HMV bought by Canadian mogul after battle with Mike Ashley. A Canadian music entrepreneur on Tuesday beat tycoon Mike Ashley to buy the collapsed music chain HMV from administration after marathon all-night negotiations. Doug Putman, who owns Canada’s Sunrise Records, bought 100 shops from administrator KPMG, saving 1,600 jobs. However, 27 stores will be shut on Tuesday, with 455 jobs to go. The 34-year-old pipped Ashley to the deal after HMV became a takeover target for the acquisitive billionaire. But Putman has his work cut out for him, as demand for CDs and DVDs continues to fall amid the rise in streaming. “HMV survives to live another day. Alas, one has to question whether it has a big opportunity under the new owner or whether it is still living on borrowed time,” said AJ Bell’s Russ Mould. “It is essentially relying upon the current revival in vinyl sales to keep it alive.”
Fuels-to-healthcare supplier DCC (DCC) shrugged off France’s “gilets jaunes” protests to boost profits last year. The FTSE 100 giant said operating profit would be “significantly ahead” of last year. Its retail & oil unit, which is the largest supplier of fuel to independent petrol stations in the UK, had a “robust” performance. That came despite its large operations in France, where it was hit by nationwide protests over fuel taxes. The warmer weather also proved a challenge for the liquefied petroleum gas unit where heating related volumes in Europe were hit. However DCC said the business still performed well. DCC also beefed up its market share in healthcare, where it ships medical products to NHS hospitals and surgeries daily.
Shares in Indivior (INDV) nosedived today after the addiction treatment specialist lost a key court battle over its number one drug Suboxone. The firm said it would immediately lose market share after a US court refused to delay the release of cheaper generic versions of the opioid addiction treatment by rivals. It has been in a long-running fight against the launch of rival products by Dr. Reddy’s Laboratories and Teva Pharmaceuticals, arguing that it holds the patents until 2024. The decision means India’s Dr. Reddy’s can release its version immediately. Indivior has filed an emergency appeal but without a reprieve could face “major disruption”.
Ocado Group (OCDO) boss Tim Steiner on Tuesday kept his cards close to his chest on a mooted tie-up with rival Marks & Spencer Group (MKS) as the online grocer sank further into the red. Losses widened to £44.4 million from £9.8 million for the year ending December 2, despite revenues growing by 12.3% to £1.6 billion. This was mostly down to investment costs and an accounting charge, the company said. M&S has reportedly been looking to buy some of Ocado’s distribution centres and delivery vans to beef up its online food offering, fuelling speculation Ocado might ditch its delivery deal with Waitrose when it expires in September next year. Tim Steiner said it was his “business to talk to other retailers” but “would not comment on speculation”. He added Ocado has a good relationship with Waitrose but stopped short of saying whether the deal to sell its products would be renewed. “It may be Waitrose, it may not be Waitrose, we’ll have to wait and see.”
Brexit uncertainty paralysed deal-making at stockbroker Numis Corporation (NUM) last quarter after political in-fighting in Westminster put off companies from raising money. The broker, considered a bellwether for Britain’s mid-cap stocks due to its large market share, did 25% fewer transaction between October and January in a hiatus in deal-making. Money made from buying and selling shares for clients was also down by a quarter. Co-chief executive Ross Mitchinson said: “Some of the things in the pipeline have either been deferred or gone away due to the political situation. It’s all about Brexit. People are a bit paralysed until we get more certainty.”
A “superlative” performance from BP (BP.) had the City purring on Tuesday, with pension managers reassured that cash — in the form of dividends — will keep gushing into funds. A dip in the oil price last year took the shine off shares in the sector, but all the oil majors — Shell, Exxon Mobil and Chevron — have recently produced strong earnings thanks, in part, to the explosion of the US shale industry. BP said profit in 2018 doubled to $12.7 billion (£9.7 billion) which means its hefty dividend — shares yield more than 6% — looks solid.
St. Modwen Properties (SMP), the property developer creating the UK’s largest fruit and veg market in Nine Elms, on Tuesday unveiled a Brexit plan to ensure it can complete London projects on time, including shopping for fridges from Germany. Boss Mark Allan said ahead of Britain leaving the bloc in March, his firm will stockpile building materials and try to speed up house sales. “Our job is to prepare for any eventualities possible from Brexit, and that is what we are doing,” Allan said. He revealed that £10 million will be invested in forward-ordering more goods, including fridges from Germany and the Far East for new-build homes, and engineered timber from Scandinavia. The move is in response to possible import delays at borders if Britain leaves the EU without a deal.
