Flybe shares plunge after Stobart Group loses interest
Flybe (LON:FLYB) shares sunk nearly 25 percent in early trading on Thursday, after London Southend Airport owner Stobart Group said it wouldn’t be making an offer for the carrier.
Stobart Group released a statement this morning saying that it had been “unable to reach agreement on satisfactory terms”.
“The board of Stobart Group has determined that it is not in its shareholders’ best interests to increase its latest proposal for Flybe above the level which was rejected by the board of Flybe.
“Given this, Stobart Group confirms that it does not intend to make an offer for Flybe”, it concluded.
Flybe responded with a statement in which it said it remains “highly confident in the prospects of Flybe” and “believes that the group continues to have an exciting future as an independent company, delivering the sustainable business improvement plan as set out in June 2017.”
“This plan is focused on driving sustainable profit and cash generation and will see the fleet size reduce to an optimum level for the number of identified profitable routes and make the business demand-driven rather than capacity-led”, it said.
The airline were hoping for a takeover after a spate of profit warnings and a 50 percent drop in profits in the first half of 2017. Shares in Flybe (LON:FLYB) are currently trading down 23.13 percent at 35.90 (0938GMT).
Venture Life shares up 14pc after posting maiden profit
Consumer self-care company Venture Life reported its first profit on Thursday morning, after a strong year of organic growth and international expansion.
The group posted a maiden pre-tax profit of £0.1 million for the 2017 year, up from a loss of £1.1 million the year before. Revenues rose 12 percent to £16.1 million, driven by an expanded product range and the strong performance of its Ultra DEX line in the UK.
Jerry Randall, chief executive officer of Venture Life, said: “Venture Life has delivered another year of good organic revenue growth across its business, and achieved another of its objectives by delivering a profit before tax for the first time. This coupled with a cash positive H2 2017, means we expect to be sustainably profitable going forward.
“Having invested in and established excellent operating leverage within our business, these growing revenues have translated into increasing profitability, with the majority of incremental gross margin falling through to the bottom line.
“This again demonstrates the opportunity in our business to grow the bottom line at a faster rate than the top line, and with the recent reorganisation of our plant in Italy, we have increased our capacity such that we can now accommodate twice the volumes of 2017.
“Our strategy continues to be a focus on revenue growth, through both organic growth of our existing portfolio and through acquisition. 2018 has started well with our order book ahead of the same point in 2017, and I look forward to another good year of growth for the group.”
Venture Life (LON:VLG) shares are currently trading up 14 percent at 49.02 (0921GMT).
Reckitt Benckiser pulls out of Pfizer takeover discussions
Reckitt Benckiser (LON:RB) has pulled out of takeover discussions with Pfizer (LON:PFE) , saying the acquisition of the whole of Pfizer’s consumer health business “did not fit their acquisition criteria”.
Reckitt Benckiser had wanted to buy just one part of their business, but they were unable to reach an agreement for that part with Pfizer. On Thursday the group confirmed it had ended the discussions between them.
Rakesh Kapoor, Reckitt Benckiser’s chief executive, said: “Our priority remains organic growth, including the completion of the integration of Mead Johnson Nutrition and creating further value from reorganising into two new business units – Health and Hygiene Home.
“We always approach inorganic growth opportunities in a rigorous, disciplined, and financially responsible manner to ensure long term value creation for shareholders. An acquisition for the whole Pfizer consumer health business did not fit our acquisition criteria and an acquisition of part of the business was not possible.”
Shares in Reckitt Benckiser rose on the news, currently trading up 5.53 percent at 5,937.00 (0907GMT). Pfizer shares are trading steady, down just 0.19 percent at 36.27.
Ted Baker celebrates strong 2017, but warns on challenging trading conditions
Shares in clothing retailer Ted Baker (LON:TED) dropped nearly 4 percent on Thursday, after the group warned on ‘challenging’ external trading conditions going into 2018.
The group performed well over the course of 2017, with group revenue rising 11.4 percent to £591.7 million. The figures were boosted by a 10.4 percent rise in retail sales to £442.5 million, with wholesale sales up by 14.6 percent to £149.2 million. Profit before tax increased by 12.3 percent to £68.8 million.
The company went on to warn that unseasonably cold weather had an impact on the early part of trading for the spring/summer season, adding that it expects external trading conditions to remain challenging across many of its global markets.
Ray Kelvin CBE, founder and chief executive, added: “Our new collections have been received positively and although we anticipate external trading conditions will remain challenging across many of our global markets, the strength of our brand and business model mean that we remain well positioned to continue the group’s momentum and long-term development. We have a clear strategy for growth across both established and new markets which is underpinned by our controlled, multi-channel distribution as well as the design, quality and attention to detail that are at the heart of everything we do.”
Shares in Ted Baker are currently down 3.88 percent at 2,822.00 (0855GMT).
M&C Saatchi shares boosted by record performance in 2017
Shares in advertising agency M&C Saatchi (LON:SAA) shot up nearly 5 percent on Thursday morning, after recording record revenue and earnings for the 2017 year.
Revenues rose 12 percent to £251.5 million, up by 7 percent in constant currency terms. Profit before tax rose 16 percent to £27.7 million, with headline net earnings up 17 percent.
Performance was boosted by the addition of major new business wins including Visit Britain, The Body Shop and Clinique. Sport & Entertainment and PR and Mobile continued to trade well, despite a major performance dip in the Americas, where headline operating profit fell 53 percent.
David Kershaw, chief executive, said: “2017 was another record year for M&C Saatchi in terms of both revenue and earnings. Our established strategy of winning new business and starting new businesses continues to deliver.
“This year has begun well, and we are confident that we will continue to make good progress in 2018 and beyond.”
Shares in M&C Saatchi are currently trading up 4.48 percent at 420.00 (0839GMT).
