Cash and carry operator Booker (BOK) bucked the trend of retail gloom after reporting impressive half-year progress. Like-for-like sales grew 3.1 per cent in the period, with underlying non-tobacco sales having risen 3.8 per cent. Booker’s acquisition of rival Makro offers plenty of long-term potential, too, which leave the shares - despite a fairly punchy rating - set for further long-term upside.
That’s not to say that Booker doesn't face challenges, however, and integrating the Makro acquisition - purchased from German retail giant, Metro in May - could take time. That's because Booker must operate Makro separately until it has obtained clearance for the deal from competition regulators. Moreover, Makro itself isn't in great shape - its sales are expected to slide 9.1 per cent in the year to end-December and post an operating loss of £18m. Assuming Booker can get to work on Makro from January - and that’s not certain - management reckons the business will slice £10m from the group’s full-year profits.