Cash and carry group Booker gets the all-clear to acquire Musgrave Retail Partners but are its shares a ‘buy’?

3rd September 2015

As Booker updates the market Graham Spooner, investment research analyst at The Share Centre, explains what this mean for investors…

Thursday sees a trading update from cash and carry group Booker. This follows on from yesterday’s expected but still well received news that the acquisition of Musgrave Retail Partners has been given the green light from the competition authority.

Booker revealed it is still on track to meet market expectations, despite reporting a small fall in like-for-like sales, mostly as a result of lower tobacco sales. This most recent acquisition comprises the well-known names of Budgens and Londis. The balance sheet still remains strong with a net cash position of £110m.

Those invested will note that the share price has outperformed the FTSE 250 this year and is up 12% year to date, which compared to some in its sector is impressive. The group has delivered a strong performance since Charles Wilson took over as CEO and investors will be hoping that the latest acquisition will be as successful as the 2012 Makro.

We continue to recommend Booker as a ‘buy’ for investors. The long-term fundamentals look positive, and it remains attractive to those looking for growth in the sector, thanks to recent acquisitions and plans to expand its consumer base and product range.


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