Investment column: BAA sales struggle to take off as shares languish on runway
Tuesday 02 November 1999
In the three months to 30 September, profits fell 17 per cent following duty free's abolition on 1 July. The United States operations went into the red in the half year amid increased competition. Meanwhile, the group took a pounds 147m goodwill writedown for the US and the troubled Asian operations. Overall underlying pre-tax profits were flat year-on-year. BAA shares took a 25 per cent drop on the back of the October profits warning, so is all the bad news out now?
Mr Hodgkinson is bullish. He believes BAA will eventually win permission for a fifth terminal at Heathrow. He sees solid passenger growth in the UK, fuelled by the growth of low-cost airlines whose passengers spend their savings in his shops. Indeed, UK passenger numbers rose 5.1 per cent in the half-year. There are plans to add 150,000 sq ft of retail space, boosting the total by 15 per cent. The Heathrow Express is set to post maiden profits in its first full year of operation and full-year results should also benefit from pounds 60m proceeds from disposals, more than twice the expected figure.
However, BAA's real task is to eliminate consumer confusion over the current status of the discounts BAA's European shops offer post-duty free. Although Mr Hodgkinson says that the sales trend is now running in his favour, a full recovery is expected to take 12 to 24 months.
Analysts expect full-year pre-tax profits of pounds 520m, including disposals, or 36.3p per share, putting the shares, up 8.5p at 455p, on a forward price/earnings ratio of 13. Yesterday's assurance that things aren't getting worse may have helped to put a floor under the share price, but investors cannot expect great things for a while. Hold.
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 5 Medina: Saudis take a bulldozer to Islam's history
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...