John Lewis reports 99pc fall in profits
The John Lewis Partnership (LON: JLH) has announced a 99 percent fall in profits.
The group reported that profits for the six months to 28 July have fallen to £1.2 million. This is compared to the £95 million in profits for the same period last year.
“These are challenging times in retail,” said Sir Charlie Mayfield, chairman of the group, who added that the department stores are being squeezed by the “most promotional market we have seen for almost a decade.”
The John Lewis Partnership warned that profits for the first half of the year would be almost wiped.
“With the level of uncertainty facing consumers and the economy, in part due to ongoing Brexit negotiations, forecasting is particularly difficult but we continue to expect full-year profits to be substantially lower than last year for the partnership as a whole,” the retailer said.
Mayfield said: “We’re continuing to improve our offer for customers while ensuring we have the financial strength to continue developing our business going forward.”
“This is reflected in both brands continuing to grow sales and customer numbers, and our total net debts reducing.”
“The pressure on gross margin has predominantly been from our commitment to maintain price competitiveness.”
“This reflects our decision not to pass on to our customers all cost price inflation from a weaker exchange rate and from our Never Knowingly Undersold promise, where we have seen an unprecedented level of price matching as other retailers have discounted heavily,” he added.
Due to a fall in profits over the past year, staff bonuses have been cut for the fifth year in a row.
“This was why we chose to reduce the proportion of profits paid as partnership bonus last year so as to absorb these impacts while continuing to invest in the future and in strengthening our balance sheet,” said Mayfield.
Watchdog intervenes on Bentley’s Debenhams comment
A Sports Direct (LON: SPD) director caused confusion on Wednesday after suggestions that the group would buy Debenhams – before insisting he did not intend to make the comment.
The Takeover Panel had no choice to intervene following the made by comments Simon Bentley and led Sports Direct to issue a formal statement confirming it had no plans to buy the department store.
“If there are opportunities in the future we would be in a position to take advantage,” Bentley said.
Following the comment, shares in Debenhams (LON: DEB) climbed nine percent.
Soon after, the Sports Direct director said in a statement that his comments referred to “a general question about whether or not we discuss our strategic investments, and in particular Debenhams, to which I replied in the positive.”
“I made no mention of any merger between House of Fraser and Debenhams, nor did I intend my answer to infer that,” he added.
Bentley has resigned from the retailer, along with chairman Keith Hellawell after they had not been listed for re-election.
Sports Direct said in a statement: “Dr Keith Hellawell has today informed the board of his decision to step down as chairman and as a director of the company, having served since November 2009.
“Dr Hellawell will retire with effect from the conclusion of today’s AGM, and will therefore not be seeking re-election.
“David Daly, non-executive director, will take up the role of chairman at the conclusion of the AGM.”
Hellawell said: “Having overseen significant improvements in the working practices and corporate governance of the company, which includes a refresh of the board, now is the right time for me to step aside.
“I have every confidence that the group will continue to go from strength to strength. I have enjoyed the challenges of Sports Direct and the support of Mike Ashley; many major investors; members of the board and senior staff, and wish them much success for the future,” he added.
PM’s Questions: May dances around the issues
This week’s Prime Minister’s Questions was the first since MPs returned from their summer break. We take a look at some of the topics discussed.
It is no surprise that Brexit themed questions dominated the discussion. Conservative MP David Duguid, askes about support for fisheries during the Brexit transition. Likewise, both Conservative MPs Allan Mak and Chris Philp, asked about the final Brexit deal with the EU. Moreover, Plaid Cymru MP Liz Saville Roberts, asked about job losses following Brexit.
Other noteworthy questions included:
Labour MP Melanie Onn, asked about in work poverty in her constituency.
Labour MP Paul Blomfield, asked about investments in renewable technologies.
Conservative MP John Lamont, posed questions regarding Russia.
Plaid Cymru MP Ben Lake, asked about funding for schools in Wales.
Furthermore, Theresa May tried to exploit the Labour party’s anti-Semitism row. The PM used a planted question from a Conservative MP to make Corbyn apologise to the Jewish community, BBC reports.
