Supermarket giant Morrison (Wm) Supermarkets (MRW) faces a potentially ‘vast’ payout after losing a challenge against a ruling which gave the go-ahead for compensation claims by thousands of staff whose personal details were posted on the internet. Three Court of Appeal judges in London announced their decision on Monday on the issue of liability in the latest round of the first data leak class action in the UK. Litigation was launched after a security breach in 2014 when Andrew Skelton, a senior internal auditor at the retailer’s Bradford headquarters, leaked the payroll data of around 100,000 employees.
B&M European Value Retail S.A. (DI) (BME) – the Aladdin’s cave of cut price homewares, food and garden products – is among the FTSE 350’s top risers so far today. Its shares have jumped by more than 5% after it announced on Friday that it had snapped up French retail chain Babou. It will takeover its 90-or-so shops, which are mostly in retail parks. B&M bought Heron Foods last year and has used the acquisition to expand its food offer.
Despite boss Sergio Bucher previously insisting that only 10 stores have been earmarked for closure, weekend reports suggested that more Debenhams (DEB) shops could be at risk. It all depends on ongoing negotiations with landlords to alter lease terms and potentially shrink down some of its department stores. It is also expected to axe its dividend when it reports full-year results on Thursday.
NMC Health (NMC), the largest private healthcare company in the United Arab Emirates, upgraded its guidance for the full-year, sending shares 7 per cent higher and making it the biggest riser on the FTSE 100. The company said that, thanks to ‘positive developments’ in the second half, it expected revenues and profits to come in higher than expected. It now expects revenue growth of 24%, up from 22%, and profits to increase by 18-20%. Russ Mould, investment director at AJ Bell said the forecasts were ‘impressive’.
Ryanair Holdings (RYA) shares are in demand despite the airline posting a 7% fall in first-half profits. The firm revealed a €540 million share buyback scheme, and that should help keep shareholders sweet, explained David Madden, market Analyst at CMC Markets UK, but ultimately the group needs to boost its customer and staff relations. The stock has been in a downward trend for over one year, and while it remains below the 50-day moving average at 1,292p, its outlook could remain negative.
FTSE 250 engineer Babcock International Group (BAB) is set to shut its Appledore shipyard in north Devon next month risking up to 200 jobs. A lack of orders at the 163-year-old site means it is likely to face the axe with no new work lined up for its staff. Babcock, which repairs the Royal Navy’s submarines and warships, has suffered amid a decline in defence spending. The firm lost its prized place in the FTSE 100 last year to Just Eat after its share price plummeted by a quarter. A spokesman for Babcock said: ‘We are reviewing options for our business at Appledore.’
One in three Debenhams (DEB) stores at risk of closure as struggling retailer targets 50 outlets in bombshell bid to save £100m. Struggling department store Debenhams is preparing a radical overhaul of its 200-year-old business that will include reviewing its store portfolio and slashing its dividend to zero. The company, which announces annual results on Thursday, is understood to have identified around a third of its 166 stores to face possible closure. It is also understood to be preparing a significant write-down of its goodwill – the way companies account for their inherent value – that would result in a one-off charge of several hundred millions of pounds.
Debenhams is preparing to freeze payments to shareholders as profits are expected to crash 65% to £33m. Debenhams (DEB) is preparing to freeze payments to shareholders and axe up to a third of its stores in a desperate bid to revive its fortunes. The department store chain has drawn up drastic plans to turn around its finances and make £100million in savings ahead of its annual results this week, when profits are expected to crash 65% to around £33million. Debenhams’ proposals include shutting up to a third of its 166 stores and cutting its dividend to zero.
BAE Systems refuses to snub ‘Davos in the desert’ despite alleged state-sponsored murder of a journalist. BAE Systems (BA.) staff will attend this week’s controversial ‘Davos in the desert’ in Saudi Arabia despite growing pressure over the alleged state-sponsored murder of a journalist. The bosses of companies including HSBC, Uber, Credit Suisse and the London Stock Exchange have all withdrawn from the Future Investment Initiative – a two-day event which kicks off tomorrow. But BAE has stuck to its guns and still plans to send senior staff who are already based in Saudi Arabia to the conference.
New WPP (WPP) boss Mark Read’s baptism of fire is set to continue this week as he unveils disappointing figures to the City. Analysts fear the advertising behemoth is in need of ‘radical surgery’ and are forecasting an annual revenue fall of 4%. A sales drop, at the end of a tumultuous year in which its founder and chief executive Sir Martin Sorrell, 73, departed in controversial circumstances, would represent the FTSE 100 firm’s first yearly fall in turnover since 2002.
MIDAS SHARE TIPS: If you want feelgood profits try Osirium Technologies (OSI) – the firm that helps save hospitals from hack attacks. MIDAS VERDICT: Cyber security is big business and one of the fastest growing areas in the industry relates to privileged accounts – and how to make them safer. This is Osirium’s speciality and it is one of the world’s most innovative companies in this sector. The business is growing fast, expanding into other countries and may well attract a takeover bid along the way. At 124p, the shares are a buy.
MIDAS UPDATE: By George, he’s right! Volution Group (WI) (FAN) shares rise as boss buys. MIDAS VERDICT: Volution shares have risen more than 16% since Midas recommended them, and there have been some decent dividends too. However, the stock has plenty more mileage, with most City brokers expecting the price to rise to at least 230p in the next 12 months. Current investors should stay with this one. New investors could also follow George’s lead and buy a few.
