No Pain No Gain: SnackTime keeps eating into profits
Saturday 08 December 2012
Are we set for another share shopping spree in the run up to Christmas? For a variety of reasons the stock market invariably indulges in what many regard as a seasonal pantomime that sends prices surging ahead. Even after the festivities, the round of new year tips often adds a little momentum to what is usually a cheerful atmosphere.
In the past 30 years or so there have been only around half-a-dozen occasions when some form of Santa boom failed to materialise as investors felt buffeted by the then prevailing economic or political winds. I don’t expect the world’s present recession to have a negative impact this year.
Why should Christmas offer such investment joys? One obvious reason is the festive holiday itself. In the run-up, many top people are away from their desks, leaving what has been described as skeleton staffs minding the shops. And trading is often thin with much of it on the buy side.
But other factors come into play. Window dressing by fund managers chasing bonuses is one; another is that, with so many leading dealers away, the subordinates left in charge are much more likely to run with a cheerful herd.
Next week I plan to produce the quarterly update on the No Pain, No Gain portfolio. If we are to get a Christmas uplift it should then be stirring and that should help my calculations. Mind you, some recent trading figures from a quartet of constituents have caused some concern.
Marston’s, the brewer and pub owner, is excused any criticism. On the surface, yearly figures look horrendous but such an impression is down to the vagaries – not to say stupidities – of our accounting system. The group incurred a statutory loss of £223m, largely the result of a property revaluation. Yet revenue advanced 5.5 per cent, underlying pre-tax profits rose 9.2 per cent to £87.8m and dividends were lifted 5 per cent. Not surprisingly Marston’s shares, as I write, are at their highest for more than three years, helping the portfolio’s profits.
SnackTime, the vending machine group, is the one letting the side down. Half-year turnover fell 13 per cent and the pre-tax loss, inflated by exceptional charges, reached £1.6m against a modest profit last time. The group is busy reorganising and cost cutting. It hopes to reduce the loss “significantly” in the second six months. The shares, at 14p, capitalise the company at a mere £2.3m. The portfolio paid 119p a share. I am hanging on – hoping for a recovery. Anyway it is too late to dump the shares as the portfolio’s initial £5,000 outlay has already almost disappeared.
My hopes that Findel’s prospects are improving were confirmed by interim figures. The half-year loss was reduced and some sections of the business are clearly doing well although the Kleeneze door-to-door operation is feeling the pinch. Group sales are running 7.7 per cent ahead of last year. The shares have lost some of their exuberance at around 7.5p.
Shares of Aviation, the aircraft leasing group, have also given up some altitude. It has taken delivery of another new ATR 72 aircraft – its ninth – which is joining the group’s leased fleet. But profit expectations have been pulled back after the sale of a subsidiary that had an impact on the last set of profits which, at £5.2m, were much lower than expected. Stockbroker WH Ireland now expects a performance for the present year of £5.9m. For next year, the broker is looking for around £7.5m which is near the result some envisaged for the year just gone.
Elsewhere, TEG, the green-technology enterprise, has started ground work at its important £21m waste-disposal unit in Dagenham, East London. The plant is expected to be operational in early 2014. The group’s shares hover a little below 5p against an 8p buying price. TEG will run the venture in which it has a 24.5 per cent stake.
Finally, Whitbread leisure group, one of the portfolio’s Footsie stocks. Stockbroker Numis has upgraded the shares from hold to buy and lifted its target price to 2650p. The broker is impressed with the Costa Coffee offshoot and believes it will benefit from the adverse publicity and controversy surrounding the tax position of archrival Starbucks. The portfolio paid 1105p. Price is now around 2400p.
10 April 2015 07:00 PM
15 April 2015 12:56 PM
Joining Barclays Blue Rewards costs £3 a month but then lets customers in for handouts of up to £15 a month
15 April 2015 07:27 AM
A charity is urging anyone struggling financially to see if they could get help from the state
13 April 2015 11:39 AM
Video: With an election looming, a hung parliament could hit sterling
03 April 2015 08:00 PM
03 April 2015 08:00 PM
02 April 2015 01:14 PM
Video: Tom McPhail, head of pensions at Hargreaves Lansdown, says May's outcome could alter your pension
30 March 2015 04:22 PM
Video: Simon Read talks to Fidelity's Tom Stevenson
01 April 2015 12:00 AM
Video: The Independent's Personal Finance Editor runs you through the key facts about Premium Bonds
27 March 2015 08:30 PM
27 March 2015 08:30 PM
20 March 2015 07:30 PM
Mark Dampier: 'We're on our own in retirement. They've pulled pensions to pieces'
Questions of Cash: I don't use Amazon Prime, but my credit card bill says I do
HSBC becomes first bank to offer five-year fixed rate mortgage with interest rate under 2%
Crippling PFI deals leave Britain £222bn in debt
Pension freedoms: How to deal with cold calls from scammers
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 3 US? China? India? The 10 biggest economies in 2030 will be...
