The Investment Column: Highland spirits low
Wednesday 01 April 1998
Highland rightly recognises that these days selling whisky is all about marketing and building brand names. To this end it has pumped millions into a new advertising campaign. The jury is still out on whether this will pay off. At the moment all it has done is depress profits, although there are signs that the initiative is having a beneficial effect on sales.
The economic crisis in Asia raises another question mark over Highland's international ambitions. The direct impact on sales has so far been small. But the slump in spirit sales in the region has thrown Remy Cointreau, which distributes almost two-thirds of the group's whisky, into turmoil. Throw in the huge competitive threat of Diageo, formed by the merger of Guinness and GrandMet, and it will not be plain sailing for Highland.
These worries have been reflected in its poor share price performance recently and the shares slipped another 4p to 267.5p yesterday after the group announced virtually flat profits of pounds 25.1m for the six months to February. Analysts forecast full-year profits of around pounds 45m, putting the shares on a prospective p/e ratio of 12. The shares remain a long- term hold, although investors may have to be patient to see the fruits of Highland's investment programme.
- 1 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 2 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
- 5 Narendra Modi: Indian Prime Minister wears suit with pinstripes that spell his name to meet Barack Obama
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Pornhub star Mia Khalifa receives death threats after being ranked the site's top adult actress
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
Leaked documents show Ukip leaders approve NHS privatisation once it becomes more 'acceptable to the electorate'
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...