Booker interim sales and profit up, on track for FY

FTSE 250 food wholesaler Booker, which owns Londis and Budgens, reported a jump in interim sales and profit as it hiked its dividend and expressed confidence in achieving its full-year expectations.

In the 24 weeks to 9 September, total sales were up 13% to £2.5bn, with pre-tax profit 9% higher at £81m.

Like-for-like non-tobacco sales were up 0.1% while tobacco sales were down 5.6%, a drop the company attributed to the ban on small stores displaying tobacco products.

Basic earnings per share were up 11% to 3.83p and the company lifted its interim dividend by 11% to 0.63p per share.

Chief executive Charles Wilson said: “This was a good half. Our plans to focus, drive and broaden the business remain on track. We strive to improve choice, prices and service for our catering, retail and small business customers. Londis and Budgens joined the group last September and the turnaround of the businesses is going well. We look forward to helping our customers prosper in the second half."

Booker said trading in the first four weeks of the current half year is ahead of the same period last year.

The company said it expects the “challenging consumer and market environment” to persist through the coming year, adding that the UK's food market remains very competitive.

Nevertheless, the group remains on course to meet its expectations for the year ending 24 March 2017.