Booker's shares may be highly rated, but looking at its latest full-year results it's not hard to see why. At a time when consumer-facing supermarkets are struggling, the cash-and-carry operator managed volume-driven like-for-like sales growth of 6.1 per cent in the year to March – more importantly, strong cash generation meant net cash continued to rise, underpinning a hefty 39 per cent increase in the final dividend.
Chief executive Charles Wilson puts this success down to a very clear focus on improving the quality of its ranges and service. And with conversion of 142 its 172 stores to a large 'Extra' format complete, Booker has been better able to showcase its improved offering, driving strong growth of own label ranges such caterers brand Chef's Larder and value brand Euroshopper, which grew sales by a third.
As well as upgrading its stores, Booker continues to grow its delivered business. Internet sales climbed 21 per cent to £635m, and the group has also now opened its new Chef Direct distribution centre which will enable it to target large pub and restaurant chains, a segment of the market which Mr Wilson admits that the group is not currently doing enough business with.
Broker Investec expects pre-tax profits of £92m and EPS of 4.7p in the year to March 2013 (from £83.5m and 4.4p last year).
| BOOKER GROUP (BOK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 77p | MARKET VALUE: | £1.21bn | |
| TOUCH: | 76-77p | 12-MONTH HIGH: | 86p | LOW: 63p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 24p* | NET CASH: | £63.4m | |
| Year to 30 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 3.08 | 36.2 | 2.04 | 0.54 |
| 2009 | 3.18 | 47.2 | 2.63 | 0.87 |
| 2010 | 3.39 | 57.2 | 3.19 | 1.27 |
| 2011 | 3.60 | 71.4 | 3.90 | 1.67 |
| 2012 | 3.93 | 90.8 | 4.83 | 2.28 |
| % change | +9 | +27 | +24 | +37 |
Ex-div: 6 Jun Payment: 20 Jul *Includes intangible assets of £437m, or 28p a share | ||||
