Turkey of the week: soft-drinks maker losing its fizz

This soft-drinks manifacturer isn't necessarily a bad business, but it has far too much debt and its shares are overpriced, says Paul Hill.

Britvic is Britain's second largest soft-drinks supplier behind Coke. As well as owning iconic brands such as Robinsons squash, Tango and alcoholic mixers, it distributes Pepsi and 7UP in Britain. All told, it enjoys an 11% share of the £6.1bn take-home (eg, supermarket) sector and a 45% share of the licensed trade (eg, pub and restaurant) market.

I don't think Britvic is a bad business, but I worry about its £388m debt mountain and fizzy valuation. Sure, last week the firm announced it had successfully renegotiated its banking facilities. But this doesn't mean the group is out of the woods just yet.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.