Abstracts » Business

Not all frozen wastes at Iceland

Article Abstract:

Iceland is likely to report a drop in profit in Mar 1997 and the company's return on equity will drop for 1996, but the return is still high. Pessimists see frozen food retailing as declining over the long term due to competition from supermarkets, but it is not likely to undergo a rapid disappearance. The best policy is to seek maximum cash generation rather than for Iceland to invest excessively in capital spending. The company is committed to increasing share dividends and this should help Iceland's share price.

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Hurry while stocks last

Article Abstract:

Iceland is offering to buy back stock at 1.05 pounds sterling per share. This is above the market price and stockholders can sell a minimum of three shares per eight owned. The company has been hit by competition from supermarkets but should not see further erosion ofits operating profit and plans to open new stores. Earnings per share should be boosted by the stock buy back. Smaller stockholders should sell if they are not likely to face capital gains tax liabilities.

Securities, Frozen foods industry

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Iceland

Article Abstract:

Iceland faces a number of problems such as debt, though the company's new management team has a good reputation.

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