THE Anglo-Dutch consumer products giant Unilever faces mounting pressure from some shareholders to announce a big increase in its share-buyback programme when the company unveils results next week.

The group bought back shares worth €1.5 billion (£1.1 billion) last year. Charlie Mills, food-industry analyst at the investment bank CSFB, said: “To double the size of the share buyback this year wouldn’t seem stupid or reckless.”

On top of its cashflow, Unilever, whose brands range from Persil and Lynx to Marmite and Hellmann’s, has sold its cheese business, Boursin, and an American dressings operation, Lawry’s. Unilever has also put its troublesome US laundry detergent business up for sale.

Unilever insiders conceded this weekend that some shareholders had been pressing for more share buybacks. But other investors were cautioning the company to keep debts low, said the sources. The group wants to be able to make acquisitions if suitable opportunities arise.

Martin Deboo, an analyst with Investec, said: “They are very undergeared, even in today’s more chastened climate.” He estimated that Unilever’s gearing – as measured by debts set against cashflow - was far lower than at companies such as Cadbury Schweppes and Tate & Lyle.

Jim Lawrence, who joined Unilever as chief financial officer last year, has indicated he will use next week’s results presentation to outline his broad financial targets for the group and give some indication of his preferred level of gearing.

In his previous job, with General Mills, Lawrence had a reputation as a proponent of aggressive gearing to increase earnings per share.

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