Latest news with #AssociatedBritishFoods
Yahoo
4 days ago
- Business
- Yahoo
2 cheap FTSE 100 shares to consider buying in June
How do we tell if a FTSE 100 stock looks cheap? One way is to seek out share prices that have fallen this year, and that brings Associated British Foods (LSE: ABF) into view. The shares are up from their 52-week low in March, but we're still looking at a 12-month fall of 20%. Some of the weakness has to be down to retail fears facing the company's Primark high street chain. We also have at a collection of five different business here, with Grocery, Ingredients, Sugar, and Agriculture divisions added to Retail. That brings diversification, which is a good thing. But it can also suggest a company lacks focus, and top management have to keep their eyes on numerous balls. With first-half results in April, CEO George Weston said he was 'frustrated with the results in our Sugar business.' But the other four are doing fine, in line with full-year guidance. The update gave the share price a boost at the time. Forecasts indicate a fall in earnings per share for the full year, and that has to be holding the stock back. But analysts expect a return to earnings growth that could drop the price-to-earnings (P/E) ratio to under 9.5 by 2027. Associated British Foods had net debt of £2.8bn at 1 March, up from £2.5bn a year previously. Against a market cap of nearly £15bn, that doesn't worry me too much. But it's worth keeping an eye on. There's risk from retail exposure, and a possibly perceived lack of focus. But I think long-term investors should consider it. Looking for FTSE 100 stocks on low P/E valuations can also throw up candidates. And that draws my attention to M&G (LSE: MNG). M&G seems to come up in a number of my searches on different factors, like its big 8.3% forecast dividend yield. There's a forecast P/E of 10 on the cards for the current year. And a mooted recovery from the past couple of tough years could see it drop close to eight by 2027. Investment management companies are often on lower P/Es and can be cyclical. But the predicted earnings growth over the next few years should cover the dividends, which are also expected to rise. The cover might be a bit thin though. With 2024 results released in March, CEO Andrea Rossi spoke of 'two new targets for 2025-2027: to grow adjusted operating profit before tax on average by 5% or more per annum, and to generate £2.7 billion of operating capital.' The boss added: 'I am delighted to announce that today we are moving to a progressive dividend policy, starting with a 2% increase for the 2024 total dividend per share.' That all sounds ambitiously positive. But the risk hasn't gone away. The world seem to be lurching from one trade-related economic crunch to another on an almost daily basis. And if M&G's dividends can't keep up with inflation, the shares could take another knock. But I see a decent chance of a bull run here and feel it's worth a closer look. The post 2 cheap FTSE 100 shares to consider buying in June appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods Plc and M&g Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
BBC News
28-05-2025
- Business
- BBC News
Saltend biofuel plant 'faces closure after US trade deal'
The UK's largest bioethanol plant will be forced to close unless the government acts, according to its April, Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after being forced to cut production levels due to low bioethanol Tuesday, Vivergo said the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade deal, was the "final blow".A government spokesperson said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support. Urgent action needed In a letter to farmers, Vivergo managing director Ben Hackett said: "Unfortunately, if there is no government intervention in the next few weeks, our plant will have to close."That is because the government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow."If there is no government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments."The firm said that without urgent action, the plant, which employs more than 160 people, would no longer be viable and its wheat purchases would Hackett added: "This is avertable. If the government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production."But so far, they have made no commitments." Earlier this month, Business Secretary Jonathan Reynolds met representatives of ABF and the country's other key bioethanol producer, Ensus UK, which is based in firms said the the secretary of state agreed on the need for "urgent next steps" to protect the UK's bioethanol industry and had committed to act within "days, not weeks" amid concerns that hundreds of jobs could be at Hackett said: "So far, nothing has been forthcoming."However, he added: "We still believe this situation can be turned around – but time is rapidly running out."In response, a government spokesperson said: "We signed a deal with the US in the national interest to secure thousands of jobs across key sectors."We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK's two bioethanol companies and are open to discussion over potential options for support."The Saltend plant produces bioethanol which is used in E10 petrol.E10, which was introduced in 2021 to help cut carbon emissions, contains up to 10% also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
BBC News
22-05-2025
- Automotive
- BBC News
Wakefield Speedibake site to be taken over by car business
