Makro acquisition to boost Booker

Getting on with the job of integrating Makro should deliver greater buying power, operational efficiencies, better prices and a wider choice for customers - it's also expected to add £10m to operating profit this year. It will give Booker access to a number of smaller business customers as well, to which it hasn't had exposure before. "Makro serves smaller companies such as hairdressers, accountants and builders," says chief executive Charles Wilson. "These are a vibrant part of UK economy, and if the country is to grow, it will come out of SMEs."

Meanwhile, the headline results were impressive - particularly given the impact of the extra reporting week in 2012. Strip this out and pre-tax profit rose 13 per cent in the year, with like-for-like sales having grown 3.3 per cent. Product mix and cost controls widened the operating margin by 0.18 percentage points to 2.48 per cent, too.

Catering sales grew 4.9 per cent to £1.28bn, while sales to retailers nudged up 2.2 per cent to £2.62bn - helped by a 13 per cent sales rise at Chef's Larder to £207m and 11 per cent sales growth at Booker's retail chain, Premier. Booker is also harnessing the power of the internet and online sales grew 11 per cent to £704m. Additionally, five more business centres will be spruced up to the fresher 'extra' format this year, bringing the total to 150 out of 172, with a one-year conversion payback. In India, meanwhile, two further branches are set to be unveiled - Booker boasts 12,000 customers and 185 Happy Shopper retail outlets there.

UBS expects adjusted EPS of 4.7p (4.85p in 2013).