Boots shares sunk around 13% yesterday after the health and beauty chain revealed a £390m investment programme that would hit profits and said it needed to increase pension fund contributions.
The company also confirmed it had no plans to ask trustees to alter its investment strategy.
Shares sunk from 714.5p to 623.5p after analysts cut at least £100m – around 15% – from profit forecasts for next year.
Boots said it was doubling its reinvestment to £140m next year and raising capital investment 45% to £250m to open 60 more shops, mostly smaller stores in out-of-town locations.
References: Financial Times 27/03/04 page 1, Financial Times Money & Business 27/03/04page M1, Daily Telegraph 27/03/04 page 27, The Times Business 27/03/04 page63, The Guardian 27/03/04 page 34, The Independent
