A trading update from cash-and-carry operator Booker (BOK) has revealed yet more solid growth. In the 24 weeks to 14 September, the company saw like-for-like sales rise 3.1 per cent year on year, with underlying non-tobacco sales up by an even stronger 3.8 per cent.
IC TIP:
Buy
True, the performance at Makro - purchased in July - continues to be challenging. But once an Office for Fair Trading competition review completes - Booker must operate Makro separately during that review - then management can get on with turning Makro's fortunes around. Indeed, analysts at JPMorgan Cazenove reckon a successful turnaround there could eventually mean a chunky special dividend for shareholders.
