Robert Wiseman Dairies

Fierce rivals Dairy Crest and Express Dairies may have drawn attention to a series of sector specific problems in recent days, but milk producer Robert Wiseman nevertheless continues to produce impressive results. Wiseman reported a 23% rise in first half profit to £11.1m thanks to a 5% rise in turnover to £187.2m, a result leaving finance director Billy Keane with few doubts as to the advantage his company holds over its rivals. 'We don't have to deal with the declining doorstep market' asserts Keane 'in fact we're benefiting from the volume increases in the supermarket sector'. Evidence for this comes from Wiseman's success in winning additional business from Iceland, Makro and Cappers, among other retailers, in the first half. The company also boasts strong relationships with the likes of Safeway, Sainsbury and Tesco. Unlike Dairy Crest for instance, Wiseman also has very little to distract it from the job in hand. 'We don't do cheese, we don't do yoghurt, we just do milk', Keane elaborates. With an Office of Fair Trading investigation into its Scottish pricing structure now behind it, a solid second half performance seems on the cards. A profit of £21.5m (£16.5m) is being forecast for the full year. Expected earnings of 19.5p put the company on a forward p/e of 8.9. However, despite a near £3.5m reduction, debts stand at £31.7m. Hold.

Sector: Food Producers

Companies: Robert Wiseman

Market cap: £133m

PE Forecast: 8.9

Share price: 170p

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