Good news from Alliance Boots - with a warning
Friday 15 January 2010
Andy Hornby, the chief executive of Alliance Boots, yesterday said that the group’s 10.2 per cent revenue hike in the three months to the end of December was a “fantastic effort,” but warned that trading in 2010 would be tough.
The group, which is largely owned by US private equity firm Kohlberg Kravis Roberts (KKR), said that its retail division —Boots’ chemist shops on the high street — had seen revenues jump by 5.1 per cent in total, and 4.6 per cent on a like-for-like basis. The private company does not publish or disclose profit numbers.
Alliance Boots’ figures come after a bumper reporting season for the retail sector, with companies like Marks & Spencer, Tesco and J Sainsbury all reporting robust Christmas trading periods.
“The group’s financial position remains strong, reflecting a continuing focus on profit generation and working capital management and the benefits of low interest rates,” Mr Hornby, the former chief executive of the failed bank HBOS, said in a letter to Alliance Boots’ staff.
However, Mr Hornby also warned the 2010 would be a tough year for the company. The reintroduction of the 17.5 per cent VAT rate, the spectre of rising unemployment and public sector spending cuts are all likely to weigh on the high street over the coming year.
Regardless of economic concerns, Mr Hornby said he was confident that the group would meet its targets. The company does not disclose what the targets are, however.
Alliance Boots, which had been a member of the FTSE 100, was bought by KKR at the height the leverage finance binge in 2007, for a figure thought to be around £12bn.
Easter egg hunt horror as mother finds dead body under deck of house
Missing Malaysia Airlines Flight MH370: Wreckage could be found within a week as search reaches 'very critical juncture', says minister
Unbeliebable: The White House offer 'no comment' to anti-Justin Bieber petition
Loch Ness Monster found on Apple Maps?
Royal Tour 2014: Is the Duchess of Cambridge the only person ever to climb into a fighter jet wearing a dress and high heels?
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Refugee facing deportation from Sweden saved by fellow passengers refusing to let plane leave
- 1 Easter egg hunt horror as mother finds dead body under deck of house
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Unbeliebable: The White House offer 'no comment' to anti-Justin Bieber petition
- 4 Loch Ness Monster found on Apple Maps?
- 5 How We Met: Alison Moyet & Emma Kennedy: 'I knew we'd be friends because she was happy to make a prat of herself'
iJobs Money & Business
Negotiable: Harrington Starr: Database Team Lead ( Leadership, Sybase, Compute...
£40000 - £50000 per annum + Bonus+Benefits+Package: Harrington Starr: C#.NET D...
£25000 - £35000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET S...
£45000 - £55000 per annum + Bonus and Benefits: Harrington Starr: Trade Suppor...