Shares in Countryside Properties (CSP) jumped today after the housebuilder posted a solid set of first half figures and said it is on track to meet full year expectations. Despite a slowing housing market, Countryside said it built some 2,362 homes in the six months to the end of March, up 43% from last year, when it completed 1,655 homes. The company also said that demand for new homes had picked up in the second quarter and its ‘strong’ forward order book rose 49% to £1.04billion. However, its average selling price fell 4 per cent to £377,000. Boss Ian Sutcliffe said: ‘Despite the wider political and macroeconomic uncertainty, demand for mixed-tenure homes remains strong and we have enjoyed a robust spring selling season.’
The owner of Britain’s third biggest airline, Jet2, has warned that the Brexit saga is creating signs of dampening consumer appetite for this summer’s holiday season. Jet2’s owner, Dart Group (DTG), said that while its travel arm is looking ‘positive’, its summer bookings levels ‘reflect some consumer uncertainty’, with prices for flights and package holidays becoming ‘more competitive’ as travel firms battle for customers. In a trading update today, Jet2’s owner revealed it is now expecting its annual profit to come in ‘slightly’ higher than initially forecast. Earlier this year, Jet2 boss Steve Heapy warned of higher prices for holidaymakers in the event of a no-deal Brexit. He said: ‘The worst thing that could happen is that we’re not able to fly to Europe. I think the chance of that happening is extremely low. ‘I think we’ll end up with something in the middle whereby we’re able to fly into Europe, but I think it may be more expensive and there might be more flight restrictions.’
Royal Bank of Scotland Group (RBS) investors have been urged to vote down chief executive Ross McEwan’s £3.6million ‘excessive pay packet’. Shareholder advisory firm Pirc said elements of the award are ‘inappropriate’, and said he was paid 46 times more than the average bank employee. Ahead of the bank’s annual general meeting next week, it took issue with Mr McEwan’s total variable pay – at 211.1% of salary – describing it as ‘excessive’, as it is over the recommended limit of 200%.
Regulators face growing pressure to intervene in an increasingly vicious takeover battle for doorstep lender Provident Financial (PFG). There are rising fears that vulnerable borrowers could be harmed as Non-Standard Finance (NSF) steps up efforts to seize control of the Provvy, having launched a hostile £1.3billion takeover bid. MPs and campaigners are now calling for action to ensure the deal does not hurt Provident Financial’s 2.4m customers or the 180,000 who have borrowed from NSF. It came as the Provvy launched another attack on NSF, branding its offer a ‘dreadful deal’. In response, NSF blasted the Provvy’s management for failing customers, incompetence and a disregarding shareholders.
JD Sports Fashion (JD.) defied the High Street gloom to rake in record profits as it stretched its lead over rival Sports Direct. Shares in the chain jumped to a record high after it posted a 15.4% rise in profits to £399.9million in the year to February 2. Same-store sales climbed 6% as chunky Fila footwear and Vans Old Skool trainers flew off the shelves. The bumper results will come as a blow for Sports Direct boss Mike Ashley, who in 2011 predicted that he could ‘finish off’ his rival. Peter Cowgill, the chief executive of JD Sports, said: ‘I don’t think his prediction was quite right. ‘Let’s hope he’s better with his gambling.’ Ashley, 54, has lost hundreds of millions of pounds on a series of ill-judged retail bets.
Galliford Try (GFRD) lost more than a fifth of its value after a profit warning related to its struggling construction arm. On a brutal day for investors, shares fell 20.5%, or 149p, to 576.5p yesterday, wiping £165million off its value. The rout came after it said full-year profits would be £30million to £40million lower than forecast by analysts. It had been expected to make £156million. Galliford has now launched a review of its construction arm saying that it will ‘reduce the size’ of the business. It is just the latest Government contractor to suffer following the collapse of Carillion and Interserve.
Discount greetings cards retailer Card Factory (CARD) saw profits fall last year amid declining footfall and higher costs, but still continued to open new stores. At a time when many retailers are shutting down shops, Card Factory opened 51 new stores in the year to January 31 – even though like-for-like sales came in flat amid falling demand. The company, which sells card from 99p as well as party items like balloons, said pre-tax profits fell 8.3% to £66.6million. It also said it aims to grow its stores estate to reach more than 1,200 stores in the UK, from the current 972 stores in the UK and Ireland. Boss Karen Hubbard said: ‘Encouragingly, some initial trials with Aldi in the UK, in an Australian retailer, and with a franchise partner in Jersey show that the Card Factory brand is a footfall driver that has real resonance; we will pursue these types of opportunities to open new routes to market where we see attractive returns.’
, formerly known as Photonstar LED Group prior to putting its lighting business into administration, is in trouble itself. It doesn’t have enough money for its new plan to buy an as-yet unnamed company which wants to be listed on London’s junior market. Investors seemed to have been hoping for a miracle as shares climbed, but Bould said it may have to run to investors to raise more cash.
Rumours are circulating around the City that NCC Group (NCC), a British cyber security company, could soon be snapped up by a predator. Its shares have been creeping up over the last few weeks, after warnings of a UK slowdown knocked 31% off its value in January. Over the last month, they are up 19.4%. NCC, which specialises in ‘ethical hacking’ to help businesses find weaknesses in their systems, was born when the Government’s National Computing Centre sold its commercial divisions in 1999. Beady-eyed observers have their money on private equity firms, IT giant IBM and, possibly, computer company Dell as potential bidders. Sources close to the company said it was not in takeover talks, but that hasn’t stopped traders speculating that an offer could be on the horizon.
Operations haven’t run so smoothly for mining giant Rio Tinto (RIO) so far this year. Tropical cyclones in Australia battered its iron ore business, causing damage and forcing it to lower its guidance for shipments. The miner shipped 69.1m tonnes of iron ore in the first three months of the year, 14% less than a year previously. It now hopes to transport between 333m and 343m tonnes for the whole of 2019, down from 338m to 350m tonnes.
Britain’s jobs market isn’t coming to the standstill some feared it might in the run-up to Brexit, says white-collar recruiter Hays (HAS). In the first three months of 2019, Hays’ fee revenue from the UK and Ireland edged up by 3%. But growth in fees slowed in Germany, where the trade spat between the US and China has also weighed on the economy. The total net fee growth for the third quarter of Hays’ financial year hit 6%, missing analysts’ expectations of 7%.
Warnings of tough trading conditions pushed down shares at Tatton Asset Management (TAM), even though it grew assets under management from £4.9billion to £6.1billion for the year ending in March. Chief executive Paul Hogarth was ‘disappointed’ with the lack of growth at Paradigm Consulting, the part of Tatton that helps wealth managers and financial advisers comply with regulation.
Emerging markets specialist Ashmore Group (ASHM) climbed 6.3% or 28.8p to 484.2p as it raked in £3.8billion of new money from clients. Its strong investment performance generated a further £2.8billion, and chief executive Mark Coombs said calmer political relations in the developed world were helping emerging economies.
