Bottom Line: Boddington cheer
Thursday 03 March 1994
Solid annual results, released yesterday, further reinforce the logic of Boddington's radical change of strategy in 1988. The common thread of its odd mixture of businesses in pubs, nursing homes, drinks and leisure villages is at root retailing with the emphasis on customer service.
The quality approach produced an underlying 10.9 per cent rise in pre-tax profits to pounds 28m. About pounds 31m is on the cards this year.
Boddington will pump another pounds 33m into development this year. Pubs and leisure will absorb pounds 10m each, drinks wholesaling pounds 8m and health care pounds 5m. This all adds up to just five, perhaps six, points on the current gearing of 29 per cent.
Running parallel with that development, it should be able to squeeze better margins out of pubs by increasing food turnover from 15 per cent of sales and should benefit from a new six-year beer supply agreement with Whitbread.
At 275p, the shares are trading on a prospective p/e of 14.1 and a gross yield of 4 per cent, assuming a 7 per cent dividend increase to 8.6p. Those who feel brave enough to buy in the current volatile climate should invest in Boddington.
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Friends 20th anniversary: Alison Jackson photographs reunited cast
- 3 There is literally not a single woman in this iPhone 6 queue
- 4 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
- 5 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...