BEST OF THE BROKERS April 19, 2011 ASSOCIATED BRITISH FOODS Credit Suisse rates the retail group “overweight” with a target price of £10.60. The broker expects underlying group earnings to reach £353m, a rise of 6.6 per cent on last year, when ABF reports half-year results next Wednesday. It thinks like-for-like sales at Primark will be down three per cent, with the [...]
Consumer confidence worrying for everyone March 22, 2011 WHAT do politicians, retailers, the media and market researchers have in common? They are all talking and worrying, about “consumer confidence”. ECONOMY IS BIGGEST ISSUE Over three quarters of the UK population think the economy is the most important issue facing the country and the Bloomberg/YouGov Household Economic Activity Tracker shows 55 per cent expecting [...]
FTSE falls on worry political unrest will increase oil price March 1, 2011 BRITAIN’S leading share index fell one per cent yesterday on concerns that political unrest could spread to top oil exporter Saudi Arabia, pushing crude prices higher and sending oil-sensitive travel firms lower. Brent crude rose 1.8 per cent to above $113 a barrel on a report, promptly denied, of Saudi involvement to try and quell [...]
Labour goes to war over living costs February 28, 2011 THE squeeze on middle earners exploded into a political battle yesterday, after Labour leader Ed Miliband accused the government of imposing a “cost of living crisis for ordinary families… for years to come.” The Conservatives hit back, attacking Labour for causing “the deepest recession since the war” while leading the UK to a record annual [...]
AB Foods hit by slowdown at Primark February 28, 2011 A SLOWDOWN at Primark’s British stores hit the shares of owner Associated British Foods (ABF) yesterday as tax rises and inflation squeezed consumer spending. The budget retailer’s like-for-like sales growth slowed to three per cent in its first half. Primark has been a star performer for the company but with materials like cotton spiralling in [...]
ANALYST VIEWS: CAN AB FOODS CONTINUE TO GROW AS COSTS SHOOT UP? February 28, 2011 CLIVE BLACK | SHORE CAPITAL ABF has revealed more divisions reporting either slowing sales growth or margin pressure than we had anticipated. Such challenges are likely, to our minds, to compress the upward momentum of the shares in the near term. We reiterate our ‘hold’ recommendation. GRAHAM JONES | PANMURE The shares have come off [...]
Banks pull FTSE 100 down while resources make gains February 28, 2011 THE FTSE 100 share index fell slightly yesterday as disappointing results from HSBC and Associated British Foods outweighed strength from miners on optimism about the global economy. The blue-chip index ended 7.19 points, or 0.1 per cent lower, at 5,994.01, after it closed 1.4 per cent higher on Friday at 6,001.20, bouncing back after five [...]
AB Foods profit to rise but Primark stalls February 28, 2011 Associated British Foods said it expects a rise in half-year operating profits despite a slowdown at its discount fashion retailer Primark and flat profits at its UK sugar operations. The London-based company said Primark’s like-for-like sales will be three per cent ahead while its operating profit margins will be lower reflecting a tax hike in [...]
BEST OF THE BROKERS January 23, 2011 ASSOCIATED BRITISH FOODS Deutsche Bank rates the consumer group “sell” with a target price of 950p. The broker has downgraded its earnings per share forecast by two per cent thanks to falling sugar yields after the snow and margin pressure in some divisions. It also warns that Primark’s sales growth is continuing its slow-down. MAN [...]
AB Foods set to hike prices as costs surge January 20, 2011 AB Foods warned yesterday that the spiralling price of wheat, cotton, and other commodities means that shoppers could face price hikes on basic shopping basket goods. The firm, which has brands including twinings Tea, Kingsmill bread and Silver Spoon sugar, said customers had already seen some rises and more were looming. Cost increases have also [...]