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Croda International (CRDA) – Finals PTP: £60.9m (£17.2m) Divi: 10.8p (9.7p)

High raw material and energy costs and challenging trading conditions did little to faze the chemicals group, which posted record sales and profits for the year ending 31 December 2007.

The integration of Uniqema, which it acquired in 2006, is well ahead of schedule and the benefits of the acquisition have exceeded expectations. Part of Croda’s success can be attributed to its robust and diverse business model, which is not dependent upon a single market or one major customer. By having thousands of customers buying thousands of different products globally, the business is more resilient and paves the way for future growth.

The year also saw Croda make several disposals, and further disposals could be in the pipeline going forward. Broker Collins Stewart has set a target price of 759p, well above the current 575.8p.

Shares says: Another strong performance makes the stock a buy.

by: Rachel Robson