One to Watch

BOOKER is the UK's leading food wholesaler, supplying about 296,000 catering businesses and 72,000 independent retailers. It operates from 170 cash and carry branches throughout the UK and has a national delivery service.

The group has produced some excellent results, rather better than expected. Customer numbers have increased by 4 per cent and delivered and internet sales – the latter significant – are also helping to improve the company's prospects.

Booker is expanding overseas. It opened a cash and carry operation in Mumbai in September and plans a further branch shortly. Initial reports are encouraging. Booker's shares are rather burdened by its chequered history but there are grounds for growing confidence. At the recent trading update, chief executive Charles Wilson said he expected to see four Booker stores in India by 2013 and possibly 15 franchises.

Notwithstanding the competitive markets in which Booker operates, its basic business model seems to offer reasonable grounds for confidence.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.