Thursday tips round up: Great Portland Estates, Britivic

22nd May 2014 08:18

Predicting the price of Great Portland Estates is no mean task, but things are looking up for the company. In effect, it is akin to trying to anticipate the London property market. Amongst the main parameters to take into account, London´s gross domestic product expanded at a 3.8 per cent clip over the year to March, twice the rate of the UK as a whole. In parallel however, the rate of office completions, even when looking out to 2018 will still not reach the levels seen in 2008 and 2009. In part, this is because there is a limit to the number of properties which can be developed into offices. The above is being made worse by the booming housing market, which has seen some offices redeveloped into apartments for the rich. This company, however, has a fair amount of developments in the pipeline, spanning the next decade. Indeed, the stock does sell on a 10 per cent premium to its net assets, but "that does not look overexpensive for one of the purest plays on the London property market," writes The Times´ Tempus.Britvic has seen a remarkable turnaround in its fortunes versus last year, when it was left vulnerable to a take-over from rival Irn-Bru. The group´s latest figures revealed strong sales of its fizzy drinks, which bubbled up by 28% to £45.3m. Furthermore, it has just signed an agreement with PepsiCo Americas that will enable it to sell drinks in all US mainland states, versus only 41 previously. As well, the company remains on track to achieve annual cost savings of £30m by 2016. Yes, the consumer environment is likely to remain challenging, the company said. However, the firm´s ability to make price increases stick is an encouraging sign of strength. Heading into the British summer it faces tough comparables, as last year saw some of the best weather in a decade. As well, there are risks which must be avoided, such as a sugar tax or a washout summer. Yet while those are impossible to predict, given the firm has proven its long-term quality the shares remain a solid hold, writes The Daily Telegraph´s Questor column. Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB