Diageo announce £2bn share buyback on solid performance

Drinks giant Diageo (LON:DGE) reported a rise in both pre-tax profit and net sales on Thursday, alongside the announcement of a £2 billion share buyback programme. The group said the decision would take them to the next level as the world’s biggest distiller, following an earlier share buyback of £1.5 billion in June. “On 26 July 2018 the Board approved a new share buyback programme to return up to £2.0bn to shareholders during the year ending 30 June 2019,” the company confirmed in a statement. For the 12 months to 30 June, pre-tax profit rose to £3.74 billion, with annual net sales of £12.2 billion and operating profit of £3.7b billion. Net sales was driven by 2.5 percent volume growth helping to offset the impact of a stronger pound, and was driven by double digit growth in both Asia Pacific and Latin America. “Our financial performance expectations are unchanged and we expect to continue to invest in the business to deliver our mid-term guidance of consistent mid-single digit organic net sales growth and 175bps of organic operating margin expansion for the three years ending 30 June 2019,” said Ivan Menezes, Chief Executive. Shares in Diageo (LON:DGE) are currently trading down 0.77 percent at 2,825.00 (0851GMT).

National Express profits rise by a quarter

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National Express (LON:NEX) shares shot up in early trading on Wednesday, after profits jumped by nearly a quarter in the first half of 2018. Half year pre-tax profit rose by 24 percent to £80.1 million in the first half of 2018, with group revenue rising by £0.4 billion to £1.21 billion. The group’s North American business recorded the biggest growth, up by 9.7 percent in constant currency to $753.2 million, with the UK growing by 0.8 percent to £273.6 million. National Express boosted shareholder sentiment with a 10 per cent increase in the interim dividend to 4.69p. CEO Dean Finch said: “National Express has had another strong start to the year “We also continue to make disciplined acquisitions that help grow our portfolio strategically. “We have made seven acquisitions so far this year and have entered new fast-growing markets, providing avenues for interesting future expansion. “Our pipeline of new opportunities remains strong and growing. “This combination of growth in our core business and the number of exciting new opportunities allows us to again increase the interim dividend by 10%. “We remain on course to deliver the board’s expectations.” Shares in National Express are currently up 2.01 percent at406.80 (0830GMT).

British American Tobacco shares up on strong profit and revenue

British American Tobacco (LON:BATS) shares rose over 4 percent on Thursday morning, after reporting a significant jump in both revenue and profit. Operating profit rose 72.4 percent to £4.44 billion in the six months to June, with revenue up by 56.9 percent to £11.64 billion. Adjusted operating profit fell, however, by 5.4 percent and strong Revenues were partially offset by an 8 percent hit from a stronger pound. “The foreign exchange impact on the Group’s results was a headwind of 8 percent for the first six months of the year and is estimated to be 5-6 percent for the full year, based upon the current foreign exchange rates,” the company said. The results were largely boosted by an increase in the volume of cigarettes and THP sold, up 11 percent to 348.3 billion on a reported basis. This was driven by the acquisition of Reynolds American and good pricing. “Despite the recent slowdown in the THP category in some markets, including Japan and South Korea, we remain confident of exceeding £1 billion of reported revenue in NGP in 2018 as we expect a range of new launches to re-energise growth in THP in the second half of the year,” the company said. Shares in British American Tobacco are currently up 4.10 percent at 4,136.00 (0818GMT).

