Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Booker Group: UBS raises target price from 112p to 127p, while leaving its buy recommendation unaltered.
progressing well. http://www.halifaxmarketwatch.co.uk/security.cgi?csi=104136&action=news&story_id=20628391&rns=1
CC expects to deliver 'verdict' on 24th April.
Anyone any idea of the time frame before a verdict and anyone any opinions on the result ?
referred to the Competition Commission. market unconcerned. http://www.oft.gov.uk/shared_oft/mergers_ea02/2012/booker.pdf
The UK's biggest cash and carry chain, Booker Group, has seen its share price suffer after revealing that the Office of Fair Trading has decided to refer the company's completed acquisition of Makro UK to the Competition Commission. In a statement the firm said: "Booker looks forward to working with the Competition Commission through the inquiry. Makro UK will continue to be held separate from the rest of Booker until the inquiry is complete."
30-Oct-12: Investec Securities - Buy. Target price108
Booker: Panmure Gordon keeps buy rating and 108p target.
Panmure Gordon has retained its 'buy' rating for cash and carry chain Booker after the firm's better-than-anticipated interim results and synergies expected from the Makro deal. The broker said that since returning to the stock market, Booker has delivered strong earnings and dividend growth and cash generation. "We think that the addition of Makro will enhance Booker's growth and we remain buyers of the shares with a target price of 108p."
Commenting on the results, Charles Wilson, Chief Executive of Booker, said, "Our plan to Focus, Drive and Broaden Booker Group is on track. We improved choice, price and service for our customers, which increased sales by 3.3%. Booker Direct, Ritter Courivaud and Classic are performing well and Chef Direct has got off to a great start and the increase in the interim dividend is evidence of the Board's confidence in the outlook for Booker. Subject to competition clearance Booker and Makro will be able to improve choice, prices and service for caterers, retailers and small businesses in the UK. Once integrated, Makro will prove a good addition to the Booker Group."
Operating Highlights · Customer satisfaction has improved which has driven like-for-like sales · Conversion of another 3 branches into the 'Extra' format, taking the total number of 'Extra' branches to 145 · Internet sales +10.7% to £332m (2011: £300m) · Booker Direct, Ritter Courivaud and Classic are performing well · Chef Direct is becoming the new force in foodservice · Following competition clearance, Booker and Makro will seek to become the UK's leading wholesaler to caterers, retailers and small companies · Our 3 branches in India are on track and we expect to open 2 more branches in the second half Outlook Group turnover in the second half to date (excluding Makro) is ahead of the same period last year. Working capital levels and costs are in line with plan. Overall, Booker Group plc continues to trade in line with management expectations.
This announcement contains the interim results of Booker Group plc ('Booker') for the 24 weeks ended 14 September 2012. We acquired Makro Holding Limited and two subsidiaries; Makro Properties Limited and Makro Self Service Wholesalers Limited, ('Makro') on 4 July 2012. We have notified the transaction to the Office of Fair Trading ('OFT') and the competition review process is ongoing. Until this review is complete, we are required to hold the Makro business separate from the rest of Booker and the results of Makro are, therefore, not reflected in these results but are treated as an investment. Financial Highlights (Makro not consolidated) · Total sales £1.9 bn, +3.3% · Like-for-like sales were +3.1%: - non-tobacco +3.8% - tobacco +1.8% • Like-for-like sales to caterers were +4.7% and to retailers +2.2% • Operating profit (pre £3m exceptional charge related to Makro acquisition costs) +12.4% to £51.6m (2011: £45.9m) • Profit before tax (post exceptional charge) +13.3% to £51.0m (2011: £45.0m) • Profit after tax (post exceptional charge) +13.0% to £40.8m (2011: £36.1m) • Basic earnings per share (post exceptional charge) +6.4% to 2.50p (2011: 2.35p) • Net cash £69.8m (2011: £58.7m), after spending £15.8m on the cash element of the Makro consideration • Interim dividend per share up 15.2% to 0.38 pence (2011: 0.33 pence) • Subject to obtaining competition clearance, we expect Makro to reduce Group operating profit in 2012/13 by £nil to £10m, and increase operating profit in 2013/14 by circa £10m
http://www.investegate.co.uk/Article.aspx?id=201210180700089527O
Booker is a well run company, but operates in a low margin business. The chart is beginning to weaken. Whether this means the end of what has been a very good run is anybody's guess. I suppose a lot will depend on how the management integrate Makro
Makro, a business the firm acquired in early July, has been struggling for the past few years and its performance in the past ten weeks has continued to be challenging. Charles Wilson, Booker Chief Executive, said: "Booker Wholesale and Booker Direct have had a good start to the year as we continue to improve choice, price and service. We are confident that once we have clearance from the competition authorities, Booker and Makro will be able to improve choice, prices and service for the caterers, retailers and small business in the UK. Makro will prove a good addition to the Booker Group." The firm added: "The senior management of Booker and Makro are confident that, by working together, we will be able to improve choice, prices and service to the caterers, retailers and small and medium sized enterprises that we serve. We will be able to offer foods and non-foods via the internet, delivery and cash and carry. This will help Booker Group in its ambition to become the UK's leading wholesaler."