Personal Group profits fall, but dividend increase boosts shares
Employee services provider Personal Group (LON:PGH) saw profits fall in 2017, in direct correlation with the delayed roll-out of a salary sacrifice offering to Royal Mail Group and other customers.
Pre-tax profit fell to 9.6 percent to £9.51 million, reporting an Ebitda “marginally ahead” of expectations at £10.8 million. The company increased its dividend by 3.2 percent to 22.7p.
The group saw a 77 percent rise in software-as-a-service (SaaS) revenue to £2.7 million from £1.5 million the year before.
“As we continue in the current financial year, the company is better placed than ever to realise the significant opportunity presented by the employee services market,” chief executive Mark Scanlon said.
“This performance again demonstrates the strength of the underlying business and was despite the transient issue of the HMRC review into Salary Sacrifice, which delayed sales at our PG Let’s Connect business into 2018.
“As we continue in the current financial year, the company is better placed than ever to realise the significant opportunity presented by the employee services market, which is being driven by increasing competition for staff in a tight labour market and recognition of the commercial value of investing in and retaining staff. This issue is common to organisations big and small, public and private all of which we are now very able to serve,” Scanlon added.
Shares in Personal Group are currently up 3.13 percent at 388.80 (0933GMT).
IGas share sink despite swinging into profit in 2017
British oil and gas developer IGas (LON:IGAS) swung into profit in 2017, supported by a hefty tax credit and an increase in oil prices.
The group reported a £15.5 million net profit for the year to end of December, compared with a loss of £32.9 million the previous year, with revenue jumping to £35.8 million from £30.5 million the year before.
The group’s performance was aided by a tax credit of £19.1 million as well as an increase in oil prices across the year. Adjusted EBITDA was £9.2m down from £10.2m.
Net production averaged 2,335 boepd for the year, but operating costs fell to $28.2 per boe from $28.8 per boe. IGas are expecting net production of between 2,300 – 2,400 boepd in 2018 and operating expenditure of $32.5 per boe.
Stephen Bowler, IGas’ CEO, commented: “We have sanctioned a number of projects, including Albury and Stockbridge, and would expect to see the benefits of these projects during the latter part of 2018.
“In the North West we are progressing our application at Ince Marshes and advancing further applications. It is our intention to appeal the decision of Cheshire West and Chester Council’s Planning Committee of 25 January 2018 to refuse planning consent for our application to test the Pentre Chert formation at Ellesmere Port.”
Shares in IGas are currently trading down 1.30 percent at 76.00 (0849GMT).
Mothercare shares up as talks progress “constructively”
Mothercare (LON:MTC) shares rose 5 percent at market open on Wednesday, after it said talks with lenders were progressing ‘constructively’.
The group are in discussions with lenders after a series of profit warnings left them in need of a turnaround plan. The group said on Tuesday that it had called in KPMG to advise them on the refinancing of the business, and discussions with all lenders are expected to conclude before the release of its results on the 17th May.
The lenders had agreed to defer the testing of its financial covenants, due 24 March, accordingly.
“As previously indicated, we are also exploring additional sources of financing to support and maintain the momentum of our transformation programme and we are engaged in preliminary discussions on securing such additional financing,” Mothercare said.
Mothercare shares have fallen around 87 percent over the past year. Shares are currently trading up 5.25 percent at 16.52 (0840GMT).
Moss Bros shares plunge 25pc after profit warning
Men’s clothing retailer Moss Bros (LON:MOSB) saw its share price drop by a third on Wednesday morning, after cutting its dividend and warning on its full year figures.
The group said it now expected to deliver a profit figure ‘materially lower’ than market expectations, slashing its dividend to 1.97p per share, bringing the total dividend for the year to 4p instead of the 5.89p the previous year.
The company said it had been hit by a lack of stock availability, challenging hire sales and a more cautious consumer environment.
“The beginning of the year has been hampered by short-term stock delivery issues caused by the consolidation of our supplier base,’ chief executive Brian Brick said.
“The resulting stock shortage has undoubtedly driven a significant shortfall in sales, which will continue until late Spring. In common with many UK retailers, the year ahead looks like being a very challenging one and we have taken action early to be sure we protect the underlying strength of the business.’
“We do believe continued investment is essential to ensure we retain a sustainable point of differentiation and that we leverage our distinct position on the high street,” the company concluded.
Moss Bros shares are currently trading down 26.13 percent at 43.29 (0833GMT).
Kingfisher shares fall on uncertain outlook, despite strong figures
B&Q owner Kingfisher (LON:KGF) saw shares sink over 6 percent at market open on Wednesday, after it warned that the UK market looked more uncertain going forward.
The warning came despite the group beating forecasts and reporting a 1.3 percent rise in annual profit, with like-for-like sales in the UK and Ireland growing by 0.6 percent to £5 billion. Sales in France, where the group owns the Castorama and Brico Depot chains, fell by 3.5 percent to £4.39 billion.
Total sales in B&Q fell by 5.3 percent to £3.49 billion due to store closures, with sales at Screwfix performing better and rising 10.1 percent to £1.56 billion after strong growth from the “specialist trade desks exclusive to plumbers and electricians, strong digital growth and continued roll out of new outlets. ”
Kingfisher raised its full-year dividend by 4 percent to 10.8p per share from 10.4p
The effective tax rate (ETR) rose 30 percent for the year, up from 26 percent after a French tax surcharge of approximately £20m.
In a statement, the firm commented on its outlook going forward:
“In the UK it is more uncertain, and in the fourth quarter both B&Q and Screwfix experienced softer sales. In France, we are encouraged by the market backdrop although it is volatile, whilst in Poland the market remains supportive.”
Kingfisher shares are currently trading down 6.43 percent at 316.00 (0813GMT).