When it matters, you can count on Booker (BOK) to come up with the goods. The market punished shares in the food wholesaler earlier this year when like-for-like sales momentum appeared to slow, before moving clearly into negative territory. However, these annual figures delivered sales growth, an 11 per cent increase in pre-exceptional operating profits and a 9 per cent improvement in statutory gains, suggesting Booker's profit-and-loss account is as resilient as ever.
Most of this comes down to volumes and margins. Despite wider industry deflation of roughly 2.5 per cent, Booker pushed volumes up 2 per cent and a 16 basis point increase in margins to 3.11 per cent helped offset a 1.9 per cent decline in like-for-like sales. The group also ended the year with a healthy net cash balance and, following the recent integration of the Budgens and Londis acquisitions, will pay investors a special dividend worth 3.2p a share in return for their help funding the deal in the first place.
Analysts at Peel Hunt still expect adjusted pre-tax profits of £170m for the year ending March 2017, giving adjusted EPS of 7.9p. That compares with £153m and 7.1p in FY2016.
| BOOKER (BOK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 175p | MARKET VALUE: | £3.10bn | |
| TOUCH: | 174.9-175.1p | 12-MONTH HIGH: | 191p | LOW: 146p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 33p* | NET CASH: | £127m | |
| Year to 25 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 3.93 | 91 | 4.8 | 2.3 |
| 2013 | 3.99 | 92 | 4.5 | 2.6 |
| 2014 | 4.68 | 122 | 6.1 | 3.2 |
| 2015 | 4.75 | 139 | 6.7 | 3.7 |
| 2016 | 4.99 | 151 | 7.2 | 4.0 |
| % change | +5 | +9 | +8 | +10 |
Ex-div: 9 Jun Payment: 8 Jul *Includes intangible assets of £467m, or 26p a share | ||||
