Apple scraps €850m Irish data centre
Apple (NASDAQ: AAPL) has announced plans to scrap the €850 million (£743 million) data centre in West Ireland.
The tech giant made plans for the new European data centre back in February 2015 but following three years of planning approval delays, the project will be scrapped.
“Despite our best efforts, delays in the approval process have forced us to make other plans and we will not be able to move forward with the data centre,” said Apple in a statement on Thursday.
“While disappointing, this setback will not dampen our enthusiasm for future projects in Ireland as our business continues to grow,” added Apple, referring to the plans to expand the European headquarters in County Cork, employing over 6,000 people.
Heather Humphreys, Ireland’s minister for business and enterprise expressed disappointment in the decision.
“There is no disputing that Apple’s decision is very disappointing, particularly for Athenry and the west of Ireland,” she said.
“These delays have, if nothing else, underlined our need to make the state’s planning and legal processes more efficient. The Government has therefore already been working, over the last number of months, to make improvements to those processes. This will ensure we are better placed to take advantage of future such investment opportunities, whether from data centre providers or other sectors,” she added.
When plans were put on hold in 2016, it attracted 2,000 people to gather and march in support of the new Apple centre in Athenry, Ireland.
The new data centre would have created approximately 300 construction jobs as well as 150 permanent jobs in the country.
When announcing the plans for the data centre in 2015, the company also announced plans for a data centre in Denmark, which opened last year.
Morrison Supermarkets report yet another quarter of growing sales
Morrison Supermarkets (LON:MRW) reported another quarter of growing sales on Thursday, with its new business as a wholesaler appearing to make a positive mark on the group’s figures already.
The supermarket chain increased its group like-for-like sales excluding fuel by 3.6 percent in the 13 weeks to 6 May, comprising contributions from retail of 1.8 percent and wholesale of 1.8 percent.
Like-for-like sales for the entire group – including fuel – grew 1.9 percent. The group’s recent move into wholesaling, beginning with a supply partnership for convenience store chain McColl’s, contributed 1.8 percent to group like-for-like sales, and the group is on track for its targets of £700 million of annualised sales by the end of the year and £1bn in due course.
David Potts, chief executive, said: “We are pleased to have made a strong start to the year, again becoming more competitive for customers while delivering growth on growth. We expect to continue to improve in the year ahead.”
Volume growth also accelerated in the first quarter, while inflation remained flat. However, margin pressures still remain a worry for the store’s investors, with Morrisons saying again on Thursday that it would be taking further measures to “improve competitiveness”.
Shares in Morrison Supermarkets (LON:MRW) are currently up 2.65 percent at 251.90 (0844GMT).
ITV shares edge up as advertising revenue increases
ITV (LON:ITV) shares edged up at market open, after the broadcaster reported a 5 percent increase in external revenue in the first quarter.
Total external revenue hit £772 million over the period, driven by 11 percent growth in ITV Studios revenue and 41 percent growth in online revenue.
All revenue streams at the company saw an increase over the group’s first quarter, with Broadcast & Online revenue up 3 percent to £526 million from £510 million and Online, Pay & Interactive revenue up 25 percent.
ITV Family net advertising revenue (NAR) rose 1 percent to £396 million, with non-advertising revenue up 12 percent to £514 million.
The group’s total advertising was expected to rise 2 percent in the first half of the year. Carolyn McCall, ITV’s CEO, commented:
“We expect ITV total advertising to be up 2% over the first half, but profits will reflect the timing of the Football World Cup.
“Our strong viewing performance has continued, with total minutes viewed across the ITV Family up 4 percent, share of viewing up 6 percent and time spent viewing online on the ITV Hub up 31 percent”.
Shares in ITV are currently trading up 2.91 percent at 155.60 (0837GMT).
Next increase profit guidance as Q1 sales are boosted by warm weather
Next (LON:NXT) shares rose 6 percent in early trading on Thursday, after the group raised their profit guidance for the full year after better-than-expected sales in the first quarter.