Notably, Corbyn used all six of his questions to address Cabinet split over the PM’s Brexit proposals. But, Theresa May insisted she was working to “get a good deal with the European Union”.
Several puns were made regarding the viral video of the Prime Minister dancing on her recent trip to Africa.
Corbyn said that May “can not keep dancing around all the issues”. Additionally, when discussing Panasonic’s move out of the UK, Corbyn stated that the company “had decided to dance off altogether”. Earlier, we questioned Theresa May’s ability to lead the nation through Brexit. The PM’s most recent awkward dancing video has gone viral on social media. It only undermines her efforts to lead Britain during its departure from the EU. With less than a year until the March 2019 EU withdrawal, will May be able to secure the UK the best exit deal?Q&A session with Daniel Carnio of OenoFuture
Oenofuture is a leading fine wine investment company based in London with offices on mainland Europe. Below is a Q&A session with their founder, Daniel Carnio.
Q: Daniel, why don’t you start by telling what the fine wine investment market looked like a few years ago?
If we go back to the beginnings of the fine wine investment market centuries ago, Bordeaux has been a dominant player from those early years right up until 2012. At that point, in 2012, Bordeaux still constituted around 90 to 95% of the fine wine investment market.
Q: And how has the character of the fine wine market changed since 2012?
In 2012 there was a major shift in the market as Chinese investors began to turn away from acquiring expensive Bordeaux. As a result, Bordeaux’s share of the market has declined steeply as Chinese investors look for alternatives. Around two weeks ago Liv-ex, the London-based fine wine exchange, published an update showing that Bordeaux now accounts for around 60% of the market.
This means Bordeaux has lost a substantial share of the market which has been taken up by other regions like Burgundy and Champagne as well as Italian and New World regions.
Q: So why is this change so important for those looking to invest in fine wine?
As for any other type of investment, a fine wine investor needs to create a diversified portfolio. This is crucial to both spread the risk of their investment and to optimise their investment strategy. To create a diversified portfolio, investors will be acquiring wines from distinct wine regions, different vintages and wines which have differing ageing capabilities. Due to Bordeaux’s dramatic drop in market share, it is even more pressing for investors to seek out wines from these alternative regions.
Q: You mention that Bordeaux’s share of the fine wine investment market has declined significantly over the past decade or so. Which regions should investors be prioritising these days?
Well, thanks to improvements in wine production techniques and vineyard management, the overall quality of fine wine has improved tremendously. It is now possible to find fine wine from almost any corner of the world. For instance, China is now starting to produce investment-grade wines. This diversification is giving us investors the opportunity to find great investment opportunities in new and atypical regions.
We are recommending very strongly investment in Italian and Spanish wines, but an interesting insight to come from Liv-ex is that they have created a fine wine index for Californian wines. This demonstrates a significant shift and sends a strong signal to investors that we need to look beyond Bordeaux for covetable investment-grade wines.
Q: How has this development influenced your work with OenoFuture?
In terms of fine wine investment, I would say that this is a very exciting time since there are so many opportunities in other parts of the world. This is a key tenet of our philosophy here at OenoFuture. We focus on finding great investment opportunities from any region in the world which make sense in terms of return and performance. For our investors’ peace of mind, we do a thoroughly detailed analysis looking at previous performance and future projections before suggesting any wine to our clients.
Unlike many fine wine investment companies who are now starting to diversify and look to alternative regions, at OenoFuture we took the leap of deciding not to trade in Bordeaux wines from the beginning. Of course, we can acquire Bordeaux at our clients’ request, but our real strength is our insider knowledge of these alternative regions and their fine wine investment potential which puts us at the cutting edge of a fast-paced market.
Q: Is this focus on alternative regions set to continue?
I believe so as we are seeing more and more countries now producing top quality fine wines. For example, today China is making investment grade wines like the Ao Yun by the LVMH group which is produced from high altitude vineyards in Yunnan province. This wine has already proved to be very strong in terms of return on investment.
We are also seeing producers like Catena Zapata from Argentina starting to sell their fine wines from La Place de Bordeaux through 10 negociants. This is another marker of the evolution of the fine wine investment market which is rapidly expanding into new wine regions. Moving forward, alternative regions like Italy, Spain and the New World will remain the cornerstone OenoFuture’s diverse portfolio.
