Waitrose faces pressure to return business relief

Safiya Bashir
-
0
Waitrose faces pressure to return business relief

Waitrose and the Co-op Group are facing growing pressure to repay the government business relief rates.

Following the news this week that Tesco, Morrisons, Asda, Sainsbury’s and Aldi have all pledged to return the cash they received in the height of the pandemic, pressure on the remaining supermarket rivals has mounted.

The Co-op has said that amid the pandemic, the group has seen finances hit amid costs of funeral operations and its commitment to pay the National Living Wage.

A spokesperson said: “The Co-op response to helping to feed and care for the nation during COVID has been outstanding, and we are immensely proud of what our colleagues have achieved.”

Meanwhile, Waitrose has said that it will not the returning the money. The supermarket group said: “We are incredibly grateful for this vital support because we have lost significant sales while our John Lewis shops have been closed, and have invested heavily to keep our partners and customers safe.”

“We’re a business owned by our employees – our partners, not external shareholders – and we don’t intend to pay a bonus this year. Whenever we make any money, it is invested in our partners, our business and charitable giving.”

The John Lewis Partnership owns both Waitrose and M&S. M&S reported its first-ever loss back in Novermber, while John Lewis has cancelled the 2021 annual staff bonus and is also headed for a full-year loss.

Asda was the latest to join the group of supermarkets who have said they will repay the relief rates. The supermarket said: “We recognise that there are other industries and businesses for whom the effects of Covid-19 will be much more long lasting and whose survival is essential to thousands of jobs.”

“But, as the hope of a vaccine and a more ‘normal’ life returning in 2021 grows, we have confidence that we are in a strong position to again do the right thing for the communities we serve,” added the chief executive.

In total so far, the Treasury will receive £1.8bn from supermarkets.

Express shares fall as fashionistas tighten their belts during Q3

Jamie Gordon
-
0
Express shares fall as fashionistas tighten their belts during Q3

Amid social distancing and economic uncertainty, hampered retail activity was reflected in the share price and third quarter results of fashion brand, Express Inc (NYSE:EXPR).

The company said that third quarter comparable sales fell by 30% year-on-year, while consolidated net sales dropped 34%, to $322.1 million. Express Inc said these falls came as a result of “continued steep declines in wear-to-work and occasion-based categories”.

On the basis of its reduced sales output, the company booked a third quarter operating loss of $110.9 million, widening from a $6.7 million loss during Q3 2019. Similarly, the Group’s shareholders saw a $1.39 diluted loss per share during Q3. With a slight glimmer of hope, Express said that its digital strategy gained momentum, with third quarter online transactions rising 17%.

In terms of its cash position, Express finished the quarter with $107 million in cash. During the period, it laid off 10% of its corporate staff, which it said will result in $13 million in cost reductions in 2021. It also managed to decrease its selling, general and amin expenses by almost $20 million, though the end amount still represented 38.8% of Q3 net sales, versus 29.5% of net sales in Q3 2019.

Speaking on its performance, CEO, Tim Baxter, commented: “In the third quarter, we continued to advance the EXPRESSway Forward strategy while taking decisive and appropriate action to manage our liquidity. Our eCommerce business continues to gain momentum and the new fashion product that fully reflects the Express Edit viewpoint is outpacing the balance of our assortment,”

“We have effectively managed that which was within our control, and as I look ahead, I am optimistic about our ability to deliver improved results and cautious about the continued uncertainty brought about by the current environment. Our strategy is the right one, the changes to our product presentation and brand positioning are the right ones, and our financial actions are the right ones. As we move into 2021, we remain focused on delivering our long-term goal of a mid-single digit operating margin and profitable growth.”

Following the update, Express shares dropped 25.95%, down to $1.17 a share 03/12/20 21:30 GMT. This is short of its post-lockdown high of $2.55, and around 56.7% shy of analysts’ target price of $1.83 a share.

Analysts currently have a Hold stance on the stock, while the Marketbeat community offers a 50.93% ‘Outperform’ stance.

