Comparative Report on Investment Options: Ramsden Breweries and Bute Chemicals

Introduction:

According to last year’s financial statements, we earned a huge profit margin and are interested in making good use of it. This report compares two potential companies, Ramsden Breweries plc. ( hereafter referred to as RB) and Bute Chemicals plc. ( hereafter referred to as BC).

Ramsden Breweries:

RB is a successful brewery in Bristol, U.K. Based on the current industry analysis, the drinks industry is predicted to grow by 12% next year. Their income statement not only shows that their turnover has increased rapidly by 27% from 2016 to 2017, but also a slight improvement in their net profit and EPS. In addition, the dividend per share went up by one pound. RB has however announced that 500 jobs will be made redundant on account of factory automation.

Bute Chemicals:

BC is a chemical company in London, U.K. The turnover and profit of BC have remained stable over the last two years, but having saying that, BC’s shared in the dividends has increased by £ 2.5 pound compared to that of 2016. Recently, there has also been a rumor that BC may be involved in a £ 6bn merger.

Recommendation:

Considering a conservative investment strategy, we suggest that BC to be the ideal investment option on a long term basis assuring profitability because of its stable performance.