Duty-free end sends Alpha into nosedive
Thursday 01 April 1999
Alpha said it was recommending a final dividend of just 1.16p a share for a total of 3p for the year - 44 per cent down. The shares, which have been gradually losing altitude for five years, closed 8p down at 62.5p.
Alpha, which runs baggage handling, catering and retail services at airports, said it had cut the payout in the light of BAA's decision not to renew its retail management contracts at Heathrow airport last year.
The decision knocked 10 per cent off Alpha's turnover. BAA, the airports operator, will withdraw a similar contract for Gatwick in June, and Alpha is now bracing itself for this July's abolition of duty free in Europe.
Kevin Abbott, chief executive, said: "The reason for the dividend cut is that we have a large number of new projects with existing customers in the pipeline." He said the group had to preserve its financial capacity to exploit new opportunities.
Analysts were surprised by the cut but said it did little harm to an already bombed-out stock. Tim Sedgwick of Henry Cook predicts earnings per share of 8.4p in 1999, putting the group on a forward p/e of just six; potentially a good investment but not without risk.
- 1 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 2 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
PornHub turns masturbation into energy in bid to save the planet
Spiritual leader allegedly manipulated 400 men into removing testicles to be 'closer to God'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
'This is what Islam tells us to do': A rare glimpse inside a Saudi Arabian prison – where Isis terrorists are showered with perks and privileges
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
iJobs Money & Business
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...