Boeing shares take off on sale of 75 jets to Ryanair

Bronte Carvalho
-
0
Boeing shares take off on sale of 75 jets to Ryanair

American manufacturing firm Boeing Co. (LON:BOE) has seen its shares leap on the back of news of a deal with airliner Ryanair (LON:RYA) involving the sale of 75 ‘737 Max’ jets.

Already the leading European customer for Boeing’s ‘737 Max’ model, Ryanair has added 75 more jets to an existing order of 135 (still yet to be delivered), taking the total value of the contract to £16.3 billion. The aircraft are set to be rolled out on a staggered basis between spring 2021 and December 2024.

The ‘737 Max’ is Boeing’s best-selling commercial aircraft model, with 387 in service globally and described by Geoffrey Thomas – founder of respected airline safety review site Airline Ratings – as the ‘workhouse of the world’. It is 15% more ‘fuel efficient’ than its predecessor, considerably more ‘climate friendly’ and has an ‘average dispatch reliability rate of 99.4%’.

However, the model has faced its fair share of controversy in recent years following two deadly crashes in 2018 and 2019 that claimed almost 350 lives. The incident resulted in a 20 month grounding of the entire ‘737 Max’ fleet, which reportedly cost Boeing $20 billion and an undisclosed number of millions in compensation to clients.

Today, the ‘737 Max’ still makes up about 40% of Boeing’s profits.

News of the sale sent Boeing’s share price up a hefty 8.38% to 236.27p on Thursday afternoon 03/12/20, after a tumultuous year with global travel appetite plummeting and sending shares down to an annual low of 94.28p in March. In recent weeks, shares have rallied and remained steadily around the 200.00p mark, and are probably set to increase over the Christmas period as holidaymakers frantically try to make the most of the brief respite in travel restrictions.

Another widely-anticipated lockdown in the New Year, however, could send Boeing’s shares tumbling back down again in the near future.

Mirada shares fall on H1 trading update

Safiya Bashir
-
0
Mirada shares fall on H1 trading update

Mirada shares (LON: MIRA) were down almost 12% on Thursday as the group shared interim results for the six months to 30 September 2020.

The group reported a 4.5% fall in revenue from core activities to $5.47m due to the temporary reduction in investment in deployments by their largest customer amid the pandemic.

As well as a decrease in revenue, the provider of integrated software and solutions for Digital TV operators also reported a increase in net debt from $5.05m to $7.09m.

During the period, Mirada did successfully launch the Iris solution with ATNi owned Viya TV+, in the US Virgin Islands.

José Luis Vázquez, the group’s chief executive, said:

“We have made considerable operational progress both during and since the period under review. Commercial launches of Android TV and Disney+ were major milestones, further future-proofing our product and providing excellent reference cases. These will help bolster our strong pipeline, which should be further improved by new reseller agreements; the ability to now demonstrate our product remotely; and investments made in our sales team.

“Although investment in deployments from our customers temporarily slowed in 2020 due to uncertainty around Covid-19, this investment is now returning as the pandemic ultimately drove increased media consumption. We are already seeing an improvement in trading conditions and this is a trend we expect will continue going forward.”

Mirada shares (LON: MIRA) are trading -11.18% at 75,50 (1440GMT). In the year to date, shares have fallen from highs of 148,00.

Flutter Entertainment acquires 37.2% of FanDuel

Jamie Gordon
-
0
Flutter Entertainment acquires 37.2% of FanDuel

FTSE 100 listed sports betting platform, Flutter Entertainment (LON:FLTR), watched its shares add 13% on Thursday, as it announced that it had entered into a conditional agreement to acquire a 37.2% interest in New York-based gambling company, FanDuel.

The deal would see Flutter Entertainment take over the stake currently held by Fastball for a consideration of US$4.175 billion (£3.131 billion). The company added that the transaction is conditional on the approval of Flutter shareholder approval, and that a general meeting is expected to occur before the end of the calendar year.

Should the acquisition be completed, Flutter’s stake in FanDuel will increase from 57.8% to 95%. The company continued, saying that the deal would increase its exposure to the highly ‘attractive’ US market, with the price of the transaction representing a discount on FanDuel’s intrinsic fair value.

