Yesterday's announcement of an 11.5 per cent increase in pre-tax profits to £21.4m for the year to 31 January was in line with market forecasts. The total dividend is 4.6p, which should rise to 5.05p for 1995/96 to give a prospective yield of 4.98 per cent.
Business is steady as far as it goes. There are very few large in-flight catering contracts coming up for tender this year, and airlines are still squeezing suppliers. Retail operations are sauntering along, and the company is on a learning curve with its fledgling Sky Retailing operation on planes.
There was nothing in the results to warrant a change in previous projections that profits would hit £25m for the current year, putting the shares on a market average multiple of 12.2.
Unless Forte solves the problem by selling its stake, Alpha's short-term share performance is unlikely to be more than pedestrian. The only other possible liftwould come if Alpha managed to buy the catering side of the soon-to-be privatised Qantas state airline in Australia.Reuse content