Ladbrokes announces merger £2.3bn plans
Betting chain Ladbrokes (LON:LAD) announced this morning plans to merge with Gala Coral, in a deal that will make the combined chain the biggest bookmaker on the high street.
Adding Coral’s 1,845 shops to Ladbrokes’ 2,100 will mean the chain will overtake the current market leader, William Hill.
The business is expected to be valued at £2.3bn, and the deal will be funded by offering 93 million new shares to investors.
Peter Erskine, chairman of Ladbrokes, said the merger was a “major strategic step for Ladbrokes”.
He added: “Together, we will create a leading betting and gaming business. The transaction will provide an attractive opportunity to generate considerable value for both sets of shareholders.”
Ladbrokes is currently trading down 2.57% at the news.
E-Car Club buyout spells good news for crowdfunding sector
Equity crowdfunding has become a big name in alternative finance, but there are still those who are sceptical; the risks are high and the sector is still relatively young. How can the public be encouraged to invest when nobody knows what the future holds?
However, recent events may go some way to allay concerns. Two weeks ago E-car Club was sold to car rental giant Europcar, becoming the first UK crowdfunded start up to successfully exit and pay back their investors.
Back in 2013, E-Car Club became one of the first companies to try crowdfunding. They raised £100,000 from 63 investors on platform Crowdcube, with a valuation of £500,000. Its investors took a real risk – however for them, it paid off. They put in an average of £1,500, with the largest investment £15,000, and will now receive a healthy 3-4x return on their investment.
“Being able to write a cheque to your investors this early on is one of the unexpected pleasures of doing what we do,” E-Car Club founder Andrew Wordsworth told CityAM. Luke Lang, CEO of crowdfunding site Crowdcube agrees. He also spoke to CityAM: “An exit for an equity investment was what the industry was looking for. The aim of all of this is identifying great businesses that people want to invest in and that then deliver great returns.”
The facts speak for themselves; the chances of a return on investment in a start-up business aren’t high. According to a 2009 Nesta report, 56 per cent of investments fail to return capital. The other 44 per cent bring positive returns, but a mere 7 per cent will return 10x return on investment. Not good chances, if you’re hoping to become a millionaire.
However, for the crowdfunding sector, E-Car Club’s success can only be a good thing. Whilst it’s clear that a lot of start-up businesses fail, this buyout is the first definitive proof that there really is the opportunity to make money from investments on crowdfunding platforms – if you’re prepared to take a chance.
Meet JetSmarter, the ‘Uber of the sky’
After the success of Uber, the on-demand Taxi app, entrepreneur Sergey Petrossov has taken the next logical step – and launched JetSmarter, a similar service for private jets.
For those that are lucky enough consider flying by jet an option, the process is difficult to organise and very costly. Sergey Petrossov wanted to simplify that process, so he built the JetSmarter app to make it easy for anyone to book a flight on a private jet in a matter of seconds.
“I started the company out of a frustration with the process,” Petrossov told Business Insider in an interview. “I kept thinking to myself, ‘Why hasn’t this service been brought into the digital world?'”
“Essentially it works like an airline, except you go through private carriers,” he continues. “There’s no going through security, you just pull up to a private plane five minutes before you take off and go.”
There are currently three tiers to his new business, ensuring that he meets the needs of every potential customer: JetDeals, which involves booking a one-way private flight on demand; JetShuttle, which allows you to book a seat on a previously scheduled private flight; and JetCharter, which offers completely customized private jet packages.
Unsurprisingly, the costs involved for members wishing to use the service are not cheap. JetSmarter members pay $9,000 a year — roughly $800 a month — to get unlimited access to private flights.
The new app has been funded by some high-profile names, both of which are no strangers to the private jet industry. Petrossov obtained $20 million in Series B funding from The Saudi Royal Family and rapper Jay-Z. He has also sought financing from executives at Goldman Sachs and Twitter.
However, JetSmarter is not the first of its kind. Another similar app, Blackjet, went bust in 2013 due to lack of capital; whilst Petrossov’s company seems to be on track for success, the private jet market is not an easy one to crack.
Looking for a last minute holiday? Visit crowdfunding site Travelstarter
For avid travellers with a bit of extra cash, TravelStarter is well worth a look. It’s a crowdfunding site with a twist; a unique project that offers people free stays, tours or meals in the places around the world that they choose to invest in.
The idea was born in early 2014, and the platform launched several months later. TravelStarter aims to support individuals and local businesses by helping them raise funds for their tourism and travel related projects.
Like traditional donation-based crowdfunding platforms, each project offers rewards; however, unlike the usual free t-shirt or free ticket, TravelStarter offers options to stay, eat, tour, or learn with the projects that they support. Essentially, instead of booking a traditional hotel or restaurant for a holiday, people have the option to lend the money to the business and then claim their reward once the business is up and running. Not only are you getting a holiday, but you’re boosting small businesses and tourism projects by doing so. Supporting one of these projects not only supports that business, but the tourism industry as a whole.
Once the project is successfully funded, you are free to claim the reward for your trip. It could be a nice dinner in Paris, an overnight stay at a guesthouse in Prague, a daily bike rental in Amsterdam, an authentic tour of Rome, or maybe a flamenco lesson in Madrid.
Guide Like You is one of the projects currently listed, which aims to promote travelling like a real tourist by getting locals to take visitors on tours and show them the best local places to eat, drink and explore. The rewards are great; for giving $50, you receive a hald fay tour of Paris or Toulouse with one of the company’s founders, and for $200 or more you receive 3 days stay in Toulouse with car hire.
