Investment: Wiseman makes progress
Tuesday 10 November 1998
Herein lies the problem. Robert Wiseman cannot push the button on building a new plant without guaranteed business with the major supermarket groups. But it is hesitant about adding more volume to an industry which has long been plagued by overcapacity as this tends to damage not just supplier prices, but retail prices too.
So, while Wiseman says it would like to be operational in London by 2001, it may need to concentrate on organic growth or try to link up with another dairy group as part of the sector's painfully slow consolidation.
This said, the business is making good progress. Yesterday's half-year figures showed a 6.5 per cent rise in pre-tax profits to pounds 9.1m. Margins rose from 3.1p to 3.2p per litre and the doorstep milk delivery business, which is in long-term decline across the country, accounts for just 7 per cent of turnover. New contracts with Tesco and Asda will add volume, although at low margins.
The shares closed 3p higher at 186.5p yesterday. Assuming full-year profits of pounds 19m, this places the shares on a forward multiple of 12. That is close to their low point since they came to the market in 1994 but, given uncertainty in the industry, the shares are only a hold.
- 1 Unseen Charlie and the Chocolate Factory chapter deemed 'too subversive' released
- 2 Ebola virus: It's ripped through towns – now the deadliest ever outbreak of the virus is heading for Africa's teeming cities
- 3 Joan Rivers: 'Palestinians deserve to be dead'
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
Israel-Gaza crisis: YouTube footage shows scale of destruction after 50 days of shelling
iPhone 6 'hidden code' could indicate sharper screens or bigger phones
Keira Knightley topless: Conservative actress does own take on #Freethenipple campaign for Interview Magazine
Joan Rivers: 'Palestinians deserve to be dead'
Ebola virus: It's ripped through towns – now the deadliest ever outbreak of the virus is heading for Africa's teeming cities
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
iJobs Money & Business
£40000 - £45000 per annum: Ashdown Group: An established professional services...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£28 - 32k + Uncapped Commission: Guru Careers: A Business Development Manager ...
£40000 - £70000 per annum + Bonus+Benefits+Package: Harrington Starr: C# .NET ...