- 4 'I wish my teacher knew...': Young students share their 'heartbreaking' worries in notes
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
The only black face in the Ukip manifesto is on the page about overseas aid
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...
Day In a Page
With space for an equestrian business, a greenhouse for growing your own veg, a wine store and a gym; this five-bedroom home has all the ingredients for a country retreat.
This four-bedroom home has exposed brick chimneys and a vaulted ceiling in a breakfast room that's ideal for summer entertaining - the doors open to the patio and garden.
The decked roof terrace of this two-bedroom flat is perfect for summer drinks while large windows and ample storage space make for a light and spacious interior.
Surrounded by approximately 15 acres of grounds, this six-bedroom grade II-listed home has been extensively refurbished yet retains many period features.
This four-bedroom home comes with a two-bedroom cottage and commercial office, with planning to extend, in a stunning courtyard setting.
In a pretty Norfolk village, this four-bedroom family home is surrounded by landscaped gardens, with even a self-contained annex for guests.
A few miles from the seaside at Perranporth, this four-bedroom farmhouse sits amongst nine acres of idyllic grounds - including a lake and two barns used as holiday lets.
This five-bedroom home is arranged over three floors of a converted Victorian hospital, offering spectacular views of the Pentland Hills - only three miles from the city centre.
This four-bedroom detached home comes with grounds that span to approximately 2.5 acres, as well as two large patio areas and a double garage.
This four-bedroom cottage is a Grade II-listed town house, well-located for the thriving market town of Nailsworth.
A four-bedroom apartment on the ground floor of a stunning period property in North Yorkshire, with two kitchens and a large south-west facing garden.
This high-spec two-bedroom home is part of a smart collection of new flats at Beaufort Park and has a large decked balcony that's perfect for summer drinks.
Capitalise on the fabulous views of Trevone Bay by taking two homes and creating one spacious boutique B&B. Just a cliff-top walk from Padstow.
Overlooking a golf course, this six-bedroom Edwardian detached home spans four storeys and retains many period features including the original, operational servants' bells...
On the edge of the city, this six-bedroom home comes with an outdoor swimming pool and a large garage block that has annexe potential.
In a Grade II-listed manor just outside of Bath, this three-bedroom home is arranged on two floors with a skylight in a vaulted roof line.
Open the living room's bi-fold wooden doors to reveal a retro-style kitchen, and a conservatory leading to a paved garden at this three-bedroom home.
A Grade II-listed, four-bedroom home, in a charming Somerset village, with a two-storey studio that could be converted into a holiday cottage
A modern four-bedroom Victorian home, within walking distance to the high street
A luxury apartment in the Gothic mansion of Wyfold Court in Kingwood, offers six bedrooms spread over three floors and a turret
This school conversion, near Stockwell Tube, oozes New York loft style. The one-bedroom flat features double height ceilings and exposed brick work
This six-bedroom Georgian home is on three floors with open fireplaces, a two-oven Aga, an annexe, and cottage gardens with outbuildings and a car barn
High Crest House covers an impressive 9384sq ft, with almost three acres of grounds including a tennis court and summer house enclosed by electric gates
A six-bedroom farmhouse with separate accommodation in converted stables. Situated in the village of Church Aston, within walking distance to the market town
A two-bedroom flat with under-heated walnut floors and bespoke built-in storage. The Tube and Clapham Common are a short stroll away
A refurbished seven-bedroom townhouse with staff quarters, cinema room, superb gym, steam room and plunge pool
A minimnalist four-bedroom home designed to the highest spec, featuring glass walls and a kitchen space lit by a glass roof
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
A boutique mews house, set around a central courtyard, with three bedrooms and a private roof terrace
A four-bedroom farm-conversion with three bathrooms and two reception rooms
A two-bedroom detached house with ensuite bathrooms and a sun-drenched decked terrace, £750,000
A modern and spacious two-bedroom, penthouse flat with two bathrooms in a prestigious development
A beautifully renovated five-bedroom terrace with three reception rooms and a courtyard garden, £700,000
A four-bedroom period house which has been extended to provide almost 2,500sq ft of living space, £675,000
A pretty three-bedroom Georgian home with a 22ft drawing room and a master suite with a balcony, £525,000