Equities gains unravel on prevailing Coronavirus fears

Jamie Gordon
-
0
Equities gains unravel on prevailing Coronavirus fears
After the leap year horror show took its fair share of casualties, global equities were keen to defiantly claw back ground, only to be halted as Coronavirus fears gripped the hearts of investors once again. Despite becoming apt at finding any source of optimism to grab onto, markets were knocked back into correction mode on Thursday. By no means as bad as the losses suffered in the final week of February, the collapse of Flybe (LON:FLYB) and the first UK Coronavirus death prompted a day of reaffirmed pessimism. The FTSE moved well away from its all-time high, while the Dow Jones dropped 700 points after the open. What seems to be really hitting investors is the realisation that it isn’t only the obvious sectors that are being hurt, but the impact of secondary risk factors, such as the virus’s effect on consumer habits, and on supply chains. Speaking on the turnaround in global equities on Thursday, Spreadex Financial Analyst Connor Campbell stated,

“What started as a fairly calm session unravelled as the day went on, with investors once again gripped by panic about the cost of the coronavirus.”

“The Dow Jones – which is lurching from green-to-red on a day-by-day basis – shed 700 points as trading got started on Wall Street, plummeting back under 26400 in the process.”

“This ensured that the European indices spent another session struggling under the weight of the current outbreak uncertainty. The FTSE, which was already having a bad one, saw its losses expand to 125 points, forcing it below 6700. The DAX, which had started the day flat, ended up shedding 1.5%, while the CAC lost more than 100 points as it fell towards 5350.”

“How things pan out on Friday morning may well be dictated by just how bad things get by the US close. The Dow has really shown a willingness to MOVE in the last week and a half, posting insane triple or quadruple-digit shifts that come to inform the Asian and European sessions.”

“Investors appear to be caught between the brief bursts of optimism that tend to greet the various stimulus announcements we’ve seen, and the growing awareness that the coronavirus isn’t going away any time soon, and that its economic impact will hurt sectors far beyond those– like travel firms and commodity stocks – that immediately come to mind.”

Blue Star Capital shares dive 18% as net assets fall across 2019

Ishen Patel
-
0
Blue Star Capital shares dive 18% as net assets fall across 2019
Blue Star Capital PLC (LON:BLU) shares have dived on Thursday afternoon, as the firm published its’ full year results. The firm reported that its’ net assets had fallen, as the esports and gaming markets described as ‘a year of consolidation’. Blue Star noted that net assets were 4.6% lower totaling £5.2 million compared to £5.5 million a year ago. The firm did add that the value of their key investments had grown marginally from £5 million to £5.1 million. Blue Star noted that they incurred a loss the period of £684,964 compared to a profit for the previous period of £1,471,319. The firm said that this was caused by the difference in the significant uplift achieved in SatoshiPay valuation in the prior year and the write off of the historic investment in DTL. Tony Fabrizi Chief Executive Officer of Blue Star Capital plc, commented: “2019 has been a year of consolidation as the Company came to terms with the disappointment and costs associated with the termination of the proposed reverse take-over of SatoshiPay in January 2019. An unfortunate consequence of the transaction terminating was that, as the Company had incurred significant transaction fees, it was forced to raise equity on two separate occasions to fund ongoing operations. Despite these setbacks, the Company’s portfolio has continued to develop with both SatoshiPay and Sthaler making good progress and post year end the Company invested in a portfolio of six esports businesses which offer significant potential. The last year was one of consolidation with our main portfolio companies making solid progress in developing their businesses. Post year end, we have invested in a portfolio of esports businesses which offer significant potential and both SatoshiPay and Sthaler have more recently announced key strategic developments which offer great hope for the future. Overall, we are pleased with recent progress and the Board views the future with confidence.”

