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BEC課堂筆記Unit6b

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Ramsden Breweries and Bute Chemicals: investment potential.

Introduction

This report aims to assess which company, either Ramsden Breweries or Bute Chemicals, this company should invest in.

Ramsden

The company had mixed results last year, although turnover increased by approximately 25%, net profit rose by less than 4%, however, restructuring may be to eliminate these inefficiencies and expected growth in the drinks industry suggests opportunities for increased profits.

Bute

Results were disappointed, with turnover and profit both falling slightly. Nevertheless, the company managed to increase its dividend to shareholders. The rumoured merger seems likely to push up the share price considerably.

Conclusion

Despite the merger rumours, any investment in Bute Chemicals would involve a risk. Ramsden, on the other hand, despite its present inefficiency, is still profitable and has definite potentials for further growth.

Recommendation

We would recommend investment in Ramsden Breweries.

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