Sir Martin Sorrell ‘s S4 Capital has confirmed a second acquisition, agreeing to buy MightyHive in a $150 million (£117 million) deal. After Sorrell was forced to leave advertising giant WPP (LON: WPP), he swiftly created his own venture that he said would be “the best form of revenge” against his former employer. The first acquisition that S4 Capital carried out was in acquiring the Dutch agency, Media Monks. “This represents a significant step in building a new age, new era, digital agency platform for clients,” said Sorrell about his first deal at S4 Capital. “MediaMonks’ roots are totally in new media, and data, content and technology. Our next moves will be to build this platform further and to add meaningful data analytics and digital media buying. The company will be a unitary one with MediaMonks as its core.” On his latest deal, he said: “The merger with MightyHive marks an important second strategic step for S4 Capital. The peanut has now morphed into a coconut, and is growing and ripening.” “Clients of all kinds want services delivered faster, better and cheaper, by more agile and responsive organisations,” he added. MightyHive made $41 million in revenue and $11 million in profits in the year ending 31 October. Sorrell was forced out of WPP following an investigation into alleged personal misconduct. He was the longest-serving FTSE 100 chief executive. WPP employs more than 200,000 staff in 400 businesses working in 112 countries. It is the world’s biggest advertising giant.  

Mike Ashley appeared in front of parliament on Tuesday to discuss the future of the high street. The chief executive of Sports Direct (LON: SPD) told MPs that a 20% retail tax was necessary on retailers that make more than a fifth of their sales online. “It is not my fault the high street is dying; it’s not House of Fraser, not Marks & Spencer (LON: MKS) or Debenhams’ (LON: DEB) fault,” said Ashley. “It is very simple why the high street is dying. It is the internet that is killing the high street. The vast majority of the high street has already died. In the bottom of the swimming pool, dead.” Ashley’s suggested 20% tax would force retailers to invest in high streets. Sports Direct would be included in the tax. Another proposal to save the high street given to MPs was a 50% reduction in base rent rates and free car parking for customers. During his meeting in Parliament, the business tycoon slammed politicians for not doing more to save the high street. “You have to grab the bull by the horns. You are in a cataclysmic event,” he told MPs. Earlier this year, Ashley saved House of Fraser and Evans Cycles from collapse. He said that half of Evans’ 62 stores could close. Despite plans to save 80% of House of Fraser stores, 12 stores are to close after failing to agree on a deal with the landlords. The Sports Direct boss said that it was not possible to keep every store open, saying: “I’m not sitting in my office stroking a white cat … I find it very frustrating: what benefit have I got of closing stores?” Following the meeting, a spokesperson from the Treasury said on Ashley’s tax suggestion: “As the chancellor made clear in the Budget, an online sales tax would be passed onto consumers. That’s why we’re putting £675 million into a Future High Streets Fund instead to help high streets to evolve.”      

Greencore has released its full-year results on Tuesday. The convenience food producer has reported a strong growth in its food to go business for the 12 months ending 28 September. Despite this announcement, shares in the business (LON:GNC) have dropped over 5%. Over the period, pre-tax profit rose 12.7% to £17.8 million. Equally, revenue increased 4.2% to £1.5 billion. Adjusted earnings per share came in at 15.1p, which is in line with the 14.7p-15.7p guidance previously announced in October. The company also highlighted its plan to return £509 million of capital to shareholders by way of a tender offer. Remaining proceeds are expected to be returned through a special dividend. Additionally, net debt has been reduced by £18.1 million to £501.1 million. This has been driven by a £14.4 million increase in Free Cash Flow.

Greencore has said that it will continue to closely monitor the potential implications Brexit may have on the business.

