Trainline Plc (TRN) expects to rake in higher full-year revenues after the popularity of mobile tickets led to a surge in sales. The rail fare-selling website, which will join the FTSE 250 index later this month, estimates revenue will grow by more than 20% this year. This was up from a previous forecast that growth would be in the high teens. The firm also said turnover climbed to £129million in the six months to August 31, up 29% on the same period of last year. Trainline said this was down to an increase in sales of virtual tickets that are sent to customers’ mobile phones rather than printed out.
British American Tobacco (BATS) is cutting 2,300 jobs as it focuses on vaping under chief executive Jack Bowles. Around a fifth of senior roles at the cigarette maker will face the axe in the shake-up. BAT, which has around 55,000 employees worldwide, said the restructuring will make it a more efficient and simplified company with fewer, but larger, divisions. Major tobacco firms have been ramping up investment in new products such as so-called e-cigarettes, as health concerns and changing habits have led to a rapid decline of smoking in the West. Bowles, who has been boss for five months, said he wants to rapidly boost expansion in these products. But the proposal was overshadowed by President Trump announcing that his administration plans to toughen its stance on e-cigarettes after several deaths.
Neil Woodford’s troubled investment trust has suffered another multi-million pound blow after being forced to cut the estimated value of one its investments. The board of Woodford Patient Capital Trust (WPCT) said the write-down will wipe out £36million from its value – equal to 4p per share. In an update to the stock exchange released after markets closed last night, it did not reveal any details about which investment has been knocked down. The revaluation was carried out by Link Fund Solutions, the business which oversees Woodford’s funds and is in charge of putting a price tag on their portfolio companies.
Watchdogs in the US will wade in to block the Hong Kong stock exchange’s £32billion bid for the London Stock Exchange Group (LSE), experts believe. Hong Kong Exchanges and Clearing faces an uphill struggle to seize control of the LSE, former boss Xavier Rolet said, warning that American officials are likely to be concerned about the influence it would give China’s Communist regime over Western finance. The growing doubts over the deal came amid rumours that the Hong Kong firm is planning to sweeten its offer, by stumping up more cash for LSE shareholders. Its previous preliminary offer consisted of £7.2billion in cash and a 41% stake in the combined business. But after the approach received a lukewarm reception on Wednesday, reports suggested the Hong Kong suitor was open to considering a meatier proposal.
Morrison (Wm) Supermarkets (MRW) has signed up to a new multi-year agreement with online giant Amazon as the supermarket attempts to keep pushing further into the wholesale market. Chief executive David Potts revealed the deal, which will enable more shoppers to order Morrisons products for same day delivery on Amazon – expanding on a previous trial. Shares in Morrisons opened up 7.3p at 201.3p and ‘will be exploring new opportunities to innovate and improve the shopping experience for both Morrisons and Amazon customers’. Less was said about the supermarket’s relationship with Ocado, which currently fulfils online grocery deliveries for Morrisons, although Mr Potts said the partnership remains in place. He added: ‘That’s not ending any time soon and we’ve got an important relationship with Ocado.’
Botswana Diamonds (BOD) sparkled after a company in which it is invested edged closer to getting a mining permit in South Africa. Vutomi, in which Botswana Diamonds has a 40% stake, has been given environmental authorisation over an area of gravel next to a mine believed to contain sellable diamonds. Botswana Diamonds said it is a critical step towards getting permission to mine.
Babcock International Group (BAB) has fought off major rival BAE Systems (BA.) in the race to build Britain’s newest generation of warships. A consortium led by contractor Babcock has been anointed by the Ministry of Defence as preferred bidder to put together five Type 31 frigates – nicknamed the ‘Lidl ship’ after the German budget grocer because they are smaller and cheaper than existing models. Work on the project will secure some 2,500 jobs and is slated to begin later this year, with the first ships set to be delivered in 2023. The coveted contract, worth £1.25billion, has particular weight for Babcock, which has had a somewhat choppy 12 months in which it was forced to fend off two verbal attacks from a mystery research outfit called The Boatman Capital and turn down two approaches from Serco.
BP (BP.) lost ground after boss Bob Dudley told a JP Morgan conference that the company plans to cut some of its oil projects and reduce investments in others, in an attempt to reach its climate goals.
Mediterranean-focused oil and gas group Energean Oil and Gas (ENOG) fell 45p, to 951p after it swung to a loss and cut its guidance for how much oil it will produce in Greece following a temporary shutdown in July.
Hurricane Energy (HUR) jumped 2.34p, to 47.64p, after it reported ‘excellent’ results from a well off the coast of the Shetland Islands.
JP Morgan sent Premier Inn-owner Whitbread (WTB) and InterContinental Hotels Group (IHG) lower after it got jittery about the outlook for the European hotel industry. It slapped an ‘underweight’ rating on both stocks, sending Whitbread down 115p, to 4429p and IHG down 130p, to 5037p.
Struggling inkjet printer firm Xaar (XAR) surged 12.3p, to 71.4p after it agreed to sell 20 per cent of its holding in its 3D printing business to a joint venture partner, US group Stratasys, for £8million. Stratasys also has the option to buy the rest of the 55% it doesn’t own.