Blue Star invest into Esports

In October, Blue Star announced that they had invested into the Esports arena. Jonathon Bixby, one of the original founders of bitcoin miner Argo Blockchain Plc (LON:ARB) encouraged six installments of £150,000 into different Esport fields. Blue Star have aimed to go global with this shift, having stated the intent to start operations in UK, USA, Canada, Australia and Singapore. Blue Star’s Chief Executive, Tony Fabrizi has committed £20,000 in the first placing, giving him a 2.3% stake. Additionally, the new Chairman, Derek Law has invested £100,000. The company’s main investment is SatoshiPay, where it owns 27.9% of total capital. In Satoshipay’s most recent fund raise in March 2019, this valued BlueStar’s investment at £4.6 million. Satoshipay have plans for vertical movement into the cross border B2B payments which is estimated at £160 billion, giving investors reason to expect future revenue growth. Shares in Blue Star Capital trade at 0.090p (-18.18%). 5/3/20 14:02BST.

Coats Group lower costs significantly leading to 36% annual profit spike

Ishen Patel
-
0
Coats Group lower costs significantly leading to 36% annual profit spike
Coats Group PLC (LON:COA) have seen their annual profits rise within a strong update from the firm. The FTSE 250 listed firm recorded profit increases, despite lower growth and market fluidity. The CEO commented: ‘I am pleased to report a year of continued growth in profits and cash, despite a market backdrop where we saw lower than normal growth in retail sales of Apparel and Footwear, and temporary softness in some of the industrial end-markets that we serve in Performance Materials. In Apparel and Footwear, this meant taking further market share by delivering high quality products with world class levels of speed, customer service and support. In Performance Materials, we delivered innovative thread and yarn-based solutions that solve our customers’ technical problems across a variety of industries. ‘ Coats Group, who make industrial thread said that pretax profit across 2019 was $166.8 million. Notably, this sees a 36% jump from $122.8 million in 2018. Revenue fell despite the strong profit gains from $1.41 billion to $1.39 billion. The firm said that profits rose due to a drop on exceptional and acquisition related items in the year. These costs include the initial costs elating to a business transformation program. Interestingly, Coats also saw their exceptional charges fall to $4.4 million from $47.8 million – which represents a massive drop. Looking at divisional performance, Coats noted that Apparel & Footwear recorded revenue growth of 1.0%, and Performance Materials revenue jumped 1.4%. Additionally, Personal Protection saw 6% growth and Telecoms & Energy saw a 7% spike. Finally, revenue from Transportation division slipped 5%. Coats proposed a final dividend of $1.30 per share, which gives an annual total of $1.85 – seeing a 11% rise from the 2018 which was $1.66. ‘During the year, we also made significant progress on our strategic priorities of M&A, Digital, Innovation and Sustainability. The acquisition of Pharr High Performance in North America makes Coats a market leader in Personal Protection yarns. ESG and Sustainability are key differentiators for Coats and a source of competitive advantage. Rajiv Sharma, Group Chief Executive, said: ‘At an operational level we continue to grow margins through self-help programmes and cost management, whilst continuing to recover raw material cost increases. Cash delivery was once again strong which provides us with the funds to invest selectively in the most attractive organic and inorganic opportunities. Over the last two years the delivery of our Connecting for Growth transformation programme has resulted in less complexity, lower cost, more organisational agility and funds to invest in growth. The organisation is now fitter, faster, more agile and able to respond rapidly to fast-paced changes in the market. ‘We enter 2020 as a lean and agile organisation, having delivered significant positive strategic change through 2019. We are well placed to take advantage of the fast-paced and rapidly changing modern world, by capturing the many opportunities this presents to Coats as a truly global business. ‘Absent a material impact from Covid-19, Coats remains well placed to execute our strategy and deliver another year of growth in 2020.’ Shares in Coats Group PLC trade at 60p (+3.70%). 5/3/20 13:42BST.