Another project, Hostaria 239, wants $3,000 to refurbish a small, eco-friendly bed and breakfast in Koh Lanta, Thailand. For a donation fo just $30, you will receive one night in a double room, half board. For $50, you get 5 nights and for $300, one weeks stay, half board and two tours as well as a “big hug and a lot of good tips!”
According to Dan from Cardiff, who successfully crowdfunded $13,000 to refurbish a hostel, the site is perfect for tourism related projects as “all of the rewards appeal to people interested in travel or tourism.”
Although the site is American, based in Boston, it aims to fundraise for projects all round the world. The team behind it are five passionate travellers, who hope that TravelStarter will become “the number one platform for all travel related projects, and help bring tourism back to the people.” Together, the team have expertise in all areas to make the site successful; from social media ad digital marketing to database and sustainable tourism knowledge.
The site itself is branded brilliantly, with a modern feel and easy navigation. The idea of a platform that swaps travellers’ cash for holiday based rewards, to the mutual benefit to both parties, is clever, unique and has plenty of potential. A tree house hotel in Slovenia, complete with hot tub, is one of my favourite projects listed on there; as a keen traveller myself, I can absolutely see the attraction of the site. If you’re looking to donate to a worthwhile project and receive some great rewards yourself, TravelStarter is the place to visit.
Pearson “in talks” to sell Financial Times
Education and publishing group Pearson has confirmed that it is in “advanced talks” about the sale of its Financial Times newspaper.
The Financial Times has been a leader in financial journalism for 130 years, 60 of which have been under Pearson’s ownership.
In a statement, the group said that “it had noted recent press speculation and confirms that it is in advanced discussions regarding the potential disposal of FT Group”.
“There is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate,” it added.
Reuters reported earlier that Pearson had decided to sell the FT to a “global, digital news company”; this decision would reflect their recent aim to focus purely on education.
Pearson shares are currently trading up 2.5%at the news.
Greek parliament passes second batch of reforms
The Greek parliament have passed a second package of reforms, meaning negotiations can begin for an €86bn European Union bailout.
Greek Prime Minister Alexis Tsipras managed to contain a rebellion by members of his left-wing Syriza party, passing the reforms with the backing of 230 votes in the 300-seat chamber.
Tsipras appealed to parliament before the vote:
“We made tough choices, and I personally made difficult, responsible choices. Today we must all redefine the possibilities ahead of us given the new circumstances.
We chose a difficult compromise to avert the most extreme plans by the most extreme circles in Europe.”
Further violence erupted on the streets of Athens as Parliament debated the bill, which was passed at approximately 4:00 local time.
The government has said it hopes negotiations on the bailout deal can start this week and hope to have them wrapped up by Aug. 20.
Aberdeen Asset Management reports 7% drop in assets
Aberdeen Asset Management (LON:ADN), Europe’s largest listed fund manager, reported a 7% fall in assets under management; with total net outflows of £9.9 billion during the quarter as institutional investors continue to reduce exposure to Asia and emerging markets equities.
In the same quarter last year, Aberdeen saw outflows of £8.8 billion, raising concerns at the increasing rate investors are cashing in looking to re-allocate in the strong dollar environment. This brings total assets under management as of the 30th June down to £307.3 billion, from £330.3 billion on 31st March.
Aberdeen Chief Executive Officer Martin Gilbert said:
“Market and FX movements together with low margin outflows from certain fixed income and solutions clients accounted for a large proportion of the decline in assets under management. In addition, macro-economic factors and investor sentiment towards Asia and emerging markets continued to weigh on equity flows.”
ADN has now lost over a quarter of its market cap since peaking at 509 on the 13th April this year. It is trading at 372p per share, down 7% on the day, as market participants digest the news.
DMGT falls due to decline in advertising
DMGT Plc, the owners of Daily Mail, the Mail on Sunday and The Independent, fell 8% this morning after releasing their third quarter trading report.
The company has been hit by a decline in the print advertising sector, with advertising revenues across DMG media newspapers down 13% compared to last year. However, advertising for companion websites and other forms of digital advertising were up, bringing total advertising revenue down 6% altogether. Due to this tough market, total revenue declined 5%.
However, market share grew for both the Daily Mail and the Mail on Sunday, with 23.4% and 22.1% respectively.
Due to the disappointing third quarter results, the company have directed their outlook for the Group’s Full Year results towards the lower end of market expectations.
Unilever show positive figures for second quarter
Unilever (LON:ULVR) are up 2.2% this morning after delivering their second quarter results.
They reported a 12% increase in turnover, with underlying sales growth up 2.9%. Core earnings per share were also up 16%.
CEO Paul Polman commented:
” [These figures] demonstrate again the progress we have made in the transformation of Unilever to deliver consistent, competitive, profitable and responsible growth, now in the seventh year.
We plan for another year of volume growth ahead of our markets, steady improvement in core operating margin and strong cash flow.”
Strong sales were led by savoury foods, including soup in Europe and Hellman’s mayonnaise in South America, and personal care products including the Dove deodorant line.
Retail sales suffer unexpected dip
British retail sales dipped in the second quarter according to figures released today.
According to the Office of National Statistics consumers bought fewer household goods, pushing the annual rate of spending growth for the quarter to its lowest in more than two years.
Sales volumes dropped by 0.2 percent in June, and retail spending up just 1.3% on a year earlier. Both figures were well below analysts’ forecasts.
The disappointing figures fuel concerns over whether Britain is bouncing back the first quarter’s economic slowdown as quickly as initially thought.
Economists expect consumer spending to be positive in 2015; official data last week showed the fastest wage growth in more than five years.