The Investment Column: Drinks group well served
Friday 22 May 1998
This wheeling and dealing has made a nonsense of comparing last year's earnings with this. But ignoring all the exceptionals, underlying profits at the businesses it has got left rose 10 per cent.
But even after the radical restructuring, Bass cannot afford to rest on its laurels. Consumer demand in the UK and US is already showing signs of flagging. And in a beer industry that is seemingly in a never-ending decline, Bass has to run hard just to stand still.
That said, Bass highlighted the pattern that has emerged during the drinks results season that the industry heavyweights are performing much better than the regional players.
Relief that Bass had managed to secure the Inter-Continental deal caused its shares to rise sharply earlier this year, although, along with the rest of the sector, the shares have come off in recent weeks over fears that poor Easter weather would dent publicans' profits.
Bass's shares rose 17p to 1087p yesterday. On analysts' current-year profit forecasts of pounds 700m, which put the shares on a prospective PE ratio of 17, Bass is now trading on around a 10 per cent discount to the market. In the short-term, the upside in the share price looks limited. But Inter- Continental is a great buy and Bass's vast pounds 800m capital expenditure programme should keep it among the top industry performers. Solid long-term value.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 4 How the language you speak changes your view of the world
General Election 2015: Fishing is on Nigel Farage's mind as he casts a line to the disaffected of Grimsby
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...