Investment: Northern is worth a spin
Wednesday 30 September 1998
The reason, it says, is that when you are in Northern's key target market of 18-25 year-olds, "you don't stay home on a Saturday night with Mummy."
This may be true, but during the summer months they didn't go to Northern's discos either. Like-for-like sales dipped alarmingly in June and remained in negative territory in July and August, albeit on a recovering trend.
Northern blames the slump on the strong pound which it says tempted more youngsters to save up for a foreign holiday.
Those that remained in Britain were still downing the Bacardi and Cokes at the same rate, and the average spend in Northern's 57 nightclubs actually rose from pounds 6.60 to pounds 7.26.
This doesn't sound much, but Northern targets this end of the market in provincial towns and says its low prices should stand it in good stead if things get tight.
Full-year profits were up an impressive 65 per cent to pounds 14.1m and should rise to pounds 20m this year. With 16 new clubs opened last year and with a good geographic spread, Northern looks a decent bet in the leisure sector.
The shares are down sharply from their near 300p peak in March, but rose 6p to 102p yesterday.
On a forward multiple of just nine they are worth a spin on the dance floor.
- 1 Green village to be bulldozed and mined for lignite in Germany's quest for non-nuclear fuel
- 2 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Teenagers irritable because early school hours mess with their biological clocks
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Isis could become 'world’s first truly terrorist state' and bomb UK with nuclear and chemical weapons, Theresa May warns
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...