Chief Executive Officer, Patrick Coveney, commented on the results: “2018 was a year of significant change for Greencore. We delivered good underlying growth in the UK, with favourable consumer and retailer trends helping drive our core food to go business. After the financial year-end, we took the decision to sell our US business having received a compelling offer for it. We will now focus all of our attention and resources on the significant growth opportunities that we see in the UK, both organic and inorganic. Despite the short-term uncertainties of Brexit, our scale, depth and expertise in attractive and structurally growing food categories mean that we are confident in the future growth prospects for Greencore.” Fundamentally, Greencore is well positioned to capitalise on its industry-leading position and maximise profitability and returns in the UK market. The company’s food to go categories drove 60% of revenue across the period, with an 11.1% reported revenue growth in these categories alone. Pro forma revenue was at 10.8% (excluding the acquisition of the Heathrow sandwich facility). Tuesday’s market headlines also include Travis Perkins’ plan to sell its plumbing division. Elsewhere, Coats has said it will invest in the technology start-up Twine Solutions, Rentokil Initial announced a £1.5 billion pension scheme deal and Wizz Air released its latest passenger statistics. At 10:16 GMT, shares in Greencore Group plc (LON:GNC) were trading at -5.29%.

Travis Perkins announced on Tuesday that it planned to sell its plumbing and heating division. This move is part of a broader corporate restructure that involves “simplifying” the business to “improve” returns. The business aims to focus on trade customers and drive returns from its advantaged trade businesses. Equally, it hopes to simplify the group and streamline costs in order to encourage a strong cash flow. The intention to sell its Plumbing and Heating Division comes following a successful transformation.

In addition, Travis Perkins hopes to improve the performance of its Wickes DIY chain.

On Tuesday, the Travis Perkins management team will host a capital markets update in the country’s capital. The event aims to cover the company’s immediate priorities and ambitions for its future. Travis Perkins is a UK based builders’ merchant and home improvement retailer in Northampton. It currently operates 1,900 outlets with over 27,000 employees across the UK and Ireland. Owner of the well known brand Wickes, Travis and Perkins is part of the FTSE 250. CEO John Carter commented on the announcement: “We have developed a clear plan to focus on delivering best-in-class service to our trade customers, and to simplify the Group to reduce complexity, speed up decision making and reduce costs. Our trade businesses hold strong positions in attractive markets, and these initiatives will enable us to concentrate our management time and capital in the highest returning areas.” “Our strong balance sheet and free cash flow generation, driven by growing earnings and lower capital expenditure, will underpin our commitment to drive shareholder value and a progressive dividend.” Its short term goal is to focus on strengthening the performance of Wickes and capitalise on its popularity in the DIY market. In the medium term, the board will also look to review the options for maximising its value. According to Sky News, one of these options could be a sale. The group also announced that it plans further annualised cost savings of £20-30 million, which it hopes to deliver over the next year and a half. Tuesday’s market news also includes the world’s leading industrial thread manufacturer, Coats, investing in tech start-up Twine Solutions. Elsewhere, Wizz Air reported an 11% jump in its passenger numbers. and Rentokil Initial announced a £1.5 billion pension scheme deal. At 09:52 today, shares in Travis Perkins plc (LON:TPK) were trading at 0.30%.

Coats has announced on Tuesday that it has become a strategic investor in Israeli based technology start-up Twine Solutions. The world’s leading industrial thread manufacturer invested in the start-up due to its revolutionary digital thread dyeing system. Twine Solutions was founded in 2015 in Israel by two brothers with an extensive digital printing expertise. It currently employs 40 full-time workers and is situated just outside of Tel Aviv. Under the agreement, Coats will invest $5 million for a 9.5% share in the company and a seat on the Board. Coats’ Michael Schofer, the Chief Supply Chain Officer, will be taking the seat on the Twine Board. Both companies will now work together on an exclusive commercial partnership to market the technology and launch it next year.

Twine has created the world’s first ever standalone digital threat dyeing system, appealing to Coats’ portfolio.

