Half-year results from Stock Spirits (STCK) were dubbed a “credible performance” after revenue growth of 5.3 per cent and EPS growth of 9.1 per cent came in comfortably ahead of expectations. But that doesn’t mean it has enjoyed an easy ride. Conditions remain challenging across many of the group’s core markets – especially the Czech Republic and Italy – although Poland looks more stable. There, the group managed to grow sales by 4 per cent at constant currencies despite an intensely competitive pricing environment. Crucially, upgraded expectations for that market have helped to underpin full-year guidance.
The group is changing its financial year-end from 31 December to 30 September to make sure a large proportion of sales – as much as 40 per cent – fall into the first quarter of its financial year as opposed to the last. Chief executive Mirek Stachowicz says this will allow for better negotiating power with suppliers and provide clearer visibility over advertising budgets and campaigns ahead of the all-important festive trading season. Come September, pro-forma figures will be provided for a 12-month trading period and, for now, analysts at Numis still expect pre-tax profits of €44.8m (£40.4m), equating to EPS of 16.9¢, compared with €42.2m and 15.6¢ in 2017.
| STOCK SPIRITS (STCK) | ||||
| ORD PRICE: | 214p | MARKET VALUE: | £ 428m | |
| TOUCH: | 214-215p | 12-MONTH HIGH: | 320p | LOW: 158p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 36 | |
| NET ASSET VALUE: | 172¢* | NET DEBT: | 11% | |
| Half-year to 30 June | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2017 | 118 | 15.7 | 5.9 | 2.38 |
| 2018 | 124 | 16.9 | 6.4 | 2.50 |
| % change | +5 | +8 | +9 | +5 |
| Ex-div: | 30 Aug | |||
| Payment: | 21 Sep | |||
| *Includes intangible assets of €352m, or 176¢ a share. £1=€1.11 | ||||