Saga unable to fully assess coronavirus impact

Ishen Patel
-
0
Saga unable to fully assess coronavirus impact
Saga PLC (LON:SAGA) have seen their shares crash on Thursday afternoon, as the firm gave an update on its operations. The financial services provider said that the current situation with the coronavirus has been affecting results. However, Saga noted that the impact cannot yet be quantified – but did note that cancellations and lower bookings have been since since the outbreak of the COVID-19. “Saga is closely monitoring the evolving situation with respect to COVID-19 and our focus is to ensure customers, guests and colleagues are safe and reassured in all circumstances. We have taken significant steps to safeguard everyone and will continue to do so throughout this time.” Saga also noted that their Cruise business has forward sales for 80% targeted revenues, for their financial year ending January 2020. However, the Cruise business has faced some troubles following cancellations since the outbreak of the coronavirus. Looking at their tour operations unit, the firm also noted that there has been further cancellations and lower demand. Saga have remained confident in their ability to make up lost ground, as they said they have lower exposure to the Far East and Northern Europe – shifts in demand and coronavirus issues should be handled. Saga commented: “The evolution of COVID-19 and the impact this will have on full year earnings for 2020/21 cannot be predicted with any certainty at the current time. While our Travel business will be impacted, the Group expects the performance and cash generation of the Insurance business to be largely unaffected. There are a range of actions the Group can take to mitigate against weaker trading in the Travel business, such as the cost efficiency actions already underway and announced in the recent trading statement. The Group will provide a full update with full year results for the year ended 31 January 2020 on 2 April 2020 and reiterates that underlying profit before tax is expected to be in line with expectations.” Shares in Saga trade at 22p (-9.33%). 5/3/20 13:23BST.

Admiral see ‘freight train’ 2019, as CEO announces his retirement

Ishen Patel
-
0
Admiral see ‘freight train’ 2019, as CEO announces his retirement
Admiral Group plc (LON:ADM) have given shareholders a bullish update, with strong fundaments for their recently ended financial year. The Group Chief Executive Officer, David Stevens called 2019 a ‘freight train year’ – saying that it was a record year with strong consistent performance. The CEO noted: “Was 2019 another “freight train” year? Very much so. In so many ways. It was a year which saw profits exceed £500 million for the first time, on the back of substantial reserve releases. We crossed the million mark in household policyholders, and added 200,000 new car insurance customers overseas. The percentage of staff saying they are proud to work for Admiral was stuck in a narrow band in the mid-90’s. As was the percentage of customers who said they wanted to renew with Admiral following a claim. Consistently happy staff, consistently happy customers. Hopefully happy shareholders.” The insurance firm posted a pretax profit of £522.6 million for 2019 – which was noted as a company record. This pretax profit figure saw a 10% rise on the 2019 figure, and met internal guidance range. Customer numbers also rose for the firm, with this metric jumping 7% to just shy of 7 million customers. UK Insurance numbers also rose 4% to 5.5 million whilst international customers climbed 16% to 1.4 million. Insurance premium also rose 5.8% to £2.2 billion, Admiral noted – as net insurance premium revenue also jumped 5.6% to £709.4 million. In addition to this, net revenue saw a 7.1% boost to £1.35 billion. The company’s return on equity was 52%, down from 56%, with the Solvency ratio post-dividend 190% from 194%. Admiral have decided to pay a 77p per share final dividend, with the addition of a 20.7p special dividend. This boosts the annual dividend to 140p – which sees an 11% rise from 2018. Annette Court, Admiral Group Chair, commented: 
“I am delighted to report another year of record profit in 2019 and a strong set of results. It was also pleasing to receive a recent award as the only company to appear in the Sunday Times Best Large Company to Work For shortlist every year since the inception of the awards 20 years ago. These results are testament to our people, who continue to be at the core of our success and highlight every day the real difference that they make through their focus on great customer service. Having been through a comprehensive and robust succession process, the Board is confident that in Milena Mondini we have a natural successor and a leader for the next generation, supported by a very strong management team. Milena brings a deep appreciation of the special Admiral culture, entrepreneurial spirit, commercial track record and people development skills.”