In the first quarter of the year, the group saw a 5% jump in its sales following a strong performance in its industrial division. Group Chief Executive, Rajiv Sharma, commented on the partnership: “This is an exciting and innovative strategic move. We are investing in future technology which will improve our industry and its sustainability by directly addressing the key needs of our customers: speed, innovation and sustainability. The disruptive technology has the potential to revolutionise the thread industry and Coats will work closely with Twine to commercialise this opportunity.” Additionally, Twine’s CEO Alon Moshe said: “We are bringing high tech to a low tech industry by providing a unique solution to the most basic problem for one of the largest and oldest industries. To have the world’s leading industrial thread manufacturer as a backer brings immeasurable strength and opportunity to our offer.” Other market news on Tuesday includes Rentokil Initial’s announcement of a £1.5 billion pension scheme deal. Elsewhere, Wizz Air reported a jump in its passenger numbers of 11%. At 09:15 today, shares in Coats Group plc (LON:COA) were trading at -0.12%.

Rentokil Initial has announced that it will transfer its £1.5 billion pension scheme to Pension Insurance Corporation. This is ahead of the planned full buy-out of the scheme in 2020. The agreement will secure the benefits of 14,200 members (7,500 pensioners and 6,700 deferred pensioners). As a result, this means that the scheme is now fully hedged against longevity, interest rate and inflation risks.

Rentokil Initial is a FTSE 100 company and one of the largest business services companies across the globe.

It currently operates in over 70 countries. Moreover, it is a global leader in the Pest Control and Hygiene services. Chief Executive of the company, Andy Ransom, commented: “This transaction is a fantastic outcome for our pensioners, the Company and our shareholders. We have supported the Scheme over many decades and over that period made significant cash contributions to remedy a deficit that has existed between the Scheme’s assets and liabilities. That funding, combined with excellent stewardship by the Scheme’s trustees, and the high quality support of the advisers to the Company and the Trustee, has resulted in a very positive situation whereby the Scheme can now be transferred to an A+ rated insurance company, PIC. This action de-risks the Scheme for the benefit of members and the Company.” “While many other companies will have to continue investing heavily into their pension schemes for years to come, we can focus our future investments on delivering profitable growth.” Additionally, Chris Pearce, Chairman of Trustee, said: “This is great news for members. After many years of support from Rentokil Initial and careful management with Aon (our Actuary) and Willis Towers Watson (our investment adviser) we can now secure our members’ benefits through Pension Insurance Corporation (PIC), a company which has strong financial credentials and a track record of excellent customer service. I want to thank our advisers, Aon, and our lawyers, Linklaters, for their help in arranging a strong agreement with PIC which will continue the excellent pensions our members enjoy.” At the beginning of October, Rentokil Initial acquired Mitie’s pest control business for £40 million. At 08:57 GMT today, shares in Rentokil Initial plc (LON:RTO) were trading at +1.07%.

New data has emerged on Tuesday morning outlining Wizz Air’s growth over November 2018 and its passenger statistics during this period. Over the month of November, the amount of passengers flying with the airline grew 11.2% to 2,400,337. Additionally, load factor increased 2.9 percentage points to 91.2%.

Wizz Air is the largest low-cost airline in Central and Eastern Europe.

It currently operates 105 airbuses and offers over 600 routes from 26 bases, connecting 144 destinations across 4 countries. In the past year, the low-cost airline has flown over 33 million people. Listed on the London Stock Exchange, the company is also included in the FTSE 250. The results also outline the company’s growth of its network. The company revealed that Krakow is to become its 26^th base with two brand new airbus models being deployed there from summer 2019. Indeed, it will operate 12 new routes to nine countries. Additionally, by deploying the new airbus models, Wizz Air will further consolidate its number one market position in Hungary and Romania. Equally, it will contribute to the expansion of the company’s 105 aircraft strong fleet that it currently boasts. In April, the airline reported another passenger increase following the addition of several new routes. The results also outline that the inauguration of Wizz Air’s new state-of-the-art €30 million pilot and cabin crew training center in Budapest. Currently, the facility operates two full motion simulators and holds the potential to train up to 300 people daily at the site. At the beginning of November, the airline lowered its forecast for full-year profit to between €270 and €300 million. This was as a result of air traffic control strikes and higher fuel prices. The industrial action caused shares in the company to drop significantly and impacted its results. The strikes from air traffic controllers lead to a five-fold increase in the airline’s flight cancellations. At 08:30 GMT today, shares in Wizz Air Holdings plc (LON:WIZZ) were up 0.1%.