Over the period the company expanded its distribution space to 278,000 sq ft, as well as opening a second warehouse facility in Rochdale.
Shares in Footasylum are currently trading down 46.33 percent at 89.90 (0938GMT).Footasylum shares sink 40pc on CEO warning
Shares in shoe store chain Footasylum (LON:FOOT) fell over 45 percent on Tuesday, after the company’s CEO said it had been impacted by weak consumer sentiment.
The group reported strong results over the period so far, with sales increasing to £194 million after opening ten new stores. In the 52 week period to the 24th February pre-tax profit rose 4 percent to £8.4 million, with revenue up 33 percent to £194.8 million. The group saw a real rise in online sales, up 41 percent and now accounting for 30 percent of total revenue.
However, investors were spooked by a warning from the company’s chief executive Clare Nesbitt.
“While our core target market of the 16 to 24-year-old consumer has proved to be comparatively resilient in a downturn, our trading since the beginning of the new financial year has undoubtedly been impacted by the widely documented weak consumer sentiment on the High Street.”
Ashtead profits rise 20pc on US hurricane clean-ups
Profits at equipment rental firm Ashtead (LON:AHT) rose in the 12 months to April, after the company benefitted from US clean-up efforts after hurricanes in 2017.
Underlying pre-tax profits rose by 21 percent in the year to hit £927.2 million, with rental revenues up by 21 percent to £3.42 billion. Underlying earnings (EBITDA) rose by 19 percent to £1.73 billion, with its strong performance driven by its Sunbelt US, A-Plant and Sunbelt Canada divisions.
On a statutory basis, revenues rose 20 percent at £3.71 billion, with pre-tax profits nearly doubling to £968.8 million.
“Looking forward, we anticipate a similar level of capital expenditure in 2018/19 consistent with our strategic plan. So, with all divisions performing well and a strong balance sheet to support our plans, the Board continues to look to the medium term with confidence,” saud Ashtead’s chief executive, Geoff Drabble.
Ashtead proposed a total dividend for the year of 33 pence, bringing the dividend up 20 percent from 27.5p a year ago.
At the end of last year the group announced a £1 billion share buy-back programme, after benefitting substantially from strong half-year sales driven by the devastation caused by the hurricanes. On Tuesday, Ashtead said it had spent £200 million on buybacks so far.
Ashtead shares are currently trading 7.29 percent down, despite the strong performance, at 2,199.00 (1011GMT).
Debenhams shares fall 10pc as weak high street market takes its toll
Debenhams (LON:DEB) became the latest department store to issue a profit warning on Tuesday, joining the legions of high street chains suffering from the competitive climate.
Debenhams warned investors that it would likely miss full-year expectations, after weakness in key markets weighed on performance over the last couple of months.
“We have reassessed our expectations for the balance of the year and now expect pre-tax profit for FY2018 to be in the range of £35 million -£40 million, with EBITDA in the range £160-£165 million,” the company said.
This is well below the current profit before tax market consensus of £50.3 million, after group gross transaction value fell 1.5 percent over the 15 weeks to the 16th June. Like-for-like sales fell by 2.2 percent.
“It is well-documented that these are exceptionally difficult times in UK retail, and our trading performance in this quarter reflects that,” said Sergio Bucher, CEO.
“We don’t see these conditions changing in the near future and, because it is our priority to maintain a robust balance sheet, we are making very careful choices about how we deploy capital.”
Debenhams shares are currently trading down 10.36 percent at 17.57 (0844GMT).
McCarthy & Stone shares sink 15pc on profit warning
Shares in retirement housebuilder McCarthy & Stone (LON:MCS) tumbled nearly 15 percent at market open on Tuesday, after operating profit fell by nearly £100 million.
The group reported an expected operating profit for the full year of between £65 million and £80 million, a big drop on last year’s £96 million.
The forward order book also took a massive hit, dropping to £67 million from last year’s £706 million.
“Whilst this is lower than management’s expectations given the higher number of outlets, it is nevertheless sufficient to deliver within the new guided range,” McCarthy & Stone said.
“Incentives and discounts are also expected to remain approximately in line with recent prior year levels.”
The builder reported it had seen a “noticeable decline” in reservation rates, as customer exercise more caution.
The group also announced that Clive Fenton, who joined McCarthy & Stone as CEO four years ago, would be leaving the company.
“Having reached the age of 60, it is right that I now stand aside at the end of our financial year to enable a new chief executive to be responsible for this journey. Until then, I will remain focussed on delivering the best possible result for the year end and assisting the board with the necessary transition arrangement”, Fenton said.
Shares in McCarthy & Stone are currently trading down 14.79 percent at 111.20 (0935GMT).
Braveheart Investment Group shares fall, despite nearly doubling its profits
Braveheart Investment Group (LON:BRH) said its net profit nearly doubled in the year to March, after a jump in the value of its investments.
Profit after tax came in at £1.49 million for the full year, up from £0.78 million the year before. Earnings per share increased to 5.51 pence per share from 2.28 pence, despite its total revenue falling to £0.82 million.
In total, the group reported an increase in income over the 12 month period, hitting £1.98 million on the back of “considerable operational progress” in its strategic investment.
The group valued its portfolio at £2.22 million, up from £862,000 the year before. Looking forward, Braveheart Investment remained positive and said it may engage third-party investors should any further capital be required.
Shares in Braveheart Investment Group are currently trading down 4.21 percent at 18.20 (1552GMT).
Heineken to invest £44m in UK pubs, creating 1,000 jobs
Heineken (AMS: HEIA) has announced plans to invest £44 million in UK pubs and bars this year.
The world’s second-largest brewer is planning to invest a new total of £140 million in the UK, creating 1,000 new jobs.
