Ocado Group (OCDO) has claimed its tie-up with Marks & Spencer Group (MKS) will deliver cheaper and better food than what it had been supplied by Waitrose. The online supermarket first revealed its deal with M&S in February, and expects to launch the service in September. But despite concerns about the new partnership, it said a review had found that more than 4,000 products it gets from Waitrose could be replaced by M&S substitutes ‘at the same price or lower, and of the same quality or better’. The company also said that recent surveys show customers are warming to the tie-up. Finance chief Duncan Tatton-Brown said the research shows ‘sales lost is coming down and the customer attractiveness to the new offer is coming up’.
Serco Group (SRP) is poised to pay its first dividend since 2014 after the outsourcer’s UK operations returned to growth. Yesterday Rupert Soames, Serco’s boss, said the business had turned a corner and was finally considering a payout to patient investors. The 60-year-old said the company’s full-year results in February were expected to be ‘all for the good’ thanks to a healthy order book and its recovery in the UK. He added: ‘My starting point is that you should pay a dividend unless there are very good reasons why you can’t.’
PZ Cussons (PZC) is to part with its long-serving chief executive after warning that profit and revenue fell in the first half of the financial year. Alex Kanellis will step down from his role after 13 years in charge. In a trading update yesterday, management warned that challenging conditions on the High Street ‘adversely impacted overall revenue and profit’. It came in a period when PZ Cussons sold its Greek and Polish businesses in an attempt to streamline operations, and it now expects the next six months to improve. However, the firm added: ‘Full-year revenue and adjusted profit before tax is expected to be modestly below the prior year on a like-for-like basis.’
Purplebricks Group (PURP) claimed there is ‘pent up demand’ for its services after revealing its UK profit, instruction levels and margins had fallen. The number of UK-based instructions Purplebricks received in the first half of the year dropped by 15%, while its UK operating profit slumped 38.5% to £3.5million. Purplebricks said it was behind 5.3% of all properties sold in the UK in the first half and claimed to enjoy a 4.1% share of all UK listings. Across the UK, the group said it received 32,850 instructions in the first half of its financial year, down from 38,619 at the same point a year ago. But, per instruction, Purplebricks’ revenue rose from £1,209 to £1,352.
The battle for Just Eat (JE.) could be settled through an auction. The food delivery group’s plan to merge with Dutch rival Takeaway has faced competition from a £5.1billion cash offer from Prosus, a fund owned by South African investment firm Naspers. Both suitors are in a race to woo supporters after Prosus took its hostile bid to Just Eat investors directly. Just Eat has since urged shareholders to back the Takeaway merger. But if neither side secures the backing they need by December 27, the contest could instead be decided by auction – unless the parties agree a different way forward.
Fuller Smith & Turner (FSTA) can look forward to celebrating its 175th birthday next year, as half-year pre-tax profits soared to £176.2million. The pub group’s profits has been boosted by its £250million sale to Japanese firm Asahi this year, and is £175.4million higher compared to the same period last year. The company said the firm was buoyed by higher sales in its pubs and hotels business with like-for-like sales up 2.1% and total revenue rising by 5.1% for the first 36 weeks to December 7. Chief executive Simon Emeny said the first six months of the year had seen the ‘biggest transformation in Fuller’s history’ and that the company was ‘in good stead to navigate further political and economic turbulence.’ The company said sales have continued to be solid for the rest of the year, despite a ‘context of consumer unease’ due to Brexit and political uncertainty. Earnings before tax and interest slipped marginally to £30.2million for the period.
Shares in Dixons Carphone (DC.) have jumped after the group revealed its losses have narrowed from £440million to £86million in the first half. But, the group said revenue from its mobile arm across the UK and Ireland fell by nearly a fifth, adding that this part of its business had, as expected, been ‘significantly loss making.’ Alex Baldock, the company’s chief executive, said that while the group had made ‘good progress’ overall, it was ‘still nowhere near its full potential.’Stripping out the effects of new reporting standards, the company’s half year profit fell from £60million to £24million.
Anglo African Oil & Gas (AAOG) is slashing costs after the government authority it is partnered with in the Republic of Congo has failed to pay it more than £4million since September. The AIM-listed firm said this means it might not be able to drill a well there – and drilling could be stymied anyway by a rig not being available until June. Separately, it is also preparing to take legal action in Paris over a bungled transaction in Tunisia.
Costain Group (COST) more than halved its profit guidance to between £17million and £19million, down from £38million to £42million, after it was told to pay to settle a dispute about a Welsh motorway project.
John Laing Group (JLG) slumped after the infrastructure investor said in an update the value of its investments at the end of the year will be ‘marginally’ below forecasts. It will take a £50million hit from sterling trading at stronger levels between July and November.
Balfour Beatty (BBY) fared better after it said annual revenue will top £8billion and profits will come in ahead of expectations. It reckons its order book will stand at more than £14billion, which it described as ‘significantly higher’ than the £12.6billion it reported at the end of 2018.
Shares in Keller Group (KLR) jumped after confirming interim chief executive Mike Speakman will take the role permanently and promising it will hand shareholders extra cash through dividends in 2019 and 2020.
Aston Martin Holdings (AML) shares revved up to a five-month high after the luxury car maker revealed it has teamed up with European plane maker Airbus to design helicopters. They will unveil the aircraft on January 3 at Courchevel in the French Alps. Aston investors were encouraged by the latest indication the struggling company is rebuilding its reputation and branching out beyond the car market, which has slumped over the past year.
Mediclinic International (MDC) expects full-year revenues to grow by 6.5% in its southern Africa division, which includes its operations in Namibia and South Africa. It will also spend more money on staff and IT as it tries to boost ‘clinical quality and patient experience’.
