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 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 3 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 4 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
- 5 The Greece debt crisis explained in less than 100 words
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Tube strike July 2015: Is it still on? Everything you need to know about the industrial action
Eiji Tsuburaya: Godzilla co-creator honoured in today's interactive Google Doodle
Florida teacher sentenced to 22 years in prison for sexually abusing three pupils
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...