Booker continues to attract growth seekers

As Booker updates the market on with Q4 trading figures Sheridan Admans, investment manager at The Share Centre, explains what it means for investors.

"The trading update this morning showed Booker has continued to make good progress as it delivers its strategy to "focus, drive and broaden" its business. Total sales were up 7.3% for the year to £3.9bn and rose 4.8% in Q4. Booker also saw a significant rise in its net cash position, which rose to £63m from £27m in 2011.

"Growth seekers will be pleased to hear the company's expansion into India continues to progress well, following the opening of its second branch in Mumbai. The success of Booker's Indian operations is one of the reasons we believe its share price has further to go.

"We recommend Booker as a ‘buy' for investors looking for a growth opportunity in the Food and Drug sector. The company attracted 22,000 more customers in 2011 and we are becoming more confident in the stock as Booker develops its business and diversifies its revenue streams. However, investors should be aware that austerity measures may impact the group and India is not yet a significant size to offset this concern."