Booker pays £14.5m for Ritter-Courivaud fine-dining business

BRITAIN'S biggest cash-and-carry chain marked its latest rise in profits with a £14.5 million deal to buy a fine-dining supplier to the catering trade.

Booker's purchase of Ritter-Courivaud emerged as it reported that pre-tax profits jumped to 36.9m in the six months to 10 September, up from 29.7m a year ago as total sales lifted 5.5 per cent to 1.7 billion.

As well as the acquisition of Ritter, a speciality fine foods supplier to restaurants, hotels and caterers, Booker is paying 4m for Classic Drinks, which supplies pubs and clubs in the Midlands and north of England.

Ritter and Classic will continue to operate under their existing management teams and brands, but as part of the Booker Direct operation.

Booker said the two companies would bring additional expertise to its catering division, which grew like-for-like sales by 6.4 per cent in the half-year trading period.

Sales to retailers rose by 4.8 per cent as Booker continued to produce figures stronger than those seen in the supermarket sector. Fresh departments performed well, with fruit and vegetable sales up 46 per cent and meat up by 10 per cent.

The recent trading improvement follows a move to convert more branches to its Extra format with better layout, signage and ranges.

It has more than 170 branches in the UK and will open two more sites in India following a strong performance by its store in Mumbai.

Chief executive Charles Wilson, who has revived Booker's fortunes since joining the company in 2005, said: "Our sales growth is good and our plans to broaden the business are progressing well."

The firm also raised its interim dividend by 12.5 per cent to 0.27p. Shares closed up 8.5 per cent or 4.21p at 53.95p.

Analysts at KBC Peel Hunt raised their target price on the stock from 50p to 55p and reiterated their "buy" rating.