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Booker Group
10:30 05 Jul 2017
Booker shares gain after reporting first quarter sales
growth amid Tesco takeover probe
Booker Group plc (LON:BOK) proposed a special dividend after "another good
quarter" as competition authorities continued to review its planned takeover by
Tesco plc (LON:TSCO).
Price:
188.20p
Market Cap:
£3,355.22M
1 Year Share Price Graph
The UK's largest wholesale operator, which also owns the Budgens, Premier
and Londis stores, reported a 4.0% rise in total sales in the first quarter to 16
June, as a 9.4% increase in non-tobacco sales offset an 8.2% drop in tobacco
sales. Tobacco sales continued to be adversely affected by changes in
legislation, Booker said.
On a like-for-like basis, sales grew 4.2% with non-tobacco up 9.6% and
tobacco down 7.9%.
Share Information
Chief executive, Charles Wilson, said: "Overall Booker Group had another
good quarter. Favourable weather and the late Easter assisted this growth."
Code:
Listing:
52 week
He added: "Booker Direct, Chef Direct, Ritter and Booker India performed as
we expected. Premier continues to grow and we continue to make good
progress with Budgens and Londis."
Sector:
Website:
The group has recommended a special dividend of 3.02p per ordinary share at
a cost of £54mln on top of the final dividend of 4.97p. Shareholders will vote on
the proposed dividends at the company's annual general meeting today.
BOK
LSE
Low
161.25p
High
218.5p
Food & Drug Retailers
www.booker.co.uk
Company Synopsis:
Shares rose 3.75% to 191.10p in late morning trading.
Booker Group is a United Kingdom-based
wholesaler for caterers, retailers and
business. The Company supplies 258,000
catering businesses and 72,000 retailers
and operates 172 cash and carry outlets.
Booker's planned Tesco merger under review
On its planned £3.7bn Tesco tie-up, the company said it would not be making
forward looking statements for the duration of the offer period.
Author:
Proactive Investors Ltd
+44 (0)207 989 0813
The Competition and Markets Authority is currently reviewing whether the
merger could reduce choice for shoppers and for Booker's small stores.
[email protected]
Since the companies announced the deal in January, some of Tesco's shareholders have voiced their opposition to the
takeover. In March, Schroders - one of Tesco's biggest investors - said it felt the company was paying a premium for
Booker and that the deal would distract it from its turnaround plans for its core supermarket business.
Booker's first quarer trading 'outstanding', says Shore Capital
Shore Capital said Booker's first quarter trading update was "outstanding", which implies "upgrade potential".
However, the broker said the performance of Booker's share price is largely dependent on the outcome of its proposed
merger with Tesco.
"If the Tesco merger goes through then in time Booker shareholders may participate in the ongoing recovery of Britain's
leading supermarket chain," ShoreCap said.
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"However, even with this excellent trading momentum recorded in Q1, should the CMA put a spanner in the works then
we see Booker shares losing a lot of rating, possibly a third, and hence we retain our 'sell' recommendation."
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The Business Centre 6 Wool House, 74 Back Church Lane
London, E1 1AF
United Kingdom Company No. 05639690
VAT No. 87207082