After all that, there's a new chief executive at beverage producer Stock Spirits (STCK). Interim boss Mirek Stachowicz is chuffed to have been given the top job, as well as report growth in cash profits across all markets, following a difficult 2015. The group reported a 10 per cent slump in revenues last year and a 36 per cent crash in pre-tax profits amid growing competition and heavy discounting in Poland. What ensued was nothing short of a bar brawl between the board and the company's largest shareholder Western Gate Private Investments, who eventually succeeded in ousting the former chief executive, Chris Heath.
Now the group is looking forward, having successfully installed full management teams across all of its operational territories. This has been particularly important in Poland, where a new managing director, finance director and sales director are all in place. After some criticism, the strategy now revolves around narrowing the price gap between Stock Spirits' products and those of its competitors. This will bring a more significant impact on margins in the second half, although better control of the cost base, including shutting the Swiss office, and lower finance costs should help offset this.
Analysts at Numis now expect pre-tax profits of €34.3m for the year ending December 2016, giving EPS of 11.9¢ (from €28.5m and 8.7¢ in 2015).
| STOCK SPIRITS (STCK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 161p | MARKET VALUE: | £322m | |
| TOUCH: | 161-163p | 12-MONTH HIGH: | 188p | LOW: 92p |
| DIVIDEND YIELD: | 3.6%** | PE RATIO: | na | |
| NET ASSET VALUE: | 178¢* | NET DEBT: | 16% | |
| Half-year to 30 June | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2015 | 108 | 2.0 | nil | 1.25 |
| 2016 | 116 | 12.7 | 0.04 | 2.27 |
| % change | +7 | +548 | - | +82 |
Ex-div: 1 Sep Payment: 23 Sep *Includes intangible assets of €357m, or 178¢ a share **Does not include special dividend worth 11.9¢ a share paid in July 2016 £1=€1.17 | ||||
