News blog
Best of the Best
- BY: Andrew Hore |
- POSTED: 23/07/2009 |
Best of the Best reported a further fall in profits in the second half of the year to April 2009.
The company, which organises competitions to win luxury cars that it displays in airport terminals, reported a fall interim profits from £453,000 to £270,000, while the second half profit contribution declined from £403,000 to £249,000. The second half profit fell by 38%, against 40% in the first half. Full year profits totalled £519,000, down from £856,000, while revenues were 3% higher at £7.46m.
The business generated even more cash than the previous year as inventories fell. Net cash rose from £1.71m to £1.99m at the end of April 2009. The dividend increased by 10% to 1.1p a share.
Best of the Best opened one new site at Bristol airport during the year, while refurbishments disrupted trading at other sites. Sites have been reopened at Manchester Terminals 1 and 2 and Glasgow airport. Heathrow Terminal 4, Edinburgh and Copenhagen sites should be reopened during this year. Management is talking to other airports. It has also renegotiated existing contracts with individual BAA airports so any disposals should not affect Best of the Best. .
A redesigned website will be launched in August and this will help to encourage the 400,000 people on the database to trade more often. Roughly 23% of competition ticket sales are online.
The strong cash position appears to have helped the shares rise 6p to 32.5p each, which values Best of the Best at £4.13m – just over twice cash and similar to net asset value.
House broker Charles Stanley forecasts profits of £600,000 in the year to April 2010, which puts the shares on 10 times 2009-10 prospective earnings.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|