To requisition further information on how to make your own investment in fine wine, please click here
Sports Direct’s Keith Hellawell steps down following AGM
The Sports Direct’s chairman is to step down from the group following pressure from a major shareholder advisory group.
Keith Hellawell, who has been in the role for almost a decade, will be replaced by David Daly, the former Nike executive.
Glass Lewis, the investor advisory group, urged investors last month against Hellawell’s re-election and accused him of providing “poor governance”.
The group also advised against the re-election of Simon Bentley, a senior independent director who is always leaving the retailer.
Sports Direct said in a statement: “Dr Keith Hellawell has today informed the board of his decision to step down as chairman and as a director of the company, having served since November 2009.
“Dr Hellawell will retire with effect from the conclusion of today’s AGM, and will therefore not be seeking re-election.
“David Daly, non-executive director, will take up the role of chairman at the conclusion of the AGM.”
Hellawell said: “Having overseen significant improvements in the working practices and corporate governance of the company, which includes a refresh of the board, now is the right time for me to step aside.
“I have every confidence that the group will continue to go from strength to strength. I have enjoyed the challenges of Sports Direct and the support of Mike Ashley; many major investors; members of the board and senior staff, and wish them much success for the future,” he added.
Ashley said: “I would like to thank Keith and Simon for their valuable service and significant contributions to the company over the years.”
The group has also appointed its first female member to the board after pressure from targets for public companies.
Nicola Frampton, from William Hill, will begin work as a non-executive director from October 1.
Shares in the group (LON: SPD) are trading up 3.26 percent at 352,00 (1322GMT).
Dunelm Group PLC announces 2018 Preliminary Results
Dunelm Group PLC (LON:DNLM) has announced its Preliminary Results for the year to June 2018.
The report includes some noteworthy highlights. Firstly, the leading UK homewares retailer has seen an increase in its total revenue by 9.9%. In 2017, the figure was £955.6 million. This has increased to £1.1 billion. Next, it has reported a strong growth in LFL online, with home delivery sales up by 37.9%. Moreover, the company has reported the opening of ten new superstores in the year, adding 6.1% new space.
Full year dividend has increased by 1.9% to 26.5p per share. This reflects a strong cash generation and robust balance sheet.
Founded in 1979, Dunelm opened its first superstore in 1991. Currently, Dunelm is a multi-channel retailer with its online website launching in 2005.
The UK homewares market is currently valued at £13 billion and Dunelm is a leading company in this industry. Today, it operates 172 stores with 169 of these being out-of-town superstores. The company employs around 10,000 workers. In addition, it sells 30,000 products in store, increasing to roughly 55,000 online.
Chief Executive Officer, Nick Wilkinson, commented: “Following healthy sales growth over the past year, we are now taking steps to simplify the business under the core Dunelm brand, with one web platform and an integrated supply chain. This will allow us to respond more quickly to the changing consumer environment and drive future profitable growth.
“The UK retail environment remains challenging, but against this difficult background we have traded in line with expectations during the current financial year to date.”
At 12:18 BST Dunelm shares were trading at +5.59%.
FireAngel Technology Group PLC partners with Mears Limited
FireAngel Technology Group PLC (LON:FA) has announced a partnership with Mears Limited.
Cuurently, FireAngel is one of Europe’s leading developers and suppliers of home safety products. Additionally, the UK Housing and Care sectors receive support services by Mears Limited, a subsidiary of Mears PLC. Mears is responsible for the maintenance, repair and upgrade of over 700,000 UK properties. The agreement will see the two companies join in an exclusive partnership.
The agreement will see FireAngel supply Mears with an integrated home management system. As a result, Mears will introduce FireAngel’s UK Trade team to a number of clients effective immediately. Moreover, Mears will use FireAngel as its preferred safety product provider.
Consequently, Executive Chairman of FireAngel, Graham Whitworth, said: “Following significant R&D investment, I am pleased to announce our collaboration with Mears, which takes our smart, connected and existing products into the heart of the UK social housing sector.”
