Shares digital

Greggs (GRG) – Finals PTP: £49m (£43.7m) Divi: 140p (116p)

The company once again demonstrated that it is one of the most consistent companies with sales, earning and dividend all increased despite much higher ingredient costs. Underlying volumes rose 1% while margins were encouragingly maintained, something that should be aided by plans to refresh its range.

The 20% increase in the dividend reflected a decision to reduce cover, which is still 2.5-times, although the plan is cut this to around two-times further out.

With just over 1,350 stores, Greggs hopes to have 2,000 eventually, and reckons a programme of opening roughly 50 a year is quite possible.

Analysts are forecasting profits of £49.7 million with EPS pitched at 333p, placing the shares on a PE of just over 13.

Shares says: Its consistent growth record and expansion plans combine to make the shares worth holding.

by: John Marshall

The writer holds shares in this company.