Asos chief raked in £1.2m from selling shares just weeks before profit warning cut the clothing giant’s value by more than half. The chief executive of online clothing giant ASOS (ASC) raked in £1.2 million from selling shares just weeks before a profit warning cut their value by more than half. In a shrewd move, Nick Beighton, sold 22,808 shares on the last day of October for 5450p each. That preceded a shock warning on Monday that sales in November were ‘significantly behind expectations’. Asos shares fell nearly 38% in response and the stock is now 61% lower than it was when Beighton off-loaded his shares.
Stagecoach sells its U.S. arm for £213m to focus on rail and bus services in the UK. Stagecoach Group (SGC) has called time on its operations in the US to focus on rail and bus services in the UK. The Perth-based firm has sold the arm to a Californian private equity firm, Variant Equity Advisors, for £213 million. The division runs intercity services and the deal is expected to close by May. Stagecoach boss Martin Griffiths said: ‘It will allow management to focus more closely on the significant opportunities for growth in the UK.’ It expects the managers of the North American arm, where it has roughly 4,500 employees, to stay with the business after the sale.
Kier shares tumble to a 15-year low as shareholders snub a £264m fundraising package aimed at boosting the outsourcer’s books. Kier Group (KIE) shareholders snubbed a £264 million fundraising package aimed at bolstering the construction group’s books. In a bruising setback, only 38% of investors bought the outsourcer’s new shares in an emergency rights issue. Its shares tumbled as much as 13% yesterday to a 15-year low of 335p on the back of the news before eventually closing up 1.6%, or 6.2p, at 391.2p. The stock has fallen 64% so far this year. Kier launched the fundraising to build up its cash reserves after banks told it this year that they would be less willing to lend to construction firms following the collapse of contractor Carillion in January and a change in sentiment from credit markets.
American owner of High Street beauty chain Boots blames tough trading as profits slide by 4.1%. The American owner of High Street beauty chain Boots has blamed tough trading in the UK for a fall in profits. Walgreens Boots Alliance posted a 4.1% dip in profits to £1.3 billion in the three months to the end of November compared with a year earlier. UK pharmacy sales dropped 3.5%, while revenues across the rest of its stores were down 2.6%. The group is now embarking on a major cost-cutting strategy which will see it aim to save almost £800 million over the next three years.
Shares in cruise company Carnival (CCL) sank after it said fuel costs and currency swings were proving a ‘significant drag’. Despite reporting rising revenues and profits in its results for the year ending November 30, investors backed away, pushing its share price down by 10.8%, or 471p, to 3877p. Revenue climbed £1.1 billion to £14.9 billion, while profits were up £0.5 billion to £2.5 billion. Gross fuel costs climbed by 2.4%.
Yu Group (YU.), the energy firm which supplies Trent Bridge cricket ground, slid for a second day after it slashed profit expectations yet again. In October it said it had found a multi-million-pound black hole in its accounts, and launched an independent review. It said then that profits were expected to be £10 million lower than expected. Yesterday, the business-focused energy supplier conceded profits would be hit by a further £2.8 million to £3.3 million, taking 2018 losses to between £7.4 million and £7.9 million. Yu’s accounting review revealed that weaknesses in its internal systems and controls, from customer invoicing to cash cycle management, were to blame.
Healthcare technology group NetScientific (NSCI), which invests in early-stage ideas to turn them into successful businesses, fell as its strategic review stalls. It announced last month that it was looking to sell itself or some of its portfolio companies, as it considered its share price was too low compared to the value of its investments. Though it has received interest from potential buyers, no deals have yet been signed.
Ready-meal maker Greencore Group (GNC) was in shareholders’ good books as it plans to buy back £509 million worth of shares. The sandwich giant said it would buy up to 261 million shares for 195p each, sending the price up 7.2%, or 12p, to 178p.
A deal at Chamberlin (CMH), the metal-working group which has been operating for 128 years, went down better with the market. It sold its panic and emergency door unit, Exidor, to security lock supplier Assa Abloy for £10 million. The price was more than double Chamberlin’s market value before yesterday.
Oil and gas development company Curzon Energy (CZN) alarmed investors as it said well testing at Coos Bay, in the US state of Oregon, was being suspended. Chief executive Scott Kaintz said: ‘Gas flow has not been in line with expectations.’ The whole project would need re-evaluating to check whether it was still viable, he added, and it is now looking for a partner to help it take on the task.
