Plus500 takes a pounding on sales slump but bosses rake in cash. Controversial trading firm Plus500 Ltd (DI) (PLUS) was at the centre of another City storm on Friday as a bleak warning over slumping revenues hit its shares and details of huge payouts for its bosses emerged. The Israeli-based, London-listed firm is the UK’s biggest provider of contracts for difference, which allow punters to take leveraged bets on stocks, indices and currencies. But it warned becalmed financial markets had sent trading revenues tumbling to $53.9 million (£41.2 million) in the first three months of 2019, a far worse-than-expected 65% slide on the previous quarter. Plus is also feeling the effects of a crackdown by European regulators since last August.
National Express agrees £65 million Silicon Valley shuttle deal. Transport operator National Express Group (NEX) on Friday drove into Silicon Valley with a $84.3 million (£64.5 million) deal to buy a majority stake in a Californian shuttle service. The FTSE 250 buses and trains firm has bought a 60% stake in WeDriveU, which specialises in transporting workers to companies including Facebook, Tesla and Amazon based in California’s tech hub. WeDriveU has around seven million passengers a year and notched up revenues of $139.9 million last year.
Pets at Home Group (PETS) was in urgent need of some anaesthetic on Friday after its second largest shareholder put its stake in the retailer to sleep. Canada Pension Plan Investment Board (CPPIB) sold its 10.8% stake for 148p per share — a 9% discount to Thursday’s closing price. The retailer, which sells pet food and accessories and runs vet practices, has been facing competition from non-specialists such as the big grocers and Amazon. It has been moving towards lower pricing and is also overhauling some of its unprofitable vet practices, but clearly not fast enough for CPPIB.
Games Workshop Group (GAW) shot up after it said it expects to make more money. After a lacklustre set of results in January, the Warhammer maker is now back in the game. It forecasts pre-tax profits of £80 million for the year to June 2, up from £70 million. It also raised its dividend to 155p a share from 126p for the period to June 2018.
Struggling fashion chain Bonmarche Holdings (BON) was in a combative mood, hitting out at retail tycoon Philip Day’s £5.7 million takeover bid. The over-50s retailer said Day’s 11.4p-a-share offer “undervalued” the chain, which warned on profits last month. It also said it has drawn up a plan to cut costs, most likely involving store closures or job cuts, and shareholders should back Bonmarché.
The owner of the Peppa Pig cartoons, Entertainment One Limited (ETO), last night told the market it is coughing up £178 million to buy Audio Network, whose work was featured in popular TV shows like Killing Eve. This will be eOne’s largest acquisition in its near-five decade history. To fund the deal, it placed 28.9 million shares today to raise £130 million — 6% of its share capital — at a price of 450p.
Damages sought in Britain’s costliest divorce battle. A Russian billionaire at the centre of Britain’s costliest divorce battle is seeking damages from a London-listed litigation financier backed by veteran fund manager Neil Woodford. AIM-listed Burford Capital (BUR) has been named in a £65 million damages lawsuit linked to a £330 million superyacht seized as part of divorce proceedings between businessman Farkhad Akhmedov and his ex-wife Tatiana Akhmedova. The Luna vessel was impounded in Dubai last year after Akhmedova won a freezing order on her ex-husband’s assets when the oligarch refused to pay part of his fortune following their split. But, last month a Dubai court overruled a decision to seize the ship. Akhmedov’s family trust the Straight Trust said papers have been filed in a Dubai court setting out a claim for damages. The claim is issued against Akhmedova and Burford, which is working to enforce the £453 million divorce settlement against Akhmedov, who is contesting the payment.
