Scottish & Newcastle Share Discussion Threads

[chairman2] 28/2/2007 16:33

jezboy1

becuae you may be able to get them cheaper
shortly or it may take more time than you have
to rise....

LOL

[jdung] 28/2/2007 12:40

I buy at 532p, now 522p.
maybe waiting for more time...

[jezboy1] 28/2/2007 11:11

A post to all those 'well informed' posters.

Let me get this straight, at present price SCTN is:
(a) offering a 4%+ yield and
(b) the cheapest in the sector by a country mile.

Can someone explain to me why I shouldn't buy at these prices?

many thanks in advance

[badtime] 23/2/2007 09:44

More informed than me?..Doesnt sound like it

[bigbobjoylove] 23/2/2007 09:23

no, suggests he's overpaid with money to burn like the rest of the fat pigs that run the good dog sctn, really expected 800p when i first aquired my free shares 5 years ago.

[ashtongray] 22/2/2007 20:45

John Nicolson has seen fit to add 9117 shares @ 545p at a total cost of approx £50k to his holding of SCTN. Suggests he views the current share price as good value?

[bigbobjoylove] 22/2/2007 10:46

more fool u if u did likewise???

think i'm a little more informed than thee.

[badtime] 22/2/2007 09:27

Lol..i wudnt take any advice from a newspaper..more fool u if u did likewise

IMHO

[bigbobjoylove] 22/2/2007 08:21

It is questionable whether the success of BBH, and the dogged performance in the UK, justifies the relatively full forward rating of 15 for Scottish & Newcastle. The shares are likely to underperform the market. A quality company, but an expensive share. Sell, says the Telegraph.

[spacemoggy] 21/2/2007 09:11

I hold no position in SCTN and not interested in fundamentals. The chart has breached the 570p mark on it's latest rally, only to fall back to the present level, i would expect a rally around the current price to around the 585p mark, this is still in a rising trend...all imho...Rick

[waldron] 21/2/2007 08:08

Wed 21 Feb 2007
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S&N to cut £50m in costs as smoking ban hits it for £10m
HAMISH RUTHERFORD
([e-mail])
SCOTTISH & Newcastle, the UK's largest brewer, is to drive through a further £50 million in cost cuts as it battles the smoking ban and falling pub beer sales.

The brewer of Kronenbourg 1664 and Foster's said pre-tax profits in 2006 had risen 14 per cent to £535m as sales rose 7 per cent to £4.155 billion, in the mid-range of analyst expectations.

However, shares in the Edinburgh-based company fell 4 per cent to 552p as it warned that on-trade sales - in pubs and restaurants - are expected to fall 5 per cent in 2007 from a combination of the smoking ban and the changing habits of drinkers, who increasingly buy from supermarkets and off licences.

Around £10m in 2007 profits are expected to be lost from the smoking ban alone, which comes into effect in England and Wales during the summer.

Chief executive Tony Froggatt said the £10m figure was on the cautious side, but admitted S&N was largely in the dark about the impact.

"To be honest, we don't know what the smoking ban's going to do. In Ireland it had a pretty bad impact, in Scotland we've had somewhere around 5 per cent [decline in sales], but in the rest of the UK they've had that much more time to prepare."

While at least 40 per cent of the lost sales are expected to be made up in off licence sales, analysts expect the impact on the bottom line to be more significant than the volume loss, with margins on sales to supermarkets believed to be lower than to other customers.

The results underlined the increasing reliance by S&N on markets outside western Europe for growth. Operating profits rose £49m to £535m, but all but £1m of that growth came from BBH, S&N's Russian joint venture with Carlsberg, where its share of operating profits grew 43 per cent to £160m.

In the UK, by far S&N's largest market, operating profits rose 1.5 per cent to £206m while its international division, mainly western Europe, fell 1.1 per cent to £178m.

Finance director Ian McHoul said the figures did not paint a complete picture of the health of the western European business, with one-off costs such as the sale of the French wholesale division impacting on the results.

"If you look at what makes a business successful in the long term, its sales growth."

However he conceded one question was why the success in top line growth was not transferring to the bottom line.

The latest £50m in cost savings to improve operating efficiency is to be carried out over three years, roughly half of which will be carried out in the UK and half in Europe. It follows £60m squeezed from the business in the last three years, including the closure of the Fountain brewery in Edinburgh.

S&N said the savings, expected to cost £75m to implement, would be achieved firstly through efficiency in production and distribution and "streamlining" back office activities. McHoul did not rule out redundancies, however the company would not give any guidance ahead of consultation with staff.

The scale of the cost cuts was greater than had been expected, and while analysts conceded S&N was doing well , they did not give the company a positive outlook. A note from investment bank Morgan Stanley told clients it could see no reason to hold the stock.

"These results highlight the immense pressures faced by the UK and mature international businesses and dependence on BBH for growth."

Dresdner Kleinwart's Andrew Holland added that he thought S&N was doing well against competitors but the French market was "diabolical" and in the UK, where an increasing customer share was from supermarkets and pub groups, the outlook was "grim".

[badtime] 20/2/2007 20:36

lol..nice comment coogar...nice 2 c this drop,,might give me a btr (if late) entry price

[coogar] 20/2/2007 19:40

Booby, how much further have these risen since your last (filtered) post? LOL

[coogar] 20/2/2007 19:39

I still see no reason to sell SCTN.

Dividend yield at my entry price is 5.7% and rising.

[coogar] 20/2/2007 19:37

"The smoking ban in Scotland hasn't affected too many smokers"

Best to get your brain into gear before making comments like that.

[18bt] 20/2/2007 16:53

Hopper: comments that smoking ban will cost it £10m profit. Seem to be contrary to everyone else's view e.g. Belhaven, JD Wetherspoon.

[hopperagain] 20/2/2007 13:51

Why the big drop? Looks good results to me and increased divi.

[18bt] 20/2/2007 08:05

Looks a reasonable set of results, but I'm concerned at the continuing level of exceptionals and now some more forecast for 2007. Volume growth looks impressive and the gearing is now down to manageable levels. Seems to be in line with forecasts.

[waldron] 20/2/2007 07:59

Scottish & Newcastle FY profit up, unveils 50 mln stg in cost savings UPDATE


(adds detail)
LONDON (AFX) - Scottish & Newcastle PLC said pretax profit was up 13.9 pct
in 2006 to 452 mln stg, on revenues up 7 pct to 4.155 bln stg.
The brewer of Kronenbourg 1664 and Foster's unveiled a further 50 mln stg of
new cost savings over the next three years, firstly through maximising
production and distribution efficiencies and secondly through streamlining back
office facilities. Approximately 10 mln stg of the savings will come through in
2007 it said, with the remainder split between 2008 and 2009.
Savings will be split approximately equally between UK and international
operations, though weighted towards the UK in 2007.
The company and said Baltic Beverages Holding, its Russian joint venture
with Carlsberg, saw operating profits increase 43 pct for the full year to 160
mln stg, on revenues up 23 pct to 724 mln stg.
It announced a final dividend of 14.44 pence, up 2.5 pct.
[e-mail]
sjm/rar

[coogar] 15/2/2007 19:59

Still here. In since 388p :)

Results due next Tuesday. Carlsberg reporting same day...

[hijeff] 15/2/2007 15:54

nobodys bidding for sctn...its just a reflected rise from the sector.get shot.

[wad collector] 15/2/2007 15:52

I've been happy tohold these for the last 2 yrs , but am getting tempted to unload at these prices.The trouble with bid rumours is that so few are true and I cannot tell which are genuine so makes sense to unload at a healthy profit.Doesn't it?