“By integrating our technological expertise in the home safety sector into Mears’ solution, FireAngel can significantly enhance the quality of service and support”
Pleased with the partnership, Chief Executive of Mears, David Miles, said: “There are real safety, commercial and financial benefits to optimising our interaction with tenants”
“We are witnessing a transition to integrated technologies and the FireAngel system will enable us to centralise those technologies into one central hub. We look forward to introducing the FireAngel solution to our clients across the footprint.”
As of 11:01 BST, FireAngel shares were trading at +35.47%.
MyCelx Technologies shares soar after promising update
MyCelx Technologies (LON:MYX) shares soared on Wednesday on the back of a strong set of half-year results.
The company, which specialises in clean water technology in the oil industry, reported a 107 percent increase in revenue for the year.
Revenue came in at $12.2 million compared to $5.9 million for the year before.
MyCelx Technologies added that it delivered a net profit of $1.5 million, up from the $0.5 million loss reported in 2017.
In particular, the firm attributed the promising performance to strong growth in Saudi Arabia amid the securing of several new contracts.
Chief Executive Connie Mixon commented on the results:
“The Company is pleased to report its strongest half year performance to date delivering $12.2 million in revenue”
She added:
“Momentum grew in Saudi Arabia with a series of contract wins adding to our existing installation base within SABIC, the leading petrochemical company.”
“Looking forward, our focus will be on sustaining momentum by converting our pipeline of opportunities in Saudi Arabia, Nigeria and North America which should keep us in line with current market expectations. ”
MyCelx Technologies corporation was founded back in 1994. The company opened a UK branch of its business in 2011.
It has been listed on the AIM section of the London Stock Exchange since 2011.
Shares in MyCelx Technologies are currently up +47.04 per cent as of 11.27AM (GMT).
Medica Group PLC more than triples its first-half profit as customer numbers grow
Medica Group PLC (LON:MGP) has announced that it has more than tripled its first-half profit as customer numbers grow.
The radiology services provider released its 2018 Interim Results today. Notably, revenue has increased by 18.2%. The figure has jumped from £15.7 million in 2017 to £18.6 million in 2018. In fact, adjusted operating profit increased by 15.4% to £5.0 million.
Moreover, Medica’s net debt has reduced significantly from £8.5 million in 2017 to £2.5 million.
Chief Executive Officer, John Graham, commented: “During the first six months of 2018, the Group has been investing in several medium- to long-term opportunities which will enable us to diversify our service offering and support growth.”
“We have continued to recruit radiologists to provide service to our customers and are confident that our capabilities can help our customers address the widely-reported radiologist shortage in the NHS.”
“Additionally, we continue to reduce net debt and expect this to be negligible by the year-end.”
“Overall, the Board expects the Company’s performance for the full year to be in line with market expectations.”
Correspondingly, at 10:46 BST Medica Group shares were trading at +1.45%.
Superdry PLC appoints former Tommy Hilfiger executive to new product officer role
Superdry PLC (LON:SDRY) has appointed former Tommy Hilfiger global head of womenswear to the new role of Chief Product Officer. The global fashion house has appointed Brigitte Danielmeyer in aim to further develop the creative innovation capabilities of the brand, it said.
In addition, it has announced the launch of a series of new disruptive fast-fashion ranges, Superdry Preview. The Superdry Preview launch aims to target a younger, more fashion-driven customer.
Superdry created Danielmeyer’s role to further develop the Global Digital Brand strategy. Equally, the role aims to deliver innovation and creativity to the brand’s in-house design team.
Superdry is a global digital brand which aims to deliver quality and innovation with every design. The premium high street brand operates in 55 countries, including their development markets of North America and China. It employs almost 5,000 workers globally.
Brigitte Danielmeyer commented: “I am thrilled to be joining Superdry, a global brand that I have admired for many years. Superdry creates amazing clothes for people around the world, through an obsession with design, quality, fit and value.”
“I am really excited about the opportunities ahead. There is real potential to build on the existing categories by extending the product offering as well as to expand into new markets.”
At 10:20 BST Superdry plc shares were trading at +1.57%.