dividend by 8.9 per cent to 21.5p.