The site of an industrial bakery which was destroyed by fire is to be taken over by a car have given the go-ahead for Cars 2 Limited to store hundreds of vehicles at the former Speedibake factory, close to Wakefield city centre. The bakery closed permanently following a major blaze in February 2020 which engulfed much of the city centre in a dark cloud of British Foods ended all operations at the factory which was demolished after the incident. At the time, the company said: "The financial cost and time needed to undertake a full rebuild is simply too great."Wakefield Council has approved plans to allow up to 400 vehicles to be stored on the brownfield site, which will serve Hyundai, Seat, Nissan and Renault car showrooms located nearby, according to the Local Democracy Reporting Service. A statement submitted on behalf of the applicant said it would "bring back into use a currently vacant plot of land and will support the expansion, growth and productivity of an established business and employer within the Wakefield area".It added: "The storage of vehicles on this site, will ease congestion and enable further on site visitor/customer parking, and relocating the majority of the bulk vehicle delivery and collections to a more suitable singular location." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
Business Insider
17-05-2025
- Business
- Business Insider
RBC Capital Keeps Their Hold Rating on Associated British Foods (ABF)
In a report released on May 14, Richard Chamberlain from RBC Capital maintained a Hold rating on Associated British Foods (ABF – Research Report), with a price target of p2,150.00. The company's shares closed yesterday at p2,088.00. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Chamberlain is a 4-star analyst with an average return of 3.7% and a 53.01% success rate. Currently, the analyst consensus on Associated British Foods is a Hold with an average price target of p2,100.56, which is a 0.60% upside from current levels. In a report released on May 13, Kepler Capital also maintained a Hold rating on the stock with a p2,200.00 price target.
Yahoo
17-05-2025
- Business
- Yahoo
Here's a starter portfolio of FTSE 100 shares for growth and safety!
There's no such thing as a totally risk-free portfolio. But holding a diverse selection of FTSE 100 shares can help provide a margin of security while also capturing different growth opportunities. Managing potential hazards is especially important in uncertain times like these. Worries over global growth have eased more recently amid cooling trade tensions. But macroeconomic challenges persist, and with geopolitical tensions mounting, too, the outlook is less than clear, both in the near term and beyond. On that note, here are three top Footsie stocks I think merit serious attention today. The F&C Investment Trust (LSE:FCIT) is perhaps the easiest, cheapest, and most effective way to achieve diversification. A stake in this pooled investment vehicle provides exposure to 390 different companies worldwide. Almost two-thirds of the £6bn worth of assets it holds are North American equities. But it also has meaty exposure to UK, European, and Japanese shares for variety, and emerging markets businesses for additional growth potential. A large contingent of US shares leaves it more exposed to a potential Stateside recession than trusts with greater geographical spreads. But its strong exposure to the so-called Magnificent Seven tech giants like Nvidia, Microsoft, Apple, and Meta also give it scope for long-term growth. Over the last 10 years, the F&C Investment Trust has provided an average annual return of 9.2%. Perhaps best known for its Primark clothing division, Associated British Foods (LSE:ABF) has its fingers in many pies (so to speak). Consisting of five different units — Retail, Grocery, Ingredients, Sugar, and Agriculture — and operating across the globe, it's arguably one of the FTSE's best diversified businesses. Its exposure to retail can leave it vulnerable when consumers feel the pinch. But although Primark is its single largest unit, it accounts for just 47% of sales. This means it's much less exposed than pure-play retail shares like Next and M&S. I like Associated British Foods because of Primark's enormous growth potential. Its global expansion strategy continues at pace, and is tipped to contibute 4%-5% to the unit's total yearly sales growth 'for the foreseeable future.' Ongoing investment in Click and Collect is also helping it to better capture the growing number of online shoppers. Based on revenues, Unilever (LSE:ULVR) is the sixth-largest fast-moving consumer goods (FMCG) company on the planet. In my opinion it's one of the best to consider as part of a well-diversified portfolio. Around three-quarters of the firm's annual sales come from 30 so-called Power Brands. These include Dove soap, Hellmann's mayonnaise, and Comfort fabric conditioner. However, it counts more than 400 labels in its portfolio, helping it to spread risk and tap into multiple consumer segments. The brands described above illustrate how Unilever spreads its expertise far and wide, from beauty and wellbeing products to home care, personal care, and nutrition. This strategic mix allows the business to better navigate weakness in one or two areas. What's more, these products command exceptional pricing power, giving Unilever scope to grow earnings over time (and even during economic downturns). Investors need to be mindful of rising competition in some of its product segments. But on balance, I think it's a top FTSE 100 stock to consider. The post Here's a starter portfolio of FTSE 100 shares for growth and safety! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple, Meta Platforms, Microsoft, and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
