Greggs' shares jumped sharply after the Chancellor performed a U-turn on the proposed pasty tax, and with one of the key risks to forecasts now gone we're bailing out of our poorly-timed sell advice.
IC TIP:
Hold
at
493p
The unpopular tax would have only raised £110m for the Treasury, but it would have been significant for Greggs, which generates around a third of its revenues from savoury snacks and would have had to either absorb the increase or risk alienating customers by passing it on. However, pastry products marketed as hot or kept in a warm cabinet will still incur VAT.
