Primark saw a larger than expected fall in like-for-like sales as poor trading in Germany offset rises in the US, UK and other European countries, its owner Associated British Foods (ABF) said. The cut-price fashion chain posted a 2% decline in like-for-like sales in its first half, below analysts’ expectations of a 1.6% fall. But ABF said it expects Primark’s first half profits to come in ‘well higher’ than last year thanks to a weaker dollar as well as ‘better buying, tight stock management and reduced markdowns’. After gloomily warning of ‘challenging’ trading in November, ABF said Primark performed well in the UK, where total sales rose 2 per cent in the 24 weeks to 2 March. Primark stores in Spain, France, Italy and Belgium saw ‘strong’ sales growth, and ABF said its US arm also performed ‘strongly’. However the fashion chain underperformed in Germany, dragging eurozone like-for-like sales 3% lower. ABF said it is planning to reduce selling space at a ‘small number’ of its German stores to stem the decline.
Hammerson, the owner of shopping centres including London’s Brent Cross and Birmingham’s Bullring, has pledged to overhaul its board and offload more sites amid mounting pressure from an activist shareholder. The announcement comes as the group unveiled a loss before tax of £266.7million last year, compared with a profit of £413million in 2017. Net rental income declined 6.2% to £347.5million. Hammerson (HMSO) said it plans to dispose of more than £500million worth of properties from across its portfolio this year in a bid to to strengthen its financial position. And added that, given the importance of the disposal programme, it will establish a ‘disposal committee’, taking on at least another two non-executive directors in the coming months. Hammerson said it has now entered a ‘relationship agreement’ with hedge fund Elliott Advisors, which upped its stake in the company to more than 5% in July and has been pushing for a major reshaping of the company’s portfolio amid a slump in the company’s share price.
Provident Financial (PFG) labelled last week’s £1.3billion takeover approach from rival Non-Standard Finance (NSF) as ‘unsolicited and highly opportunistic’ as it called on shareholders to take no action. NSF, which is lead by the former boss of Provident, John van Kuffeler, tabled an all-share offer at 511p per share on Friday last week. Van Kuffeler’s firm is seeking to woo disgruntled Provvy investors after a 76% slump in the doorstep lender’s shares in less than two years. But the Provvy said today that the offer was ‘irresponsible’, as it was just recovering from a period of financial instability, that it could have a negative impact on stakeholders and that it did not reflect the underlying value of the company.
Chairman of troubled fashion and home retailer Laura Ashley denies bid rumours as a quarter of stores close. The chairman of struggling fashion and home retailer Ashley (Laura) Holding (ALY) has lashed out at reports that it could be taken into private ownership in an audacious takeover bid. Andrew Khoo said there had been no takeover approach ‘whatsoever’. The firm swung to a £1.5 million loss in the final six months of 2018. Khoo is now closing a quarter of Laura Ashley’s 120 stores. According to The Daily Telegraph, investment firm Flacks wants to make a grab for Laura Ashley. Flacks has not yet approached Khoo but believes the brand is undervalued and wants to make a takeover bid ‘imminently’.
Private equity giant KKR eyes a swoop on Asda as its £14bn merger with rival Sainsbury’s edges close to collapse. KKR, which owns online ticketing firm Trainline, is thought to be drawing up a takeover bid with the help of former Asda boss Tony De Nunzio, according to The Sunday Times. De Nunzio, 60, is a senior adviser to KKR and would become chairman if the private equity firm secured a deal to buy Asda. Sainsbury (J) (SBRY) and Asda’s £14 billion merger is on course to be blocked after the Competition and Markets Authority suggested the pair could be forced to sell off as many as 300 stores or risk the deal not going ahead.
Software giant Micro Focus International (MCRO) is sued by investors over its £6.5bn botched merger with Hewlett Packard. The FTSE 100 giant is the subject of two class actions alleging that investors were misled over the Hewlett Packard deal. Micro Focus’s share price has plunged as integration proves more difficult than expected. Both lawsuits, one from a pension fund and the other from private investors, are in their early stages. Micro Focus, based in Newbury, Berkshire, has asked the courts to throw out the cases from the start. A spokesman said securities class action litigation was common in the US, adding: ‘We believe the allegations are meritless both on the facts and the law.’ Last week, the company’s annual report revealed it paid six directors £40 million in the 18 months to October, even though the share price halved in that time.
BA fury after Heathrow’s shareholders land £500m while the airport continues heaping costs on customers. The owner of British Airways last night hit out at Heathrow for paying another £500 million in dividends to the airport’s foreign investors while it heaps costs on customers. International Consolidated Airlines Group SA (CDI) (IAG), led by Willie Walsh, suggested the dividend payments – now totalling £3.5 billion since 2012 – make Heathrow more costly for fliers. ‘Britain needs cost-effective airport infrastructure that boosts the UK’s competitiveness, not just the airport’s shareholders,’ an IAG spokesman said. ‘Heathrow is already the most expensive hub airport worldwide and the Government must protect consumers by putting a cap on what they pay to use it.’ But a Heathrow spokesman said it reduced passenger charges last year, adding: ‘It is private investment that has transformed Heathrow into what it is today, providing IAG with some of its most profitable routes.
Nick Candy’s £600,000 sweetener to help podcast platform Audioboom sign up stars. Nick Candy – the spouse of pop singer Holly Valance – has hit repeat on his investment in podcast platform Audioboom Group (BOOM). The property tycoon and serial tech investor is understood to have stumped up another £600,000 in a subscription to raise £1.5 million. Sources said the firm had received the sum in its latest investment round by issuing shares at 1.3p each – a discount of around 25% to Friday’s closing price of 1.75p. The fundraising could be announced as early as tomorrow. The funds will be spent on upfront payments for new content from big-name stars, who currently include Jonathan Ross.
MIDAS SHARE TIPS: Want profits to soar? Join the private jet set and invest in . Midas verdict: Johnstone has been with BBA since 2008 but he only became chief executive in April last year and is keen to make his mark. The stock has suffered in recent months but the decline has been overdone. At £2.48, the shares are a good, long-term buy with a decent dividend yield as well.
MIDAS SHARE TIPS UPDATE: How packaging specialist Macfarlane Group (MACF) stocks have tripled in price. MIDAS VERDICT: Atkinson and his board are upbeat, the group has made good progress and the share price has tripled in seven years. Cautious investors may want to reduce their holding in case of a UK downturn. More ebullient shareholders should stick with the business.