Admiral CEO announces his retirement

David Stevens, the Group CEO also announced his retirement in an update toady. Stevens has been with Admiral since 1991, and is a co-founder of the firm. He has held his role as CEO since 2016. He will retire from the role and as a director in 12 months’ time. Stevens said today that Milena Mondini de Focatiis will replace him, and she currently holds the head of Admiral’s UK & European Insurance business role. “I announced this morning that I am going to be stepping down as CEO in 12 months’ time. I fully expect that Admiral’s talented senior management, led by our very talented CEO designate, Milena Mondini, will be more than ready to maintain, or even stoke up, Admiral’s relentless momentum, noted Stevens. “I am particularly glad that, in Milena, I have a successor who has the intelligence, the values, the track record and the clarity of vision to take on the role of Group CEO, and ensure that Admiral will continue to “go like a freight train” in the years to come.” Members of Admiral were quick to praise Stevens for his commitment and endeavor to the company. Annette Court, Admiral Group Chair, added d: “It is hard to sum up the amazing contribution that David has made to the Group over the last 27 years. As one of the founders he has overseen the business grow from a standing start to become one of the UK’s largest motor insurers, employing over 10,000 people, serving seven million customers and with a market value today of over £6 billion. His new successor commented: “I am immensely proud and humbled to be given the opportunity to succeed David as CEO of a truly special company. During my 13 years with the Group I have worked closely with David, and previously Henry, and look forward to building on their legacy. Admiral has a unique culture with staff and customers at its core, which has underpinned its track-record of growth and success. The responsibility of ensuring this remains the case into the future is a challenge I am excited to take on. “Thank you, David, for everything you’ve done for Admiral, and I look forward to continuing to work closely with you during the transition.” Shares in Admiral trade at 2,193p (+0.55%). 5/3/20 13:08BST.

Spirent Communications post bullish annual results, with double digit profit growth

Ishen Patel
-
0
Spirent Communications post bullish annual results, with double digit profit growth
Spirent Communications Plc (LON:SPT) have seen their shares spike, following an impressive annual update. The analytics firm said that it had seen double digit increases in annual profit and revenue across the annual period – which seems to have caught shareholder attention. The firm noted: “In 2019, Spirent delivered another year of robust revenue growth and a material increase in earnings and cash. The momentum of our high-speed Ethernet sales and the US government requirement for our GNSS positioning solutions remained strong. We are focused on increasing visibility and decreasing cyclicality risks in our portfolio by expanding our services and software offerings. Order intake grew solidly as we secured more large, multi-year contracts, building orderbook for delivery in future years across all operating segments. Our investment in, and rollout of, our key account programme is delivering successfully and will expand in 2020”. These increases were driven by higher product demand and a better win rate with US defense contractors, leading to a payout raise. The firm said that pretax profit across 2019 was $89.6 million – this sees a 46% rise from $61.2 million in 2018. Revenue surged 13% to $503.6 million from $476.9 million. This performance was driven by continued performance in high speed ethernet sales, with China particularly increasing demand. Additionally, a higher win rate for Global Navigation Satellite System defense projects in the US led to the confident update today. The firm also saw its’ order numbers rise by 13% from $470 million to $532 million. Spirent have remained confident to deliver consistent trading, despite issues ongoing with the coronavirus. The group declared a final dividend of 3.45 cents per share, giving a total payout of 5.39 cents. Eric Updyke, Chief Executive Officer, commented: “As I complete my first year with Spirent, I’m delighted with the progress we have made and remain optimistic about our ability to seize opportunities and ensure we are well positioned for continued sustainable, profitable growth. We have a world class customer base that trusts us and respects our expertise. We have market-leading technology in which we continue to invest and innovate and our strong financial platform affords us great flexibility to evolve and grow our business. “We have also further strengthened our leadership team during the year, adding more expertise and new energy to an already excellent talent base. This team will execute our strategy with a focus on three key pillars: Customer Centricity, Innovation for Growth and Operational Excellence. “Overall, we are confident in our ability to continue to add value to each of our stakeholders, our customers, our investors and our people.”

