Broker snap: Booker's results exceed expectations

Preliminary results from wholesaler Booker were ahead of expectations on at least three fronts according to FinnCap: adjusted pre-tax profit, earnings per share and dividend per share.Furthermore, the move into a net cash position at the end of the reporting period is a further plus point, the broker argues, though it suspects that some analysts would have factored this into their valuations were it not for cautious guidance from the company.The UK market looks like it will be a tough one in the immediate future but the expansion in India has got off to a flyer. "The potential in India, if it all goes well, is clearly substantial," the broker suggests. Though there is a premium in the share price for management FinnCap still thinks the shares look cheap, trading on a projected price/earnings ratio of 11.6 and an enterprise value/earnings before interest, tax, depreciation and amortisation ratio of 6.8 for the year to February 2011.