Jurys Doyle bounces back

Jurys Doyle has rebounded from the foot-and-mouth induced slide last week and the latest guidance for investors is that it is…

Jurys Doyle has rebounded from the foot-and-mouth induced slide last week and the latest guidance for investors is that it is less likely to suffer from the outbreak than others in the tourist industry in Ireland.

In a note this week, Dolmen Securities points out that the group's interests in Britain and the US now contribute more than half of the group's profits. This is significant because the less restrictive regime in Britain is less likely to impact on business.

In Ireland, the majority of its hotels and inns are city-based, leaving it less prone to the slowdown in business as a result of the outbreak.

With the company trading at 10.1 times consensus 2001 earnings, compared with a sectoral average of 17.3 in the UK, the broker says Jurys Doyle is attractively priced.

It will also benefit from lower interest rates and continuing cost savings from the merger of the Jurys and Doyle chains, according to Dolmen, which recommends the share as a buy.

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Dominic Coyle

Dominic Coyle

Dominic Coyle is Deputy Business Editor of The Irish Times