Food and drink wholesale group Booker Group has reported a 4.3 per cent year-on-year rise in total sales in the 12 weeks to September 14th, with non-tobacco sales 3.9 per cent higher, while tobacco sales rose by 5.1 per cent. On a like-for-like basis, total sales rose by 4.4%, non-tobacco sales by 3.8% and tobacco sales by 5.4%, with the latter significantly ahead of the decline of 1% predicted by Peel Hunt. The broker's forecast for non-tobacco sales was also slightly off the mark, having predicted a rise of 4%. Total sales (excluding Makro) in the 24 weeks to September 14th rose by 3.3% on the same period last year. Non-tobacco sales were 4.2% higher, while tobacco sales rose by 2.0%. On a like-for-like basis total sales rose by 3.1%, non-tobacco sales by 3.8% and tobacco sales by 1.8%. The results were boosted by a good performance by Booker Wholesale, the cash and cash division, which saw an improvement to customer satisfaction, higher customer number and sales which matched expectations. Booker Direct, its delivered wholesale division, also had a good half, while Ritter Courivaud, the speciality foods business, performed well. Classic, the on-trade wholesaler, had a good period and has been rolled out into a further five Booker branches. Chef Direct, the foodservice business it launched in January, is making good progress having secured several catering accounts.
Charles Wilson, Chief Executive, said: "Booker Group continues to make good progress, with like-for-like non-tobacco sales up 3.8% in quarter one. Our plans to focus, drive and broaden the business remain on track. We are pleased to have the team at Makro UK as part of Booker Group. Together we look forward to improving choice, prices and service for all our catering, retailing and small business customers in the UK."
Booker Group plc ('Booker Group') Annual General Meeting and Quarter One Interim Management Statement For the 12 weeks to 22 June 2012 Booker Group is a leading UK food and drink wholesaler. Booker Group is holding its Annual General Meeting at 11am today. At the meeting, Chief Executive Charles Wilson will read out the following Interim Management Statement: "Non tobacco sales rose by 3.9% (3.8% on a like for like basis) whilst tobacco sales fell by 1.7%. Tobacco has been adversely impacted by the phasing of duty mark up versus a year ago. Total sales in the 12 weeks to 22 June 2012 rose by 1.7% on the same period last year (1.7% on a like-for-like basis). After a good start, we anticipate that Booker Group is on course to meet expectations for the year ending 29 March 2013. The acquisition of Makro UK completed on 4 July 2012, post the end of the first quarter."
http://www.investegate.co.uk/Article.aspx?id=201207180700058893H
Cash and carry king Booker gives an update covering its fiscal first quarter. The shares trade on a heady price/earnings ratio of 18.1, so there is the possibility of share price punishment if there is even the faintest whiff of disappointment. Peel Hunt is forecasting 2% year-on-year like-for-like sales growth for non-tobacco products but thinks tobacco revenue will be down from a year earlier. "Trading at the start of the period was held back by the miserable summer weather. Tobacco will also have been poor due to the high duty increase, which is likely to have led to increased evasion. Tobacco makes little contribution to profits as it is very low gross margin," the broker noted.
Napolean Bonaparte dismissed the English as a nation of shopkeepers; and, if little has changed in the two centuries since, that's good news for Booker. It's the UK's largest cash-and-carry operator, serving 400,000 small shopkeepers and caterers, and is set to get bigger still when it acquires rival Makro from German food retail giant Metro, a deal that City analysts enthuse over as "transformational". Makro will add more than 1m customers in the UK, £800m of sales and a significantly broader product range. What's more, it has been acquired on favourable terms, the consideration of just under £140m will be largely satisfied through issuing new shares. True, that will dilute the interest of existing shareholders, but they approved the deal this week. They're right to back it. Makro is currently loss-making, which means Booker's earnings this year will take a 10 per cent hit. But analysts reckon that the acquisition could add a fifth to earnings by 2015 as Booker exploits synergies and implements operational improvements. The deal also brings over £60m in tax losses, £200m in freehold assets, and - perhaps most interesting - a heavyweight shareholder in Metro. The German retailer will end up owning 10 per cent of Booker and is locked in for a year, but some analysts suggest it's likely to remain on the shareholders' register for the long term and will work closely with Booker on big projects. Clive Black at broker Shore Capital ponders whether the two will collaborate in India, where Booker has made small but successful steps to open wholesale depots servicing small 'kirana' store customers in Mumbai and Pune.
that was a nice buy timed at 16:35
COMPLETION OF ACQUISITION OF MAKRO UK Further to the announcement made on 2 July 2012 that the resolution to approve the acquisition of Makro UK was duly passed at the General Meeting held on 2 July 2012, the Board of Booker is pleased to announce that it has today completed the acquisition of Makro UK.
http://www.investegate.co.uk/Article.aspx?id=201207040818088754G
Full-year forecasts from broker Shore Capital point to the delivery of £81.5 million profits and earnings of 4.2p, placing the shares on a punchy-looking prospective price/earnings multiple of 19.4. The strongly cash-generative company, with nearly £59 million net cash in the coffers at last count, has real momentum behind it and a track record of beating forecasts, so this premium rating is more than merited