Boohoo.com (BOO) founders have sold 50m shares worth £142.5million to cash in on a 75% rise this year. The firm is now worth £3.5billion after shares hit a record high of 315.5p last week. The founders’ shares were placed at 285p and sold to institutional investors, raising £99.75million for Kamani and £42.75million for Kane, the company said yesterday. The sale leaves Kamani with a stake of 13.1% and Kane with 2.7%. They have promised not to sell more shares for 18 months without the firm’s permission. The sell-off – for ‘personal financial planning’ – comes days after Boohoo announced record sales over the Black Friday weekend.
British investigators have begun an inquiry into alleged bribery at the miner Glencore (GLEN). The Serious Fraud Office (SFO) revealed yesterday that it was looking at the ‘conduct of business by the Glencore group of companies, its officials, employees, agents and associated persons’ as part of its investigation. The authority said it could not disclose further details while the probe was ‘live’. The SFO’s statement came after Glencore disclosed the probe to investors in a stock market announcement. Glencore said it would co-operate where necessary.
British property funds have lost nearly £5billion this year as the crisis on the High Street hammered shop valuations and triggered an exodus of investors. The combination of savers rushing to withdraw money and poor performance has caused the sector to shrink by £4.7billion to £22.6billion in the first ten months of 2019. The toll, revealed by the financial data firm Morningstar, emerged after investors were locked out of Britain’s biggest commercial property fund for the second time in three years. The £2.5billion M&G Property Portfolio fund was suspended on Wednesday after the manager was unable to sell shops and offices quickly enough to repay backers who were pulling their savings out. Analysis from Morningstar shows £1.5billion has been withdrawn since the start of 2019. It said this leaves a total of almost £4.2billion in Property Portfolio and its ‘feeder funds’, which funnel cash to the main fund.
Joules Group (JOUL) said its performance over the last six months had been ‘robust’. On the back of its strong performance, Joules confirmed it is opening four new stores before Christmas, ‘in desirable locations and on attractive terms.’ The high street retailer credited its ‘disciplined’ promotional activity and strong online growth for a jump in sales for the half year. Joules saw its revenues rise by 1.3% in the half year to November, driven by a 3.1% uptick in retail revenues. The figures have been adjusted to take into account the later Black Friday this year. The retailer, which is well known for its floral wellies and polka dot rain coats, said its performance had been bolstered by its ‘distinctive product offer, enhancements to the customer proposition and continued growth in our active customer base.’
Dunelm Group (DNLM) has announced it expects to make greater profits this year than it originally forecast. It added that the development of its new website did not cause any negative consequences for its sales, both online and in stores. Dunelm recorded a 7.5% rise in total sales to £262.6million for the three months to September 28, while like-for-like sales increased by 6.4% to £255.6million over the same period. The firm also said its gross margins were ‘stronger than expected’ and that operational costs were ‘well controlled.’ The sales boost comes as the homeware and furnishings business celebrates its fortieth year of doing business.
The father of Formula 1 driver Lance Stroll is leading a consortium that is seeking to buy a large stake in Aston Martin Holdings (AML). Lawrence Stroll, who owns the Racing Point F1 team, is reportedly seeking to acquire a stake in James Bond’s favourite automobile company, a decision which sent shares in the classic car company soaring by more than 17% today. The news may come as a relief to the Warwickshire automobile manufacturer, which has been struggling financially ever since it became a publicly traded company in October last year. According to Autocar magazine and RaceFans.net, who did a joint investigation, Stroll believes the firm’s current low stock value and sales numbers make it financially advantageous for an investment. Autocar says Stroll hopes this will create the foundations for ‘building the brand’s equity up again in future years, most notably by taking advantage of anticipated sales for the recently launched Aston Martin DBX SUV.’
AJ Bell (AJB) has posted record profits this year, a year after the broker and online trader became a publicly traded company. Profits at the Salford Quays firm rose by a third to £37.7million in the year to September on higher revenues of £104.9million. The company also recorded a stronger balance sheet, an increase in retail customers and larger dividends. Its chief executive Andy Bell has also announced that AJ Bell would donate £10million to help disadvantaged young people in the UK. The CEO said the firm’s growth underlined the ‘strong endorsement of the business model and growth strategy’ that was instituted before the company’s IPO in December last year.
Shares in Microsaic Systems (MSYS) surged after the chemical instrument maker signed an exclusive distribution deal with the Japanese firm ST Japan. Microsaic, which was spun out of Imperial College London, makes mass spectrometers that analyse the chemical make-up of substances. Lab equipment seller ST Japan will distribute Microsaic’s 4500 MiD to Japanese pharmaceutical and environmental firms, among others.
Burberry Group (BRBY) was boosted by a report that French luxury group Kering had expressed an interest in taking over Italy’s Moncler. The latest rumours of mergers and consolidation in the luxury goods sector come hot on the heels of LVMH’s £12.5billion takeover of US jeweller Tiffany – and hint that more could be coming. Burberry’s stock climbed as investors regained confidence in the sector, which has lagged amid the US-China trade spat and the worldwide economic slowdown.
