Bottom Line: Taunton takes heart

TAUNTON Cider has bravely predicted that the damaging 18-month rise by makers of economy brands from obscurity to 10 per cent of the take-home market has levelled.

It is probably right, although it will have to overcome a sustained bout of acid indigestion in the form of pricing pressures on premium brands, a patch it dominates.

However, Taunton's figures for the year to April demonstrate that it has the ability and financial clout to tackle big changes in its markets.

Assuming dividends rise from 6.6p to 7p this year the prospective yield is an attractive 5.6 per cent at 162p. The p/e of 12 is average for the sector and the shares, while coming off analysts' sell lists, do not yet warrant a rerating.