The Ultimate Guide for a Northerner Considering Relocating to London

Sponsored by FJP Investment Are you thinking of making the move from North to South? Each year there is an influx from the North to the South, some are young professionals career driven and excited by the thought of life in the heart of city life, some are students having had enough of home towns wishing to enjoy cosmopolitan city life, whatever it is; London brings Northerners in their thousands each year to the big smoke. Sometimes travelling from where you grew up can be just a few hours to London, however, be prepared as relocating from North to South can actually be a bit of a culture shock. FJP Investment have put together some pros and cons regarding relocating which may help in some way when making the decision to pack up and leave you home town to move down to London. Rents According to Jamie Johnson of FJP Investment “Believe me, it is no fairy tale that rents in London are considered to be the most expensive European City rents for the third year in a row and four times higher than other British cities!” More Career Choices However, along with higher rents, London has of course a major advantage over other cities in that salaries are much higher in the City and there are far more job prospects on offer with wider opportunities which also takes into account that the average wage in other cities is circa £27,700 and opposed to London where is it is nearer the £40,000 mark. Housemates Good or bad? Some may find that having a house or flat share in London is a bonus, helps you find your feet when you first arrive. Living with people who know their way around and knowing where to go to get the best deals as opposed to learning the hard way on your own. Most people find this to be an ideal way to live when they first relocate as rents are high and therefore by sharing, your costs are reduced enabling you to have a better start in your life down south. Of course, this is not for everyone but maybe in the beginning it really is a means to an end. Meet Interesting People London is renowned for being the most culturally diverse city in the world, home to many interesting people from all walks of life, so the house sharing can help you to find new friends through your new home and gives you the opportunity to learn many differing cultures. Expensive Transport London’s public transport has the unfortunate label of being the most expensive in the world as of 2017, yes, indeed a shock to many people who relocate, looking at a travel card for instance – in London you would pay £135 a month as opposed to £95 in Auckland and surprisingly just £91 in New York! Seeing New Things London has a plethora of attractions old and new which can certainly make your time off from work an absolute delight, from art galleries to theatres to parks to – well just about everything you would expect from a city such as London. Pints are Pricey Beware the after-work pint in the pub…. It will come as no surprise I am sure that your recreation money definitely will not stretch as far in the south as it did in the north, in fact one pub known as The Rake hit the headlines last because their pints of beer were selling at £13.40 – I certainly wouldn’t want to be buying a round! Everything’s Open Late London make sure you don’t go without, if you have the money there is always somewhere open to take it from you, even if you decide to have a TV night or a craving for a kebab at 3am there will be somewhere near that you can pop to and get what you need. Yes, moving to the big city can be challenging but it can certainly be one of the most exciting things you ever do, budget your money of course and take advantage of house sharing but make sure that however long you stay in the Capitol you make the most of it and enjoy every minute of it. FJP Investment is a leading provider of UK and Overseas property investments. Opportunities include residential care home investments.

Trump takes to twitter to defend trade tariffs ahead of Juncker meeting

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Donald Trump took to twitter once more to defend trade tariffs, ahead of the President’s meeting with EU commissioner, Jean-Claude Juncker. The 45th President of the United States took to the social media platform to praise the high tariffs he had recently imposed as “the greatest”. He tweeted: https://platform.twitter.com/widgets.js A few hours later, Trump once again alluded to the impending meeting over trade with the EU, which is set to take place in Washington today. https://platform.twitter.com/widgets.js The US administration has already introduced high tariffs to EU steel and aluminium exports, and is also currently embroiled in a trade war with China. This latest series of tweets from Trump revealed that there is no sign of the US administration relenting on trade just yet. Another tweet from the billionaire President read: https://platform.twitter.com/widgets.js Aside from an ongoing trade war and increasing pressure from EU nations, Trump is also facing mounting scrutiny domestically. His recent summit with Russian President Putin, where he repeatedly denied Russian interference in the 2016 election despite unanimous agreement among the US intelligence agencies, prompted outrage from Democrats and Republicans unlike. Moreover, the recent release of a recording in which Trump can be heard discussing with his lawyer a payout to Playboy model Karen McDougal two months prior to the election, despite having vehemently denied the allegations, has prompted further media controversy. Whilst famously President Clinton was impeached for lying about an affair in 1998, Trump’s ability to get away with seemingly anything has led him to be named ‘Teflon Trump’, because nothing seems to stick. Ultimately however, gaging whether Trump’s popularity remains resilient will be best tested by the performance of Republicans in the upcoming mid-term elections.  

Catena Media acquires Forex news website LeapRate.com

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Catena Media has taken steps to solidify its financial vertical lead by acquiring news website LeapRate.com, a Forex Exchange news portal. Specifically, LeapRate.com specialises in providing news and information on the global Forex sector. The site’s covers stories on companies providing retail and institutional FX, CFDs and cryptocurrency trading, alongside those providing technology and services to the industry. According to a statement from the company, the initial purchase consideration, which is payable on the completion of the transaction, totals an up-front payment of $4 million (USD). $2 million of which will be paid through the medium of newly issued shares in Catena Media and the remainder in cash. The shares will be issued at market value, calculated as the volume-weighted average price for Catena Media’s shares on the Nasdaq Stockholm exchange during a period of 30 trading days measured in connection with the date of signing. In addition to this, the seller may receive an earn-out payment based on the performance of the acquired business over a period of 12 months. Catena Media may choose to pay 50 percent of the earn-out in cash or in newly issued shares. Chief Executive, Per Hellberg commented on the deal: “This acquisition is in line with our strategy for growth and further establishes our position as lead generator in the financial vertical. We are very pleased to welcome LeapRate.com into the Catena Media family and look forward to helping the company realize its full potential.” This latest acquisition comes after a series of purchases in the area, including US-based premium equity service, The Hammerstone back in June. Hammerstone is an online news platform that gives subscribers real-time updates and analytics on stocks. Catena Media has around 300 employees in various locations including the US, Australia, Japan, Serbia, the UK, Sweden and Malta, where the company is headquartered. The company is currently listed on Nasdaq Stockholm Mid Cap. The company’s total sales for 2017 came in at €67.6 million. Shares in Catena Media are currently trading -0.40 percent as of 11.07AM (GMT).  

