Booker reports good growth and remains attractive for investors

As food and drink wholesale group, Booker, updates the market Sheridan Admans, investment research manager at The Share Centre, explains what it means for investors.

"Booker released a trading update this morning ahead of its interim results on 18 October that indicated the group continues to progress well and has had a good first half of the year. In the 12 weeks to 14 September total sales rose 4.3%, with non-tobacco sales 3.9% higher than the same period last year, supported by continually improving customer numbers.

"Growth seeking investors will be pleased to hear the group's two branches in India are performing well and it expects to open a further two in the region in the second half of the year.

"Investors didn't receive much of an update on the acquisition of Makro, other than the competition review process is still on-going. Booker and Makro's management teams remain confident that by working together they can improve choice, price and service to caterers, retailers and other small and medium size businesses.

"We continue to recommend Booker as a ‘buy' for investors looking for a growth opportunity in the food and drug sector. The Makro take over should enable the group to expand its consumer base and product range. As Booker develops its business and diversifies its revenue streams we are becoming more confident of the risk investors face investing in this stock. However, we remain cautious over the UK as the impact of Government austerity measures may start to be felt and India is of no significant size yet to offset this concern."

For more information, visit share.co.uk.