Booker expansion bears fruit

Booker has again provided some light amid the retail gloom. Progress at the cash-and-carry wholesaler has been driven by chief executive Charles Wilson’s strategy of improving the choice, price and service it offers to its customers, many of whom are finding life tough.

    Expansion in catering is particularly bearing fruit. With the shares at 78.45p, up 7.5 per cent, the premium to the supermarket sector looks justified, given the continued strengthening of Booker’s balance sheet – it had net cash of £63.4m at the year end, compared with £27.1m at March 2011.

    The consensus of analysts’ forecasts of earnings before interest in the year to March 2013 is also expected to increase from £95.6m to £97m.

    Year to March 30 2012 % change
    Sales £3.93bn +9.4
    Pre-tax profit £90.8m +27.2
    EPS 4.74p +25
    Dividend 2.28p +37

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