Investments: Yates drinks to rise in profits
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.YATES BROTHERS, the Manchester-based chain of wine lodges and eateries, seems to have survived the poor summer weather and the competition from the World Cup better than most, although the share price hardly bears that out.
Profits in the six months to 27 September were up 22 per cent on last year at pounds 6.2m. There has been some belt-tightening by customers, and like for like sales fell 3.2 per cent, but October was a better month than September, according to Peter Dickson, chairman.
The second half should also bring a seasonal upturn in sales, supported by an increase in promotional spending on music and live entertainment.
The scope for raising sales per outlet is limited and future growth depends heavily on opening new outlets, but the group still plans to expand numbers by another 20 per cent in both the current year and next. The shares were clearly overvalued in June when they hit a peak of 558p. But at 289.5p yesterday, down 16p on the day, the stock is still some way off its peak.
Analysts yesterday downgraded forecasts for the current year from pounds 14.3m to pounds 14m and earnings of 18.4p a share, to reflect the dip in like for like sales, but if the planned level of openings is met, pounds 17.5m and earnings of 22.4p look possible next year. On 13-times next year's forecast earnings they look good value in a sector which itself has oversold.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments