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 Planes go hybrid-electric in important step to greener flight
- 3 Antonio Martin shooting: Mayor says there should be 'no comparison' to Ferguson
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...