Booker steers profits up by fifth and looks for expansion

Booker, Britain's biggest cash-and-carry wholesaler, has beaten forecasts with a 21% rise in annual profit and said it was stepping up its expansion in India.

The firm, which as more than 170 branches supplying convenience stores, restaurants, pubs, schools and prisons, said its performance made it confident of coping in tough economic conditions and it rose its full-year dividend by 46%. It was helped by higher customer numbers and tight cost controls.

Trading in the first seven weeks of its new financial year was in line with expectations, it said.

Profit before tax was £57.2 million in the year to March 26, beating analysts' average forecast of £54.7 million.

Sales rose 6.5% to £3.4 billion, boosted by a 17,000 increase in customer numbers and strong demand via the internet, while cost control helped to lift operating profit margins.

Booker, which opened its first overseas branch in Mumbai in September, said it planned to open a second outlet in the city this financial year and would also test a franchise branch in another Indian city with a local partner.

The full-year dividend was lifted to 1.27p a share, and Booker said it had net cash of £7 million at the year end.