A combination of returns on capital well in excess of the company cost of capital and strong growth in the invested capital base have created significant levels of shareholder value. With positive forecast momentum and the group yet to see the benefits of Milton Keynes, we increase our target price to 630p
CHARLES PICK NUMIS
AG Barr has again outpaced the overall soft drinks market (first half revenue growth of 5.8 per cent versus market value growth of 4.5 per cent). August trading was OK, but be aware that August of last full year was solid as regarded weather, plus there was an Olympics benefit.
NICOLA MALLARD INVESTEC
Barr has delivered a strong first half performance, despite a fiercely competitive backdrop. It has also successfully completed its new production facility at Milton Keynes. We make no changes to our target price and our recommendation remains add.