“We are passionate supporters of the Great British pub and believe that well-invested pubs run by skilled and motivated operators will continue to prosper,” said David Forde, the managing director of Heineken UK.
“We believe that our commitment to investment, and understanding of consumer trends, will help our licensees’ businesses to keep growing and ensure that the Great British pub remains at the heart of British life for generations to come,” he added.
Heineken will invest an estimated £1,700 into each into of the of hundreds of outlets run by its Star Pubs & Bars division.
The investment comes during a tough environment where the rising national wage and business rates have led pub close at a rate of eighteen per week in the second half of 2017.
The UK’ government’s secretary of state for business, Greg Clark MP said: “From pop-up breweries to historic watering holes, pubs are at the heart of communities and play a vital role in local economies.”
“This record investment by Heineken and their creation of 1,000 new British jobs is another significant vote of confidence in the UK economy.”
Michael & Shaun O’Rourke recently reopened their pub the Coachman in Whickham, Newcastle-upon-Tyne following a £550,000 investment from Heineken.
“The quality of the refurbishment is amazing. We were a bit worried it might be too modern, but people love it and say it’s exactly what the community has been crying out for,” they said.
“We’ve been told that it’s brought the community back together. We’ve had people coming in and socialising who haven’t set foot in the pub or talked to one another for 20 years.
Venture Life shares up 8pc as Boots take more stock
Venture Life (LON:VLG) announced increased distribution in the UK with Boots for its UltraDEX range, sending shares up over 8 percent.
The company announced Boots would be upping their stock of Venture Life’s existing products, as well as launching both of the newly developed products UltraDEX One GO and UltraDEX Fresh Breath Essential Kit.
The company reported its listings of UltraDEX products with Boots in the UK will increase by 46 percent from July onwards, its highest recorded level in Boots.
Venture Life also announced that its UltraDEX Sensitive range was granted a patent in Canada, adding to the existing patents granted in eight other countries including US, UK, Japan and Australia.
CEO Jerry Randall said: “These additional listings in Boots are a tremendous testament to the strength of the UltraDEX range in the UK and its increasingly prominent position in one of the largest pharmacy chains countrywide.”
Shares in Venture Life are currently trading up 8.86 percent at 43.00 (1526GMT).
CYBG buys Virgin Money in £1.7bn deal
CYGB (LON:CYBG) has agreed to take over Virgin Money in a deal worth £1.7 billion.
Under the terms of the deal, Virgin Money shareholders would receive 1.2125 new CYBG shares in exchange for each Virgin Money share.
Following completion of 371p per share, or £1.7bn deal, Virgin Money shareholders would own about 38% of the combined group.
‘The combination of Virgin Money with CYBG will have greater scale to challenge the big banks. It will also accelerate the delivery of our strategic objectives, particularly the expansion of the products we offer to customers,’ Jayne-Anne Gadhia, CEO of Virgin Money.
CYBG’s retail customers will be moved to Virgin Money over the next three years and the joint venture will become the UK’s sixth largest bank. However, 1,500 jobs may be lost.
The deal is set to complete in the fourth quarter of 2018.
Shares in CYBG are currently trading down 2.02 percent on the news, at 300.00 (1507GMT).
DS Smith shares down despite strong results
DS Smith (LON:SMDS) shares are trading down nearly 3 percent, despite recording a rise in both pre-tax profit and sales.
Pre-tax profit rose 8 percent to £292 million in the year to 30 April, with sales over the period up 17 percent to £5.76 billion. The figures were boosted by strong organic box volume growth of 5.2 percent.
The company, who specialises in packaging and consumer goods, said the volume growth momentum seen in 2017/18 was likely to continue unto the new financial year, adding that ongoing recovery of the paper price rises announced earlier this calendar year progressing as expected.
CEO Miles Roberts commented: “DS Smith is reporting a strong set of numbers for the full year, showing that we are continuing to succeed in a very dynamic market.
“We were delighted to announce the proposed acquisition of Europac on 4 June which builds on our recent acquisitions in Europe of EcoPack and EcoPaper and also in the US, where the integration of Interstate Resources is delivering excellent performance, well ahead of expectations.
“We’re seeing good momentum into 2018/19, feel that our model is more relevant than ever for our customers, and view the future with confidence.”
Shares in DS Smith are currently trading down 2.45 percent at 550.00 (1456GMT).
Audi boss arrested over diesel omissions scandal
Audi chief executive, Rupert Stadler has been arrested in connection with the VW diesel emissions scandal.
Prosecutors have confirmed that Mr Stadler has been detained as of Monday by German authorities.
The Munich prosecutor’s said in a statement: “As part of an investigation into diesel affairs and Audi engines, the Munich prosecutor’s office executed an arrest warrant against Mr Professor Rupert Stadler on June 18, 2018.”
This was later confirmed by Volkswagen spokesperson. Volkswagen is the parent company of Audi.
“We confirm that Mr Stadler was arrested this morning. The hearing to determine whether he will be remanded is ongoing.”
The scandal was exposed over three years ago, when it was revealed that cars had been fitted with devices designed to cheat US emissions tests.
Whilst the devices had initially been exposed in VW cars, Audi vehicles were also later implicated.
Last month Audi conceded that an additional 60,000 A6 and A7 models with diesel engines also have issues with similar software.
Stadler is currently being detained and will be questioned on Wednesday after he has spoken to his lawyers.
Stadler is the highest profile individual to thus far be arrested in connection to the case.
Charges were filed in the US against former VW CEO Martin Winterkorn in May, but he is unlikely to face authorities because Germany does not extradite nationals from countries outside the EU.
VW shares are currently down -2.73 percent as of 13.27PM (GMT).