Shares digital

Woolworths (WLW) – Finals PTP: £15m (£7.3m) Divi: 0.6p (1.7p)

The figures were distorted by the impact of property profits and the decision to extend the life of certain assets, which created a corresponding reduction in the depreciation charge. However, the key to the group is the continued failure of the core retailing operations to make a meaningful return – a profit of a mere £3.4 million on sales of £1.7 billion. The meagre return demonstrated the nature of the problem facing the company. Although sales of computer games rose, toy sales fell and the confectionery market suffered from price deflation. Although the group hopes to sublet more of its retail space, analysts are forecasting earnings of only 1.3p a share, and 10% stake owner Baugur seems more interested in Moss Bros.

Shares says: Few, if any, attractions.

by: John Marshall