Joules boosted by jump in revenue and profit

Shares in clothing brand Joules (LON:JOUL) jumped at market open on Wednesday, after the group reported strong growth across both retail and wholesale. Joules reported an 18.4 percent jump in revenue, with underlying annual pre-tax profit up 28.5 percent to £13.0 million in the year to May. Underlying earnings (EBITDA) rose 24.4 percent to £21.1 million. “It has been another strong year of growth for the Joules brand, with our continued expansion within the UK and international markets enabling the Group to a profit performance ahead of initial expectations,” the company said. A final dividend of 1.3p per share was proposed, which if approved at the AGM, would take the total dividend for the full year to 2.0p per share, up from 1.8p. Earlier this morning Peel Hunt reaffirmed its buy investment rating on Joules Group and raised its price target to 400 pence, up from 380 pence. Shares in Joules Ltd (LON:JOUL) are currently trading down 1.45 percent at 341.00 (1012GMT).

Sales marginally up at Marston’s, boosted by good weather

Like-for-like sales rose slightly at pub chain Marston’s (LON:MARS), boosted by World Cup beer sales and good weather. Like-for-like sales rose 0.9 percent over the past 16 weeks, with total revenue up 5.2 percent over the period. Total volumes in the first 42 weeks of the financial year were up 61 percent year-on-year, total managed and franchised pub sales were up 5.2 percent year-on-year in the 42-week period, with like-for-like sales up 0.3 percent. The group said it had been “helped by good weather and the football, but with some offset from poor weather in April”, but found that the increase in demand for booze had been largely offset by a decline in demand for food. T”he recent hot spell has been most welcome after trading in the first half of the year was hit by poor weather, and with about 10 weeks of the trading year to go Marston’s is confident it will deliver underlying earnings in line with market expectations”, the group said. “We are encouraged by our stronger trading performance in the second half-year, including the benefit of recent good weather and the impact of the World Cup in our Taverns estate and in Marston’s Beer Company,” said Ralph Findlay, the chief executive officer of Marston’s. “Our strategic objectives and progressive dividend policy remain appropriate for current market conditions and we remain confident of delivering underlying earnings in line with expectations for the full year,” he added. Shares in Marston’s (LON:MARS) are currently trading down 1.86 percent at 96.00 (0950GMT).

Santander warns of challenging UK market

International bank Santander (BME:SAN) warned of a ‘challenging’ environment in the UK, reporting a 16 percent fall in earnings in the region. The bank said it earned €3.75 billion in the January-to-June period, increasing its customer base by three million to 140 million. Global profits were up by 4 percent after strong growth in the US and Brazil. However, earnings in the UK fell took a 16 percent hit on the back of higher investment costs and weaker revenues. The UK is one of the banks biggest markets, accounting for a fifth of the bank’s profits, in which earnings fell to €692 million. Santander executive chair Ana Botin said the bank had delivered “strong growth in underlying revenue and improving credit quality, despite strong currency headwinds”. Shares in Santander are currently trading up 0.73 percent at 4.78 (0928GMT).

Indivior shares plummet on release of generic competitor

Pharmaceutical company Indivior (LON:INDV) warned that the release of a generic version of one of its best-selling drugs will likely have a “materially higher” impact on profits than first anticipated. First-half net profit fell by 6 percent to $162 million from $153 million year earlier, and net revenue fell by 5 percent to $524 million from $553 million. The company blamed the fall in revenue on tactical rebating and unfavourable mix due to increased growth in its most price sensitive channel, Medicaid. This more than offset both strong US market growth, largely driven by the Medicaid channel, and rest of world growth. The company had previously warned on the potential impact of the release of a generic version of its Suboxone Film, saying that it was likely to hit profits by about $25 million. They have now said it may well be “materially higher”. “Our primary focus is to ensure the successful progression of Sublocade as it begins its transformation of the treatment of opioid use disorder,” said Shaun Thaxter, CEO of Indivior. Shares in Indivior are currently down 20.33 percent at 265.70 (0914GMT).