Aston Martin Holdings (AML), the British car maker which found fame through the 007 films, has been unable to pull itself out of a downward spiral since floating on the stock market last year. The group’s shares hit an all-time low yesterday, as brokers at Deutsche Bank said they expected Brexit-related uncertainty and volatility in the global car market to depress demand for its high-end vehicles.
Saga (SAGA) the holiday, insurance and investment services firm fell to a record low following a profit warning last week. The shares fell another 9.8%, or 6.5p, to 60p yesterday as analysts at UBS pointed out the firm had cut profit expectations twice since it floated on the stock market in 2014, and has removed its medium-term guidance for earnings growth. UBS also had a jibe at Saga’s management, saying their track record of executing improvements is ‘limited’. The broker slashed its target price for the stock from 150p to 65p.
Indivior (INDV), which makes drugs to treat heroin addiction, climbed after revealing data from two studies. The first showed that patients taking a higher dose of Indivior’s once-monthly injection Sublocade had a better chance of abstaining from opioid use than those on a lower dose. The second indicated Sublocade may reduce breathing problems caused by use of fentanyl, a highly potent drug sometimes added to heroin.
Housebuilders Taylor Wimpey (TW.) and Barratt Developments (BDEV) were also on the up as investors have cautiously begun to return to the Brexit-battered firms. On Friday, fund manager Neil Woodford said in a letter to investors that his portfolios – which include Barratt and Taylor Wimpey – were full of ‘profoundly undervalued’ companies. He argued that many UK stocks have been ‘left behind’ since the Brexit referendum, as investors steer clear of domestically-focused businesses.
Engineering stocks took a hit after the world’s largest plane maker Boeing announced production cuts following two deadly crashes. CMC Markets analyst David Madden said this would lead to reduced demand for products manufactured by British firms such as Meggitt (MGGT) and Melrose Industries (MRO).
Gold miner Centamin (DI) (CEY), which was given a bloody nose by investors over pay last year, clearly hadn’t learned its lesson as 33.7% of voting shareholders again revolted over directors’ remuneration.
Debenhams (DEB) was on the brink of administration last night after it rejected a £150m rescue bid by Mike Ashley. The department store chain is set to fall into the hands of its lenders today in a move that is expected to trigger a wave of store closures and job losses. The so-called pre-pack administration – where the outcome is agreed before administrators are called in – means investors with shares in Debenhams will be wiped out. That includes Ashley, 54, who has an almost 30% stake in the company through his firm . At one stage, his stake was worth £150m. The increasing likelihood of a pre-pack administration came after Debenhams rejected Sports Direct’s offer of a £150m lifeline in return for Ashley being made the department store’s chief executive. The retail tycoon was still considering the possibility of making a full £61m takeover for Debenhams last night.
The jury in the fraud trial against four Barclays (BARC) executives has been discharged. John Varley, the bank’s chief executive from 2004 to 2011, and three of his senior staff have been on trial since January over claims they illegally sweetened the deal for Qatari investors. It was alleged that they funnelled £322m in secret payments to Qatar at the height of the financial crisis in June 2008. The Middle Eastern investors were part of two rounds of fundraising, which brought in £11.8 billion of cash to shore up the bank and avoid a government bailout. Varley, 63, dealmaker Roger Jenkins, 63, and fellow executives Richard Boath, 60, and Tom Kalaris, 63, deny fraud by false representation. Reporting restrictions are in place.
Corporate raider targeting Barclays (BARC) claims bank’s new chairman lacks experience and will need his help to run business. Activist investor Edward Bramson said Nigel Higgins, a former top investment banker at Rothschild, has not spent enough time running big companies. In comments likely to raise eyebrows at Barclays, 68-year-old Bramson said his expertise turning around other companies could help Higgins, 58, get to grips with his new job. Bramson warned that the lender could be forced to raise billions of pounds more from investors – and even compared Barclays to struggling Deutsche Bank. The raider – who has never been in charge of a bank before – is campaigning for investors to vote him onto Barclays’ board as a non-executive director at the annual meeting next month.
