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.
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
'He was always smiling': Lee Rigby named as Woolwich victim
Emergency landing at Heathrow sparks further controversy over London airport capacity
Two bailed after arrest over Woolwich attack Twitter comments
Exclusive: Woolwich killings suspect Michael Adebolajo was inspired by cleric banned from UK after urging followers to behead enemies of Islam
- 1 Pope Francis: Being an atheist is alright as long as you do good
- 2 What, let gays get married? We must be bonkers
- 3 'Something passed underneath us, quite close': Airbus A320 has close encounter with UFO
- 4 Lord of the Sings: Sir Christopher Lee, 91, to release heavy metal album
- 5 Two bailed after arrest over Woolwich attack Twitter comments
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.