The investment column: Glenmorangie
Thursday 20 May 1999
THERE WAS nothing watered down about distiller 's annual results statement, which caused downgrades in City forecasts for profits next year.
The shares were unmoved at 597.5p, having steadily fallen from a high of pounds 10.15 in 1997. They took a tumble in March after the company revealed it had overestimated stock levels needed to satisfy its markets.
is focusing on building its core brand, which is growing sales worldwide. The group has lifted advertising spend to pounds 8.7m. It will no longer supply whisky to other blended whisky producers - if the marketing drive pays off it will need the stocks for its own brand.
But income will continue to come from supplying whisky to others' own brands. 's presence in a handful of regional blended whiskey markets worldwide will keep overheads down.
This all makes sense, but 's top brand takes 10 years to mature so the real upside is some way off. Things will get worse before they get better. The industry is braced for bad news when the future of duty free is resolved.
Sales last year fell pounds 3.5m to pounds 45m, with pre-tax profits down pounds 1.4m at pounds 7.3m. Earnings per share fell 13 per cent to 38.5p. Earnings growth is not expected to return until 2001.
Housebroker Credit Suisse First Boston has dropped its forecast for 1999 pre-tax profits by pounds 1.1m to pounds 6.5m. Forecast earnings per share are 34.3p, giving a forward p/e of 17. But that is not especially cheap given the hefty investment that lies ahead and the continuing concerns over duty free.
- 1 Scientists create transparent mouse complete with see-through organs
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 Israel's propaganda machine is finally starting to misfire
- 5 Amazonian Indian tribe filmed making contact with Brazil village in rare video footage
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...