Spirent expectations meet results

In January, the firm gave a confident update saying that it expects full year profits to exceed market expectations. Spirent said that they were able to secure a number of important and significant contract wins in the final quarter of 2019, which drove revenue. The firm said that 2019 total group revenue rose 5.5% compared to a year ago, with the figure totaling $503 million. Spirent added that it has forecasted for adjusted operating profit to be between $91 million and $93 million – which would represent a rise of between 18% and 21% on the $77.1 million reported one year ago. There was notable growth in its Network and Security Unit, as demand rose for 400G high speed ethernet test solutions. The company alluded to strong order growth for its Lifecycle Service Assurance products in the final quarter, but this is expected to benefit 2020 and long term operations. Its Connected Devices unit saw a “solid” operating profit outturn, despite some revenue reduction driven by increased 4G legacy decline. The confidence has certainly paid off for Spirent, and shareholders should be thoroughly pleased with the annual results posted today. Spirent Communications shares trade at 229p (+8.23%). 5/3/20 12:44BST.

Domino’s Pizza shares dip 4% as annual results remain steady

Ishen Patel
-
1
Domino’s Pizza shares dip 4% as annual results remain steady
Domino’s Pizza Group PLC (LON:DOM) have seen a dip in their shares, as they updated the market with their final results on Thursday morning. The pizza firm said that its annual trading was good from its’ core operations. Domino’s reported revenue totaling £508.3 million across the annual period – which ended on December 29. Notably, this was 3% higher than the equivalent one year ago. Looking at their UK and Ireland performance, the firm saw sales rise 4.8% to £1.21 billion – excluding split stores the rate of growth was 3.7%, seeing a slight reduction from £4.6% in 2018. Ian Bull, Interim Chairman said: “The Board is encouraged by the performance in the UK and Ireland, in an uncertain environment. We have four key priorities: recruiting a new Chair, CEO and CFO, reinforcing our core business, rebuilding our franchisee relationship and finding the right owners for our International businesses. We are giving these priorities considerable time and focus and are confident in the long-term prospects for the Group.” Pretax profit from continuous operations dropped 14% to £75.1 million, as underlying pretax profit also fell 1.2% to £98.8 million. Domino’s noted that their profit figures were impacted by a £18.7 million corporate store impairment. The firm declared a final dividend of 5.56 pence per share, giving a total payout of 9.76p – seeing a 2.7% jump on the 2018 metric. Commenting on the results, David Wild, Chief Executive Officer said: “Our core UK & Ireland business continues to deliver a solid trading result, with UK like-for-like sales up 3.7%. Our digital capabilities continue to fuel this growth, with online sales up 8.8%. Collection also saw a good performance, up 5.3%, and this remains a significant opportunity for us going forward. I would like to thank my colleagues across all our markets, together with our franchisee partners, for their continued hard work and passion for the Domino’s brand. “In February we were pleased to announce a disposal of our Norwegian business which is subject to shareholder approval, and we expect this to complete by the end of May. We continue to prioritise transactions for our remaining International businesses, although expect that these may take some time as we ensure that we find the best owners for these businesses.”

Domino’s see strong fourth quarter trading

In January, Domino’s told the market that they had seen a strong fourth quarter performance. The firm reported fourth quarter revenue growth, which was driven by better performance in the UK and Irish market. In the 13 weeks to December 29, group sales were 3.7% higher year-on-year at £352.0 million from £339.6 million. On an organic metric, at constant currency and excluding acquisitions and disposals, sales climbed 4.1% from the year prior. In the UK and Ireland, sales jumped 4.4% from £312.9 million to £326.7 million, on organic measures this also showed a 4.5% rise. Like-for-like sales in the UK alone were 3.9% higher during the quarter, though in Ireland, they were down 1.0%. Looking at international business, sales were down 4.9% to £25.3 million from £26.6 million. Domino’s said its disposal program is “progressing” and added that it is focusing on offloading its Norway operations.

