Vertical integration under fire
Scottish&Newcastle’s chairman, Brian Stewart, again had to defend the group’s vertical integration strategy when he presented the financials for the year ended 29 April 2001. While City analysts put into doubt the financial feasibility of S&N’s strategy of integrating brewing and retailing, arguing that S&N will destroy shareholder value if it continues to retain its 1,450 pubs, Stewart said that S&N’s pub estate would deliver double-digit earnings growth over the coming year to April 2002 and that there was no reason to sell off the pub estate.
In the year ended April 2001, S&N increased turnover 22% to £4,354m, EBITDA 15% to £762m, operating profit 14% to £568m and profit before tax 5% to £428m. With the exceptionals included, S&N would have made a pre-tax loss of £272m..
Select offer and read on
6 print issues