The Investment Column: Allders
Wednesday 01 December 1999
At the same time it emerged Allders was in talks with Minerva, the property group, over plans to redevelop its flagship store in Croydon.
Its chief executive, Harvey Lipsith, yesterday said the group remains open to merger talks, as he unveiled a slump in full-year profits from pounds 19.4m to pounds 14.6m. Indeed, he says the department store sector needs consolidation to improve buying power and cut costs. He did not rule out further talks with House of Fraser.
Given all this, what value should the market be placing on Allders? There was good news on trading yesterday with a 4.6 per cent drop in like-for- like sales in the full year, improving to a 3.2 per cent increase in current trading. This was helped by shifting the balance of sales towards fashion ranges and away from heavy goods such as furniture and carpets. The performance would have been even better had it not been for the opening of the huge Bluewater shopping mall in Kent, which Allders estimates knocked 2 per cent from the like-for-like figures.
The shares have been underpinned by a property revaluation which has valued the portfolio at pounds 85m or 109p per share. This compares with yesterday's share price of 136.5p, down 6p on the day. It also excludes any benefit from the Croydon plan, which could see Allders sell its flagship store for development while leasing a new store in an extended new shopping centre instead.
Retailing may be a dog of a sector right now but assuming current year profits of pounds 14m, the shares trade on a forward multiple of 12 and yield 6 per cent. A solid hold.
Emergency call 'started off dumb, but got pretty serious'
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Animal welfare charities have urged the boy band to cut the scenes
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...
£100 - 125k: Guru Careers: A CTO / Chief Technology Officer is needed to join ...
Competitive (DOE): Guru Careers: A COO / Chief Operating Officer is needed to ...