Domino’s exit from Norway

A few weeks ago, Domino’s announced their intentions to exit all operations from their Norwegian business. Dominos have agreed to sell their 71% stake in DP Norway AS to minority shareholders including Pizza Holding AS and EYJA Fjarfestingafelag III EHF. The firm have said that it will need to make a cash outlay of around £7 million as part of the sale. This will cover marketing campaign costs, future liabilities and cash retained within the disposed business. The deal is expected to be completed by the end of May, Dominos said. The full disposition is subject to shareholder and US brand owner Dominos Pizza International Inc clearance. Norway operations led to an underlying operating pretax £6.6 million for 2018, and the UK branch arm has agreed to cover further losses until the completion of the deal in May. The planned sale of their Norway operations should allow Domino’s to focus on the UK and Ireland – where recent performance has been bullish. Shares in Domino’s Pizza trade at 291p (-4.39%). 5/3/20 12:26BST.

FTSE 100 promotions and relegations – TUI, NMC and Kingfisher all demoted

Ishen Patel
-
1
FTSE 100 promotions and relegations – TUI, NMC and Kingfisher all demoted
The FTSE 100 has received a bruising over the last few weeks, as the coronavirus has continued to take its’ toll on global markets. Data from the FTSE Russell confirmed that there had been some shifts within the FTSE 100. Three big names in Kingfisher plc (LON:KGF), TUI AG (LON:TUI) and NMC Health PLC (LON:NMC) were among the most recent departures inside the elite league. All these firms have seen market turbulence over the last few weeks, and the relegation from the FTSE may hurt these companies. Stepping inside the FTSE 100, and receiving promotion were Intermediate Capital Group plc (LON:ICP), Pennon Group (LON:PNN) and miner Fresnillo (LON:FRES). Since the outbreak of the coronavirus – global markets and indices have seen ebbs and flows. However, last week saw the FTSE 100 drop to a twelve month low. There is no doubt that the coronavirus is still continuing to haunt global stocks, as markets are just about recovering this week from the shocks. The FTSE 100 is still hovering around the 6,688p figure – a relatively low benchmark considering around ten days ago it was flirting with the idea of hitting 7,042p. There is still a lot of ground to be made up not just for the FTSE 100, but for global businesses. The airline industry has arguably been the most hurt, as many firms have resorted to cutting flights due to the coronavirus – notable cancellations came from British Airways who suspended flights to and from China. Travel restrictions are being imposed by National Governments, and legislators in Parliament are now preparing a legislation pack just in case the coronavirus spreads quicker than can be contained. Certainly – the FTSE in the short term still could face shocks, but market traders will have to be patient. Immediate recovery is rather speculative, and until the coronavirus situation is under control, global stocks and businesses could be infected.

