Thirteen devaluations of the EU's green pound in 11 months has done wonders for prices although the latest rise in
Thirteen devaluations of the EU's green pound in 11 months has done wonders for prices, although the latest rise in January has had the effect of pulling orders into the first half. Profits rose by close to 4 per cent to pounds 87m in the latest period, despite a comparable period flattered by around pounds 5m due to the release of additional exports previously blocked under quota regulations. Associated British Foods has been the Cinderella of the stock market for so long it is hard to believe that the shares have outperformed the All-Share index by close to a fifth since the start of last year. Even more surprising is that the change in sentiment is as much to do with the sugar and bread giant's underlying trading performance as its legendary cash pile. Yesterday's half-year figures confirmed the market's confidence in the group, still controlled by 69-year old chairman and chief executive Garry Weston. Nigel Reed, an analyst at Paribas Capital Markets warned, however, that Euro Disney hasn't yet proved it can sustain current growth in the face of increased interest payments on its Fr15.1bn debt. Pre-tax profits up 14 per cent at pounds 198m in the six months to 2 March were well ahead of expectations and the shares responded accordingly with a 9p rise to 420p. British Sugar, acquired from Berisford for pounds 880m in 1990, continues to demonstrate what a good buy it was.
He said first-half results, which include the traditionally slower months, were not an accurate gauge of the park's performance.. Higher attendances have also fallen through into lower costs per visitor, which fell 20 per cent last year.Shares in Euro Disney, which reached 751p at their peak in early 1992, closed 11p higher yesterday at 205p. Hotel occupancy, which was only 55 per cent in 1993 increased to 68 per cent in 1995, substantially higher than the average for the area around Paris. The rising cost of servicing Euro Disney's debt burden, however, precluded a dividend, which has been passed for two years now.The improvement in performance at the park has been dramatic since the restructuring of 1994 rescued it from the brink of collapse, although it is thought unlikely to ever be the money machine Disney dreamed of.Attendance improved by 20 per cent last year to a record 10.7 million and it is expected to grow to over 11.5 million this year.
Hotel revenues were 17 per cent better at Fr819m.Those improvements more than made up for higher lease and financial charges, which are estimated to be Fr120m higher for the full year. Of particular significance is that it comes at a time when many tourist destinations are experiencing tough market conditions." As well as Euro Disney's success in compensating for the increasing interest bill, the company pointed to a reduction in the effect of seasonal fluctuations in demand. The first half is traditionally quiet for Euro Disney, which has struggled to attract visitors outside the hot summer months.The reduction in losses from Fr241m in the first half of 1995 was helped by a jump in sales from Fr1.68bn to Fr1.90bn. At the operating level, profits of Fr58m, an improvement of Fr140m, were the first positive result since the park opened.Theme park revenues were increased by 11 per cent to Fr910m as lower prices had the intended effect of boosting attendance numbers. The improvement was struck despite a resumption of interest payments after a freeze on payments was imposed by the troubled theme park two years ago. Philippe Bourguignon, chairman and chief executive, said: "This improvement reflects our strong commercial performance, notably in the hotels. Higher attendances and better hotel occupancy rates helped Euro Disney reduce its first half loss by 30 per cent to Fr169m (pounds 22m).
Our customers stay with us because they want more from us than a cheap headline rate, which then goes up through a range of hidden charges, including shorter credit times or additional bills when people don't pay them off on time."In many cases, people find that with other users who come from outside the UK and have less experience of this market, the credit limits they receive are lower."She added that 50 per cent of Barclaycard users paid off their entire debts each month.The rate cardCompany APR %Robert Fleming/S&P 11.50*Robert Fleming/S&P 14.00People's Bank 14.40Royal Bank of Scotland 14.50*Hamilton Direct 14.50*UNICEF 14.90RBS Advanta 15.60Frizzell Bank 16.10Barclaycard 22.30NatWest Access 22.90* No interest-free period even if account is cleared in full each monthSource: Moneyfacts. There also appears to be a cartel, with the high street banks operating on very large margins and making substantial profits. Until one of the major issuers cracks and cuts its rates, the war will only be at the margins."A Barclaycard spokeswoman said the popularity of its card lay in the added benefits, such as loyalty bonuses ranging from cheap holidays to toasters."We are successful because we were first in the market .... Despite its rate, the Robert Fleming card only has 200,000 users compared to 9 million Barclaycard customers.Mark Warde-Norbury, banking services manager at Robert Fleming, said: "There is an enormous amount of inertia in the market. The RBS MasterCard charges 14.5 per cent APR.Robert Fleming, which has long offered two of the most competitive cards, charges 14 per cent and 11.5 per cent APR respectively, the latter being linked to bank base rates.