Flutter Entertainment added that it plans to finance the acquisition through $2.088billion in cash and approximately 11.7 million new ordinary shares directly to Fastball. The cash will be raised via a £1.1 billion equity placing and cash already on the company’s balance sheet. It also said that post-transaction, it expects year-end leverage to be under 3.0X EBITDA, while it retains its medium-term target of 1.0X to 2.0X.

Commenting on the deal, Peter Jackson, Flutter Chief Executive, said: “Flutter’s initial acquisition of a controlling stake in FanDuel in 2018 has been transformational for the shape of the Group. Our number one position in the crucial US market is built on many of the assets we acquired through that transaction, supported by the broader Group’s capabilities. Our intention has always been to increase our stake in the business and I’m delighted to be able to do so earlier than originally planned and at a discount to its closest peer.”

“I would like to take this opportunity to thank our partners in Fastball for their tremendous support over the last 2½ years and for their ongoing commitment to Flutter as soon-to-be shareholders in the wider Group. We look forward to continuing to grow our US business, alongside our key media partner FOX, as further states move to regulate sports betting and gaming.”

Following the update, Flutter Entertainment shares rallied by 13.24%, up to 15,135.00p 03/12/20 13:00 GMT. This price is an all-time-high, and around 38% of analysts’ consensus target price of 9,345.45p a share.

The stock has a consensus Hold rating from analysts, and a 75.00% ‘Underperform’ stance from the Marketbeat community. The company has a pricey p/e ratio of 14586, and a dividend yield of 2.67%.

Sustainable energy innovation with Ripple Energy

UK Investor Magazine
-
0
Sustainable energy innovation with Ripple Energy

Ripple Energy is making green energy simple through their innovative new platform that allows energy customers to buy a share of wind farm and benefit from the energy produced.

We were joined by Sarah Merrick who discussed Ripple Energy’s progress so far in having launched their first projects this year and in the process gained over 500 customers.

Ripple Energy have established partnerships with the Co-op and Octopus Energy and is targeting 900,000 users.

Find out more about the Ripple Energy fundraise on Seedrs.

Braveheart Investment shares rocket on special dividend

Safiya Bashir
-
0
Braveheart Investment shares rocket on special dividend

Braveheart Investment Group shares have soared 56% on Thursday’s opening bell after the group revealed plans to pay a special dividend worth more than the current share price.

The group shared interim results for the six months ended 30 September, which saw profit grow to £402,000 (2019: £122,000 loss) and revenues surge to £895,000 (2019:£250,000).

The investment group sold its stake in Remote Monitored Systems for £17.4m.

The special dividend payment is 42.75p per share. The current share price is 35.5p.

The group’s portfolio has an estimated worth of £2.61m (2019: £1.1mln).

Chief executive, Trevor Brown, said: “We are pleased to report to shareholders the results for the six months ended 30 September 2020. Progress has continued in all Group activities and detailed operational summaries follow later in this report. We are particularly pleased that as a consequence of the successful outcome generated from investments made over the last few years we are able to declare a special dividend to shareholders of 42.75 pence per share, which is expected to be paid on 10 January 2021 and the details of which are provided in a separate announcement published today, 3 December 2020.”

“We are delighted with the achievements so far made in the current financial year and are working towards being able to continue this progress in generating further value for our shareholders,” added Brown in a statement.

Braveheart Investment Group shares are currently trading +53.52% at 54,50 (1110GMT).

Study: Women found to have less financial wellbeing than men

UK Investor Magazine
-
0
Study: Women found to have less financial wellbeing than men

A study by wealth manager Saunderson House has revealed females feel less financially well than males, when asked about factors determining their general financial health and wellbeing.

“The last decade has seen a significant rise in the number of female High Net Worth Individuals (HNWIs). By 2025, over 60% of UK wealth 1 is expected to be in the hands of women. This is an exciting and important development, and one which the industry must promptly adapt to,” said Georgina Fry, Chartered Financial Planner at Saunderson House.

The research provides a fascinating insight into how the financial needs and goals of women differ from those of men and the ways in which our industry can better understand and serve HNW women.

“The industry needs to understand the reasons for these barriers. This could include misconceptions based on stereotypes, as well as women’s experience of the advice industry and how advisers, who are currently mostly men, struggle to empathise with their needs.

