Comparative Report on Ramsden Breweries plc and Bute Chemicals plc

According to the financial report from last quarter, we have a large cash surplus, which we would like to invest in shares. This report compares two companies which have potential investment options, Ramsden Breweries plc. and Bute Chemicals plc. (hereafter referred to as RB and BC respectively).

Bute Chemicals:

Between the years 2016 and 2017, BC’s turnover has decreased by £32m (1%), and their profit has dropped by £26m. However, the dividend has increased by £2.5 per share. This is a positive for shareholders, but there is a rumor that BC might be involved in a merger for £6bn.

Ramsden Breweries:

RB’s turnover has increased by £929m (25%) and their net profit has risen by £30m. Their earnings and dividends per share has increased by 0.9 pence and 1 pence respectively. In addition, RB is restructuring by cutting down on 500 jobs mainly due to the implementation of automated production processes. Moreover, the drinks industry is forecast to grow by 12% next year.

It is suggested that investing in RB would be an ideal investment choice.

(Group members: Ruby, Jeffery, Leon)