De Beers sold £240million worth of diamonds at its latest auction. Although this was slightly higher than the £233million it made in the previous sales round, it was down 39% compared with the same period of 2018, when it raked in £392million. Anglo American (AAL)-owned De Beers produces around 40% of global diamonds by value and mines for the stones in 35 countries. But demand for rough stones has dived as the diamond market has struggled with oversupply, the economic slowdown in China, a widespread squeeze on luxury spending – made worse by the protests in Hong Kong – and other social factors, such as falling marriage rates. Numis analysts said: ‘The diamond market is clearly weak and this appears to be now impacting the higher end of the market as well, which had previously held up.’
Shares in Ted Baker (TED) tumbled Thursday morning after the fashion firm issued its third profit warning in seven months and slumped to a £23million half-year loss. It said heavy discounting, consumer uncertainty and weak demand for its spring/summer collection all contributed to the losses, which compare to profits of nearly £25million this time last year. The cost of overhauling its struggling Asian business also took a £12million chunk out of the bottom line. Ted Baker simultaneously warned that it would continue to struggle in the second half of the year unless conditions improved.
Alison Cooper is quitting Imperial Brands (IMB) after nine years at the helm and 20 years at the company. The announcement of Cooper’s departure comes days after Imperial issued a profit warning amid a backlash led by Donald Trump against vaping in the US. Cooper has not made a direct statement on her plans to leave. Imperial is also hunting for a new chairman to succeed Mark Williamson.
Tower Resources (TRP) has shared key technical and commercial information with an unnamed ‘major international oil company’ in the hopes of securing a partnership. The energy minnow has several oil blocks off the coast of Namibia, in south-west Africa, that it is looking to develop. Chief executive Jeremy Asher cautioned that talks are at an early stage and may not lead to a deal.
Shares in Centamin (DI) (CEY) tumbled after its boss Andrew Pardey handed in his 12 months’ notice after four years in the role, and said production over the first nine months of the year had been lower than expected. Centamin blamed problems with its operations, such as changes to the team working at its main Sukari mine, for the fall.
Stagecoach Group (SGC) inched up as it confirmed it will take the Government to court early next year following its decision to ban the rail and bus operator from three rail franchises. In a trading update, it said its bus division in London had a strong summer and it will cut off a share buyback programme when it has bought £30million worth of shares. It previously said it would buy up to £60million.
Metro Bank (MTRO) initially made gains in the wake of an announcement on Wednesday that it was raising fresh funds and that chairman Hill will leave the board by the end of the year. But the charm had worn off by the close of play, with shares sinking.
