But sales growth was disappointing with like for like growth up by just 0.5 per cent and by 2.5 per cent in the core health and beauty ranges. The company also admitted that its London stores and travel outlets had a disappointing October.The problem with the avenues of growth chosen by Steve Russell, the chief executive, is that none are yet making any money. Overseas the idea of wholly owned stores has been dumped in favour of "implants" in other people's outlets. Losses have been cut as a result and an update is due in January.At home the Wellbeing services, such as dentistry and chiropody, are growing but losses rose to £16m last year and the company is struggling to find the dentists to fill its surgeries.In the main chain, Mr Russell wants to go after the 65 per cent market share the department stores hold in premium cosmetics and fragrances. Boots currently has a "mid-20s" percentage share of that market but wants more than 30 per cent.
An update on the "shops within shops" trial with J Sainsbury will be given in May.Assuming full-year profits of £635m, the shares – down 2p at 611p – trade on an undemanding price-earnings multiple of 12. That is cheap for a blue-chip company but it is too early to buy into the new strategy. Tate & LyleAfter a bitter 18 months, Tate & Lyle looked to have sweet-talked its shares into a rally and interims yesterday showed why. They bore the hallmarks of a sustainable turnaround at the sugar and sweeteners group and ended an unsavoury run of profits warnings.The company is close to a complete retreat from the unprofitable US sugar market, where overcapacity has soured margins and profits. It netted £86m from the sale of its Domino sugar unit on Tuesday, which cost the company £18m in lost profits in the first half and expects to finalise the sale of its other US business, Western Sugar, by the end of January. It will use the proceeds of both disposals to further slash debt – down by £115m to £848m.This will leave Tate free to focus on value-added products such as special starches for use in frozen foods.
These should protect Tate against commodity price swings.The growing use of fructose-based ethanol in US industry will help from January, when the price of fructose is set for the year. That will boost the high-fructose corn syrup market and feed through to boost margins.Group profits in the six months to 30 September recovered from £2m to £64m on flat sales. The shares rose 17p more to 303p and trade on a forward p/e of 15. They have risen 20 per cent in the recent speculative run and all the good news is in the price. Hold.PhytopharmHow we laughed when Phytopharm's baldness treatment turned out to be less effective that E45 moisturising cream. How we laughed, too, when tests showed its treatment for canine arthritis made dogs smell of urine. Run by its buddhist founder, Richard Dixey, the company is trying to make pharmaceutical products out of plant extracts and has had trouble shaking off its dippy, hippy image But Phytopharm is a serious drug development company Honestly.The company has two exciting products.