GVC Holdings see steady 2019 however annual loss widens

Ishen Patel
-
0
GVC Holdings see steady 2019 however annual loss widens
GVC Holdings PLC (LON:GVC) have reported ‘good’ 2019 performance – as the firm has assessed its’ recent merger with Ladbrokes Coral. The bookmaker noted that revenue across 2019 was 22% higher than the comparative one year ago, as revenue totaled £3.66 billion. GVC reported however that it had delivered a pretax loss of £174.2 million, which was massively widened from the £18.9 million figure one year ago. The CEO commented: “Our first full year since the Ladbrokes Coral acquisition has been a good one, and the performance has continued to be underpinned by our unique and highly effective operating model. We have delivered very strong growth in our Online business, including market share gains in all major territories, and good momentum in our Europeasn Retail business. This revenue growth has more than offset the impact on the UK Retail business of the £2 restriction on B2 machines stakes. We are delighted with the progress that is being made on the Ladbrokes Coral integration, and in the US the launch of BetMGM on the GVC platform in New Jersey was an important milestone for our business there and enables us to remain on track to deliver on our ambitions in this exciting market”. The firm said that the widened loss was due to a £245 million impairment in the Online business due to new taxes in regions such as New Zealand and Tasmania as well as costs related to the Ladbrokes Coral and Bwin deals. On a better note, GVC said that they saw underlying pretax profit rise 23% to £535.8 million. UK Retail like-for-like net gaming revenue declined by 12%, whilst like-for-like sports net gaming revenue in retail jumped 7%. GVC said that they intend to pay a second interim dividend of 17.6 p per share, which gives an annual total of 35.2p. Kenneth Alexander, CEO, concluded: “During the year, we have also continued to clearly demonstrate our leadership in, and commitment to, Responsible Gambling with a number of decisive actions, not least being the first in our industry to commit to a ten-fold increase in contributions to Responsible Gambling causes and our call for a total ban on sports-betting television advertising in the UK. Having an effective regulatory environment is critically important in encouraging customers to play with responsible regulated operators. With that in mind, it is our firm view that over-regulation in the UK would result in customers moving to the black market where there is zero responsibility, zero protection and zero tax being paid to the Treasury. As a consequence, it would also lead to a reverse in the considerable decline in problem gambling that the industry has delivered over recent years. Looking ahead, we are confident that GVC’s broad international footprint, proven track record of acquisition and strong organic growth will continue to present significant opportunities for further expansion.” Shares in GVC Holdings trade at 793p (-1.71%). 5/3/20 11:54BST.

Tesco announce price matching policy to rival Aldi

Ishen Patel
-
0
Tesco announce price matching policy to rival Aldi
Tesco PLC (LON:TSCO) have made a pledge to the British supermarket industry to try and win back customers from their German counterparts. Tesco, who are one of the ‘big four’ have seen a mixed time of trading over the last few weeks. British supermarket habits have shifted over recent years, as many consumers have switched to rivals such as Lidl and Aldi due to cheaper prices, and product offerings at similar quality. The FTSE 100 listed firm said that they are set to enact a new price match policy, which means that many of Tesco’s own brand products will match the prices that are offered by Aldi. Recent data from Kantar noted that both Aldi and Lidl had taken a higher percentage of the market, following strong Christmas trading periods. Notable performance also came from Ocado (LON:OCDO) – who stamped their influence on the British supermarket industry. Tesco said today that it will make sure that “customers are getting competitive prices on these products at Tesco and saving themselves a trip”. “Prices of the products included will be checked to give customers peace of mind, offering Tesco products at Aldi prices for simple, great value,” Tesco added. The firm noted that their Finest premium ranges will not be part of the policy, however entry level products will look to match their rivals. “Our customers tell us they want the most competitive prices on the things they buy regularly. This new campaign will help time-poor and budget savvy customers get Tesco products at Aldi prices on products that matter to them,” said chief customer officer Alessandra Bellini.

Tesco see group sales fall

In January, Tesco gave shareholders a very modest update on its’ recent trading. Tesco UK and Ireland saw its sales rise over the festive period, however total group sales fell following slumps in Central Europe. The British supermarket is currently undergoing a review and restructuring program in Central Europe, and this may be the likely cause for the slip. In the six week period which ended on January 4, the UK & Republic of Ireland sales increased by 0.2% and rose 0.4% on a like-for-like basis, excluding fuel. Total group sales fell by 1.7%, however, and by 0.8% on a like-for-like basis, however shareholders have not seem to phased. In the third quarter, the firm saw its grocery sales fall 0.9% compared to a year ago whilst total sales dropped 1.4%. Across the Christmas period, total sales over the 19 weeks period were down 1.5% year on year to £21.03 billion. Turning to Asia, the firm saw total sales be equal over the 19 weeks period at £1.93 billion, however sales fell 1.6% on a like for like basis. There will be a hope that this new policy can increase footfall and take business away from Aldi – who are rapidly expanding and seem to be dominating the British supermarket industry alongside fellow German brand Lidl.
1...1,1731,1741,175...1,789Page 1,174 of 1,789