Newly-listed distiller Stock Spirits (STCK) has unveiled a strong set of maiden full-year results - but you wouldn't think so by looking at the reported figures. That's because a raft of one-off costs, relating largely to the IPO in October, but also to restructuring and disposals, wiped €15m (£12m) off the bottom line. A further €11m of non-recurring costs, stemming from the legacy of private-equity ownership, contributed to a weaker reported result.
Strip out these factors and cash profits jumped 22 per cent to €83.7m, while the operating profit grew 8 per cent to €62.8m. Finance costs of €58.2m contributed to the pre-tax loss, but with debt cut in the flotation, these costs will drop by more than €30m this year, according to finance director Lesley Jackson.
Stock Spirits manufactures and distributes alcoholic beverages across Central and Eastern Europe. The strategy is to grow organically through product innovation, but also by snapping up other businesses in what remains a fragmented market dominated by local brands. Last year's double-digit sales growth suggests the strategy is already paying off. Analysts at Nomura expect adjusted pre-tax profit to rise 56 per cent to €51m this year.
| STOCK SPIRITS (STCK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 286p | MARKET VALUE: | £572m | |
| TOUCH: | 286-287p | 12-MONTH HIGH: | 311p | LOW: 218p |
| DIVIDEND YIELD: | nil | PE RATIO: | 6921 | |
| NET ASSET VALUE: | 160¢* | NET DEBT: | 14% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 302 | 7.1 | na | nil |
| 2011 | 295 | 21.5 | na | nil |
| 2012** | 292 | 29.0 | 0.20 | nil |
| 2013 | 341 | -8.7 | 0.05 | nil |
| % change | +16 | - | -75 | - |
*Includes intangible assets of €354m, or 177¢ a share **IPO in Oct 2013, so pro forma EPS for 2012 £1=€1.21 | ||||
