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 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...