The Investment Column: Kwik-Fit finds new markets
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.KWIK-FIT'S pledge to give "100 per cent customer delight" has also been applied to its shareholders. Under the astute leadership of Tom Farmer, the group's irrepressible chairman and chief executive, its shares have outperformed the market by more than 85 per cent over the last five years.
There was never any doubt that Kwik-Fit was a master of fitting new new tyres or fixing dodgy exhausts. There was a nagging worry, however, that it would struggle to continue to grow so rapidly as its chain of centres reached saturation point in the UK.
But Kwik-Fit has shown it can use its brand name to tap into new markets. Its motor insurance has taken off in a big way. The group has been able to use its captive customers to peddle new policies and sales are expanding apace. That could just be the beginning. Kwik-Fit believes it can eventually supply any service related to motoring. And expansion into Continental Europe is continuing apace.
The shares leapt 79p to 511p yesterday as the group announced that pre- tax profits motored ahead 27 per cent to pounds 55m in 1997, smashing City forecasts. Analysts have upgraded current year profits to around pounds 63m, putting the shares on prospective p/e ratio of more than 20. After such a sharp rise Kwik-Fit shares are not cheap and insurance profits are still unpredictable. However the shares are a solid long term hold.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments