Personal care-to-beauty products developer Creightons (CRL) is an little known growth stock that merits further attention. Growing in a consolidating market, the £19.8m cap has form in profitably developing and selling brands to rivals.

Peterborough-based Creightons creates and manufactures toiletries and fragrances made from natural products which are sold to retailers.

Its brands include shampoo and conditioner offering Frizz No More, skin moisturizer Argan Body and tanning product Bronze Ambition.

In recent years, the profitable disposals of a 55% stake in the Twisted Sista brand and The Real Shaving Company business have demonstrated management’s ability to create and develop brands which then enhance shareholder value.

Results for the year to 31 March 2017 revealed a 46% rise in sales to £30.6m and operating profit up 171% to more than £1.5m. Operating margin improved to 4.9% (2016: 2.7%).

Closing the year with more than £2m net cash, Creightons is also paying a dividend worth 0.23p per share.

February 2016’s acquisition of assets of Broad Oak Toiletries from the administrators increased production capacity and is enabling Creightons to expand into premium areas of the market.

Although the company’s private label ranges are facing price pressure from big brands and discounters, branded sales are in growth mode with exports building strongly.

Raw material costs have spiked due to the fall in the pound, although product re-engineering and efficiency initiatives are helping Creightons cope.

Buy at 31.95p.

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