A fall in Ocado’s stock has wiped more than £79million off co-founder Tim Steiner’s share-holding. Ocado Group (OCDO) shares have slipped more than a fifth in the past five trading days as investors worry that rivals’ technology is catching up. The 21% stock price fall from 1360p last Wednesday to 1074.5p yesterday dented the chief executive’s holding of 27.6million shares. Ocado is valued at £7.5billion, meaning £2billion has been wiped off its market capitalisation in a week. Steiner’s stake is now worth about £296million. The decline started after it was said relations with its key client in the US, Kroger, were cooling – claims that Ocado has dismissed. At the same time, taxi-hailing app Uber said it plans to keep investing in grocery and food delivery and did not rule out acquisitions to move into the grocery sector. Shareholders also worry that US rival Takeoff, which works with Tesco, could disrupt Ocado, especially in America.
Britain’s sweet tooth set Mr Kipling-maker Premier Foods (PFD) on the road to recovery in the first half, with cake sales rising 8%. The company, which also makes Oxo cubes and Ambrosia custard, performed better than expected in the six months to September 28, says new chief executive Alex Whitehouse. Compared with two years ago, the brand is selling an extra 22% more cakes across the UK. Group revenue was up 2.4% to £366.7million, while profit rose 5% to £31.7million.
The chairman of IT group Softcat (SCT) has offloaded another £12.3million of stock – taking his share sales so far this year to more than £36million. Martin Hellawell sold 1m shares for 1046p each and 170,000 for 1096p each, taking his holding from 3.4% to less than 3%. He and a charitable group he is connected to had already sold almost £24million of shares in January and March.
The ‘big four’ supermarkets are facing a tough Christmas after their sales fell again over the autumn – while Co-op and the German discounters soared. Tesco (TSCO), Sainsbury (J) (SBRY), Asda and Morrison (Wm) Supermarkets (MRW) all lost market share in the 12 weeks to November 4, as did Waitrose, according to data company Kantar. At the same time, Aldi, Lidl and the Co-op saw sales jump, along with Iceland and Ocado Group (OCDO). The ‘big four’ are also being squeezed by Marks & Spencer Group (MKS), which has switched strategy to focus on families doing one big weekly shop. Leading supermarkets are gearing up for a Christmas price war with big savings expected, particularly on fresh produce. The German supermarkets claim to undercut the big players in the UK on price by as much as a quarter, but the ‘big four’ are responding with cuts to the price of their basic ranges. In the Christmas period the average family spends £380 on groceries in December, and there has already been £17million spent on mince pies and £3million on Christmas puddings this year. Fraser McKevitt, head of retail and consumer insight at Kantar said: ‘The starting gun has been fired on the race to be Christmas number one. Shoppers will spend nearly £11bn in that month, showing how it’s a crucial period for retailers.’
ITV (ITV) received a shot in the arm from the England rugby team’s run to the World Cup final and its popular TV show Love Island, which helped to reel in advertisers once again. The broadcaster said the final of the Rugby World Cup, where ITV benefited from being the exclusive broadcaster in the UK, attracted 12.8million viewers. That helped advertising revenues rise 1% in the third quarter – at the top end of the company’s previous guidance – while online revenues rose 23% in the first nine months.
Land Securities Group (LAND) posted a £147million first-half loss as the crisis on the High Street battered the value of its properties. The landlord, which owns the Trinity Leeds and Westgate Oxford shopping centres, was hit by a £368million writedown on its portfolio in the six months to September 30. Retail landlords have seen the value of their portfolios drop dramatically as shops, struggling with crippling business rates, sky-high rents and brutal competition from internet rivals, have sought rescue deals that almost always seek to cut their rent obligations.
Alien Metals Limited (UFO) surged after the miner published results from a series of rock samples. The AIM-listed firm said an analysis of samples from two iron ore projects it is on the brink of buying in Australia were high grade, and fit the criteria allowing them to be shipped without being processed. The projects could produce ore comparable to that mined by other firms locally. Alien has until next Monday to decide if it will buy a 51% stake in both sites.
