NMC Health (NMC) has branded accusations of mismanagement and balance sheet manipulation made by US-based short seller Muddy Waters ‘baseless and misleading.’ NMC Health, which saw over £1.6billion wiped off its value on Tuesday, said it will ‘respond in detail in due course’, while reaffirming its full year outlook and announcing a fresh share buyback scheme. NMC Health, which was founded by UAE-based billionaire Bavaguthu Raghuram Shetty, said Muddy Waters’ claims ‘appear principally unfounded’ in a stock market update today.
Pearson (PSON) unveiled a £530million deal to sell its remaining stake in book publisher Penguin Random House as it announced the retirement of chief executive John Fallon. Pearson will end its near-50 year relationship with Penguin with the sale of its last 25% holding in the group to German media group Bertelsmann – a deal valuing Penguin at around £2.8billion. Pearson said Fallon will step down as boss in 2020 once a successor has been appointed. His departure will cap more than six years in the role and comes after a difficult 12 months, with Pearson recently warning over profits. The group is halfway through an overhaul to become a digital educational products and services company – a strategy that Fallon has overseen, and has included a raft of major asset sales, as well as job cuts.
Versarien (VRS) edged higher after being selected to participate in a project led by Airbus. The graphene flagship programme is funded by the European Commission, and helps companies work together to put emerging technologies to use. Versarien will focus on using graphene, an extremely strong substance formed from carbon, to make thermoelectric ice protection systems for aircraft.
The tycoon behind the investment platform AJ Bell (AJB) has cashed out £23.1million from his company. Andy Bell, 53, sold 5.5m shares for 420p each, regulatory filings revealed, but remains the largest shareholder by far, with his 24% stake worth about £418million. He also sold shares worth £18.1million when AJ Bell floated on the stock exchange a year ago. AJ Bell yesterday said it remained ‘fully committed to the business and confident in the outlook’. Bell himself said: ‘If I’d been selling a large chunk I think people might be justified in being concerned, but it really is a cashflow-driven sale. It gives me a few quid to go and play with, with other projects I’ve got on the go.’
Shares in Staffline Group (STAF) plunged 24.9p to 81.1p as it revealed profits for the year would come in well below expectations. The company, which had to launch an accounting probe this year over claims some clients did not pay the minimum wage, said profits will likely be between £10million and £12million, compared to a September forecast of £20million and last year’s £36m.
Arrow Global Group (ARW) soared after raising £712million to buy more loans. It snaps up cut-price debt from institutions like banks and then aims to make a return on its money by collecting repayments. Arrow said it was a ‘major achievement’ in its ambition to become a full-blown investment manager.
Trainline Plc (TRN) threatened to derail as Barclays cut its target price on the stock from 490p to 480p. After the company posted impressive trading performance this week, Barclays said momentum was slowing.
