Broker snap: Cineworld's results 'robust', says Panmure

18th Aug 2011 11:54

Panmure Gordon has maintained its buy rating on cinema group Cineworld following the firm's "robust interim results" released on Thursday.Pre-tax profit for the six months to 30 June fell to £6.9m, from £11.8m in the first half of 2010, "because of the one-off, non trade related items of £3.2m and the write off of £2.2m relating to the hedge on the previous bank loan," the firm said. However, adjusted pre-tax profit was £12.7m, close to the broker's £13m forecast."The group has had a strong start to the second half of 2011, led by the success of Harry Potter: The Deathly Hallows Part 2 and is confident of performing in line with market expectations for the full-year," the broker said."We view [cinema] as a particularly resilient area of the leisure sector and, whilst discretionary expenditure levels remain a concern for UK consumers, we are confident that Cineworld will continue to perform well, given its focus on value orientated offering, reinforced by its low average spend per head."The target price stays at 260p.Shares were trading 1.08% higher at 187p by 11.55am.BC