One to Watch: Russian rewards

Through its subsidiaries, SSL is also engaged in the manufacture and distribution of healthcare products sold into consumer markets worldwide. SSL has operations in 35 countries and sells into more than 100, as well as having manufacturing operations in India, Thailand, China and the UK.

SSL's recent interim statement was most encouraging. The company reported a 21 per cent increase in sales and a 46 per cent improvement in pre-tax profits. Margins improved significantly, especially in Russia, and at the latest analysts' meeting, chief executive Garry Watts suggested the company's operational profitability would continue to improve.

The group has a truly international brand business in the form of Durex and Scholl, and, in a recent trading update, it said it was on track to meet its three-year earnings target. Doing particularly well are its Russian operations, acquired only recently and including the region's best-selling Condex condom brand; SSL believes it will grow its earnings per share by 50 per cent by 2012. The company is also supported by a strong balance sheet.

It is true that SSL's shares have made excellent progress over the past two or three years, largely unaffected by the general market decline. A perennial focus of takeover gossip, SSL looks perfectly capable of progressing from current levels under its own steam even so, especially given the exciting potential in overseas markets that it has only recently penetrated, such as Russia. The yield is a little mean, perhaps, but SSL may be worth monitoring at these levels.

• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Fuller Smith & Turner

539p +2p

Broker says HOLD

FULLER Smith & Turner "should retain its premium value" because it is "prudently run" and has quality assets and "operational excellence", according to KBC Peel Hunt. It talked of "a better than expected picture, as the gains from a buoyant Christmas were not significantly dampened by the severe conditions of January".

National Grid

627.5p -6p

Broker says BUY

KILLK & Co has maintained its "Buy" recommendation on National Grid. The broker noted: "Although the dividend yield remains the main attraction of the shares, National Grid also has a growth angle, as the changing energy landscape creates a number of organic opportunities for the group."