Marks & Spencer Group (MKS) 300,000 private shareholders were hit with more woe yesterday as profits plunged and the dividend was slashed. On another bleak day for investors, the high street stalwart said half-year profits fell 17% to £177million as clothing sales dived 5.5%. The firm, which plans to close 110 stores by 2022, also confirmed a 40% cut in the interim dividend from 6.5p to 3.9p per share. One bright spot was the 0.9% rise in food sales. Russ Mould, investment director at AJ Bell, said: ‘The disappointments are piling up for Marks & Spencer like unsold sweaters and cardigans on its shelves.’ Total sales fell by 2.1% to £4.86billion in the six months to September 28, weighed down by the ailing clothing and home business. Rowe said that efforts to turn the clothing and home section around were 18 months behind schedule, adding: ‘The headline numbers aren’t where we want them to be. The thorn in the shoe is clothing and home.’ He added: ‘Our transformation plan is now running at a pace and scale not seen before. For the first time we are beginning to see the potential from the far-reaching changes we are making. ‘The food business is outperforming the market. In clothing and home we are making up for lost time. We are clear on the issues we need to fix.’
Veteran fund manager Nichola Pease has taken up the prestigious post of chairman at investment firm Jupiter Fund Management (JUP). A former chief executive of JO Hambro Capital Management, who has more than 30 years’ experience in the financial services industry, 58-year-old Pease takes over from Liz Airey next March. She will stand down immediately from the board of rival fund manager Schroders (SDR), where she has been a director for seven years. But embarrassingly for Pease, her husband, renowned hedge fund manager Crispin Odey, has been betting against Jupiter all year. Odey Asset Management first revealed in February that it held a short position in the company.
Virgin Media’s three million mobile phone customers will be using the Vodafone Group (VOD) network from 2021, after the companies agreed to a five-year deal. The agreement, which will run until 2026, will see Vodafone supply wholesale mobile network services, including voice and data, to Virgin Mobile and Virgin Media Business. It will replace Virgin Media’s current arrangement with BT Group (BT.A) which ends in late 2021 and is estimated to be worth around £200million to BT. The deal is known as the Mobile Virtual Network Operator (MVNO) agreement and will allow Virgin Media, which is owned by Liberty Global, to have full access to all of Vodafone’s current services and future technology, such as its 5G network. MVNOs allow mobile operators that do not own their own wireless network infrastructure to lease wireless telephone and data spectrum from a mobile network operator. Most MVNOs in the UK use either BT-owned EE, Three or O2 as their host network.
Redrow (RDW) has suffered a shareholder revolt over pay and the controversial choice of its new chairman. Nearly a third of investors opposed its pay report at an annual general meeting in London, with a similar number opposing John Tutte’s appointment. It followed moves by the company to lower targets for its long-term bonuses, making it easier for bosses to earn big payouts. Former boss and founder Steve Morgan, 66, will still be entitled to bonuses, even though he has retired. He has a 20% stake in the company worth £422million. There has also been anger at former chief executive Tutte, 63, becoming executive chairman, in breach of City rules for best practice in the boardroom.
Breedon Group (BREE) sank after a major investor disposed of its stake. M1 Cement, a top-five shareholder, has sold almost 140m shares in the Leicestershire-based group at a price of 59p each. These shares formed a stake of about 8%. M1 Cement has netted £82.4million from the sale. Shares plunged 7p, to close at 58.4p.
Cybersecurity group Sophos Group (SOPH) swung to a loss of £1.2million in the six months to September 30, down from profit of £20.2million in the same period of the year before. It comes just weeks after the Abingdon-based group announced it will be taken over by US investment firm Thoma Bravo for £3billion. Sophos was stung by one-off costs, including £5.5million making staff redundant in Germany.
Beleaguered luxury car maker Aston Martin Holdings (AML) edged lower ahead of its third-quarter results today. Amid warnings that it will sell fewer cars this year, rescue financings and mounting debt, the City will be keen to hear more about Aston’s first SUV, the DBX, the much-extolled vehicle that could be its saviour.
The Competition and Markets Authority gave the all-clear to Unite Group (UTG) £1.4billion takeover of fellow student accommodation provider Liberty Living, which is currently owned by the Canadian Pension Plan Investment Board.
Carpetright (CPR) told shareholders that Investec Asset Management has also pledged to vote in favour of the possible rescue offer by the retailer’s lender, Meditor. This means around holders of 28 per cent of the shares will back Meditor’s proposed cut-price takeover.
