AB Foods is exploring separating its food business from Primark to maximise shareholder value amid falling sales and profits.

The group said it was reviewing its structure alongside the release of final results that showed operating profit fell 23% as revenues declined 1%.

AB Foods’ solution to this problem appears to be to break up the group to unlock value in the clothing and food as separate entities.

“Associated British Foods’ results were a touch soft, but news of a potential spin-off of its beloved Primark and Food businesses grabbed headlines on the day,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“In the UK, Ireland and Europe, Primark’s like-for-like sales declined over the year, despite the favourable summer weather. Instead, growth was driven by its store rollout programme, with a particularly strong performance in the US, helping total Primark sales edge 1% higher over the year.

“At a time when many other large physical retailers are closing their doors, Primark expects new stores to contribute around 4-5% in annual sales growth for the foreseeable future.”

Primark has long been the core of AB Foods’ strength, and it has always seemed a little strange that it sits within a group otherwise focused on food.

As growth slows across the group, pressure is mounting to recognise the value of Primark, and the most obvious way to do so would be to allow it to operate as a separate entity.

One would think that Primark would be well-received by US markets, and it’s not inconceivable that it would trade at a significantly higher multiple than the UK market assigns.

Garry White, Chief Investment Commentator at Charles Stanley, explained that Primark’s strong brand and steady growth rate would help achieve that higher valuation.

“Primark generates roughly half of ABF’s revenue and more than 50% of group profits, making it the company’s key growth driver,” Garry White said.

“As a standalone entity, Primark would likely command a higher valuation thanks to its strong brand, international expansion – particularly in the US – and resilient margins.

“Some even suggest that a separate Primark could be worth more than ABF’s current market capitalisation, and there is merit to that view. ABF’s conglomerate structure arguably dilutes Primark’s retail premium, as weaker divisions such as sugar and ingredients drag on group margins.”

Serica Energy has struck a deal to acquire a 40% interest in the P2530 Licence for approximately £500,000, marking another strategic expansion in the UK North Sea.

The agreement with Finder Energy gives Serica access to the Wagtail oil discovery along with two promising exploration prospects. This acquisition adds an estimated 8 million barrels of net contingent resources to Serica’s growing portfolio.

Wagtail sits in a prime position north-west of the Triton FPSO, offering potential for cost-effective tie-back development. The North Sea Transition Authority has granted a licence extension until August 2026, providing crucial time for development planning.

During this extension period, the joint venture partners will conduct detailed engineering studies. These studies will evaluate Wagtail’s integration potential with the existing Triton FPSO infrastructure and confirm the economic viability of a tie-back development.

The P2530 licence also includes the Marsh and Bancroft exploration prospects, described as low-risk opportunities. This combination of discovered resources and additional prospects enhances Serica’s organic growth potential in the region.

Finder Energy will continue as operator with a 60% stake, while Dana Petroleum retains its 40% interest alongside Serica’s new position.

The FTSE 100 made steady gains on Monday as traders prepared for the Bank of England’s interest rate decision on Thursday and signals for future interest rate cuts.

London’s leading index edged 0.1% higher in midday trade on Monday.

“London stocks have a touch higher this morning as investors brace for a pivotal week at the Bank of England,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance.”

The FTSE 100 had been higher earlier in the session after oil prices jumped on OPEC’s decision to tackle a supply glut by holding off increasing output.

“The FTSE 100 got off to a solid start with oil helping to grease the wheels of the index,” said AJ Bell investment director Russ Mould.

“The decision by producers’ cartel OPEC+ to pause further output hikes at the start of next year, amid concerns about a glut of supply, helped give oil prices a lift and, in turn, boosted UK market heavyweights BP and Shell.”

However, BP and Shell eased back as the session progressed, trading less than 1% higher. BP also announced the divestment of its US midstream business on Monday, with little effect on the share price.

Airtel Africa continued its ascent, gaining 4%, as the telecoms group extended a rally sparked by last week’s positive half-year report. Airtel Africa shares are 150% higher in 2025.

Games Workshop was another stock building on recent gains, rising 2% on Monday. The tabletop gaming company is nearing all-time highs after recovering from a correction that started in June this year.

Miners and Vodafone were among the losers with Vodafone the top faller on the day.

“Elsewhere in the mining sector, there was pressure on share prices on signs of slowing Chinese economic growth and weaker factory activity across Asia as US tariffs take their toll,” Russ Mould explained.

“Vodafone was the top faller on the FTSE 100 after investment bank UBS downgraded its recommendation on the stock to ‘sell’, citing several competitive risks.”

Prudential shares present an ‘exciting buying opportunity’ according to equity analysts at Morningstar, with shares trading 16.5% below Morningstar’s Fair Value Estimate despite a major pivot in capital allocation that promises to unlock significant shareholder value.

The insurance giant’s recent strategic decisions — a $2 billion share buyback program and the partial divestment of its stake in ICICI Prudential Asset Management through an IPO — position the company to return substantial capital to investors.

