Irish buyout firm makes swoop for collapsed Patisserie Holdings (CAKE). Collapsed cafés chain Patisserie Valerie was on Wednesday bought out of administration by its top brass with cash from an Irish private-equity firm, safeguarding almost 2000 jobs. The deal with Causeway Capital, inked after all-night negotiations, will see 96 of the chain’s 122 stores stay open. Patisserie Valerie’s sister brand Philpotts, which has 21 stores across the country, was also sold, to A.F. Blakemore & Son. It runs hundreds of Spar supermarkets in Britain and distributes food and drinks to other shops. The two deals fetched £13 million for administrator KPMG, which was appointed in January. Patisserie Valerie was worth £440 million before it discovered a £40 million accounting fraud in October.
AstraZeneca sees shares rise despite profits fall as signs grow of recovery. Profits are tumbling at AstraZeneca (AZN), but the shares enjoyed a bounce today as the City looked on happily at a strong end to the year and some good results from cancer treatments. The drug giant saw profits slump 14% to £1.6 billion, but a “very strong” final quarter means the company can claim growth has returned. Shares rose 5%, or 258p, to 5979p. That is, at least, above the 5500p a share offered by America’s Pfizer to take over the company in 2014.
Micro Focus gets mega boost after ‘back to basics’ strategy pays off. Software giant Micro Focus International (MCRO), which was hammered after a profit warning last year, stopped the rot on Thursday after going “back to basics”. Major problems slotting in a recently acquired software business from Hewlett Packard last year sent shares off a cliff. Shareholders breathed a sigh of relief today after full-year results came in better than expected and shares shot up 12% to 1685p. Chief executive Stephen Murdoch reported that earnings had risen almost 10% to $1.5 billion (£1.2 billion) and said the firm was “back on track”.
Rolls-Royce flies onwards in spite of end to the Airbus A380. Rolls-Royce Holdings (RR.) cushioned the blow from the end of Airbus’ A380 on Thursday after landing a major deal to supply 70 smaller planes ordered by Emirates. The aerospace giant, a major supplier of the A380, will make engines for a batch of 40 A330neo aircraft and 30 A350s for the Middle Eastern carrier. The A330neo aircraft is powered by the Trent 7000 engine and the A350 uses the Trent XWB engine. Rolls put no price on the contracts. It reports results on February 28. Civil aerospace president Chris Cholerton said: “The addition of Airbus A330-900 and Airbus A350-900 aircraft to the Emirates fleet will make the airline one of the largest users of Trent engines in the world and we look forward to continuing to support them and their customers.”
The Restaurant Group’s boss Andy McCue shocked the City on Thursday as he said he will step down from the troubled Frankie & Benny’s owner due to “extenuating personal circumstances”. The 45-year-old’s move is not understood to be related to his health, but a private family matter. He said he recognises the decision is “untimely”, but is right for him and his family. No further details were given. Investors found the news hard to digest because it comes at a time of big change for the casual dining group. The update comes little more than two months after Restaurant Group (RTN) scraped through a controversial £559 million takeover of noodle bars chain Wagamama, despite a major shareholder rebellion.
Cabot Energy (CAB) were on the slide after the oil explorer – focused on Italy – warned that the Italian Government was suspending signing new oil and gas permits. Italy’s populist 5Star Movement has essentially pushed through an 18-month suspension on all offshore oil and gas exploration. While its shows the Party is serious about green issues it also opens the government to potential lawsuits from energy companies, and is angering regional governments furious about possible job losses. Scott Aitken, chief executive officer said: “This new legislation is not a ban on exploration. It allows the Italian government to reappraise the exploration licences it has granted. Cabot Energy will ensure the Company is prepared to rapidly progress our licences as soon as the review is completed, whenever that occurs within the next 18 months.” He says the company has now moved its attention to its assets in Canada.
