Investment: Game's plan is short of value
Thursday 20 August 1998
Yesterday they shed another 3p to 178p in spite of maiden full-year results which showed a jump in pre-tax profits from pounds 406,000 to pounds 7.2m.
This fall is less about the business itself and owes more to the hammering second-line stocks have been taking. Electronics Boutique, Game's main rival, has also suffered, and the high street is not exactly flavour of the month with investors.
Game's figures certainly look encouraging, though. Like-for-like sales soared by 46 per cent during the year, boosted by Sony Playstation and the launch of the rival Nintendo 64 games console at the beginning of 1997.
In current trading, same-store sales are still up by 11 per cent and the new 120-bit Sega machine is due out later this year or early next.
Store openings are continuing, with nine added in the year to take the total to 66. Game's plan is still to have 120 by May 2001.
On current-year forecasts of pounds 10m the shares trade on a forward rating of 19. That looks a bit high even after recent weakness. There's better value elsewhere in the retail sector.
- 1 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 2 'Do not give them a reason': Baltimore man divides police and rioters in hope of avoiding violence
- 3 X Factor in crisis as numbers of people auditioning plummets
- 4 Baltimore riots: Furious mother marches her son home live on TV
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Tories sack candidate who said she would never support 'the Jew' Ed Miliband
Bali Nine executions: Indonesia confirms killings of Andrew Chan and Myuran Sukumaran will go ahead
The four utterly contradictory polls that tell the story of this election and why it is pointless trying to predict the outcome
General Election 2015: Prospect of Labour-SNP coalition makes one in four voters less likely to support Ed Miliband, says survey
Baltimore riots: Furious mother marches her son home live on TV
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
EU exit would hit UK economy much harder than neighbouring countries, study finds
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
iJobs Money & Business
£Basic (OTE) + Uncapped Commission: Guru Careers: A Stockbroker (qualified / p...
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...