Booker sales speed up in second quarter helped by Budgens and Londis

15th Sep 2016 07:40

(ShareCast News) - Sales accelerated in the second quarter for wholesaler and retailer Booker, keeping the company on course to meet full year targets.Total sales excluding tobacco grew 15.5% in the 12 weeks to 9 September, compared to the same period last year, speeding up from the growth of 11.7% in the first three months of the year.Like-for-like sales excluding tobacco and its Budgens and Londis retail chains were up 0.9%, compared to the drop of 0.7% in the first quarter.The FTSE 250 group said both the catering and retail sides performed well, while tobacco sales continued to be hit by the ban on small stores displaying tobacco products, down 3.5% on a like-for-like basis.Roughly £105m of cash was on the balance sheet at the half-year end, after a £57m capital return announced in the first quarter.Chief executive Charles Wilson said the company was making "good progress", with the strategy of "Focus, Drive and Broaden" on track and a "solid contribution" from Budgens and Londis since the acquisition completed in September last year."We continue to help our retail, catering and small business customers prosper through improving our choice, prices and service," he added.Interim results are scheduled for 13 October.Broker Shore Capital said the trading update was "solid", with non-tobacco like-for-like sales "a little better than we expected"."Cash generative, Booker has £109m on the balance sheet which, in the absence of acquisition, should fund an ongoing special dividend stream and allow investors to sleep easy."Shares in Booker were up almost 3% to 182.9p by 0925 BST on Thursday.