The fashion retailer boosted their pre-tax profit guidance for the year to January 2019 from £705 million to £717 million, after full price sales for the 14 weeks to 7 May rose 6 percent on last year.
A 4.8 percent decline in retail sales was offset by an 18.1 percent boost to sales made online, driven by the growth of Next branded stock and third party brands on its UK platform. Sales in the first quarter were around £40 million ahead of internal forecasts predicted, largely helped by the recent bout of unusually good weather.
For the full year, total full price sales are expected to grow by 2.2 percent, revised from a previous figure of 1 percent growth. Group profit before tax for the full year is now expected to fall by 1.3 percent, against a previous guidance of a 2.9 percent decline.
Shares in Next are currently trading up 6.18 percent at 5,570.00 (0822GMT).
BT shares dip 7pc after announcing 13,000 job cuts
BT (LON:BT.A) have announced plans to cut 13,000 jobs over the next three years, aiming to cut costs by £1.5 billion after a disappointing set of full-year figures.
A third of the job cuts will come from outside the UK in its Global Services division, with the group saying it had to make changes in order to meet “increasing competitive intensity from established companies and new entrants”.
13,000 jobs will be cut from its management and back-office roles, but added that it would be hiring a further 6,000 employees to “support network deployment and customer service”.
The announcement came alongside the group’s full-year figures, with pre-tax profit rising 11 percent and revenue down 1 percent, missing management’s expectations. However, firm confirmed that it had agreed a £11.3 billion pension deficit with trustees, to be paid over a 13-year recovery plan including payments of £2.1bn over the three years to 31 March 2020. A further £2 billion contribution will be funded by the issuance of bonds, the firm said. “This means that the recovery plan includes material contributions by BT to the Scheme of £4.5 billion by 30 June 2020, when the next valuation is expected to take place,” BT said BT provided an update on the progress of its restructuring plan, which remains on track. It will now focus on delivering differentiated customer experiences, investing in integrated network leadership, and transforming our operating model. “The integration of EE into BT is delivering run rate cost synergies of £290m. Our restructuring programme has removed over 2,800 roles and delivered savings of £180m during the year,” the firm said. Shares in BT Group are currently trading down 7.10 percent on the news, at 221.65 (0811GMT).BMW recall 300,000 cars over safety concerns
BMW (ETR: BMW) has extended a recall of 312,000 cars in the UK, which have been found to stall while being driven.
The group initially recalled 36,410 last year over safety issues but has extended it after the BBC’s Watchdog identified similar issues in cars that were not originally covered.
“BMW is expanding the existing B+ battery connector UK recall. This relates to predecessor generations of the 1 Series, 3 Series, Z4 and X1 built between March 2007 and September 2011,” said a spokesperson.
“BMW will be contacting all affected customers by post advising them of how they can book their car in to have the work carried out. We will commence contacting affected customers in the next three weeks.”
An investigation by the BBC Watchdog found that the fault could affect a wider number of cars.
The initial recall was launched following the death of Narayan Gurung, who died on Christmas day in 2016 after he crashed into a tree to avoid a broken-down BMW in Surrey.
“We now recognise that there may have been some cases of similar power supply issues in vehicles not covered by the original recall,” said BMW, in response to the investigation.
“In order to reassure customers with concerns about the safety of their vehicles, we are voluntarily extending the recall.”
“We are therefore announcing today that we will take the proactive step of expanding the existing UK recall to cover all vehicles potentially affected by the power supply issue.”
The car manufacturer has recalled up to 500,000 cars in the US just in 2013, as well as in Australia, South Africa and Canada.
Renishaw shares rise on strong trading update
Healthcare technology group Renishaw (LON:RSW) saw shares rise nearly 7 percent at market open on Wednesday, after reporting a positive trading update for the first nine months of the year.
Revenue from continuing operations for the first three quarters of the current financial year came in at £429.9 million, up 11.9 percent on the same period last year. Underlying growth at constant exchange rates stood at 16.4 percent, with the group seeing strong growth in all regions.
