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.
International Women's Day 2014: The shocking statistics that show why it is still so important
Feminist quotes to inspire you on the International Women's Day
Oscar Pistorius trial first week: Never mind a media scrum – murder case becomes bizarre safari following the tracks of a wounded lion
International Women's Day 2014: Mothers and daughters around the world describe hopes and dreams in touching photographs
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Apple's Tim Cook: Business isn’t just about making profit
Thousands of young people forced to go without food after benefits wrongly stopped under 'draconian' new sanctions regime
Ukraine crisis: New navy chief 'defects' and surrenders Crimean HQ as Putin claims ultranationalists forced intervention
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
- 1 To those who can’t see the point of International Women’s Day: you are the very reason it exists
- 2 International Women's Day 2014: The shocking statistics that show why it is still so important
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Too upsetting? Academy members voted for Oscar-winning 12 Years A Slave 'without watching it'
- 5 Liam Neeson turned down James Bond role because Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...