The Investment Column: AG Barr success story continues
Thursday 08 January 1998
Still, given the recent performance of the shares there are unlikely to be any complaints. The stock has jumped from 320p at the beginning of last year to 451p, up another 12.5p yesterday. And the good news continued yesterday with a thumping set of figures for the 12 months to 25 October.
In effect they were a second set of interims as the company is changing its year end. They showed a huge jump in pre-tax profits from pounds 5m to pounds 10.8m on turnover up just 7 per cent, beating all analysts' forecast by some margin.
The main reasons for the increase were lower sugar prices helped by the strong pound and halving of the price of plastic bottles used in manufacture over the last 18 months. A further pounds 1m in costs savings came from the benefits of operating from the new factory in Cumbernauld in Scotland. The good news on costs is that plastic bottle and sugar prices are still low and the company feels there is scope for more efficiency gains at the new plant as it beds down.
It wasn't just a cost story. UK sales of AG Barr's own brands rose 7.5 per cent, although sales growth has slowed in recent weeks.
The key to AG Barr's longer term success is its invasion of the English market. Its Irn-Bru brand has a huge market share in Scotland but is only just starting to make progress south of the border.
Another potential problem is the recent decision by Pernod-Ricard to sell Orangina to Coca-Cola. However, as AG Barr has a franchise agreement to bottle and distribute the brand in Britain until December 2002 this issue is five years away.
On Greig Middleton's 15-month forecast of pounds 11.3m, the shares trade on a forward rating of 11. AG Barr remains a minnow in a market dominated by giants but at these levels the shares look decent value.
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
- 3 Are you ready for Crazy Doritos, the red-hot snack food craze sweeping Mexico’s streets?
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Isis in Kobani: US resupplies Kurdish fighters by plane - then Turkey allows reinforcements through its border
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
London bus driver allegedly kicks gay couple off for kissing
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...