Revenue in Renishaw’s healthcare business increased by 5.9 percent at constant exchange rates, hitting £23.3 million. The group’s overall balance sheet remains strong, with net cash balances of £91.2 million as at 31st March 2018.
Adjusted profit before tax from continuing operations rose for the first three quarters to £97.6 million, with a restated adjusted profit before tax of £70.1 million for the corresponding period last year.
Despite giving a nod to the current uncertain economic conditions, the Board said it remains confident in the future prospects of the group. Full year revenue is likely to be between £575 million and £605 million and adjusted profit before tax between £127 million and £147 million.
Renishaw shares are currently trading up 6.669 percent at 5,070.00 (0836GMT).
Greggs shares plunge 20pc as sales are hit by adverse weather
UK’s largest bakery chain Greggs (LON:GRG) warned on outlook for the full-year, after sales in the first quarter were hit by adverse weather conditions and low footfall.
Shares plunged nearly 20 percent at market open, after the group said it was uncertain about reaching full year targets due to a slower pace of sales in the first 18 weeks of the year. Total sales to the 5th May 2018 grew by 4.7 percent, almost half the 7.4 percent growth seen in the same period a year ago.
The group attributed the fall to “weak customer footfall in retail locations, which has impacted demand for food-on-the-go”, which was “especially significant in the weeks of severe weather when many shops, including our own, could not be opened”.
Like-for-like sales in company-managed shops grew by 1.3 percent over the same period, also slower than the 3.5 percent growth seen last year.
However, the group said “good progress” had been made with investments in its supply chain.
Looking forward, Greggs said: “Taking into account trading conditions in the year to date, and our more cautious outlook, we currently believe that underlying profits for the year are likely to be at a similar level to last year.”
Shares in Greggs are currently trading down 18.71 percent at 1,030.00 (0827GMT).
JD Wetherspoon report weak sales growth due to bank holiday timing
Sales at pub chain JD Wetherspoon (LON:JDW) grew at a weaker pace than expected in its third quarter of the year, affected by the timing of the May bank holiday.
The group announced a like-for-like sales increase of 3.5 percent, with total sales up 2.8 percent over the 13 period to 29 April 2018. However, in the same quarter last year sales were markedly higher, up 6 percent. The group attributed the fall to the timing of the early May bank holiday, which was included in the third quarter last year but not this year, which reduced 0.5 percentage points.
Wetherspoons also said that it faces “significant cost increases in the second half in areas which include labour, business rates and the sugar tax.”
It added: “We continue to anticipate a trading outcome for this financial year in line with our previous expectations.”
Since the start of the financial year the company has opened five new pubs and sold 19, and expects to open one further pub in the next quarter. The company believes the market value of its pub estate remains comfortably above the net book value.
Net debt at the end of the quarter was £754 million and is expected to be around £740 million at the end of the financial year.
Shares in JD Wetherspoon are currently up 0.85 percent at 1,192.00 (0818GMT).
Compass Group shares fall at open as pre-tax profit plunges
Catering giant Compass (LON:CPG) saw shares sink over 2 percent at market open, after rising costs led to a 5 percent drop in profit in the first half of the year.
2018 first half pre-tax profit fell 4.7 percent to £792 million, with revenue down 0.8 percent to £11.4 billion. Its operating margin fell 10 basis points to 7.5, with operating profit also falling 2.7 percent to £853 million.
However, the group continued to perform strongly in the US, with constant currency revenue in the region rising 9.3 percent.
‘North America continues to make excellent progress with broad-based growth across sectors. Performance in Europe was mixed, with good growth in the UK, offset by subdued trading in Continental Europe,’ the firm said.
Sales in Europe increased by 0.5 percent, driven by good growth in the UK, with revenue in the rest of world growing by 3.4 percent.
Compass declared an interim dividend a share of 12.3 pence, up by 9.8 percent from the prior year. The company also confirmed its first quarter guidance, in which it said that it would be above the midpoint of its organic-growth target range of between 4 and 6 percent in the full year.
Shares in Compass group are currently trading down on the news, down 2.59 percent at 1,542.00 (0810GMT).