“Many of these issues could be addressed by the right support from the right financial adviser. The advice industry can determine how best to engage and advise female clients and potential clients, through a more appropriate and tailored service. While the industry needs to address this imbalance, more widely all advisors need to fully understand the needs and aspirations of women.”

The study was released in conjunction with the 18th Natwest Everywoman Awards celebrating female entrepreneurship.

Which supermarkets are returning business rates relief?

Safiya Bashir
-
1
Which supermarkets are returning business rates relief?

Since Tesco’s announcement on Wednesday to repay business rates reliefs to the government, a string on major supermarkets have followed its lead and pledged to do the same.

Sainsbury’s, Aldi and Morrisons have all announced in the past 24 hours to return the full value of the business rate relief that the government provided during the pandemic.

 Tesco will repay £585m, Morrisons will payback £230m, Sainsbury’s will repay £410, and Aldi will pay the government over £100m.

Aldi is the latest supermarket to announce the decision. Chief executive officer Giles Hurley said: “Thanks to our amazing colleagues, we have been able to remain open during lockdowns and despite the increased costs we have incurred during the pandemic, we believe returning the full value of our business rates relief is the right decision to help support the nation. Our continued investment for our colleagues and our customers will remain unchanged.”

Sainsbury’s also revealed plans to repay following a year of stronger sales and profits amid the pandemic.

The chief executive, Simon Roberts, said: “While we have incurred significant costs in keeping colleagues and customers safe, food and other essential retailers have benefited from being able to open throughout. 

“With regional restrictions likely to remain in place for some time, we believe it is now fair and right to forgo the business rates relief that we have been given on all Sainsbury’s stores. We are very mindful that non-essential retailers and many other businesses have been forced to close again in the second lockdown and we hope that this goes some way towards helping them.”

Repayment to the government is not required by law, however, supermarkets faced a lot of pressure thanks to the strong trading they saw over the pandemic.

According to Sky News, Waitrose will not be returning business rates relief. Asda and the Co op have not determined their decision.

493 LSE companies cut their dividend in 2020

Jamie Gordon
-
1
493 LSE companies cut their dividend in 2020

Accoridng to new analysis from ETF provider GraniteShares, some 493 companies London Stock Exchange listed companies either cancelled, cut or suspended their dividend during the first eleven months of the year.

The company’s data suggest that 90.26% of these downgrades occurred between the start of the year and July 24th, with an additional 10.78% of downgrades coming during the subsequent four-month period.

GraniteShares noted that “no segment of the market has been immune”, with more than half of FTSE 100 equities; 46% of FTSE 250 stocks; 109 FTSE Small Cap; and 149 AIM companies announcing dividend downgrades during the year-to-date. See below the company’s full data set:

London Stock Exchange market – Dividend companies that have cancelled, cut or suspended dividend paymentsNumber of companies downgrading between 1st January and 24th July 2020Number of companies downgrading between 1st January and 23rd November 2020  Number of companies downgrading between 24th July and 23rd November 2020
FTSE 10050511
FTSE 2501081157
FTSE Small Cap8910920
FTSE Fledgling14217
Main Market45483
AIM13914910
All44549348
GraniteShares data on companies downgrading dividend payments

Will Rhind, Founder and CEO at GraniteShares said: “Dividends and dividend growth play a very important role helping investors achieve sustainable income and long-term returns, and they are more important than ever now that interest rates are so low.”

“The expected slowdown in GDP in the UK and in many other countries in the fourth quarter means that companies may be under additional pressure to preserve cash, which could put further pressure on dividends.  It is likely that investors will face a long wait until they see dividends return to their pre-Covid levels.”

“With this in mind and against a backdrop of increased market volatility, we are seeing a significant rise in sophisticated investors and professional investors making greater use of shorting and leveraged investment strategies with a view to boosting returns.  For example, the average daily volumes in these products were 123%higher in October than in September.”

UK blue chips still paying a dividend include: AstraZeneca, BAE Systems, Diageo, Unilever, Shell, BP and Vodafone.

1...1,0441,0451,046...1,785Page 1,045 of 1,785