Combined, these initiatives could deliver approximately $4.1 billion to shareholders, representing 15% of Prudential’s current market capitalisation, according to Morningstar.

Analysts project Prudential’s operating free surplus generation will surge from $2.6 billion currently to $4.4 billion by 2027, providing a strong foundation for sustained capital returns.

The improvements in the outlook for cash flow are expected to enable the company to restore its dividend to pre-2019 levels of around $0.46 per share, potentially doubling the current dividend yield.

“After a period of investor uncertainty, Prudential is now making clear and decisive moves to return capital,” said Henry Heathfield, equity analyst at Morningstar.

“The combination of accelerated buybacks and the partial divestment of its Indian asset management arm signals a strong commitment to shareholder value. We believe the market has not fully priced in the impact of these changes, which are poised to restore faith in the business and drive the share price upward as the yield improves.” 

Prudential recently announced a 13% increase in new business profits in its Q3 results, driven by strong performance in mainland China and Hong Kong.

Brave Bison has confirmed it made an unsolicited £50 million offer to acquire M&C Saatchi Performance, only to see the approach rebuffed by M&C Saatchi.

Brave Bison, the next-generation marketing group, submitted a non-binding proposal for the companies, trade and assets comprising MCSP, which it planned to merge with its existing performance marketing operations. The combination would have created one of the largest independent performance marketing companies outside the US.

M&C Saatchi, however, has dismissed the approach as fundamentally undervaluing the division. The company said the offer “does not reflect the future prospects” for MCSP, which it described as a core element of its growth strategy.

M&C said no discussions are ongoing, while Brave Bison’s announcement, released at the same time as M&C’s rejection, detailed how it plans to fund the acquisition.

This may not be the last we hear of Brave Bison’s interest in the division.

MCSP, headquartered in Singapore with approximately 410 staff across APAC, MENA, the US and UK, generated net revenue of £26.8 million in 2024 – an 8% year-on-year increase. The division, established in 2006 and now led by CEO Kabeer Chaudhary, works with major clients including Grab, Amazon, Canva and Meta.

Brave Bison had projected the acquisition would contribute a minimum of £8 million in adjusted EBITDA, boosting its own adjusted EBITDA by over 80% to £17 million.

Capita has secured a significant contract extension with Samsung Electronics UK, building on a successful 14-year partnership that began in 2011.

The expanded agreement will see Capita continue delivering comprehensive customer experience services for Samsung’s consumer electronics range, from mobile phones to televisions.

The new contract focuses on cutting-edge technology integration, with Capita planning to migrate Samsung’s telephony system to AWS Connect-powered Capita Contact, streamlining customer interactions.

In addition, the deal will include a proof-of-concept deployment of Agent Suite, Capita’s flagship GenAI-powered platform, to be tested in the Business Service Centre.

Capita’s services will span multiple communication channels, including voice support, email assistance, and social media community management. The company has been providing technical support for Samsung’s mobile customers alongside broader customer solutions since the partnership began.

In 2016, Capita expanded its offering by establishing a dedicated Business Service Centre. This facility provides technical support, customer service, and managed services to Samsung’s business partners.

“These new contracts further strengthen our 14-year partnership with Samsung, and we will be prioritising innovation and quality to ensure seamless, efficient, and valuable experiences for Samsung and their customers,” said Corinne Ripoche, CEO of Capita Experience.

“I am especially excited that we will be driving these experiences via the increased application of technology and AI.  
 
“Our focus on transformation for clients by bringing technology, people and processes together is at the heart of Capita’s strategy, and I am looking forward to seeing this in action with Samsung.” 

Majestic Corporation has announced a significant expansion of its recycling operations with the launch of a new 50,000 square foot facility in Wrexham, Wales.

The sustainable circular-economy solutions provider, which specialises in recycling and non-ferrous metals, has secured a lease on a new industrial space to meet growing demand for e-waste recycling across the UK and Europe.

Telecycle Europe Limited, Majestic’s wholly owned subsidiary, has entered into a five-year lease agreement for a unit at a business park in Wrexham, at an annual rent of £130,000. The facility will complement Majestic’s existing 4,000 square foot site in Deeside, Wales.

The new location positions the company to handle increased processing of e-waste, battery materials, IT infrastructure, and solar renewables.

The lease agreement involves a related party transaction, as the property is owned by Wrexham Holdings Limited. This company is wholly owned by Peter Lai, who serves as both Chairman and CEO of Majestic.

 “This facility marks a major step forward in our mission to enable a truly circular economy,” said Peter Lai, Chairman, CEO and Founder of Majestic Corporation.

“By increasing our capacity to handle complex waste streams, we’re not only meeting rising demand but also ensuring more of this critical processing happens locally, here in the UK. Ultimately, this means we’re delivering more to our customers and with greater efficiency.”

Today’s news follows Majestic’s listing on the US OTC Market in October as the group hones in on investor demand in the US and Asia.

Majestic Corporation’s shares are around 60% higher year to date in 2025.