Comparative Report on Companies: Ramsden Breweries and Bute Chemicals

In order to get the most out of the recnt cash surplus, our company has decided to invest in shares. Therefore this report compares two companies, Ramsden Breweries and Bute Chemicals, focusing on their turnover, profit, and dividend between 2016 and 2017.

Bute Chemicals plc.: According to Bute Chemicals plc’s financial report, their revenue has decreased by ­ £32m from 2016 to 2017, and their profit has fallen from £652m to £626m. However, the dividend has increased by £2.5p per share in this period. In addition, there is a rumor that Bute Chemicals will be involved in a merger worth £6bn.

Ramsden Breweries plc.: Ramsden Breweries plc. is a giant in the drinks industry. Compared to last year(2016), their turnover has increased by 0.25% to £4,609m which is higher than that of Bute Chemicals. Their net profit has increased by 0.03% to £834m which is also higher than that of Bute Chemicals, but their increase in the profit percentage is lower. Their dividend has increased from 29p to 30p. Furthermore, Ramsden Breweries recently claimed a 12% progress in the drinks industry and a redundancy plan of 500 jobs due to the automation of their company.

From the above comparison, it is suggested that investing in Bute Chemicals would be more advisable. Ramsden Breweries has obviously grown in the stated period and the industry is expected to grow by 12% next year. However, it seems that the company is not stable as there is a cut of 500 jobs this year. Even though Bute Chemicals revenue and profit have slightly decreased, I believe they will potentially be the stronger investment especially after the £6bn merger.

Teammates: Evelyn, Neil, and Ken