Construction company Balfour Beatty (BBY) is set to beat its full-year forecasts thanks to the additional sale of one of its infrastructure assets in December, the group has revealed. The UK-based firm said it will net about £65million in profit from the disposals over the full year, therefore exceeding its previous forecasts. Following the sale of its stake in Fife Hospital for £43million in September, the group expects to complete a sale of 80% of its Edinburgh University student accommodation project for £24million. Sales in the six months to June fell 8% to £3.8billion, but underlying pre-tax profits jumped from £22million last year to £56million. The company, which is the UK’s largest construction enterprise, also signalled a higher level of new work as part of a wider restructuring plan.
owner Mike Ashley has attacked Debenhams (DEB) after the struggling department store refused to accept a £40million loan from him. He is furious after he was forced to drastically cut the value of his near 30 per cent stake in Debenhams, wiping £150million from his fortune. In an extraordinary outburst during a results presentation in the City, Ashley, 54, expressed his frustration after his offer was rejected – and likened Debenhams chairman Sir Ian Cheshire to a doomed Christmas turkey. Ashley said: ‘There’s no need for that business to fail and wipe out shareholder value. I find it ‘blow-your-brains-out’ stuff. ‘We have dancing turkey decorations on our building – I’m going to put Ian Cheshire’s head on one. ‘I know it sounds funny but obviously I’m very cross because it’s unnecessary and not right.’ The billionaire, who also owns Newcastle United football club, proposed the interest-free loan in exchange for an additional 10% stake in Debenhams.
Ocado – one of the footsie’s star performers this year – is toasting a strong final quarter as it reaps the benefits of two, new robotic warehouses. The online grocer was propelled into the FTSE 100 this summer when its shares rocketed to more than £11 – to the delight of its long-suffering investors. The stock really took off when Ocado Group (OCDO) secured a landmark deal with US grocery giant Kroger to supply its cutting-edge technology, including food-packing robots. Although the online grocery market is slowing down, Ocado chalked up a 12% rise in sales in the last three months, on the back of greater capacity. A new automated fulfilment centre in Erith is now processing more than 30,000 orders per week, the firm said today. Between that, and its expanded facilities Andover, the company handled 320,000 every week – a 13.1% increase on last year.
The Nigerian authorities have filed an £868million lawsuit against Royal Dutch Shell ‘B’ (RDSB) and Italian group Eni over a 2011 oil deal. Lawyers representing the government said they are taking High Court action over allegations of fraud and corruption relating to Shell and Eni’s purchase of an offshore oil field. They claim money from the purchase, which was meant to go to the government, was instead paid to a company controlled by Dan Etete, the former petroleum minister. Ministers are trying to recoup the £868million, saying it belongs to the Nigerian people. Shell and Eni have denied wrongdoing. Shell said: ‘The 2011 settlement of long-standing legal disputes was a fully legal transaction with Eni and the federal government of Nigeria. ‘We do not believe there is a case to answer.’ Eni said it rejected ‘any allegation of impropriety or irregularity in connection with this transaction’.
boss Mike Ashley has admitted the company faces ‘significant challenges’ in turning the recently acquired House of Fraser around. The admission came as the company revealed its profits slumped 26.8% to £64.4million in the 26 weeks to 28 October, the period in which it bought the department store chain out of administration. With the House of Fraser deal taken out of the equation however, things look much healthier with profits up 62.4% at £74.4million and underlying earnings excluding House of Fraser up 15.5% at £180.3million.
‘Worse than expected’ results and another profit warning sent struggling Superdry (SDRY) stocks tumbling by more than 32% today. The fashion firm, which has seen its shares crash 81% across the year, came clean today about a massive 49% decline in half-year profits, as well as poor store sales and deteriorating margins. It also warned that its earnings for the full-year will fall short of the mark. The half-year numbers were worse than analysts predicted and triggered a sharp sell off, taking the firm’s share price to below £3.74, lows not seen since 2012. AJ Bell investment director Russ Mould said: ‘Expectations were already low for Superdry given mild weather having a negative impact on coats and jackets. ‘However, its half year results are even worse than expected, prompting questions as to whether the business has really lost its way.’
Online estate agent Purplebricks Group (PURP) has cut down its guidance on expected sales for the year amid a stalling, Brexit-hit UK property market. The AIM-listed company now forecasts revenue for the financial year ending in April to £165 to 175million, compared to a previous forecast of £165-185million. Purplebricks reported pre-tax losses widening to £27.3million in the six months to October 31, up from £11.4million a year earlier, as it footed the expense of global expansion. But its figures show that the company does make an operating profit in the UK of £5.7million.
Bonmarche Holdings (BON) sent shock waves through the retail industry today after it became the first firm to formally admit that sales were ‘extremely poor’ in the vital pre-Christmas shopping period. The cut price fashion firm, which has 300 UK stores, lost half of its value in early trading as its shares sunk 50% to 40.4p on the news. It later pared its losses to trade around 35% lower. It blamed ongoing Brexit uncertainty for weak sales over Black Friday and beyond and claimed that conditions on the High Street are ‘significantly worse even than during the recession of 2008/2009’. It now expects to make a full-year loss, rather than the £5.5million profit it forecast last month. Bonmarché’s unprecedented pre-Christmas profit warning, along with weaker sales from Primark and John Lewis, does not bode well for retailers hoping for a seasonal boost. After what has been a torrid year for the retail industry, a disappointing festive period may force some of its weaker players to the brink.
Online concierge service for the wealthy Ten Lifestyle Group (TENG) shot up after winning a contract with a Chinese bank. Ten, which helps its wealthy members book travel, dining and live entertainment, signed the deal with ICBC Private Banking. It said the value of the contract is below £250,000, but is expected to grow over the 2019-20 financial year. It already works with HSBC Jade, the Queen’s bank Coutts and Cartier. Shares shot up 13.8%, or 4.5p, to 37.1p.
Serco Group (SRP) was on the rise. It works on services from air traffic control to hospital cleaning, and said underlying profit for 2018 will be 30% to 40% higher than the previous year, at £90million to £95million. Meanwhile debt at the year-end will be lower than expected at around £200million, a stark contrast to Interserve, the outsourcer whose shares are floundering as it attempts to reduce its debt pile.
G4S (GFS), which competes with Serco to work on contracts such as immigration detention centres, also climbed after announcing it would consider spinning off its cash-handling arm. Known for its dark blue armoured vans, G4S Cash Solutions transports, processes and secures cash for businesses and banks. According to RBC Capital, it could be worth £1.6billion. But G4S has been looking to minimise its exposure to the business, which employs roughly 30,000 people, as shoppers shun paper money for online and card payments. Chief executive Ashley Almanza said he is not looking to sell the cash arm, but could either float it on the stock market through an initial public offering or give G4S shareholders new shares in the cash business, so they own it separately.
Tool rental firm Speedy Hire (SDY) edged up as it bought construction training company Geason Holdings from its owners Ian and Robert Kilpatrick. It paid £9million, and will stump up another £26million if the business performs well over the next three years.
Game Digital (GMD) dropped 5.3%, or 1.4p, to 25p as it said it was planning to move from London’s main stock market to its junior peer, AIM. Game, which is 25.4%-owned by Mike Ashley’s Sports Direct, said that AIM would be ‘more appropriate’.
