Profits soar as Primark defies High St gloom and hikes its interim dividend by 3%. Primark bucked the gloom sweeping the High Street to deliver a 25% jump in profits to £426million. The fashion and homeware retailer shrugged off a boom in online shopping that is crippling other chains as customers continued to flock to its stores to snap up £2 sunglasses and £10 dresses. Sales, which climbed 4% to £3.6billion in the 24 weeks to March 2, were boosted by new store openings. Primark is owned by Associated British Foods (ABF) which is controlled by the billionaire Weston family. Investors were rewarded for Primark’s success as ABF hiked its interim dividend by 3% to 12.05p per share.
Ex-Provident Financial man joins rival Non-Standard Finance which is battling to buy the doorstep lender. A former board member of doorstep lender Provident Financial (PFG) has joined the rival battling to buy it. Rob Anderson has taken a job at Non-Standard Finance (NSF), which has launched a hostile takeover bid for the Provvy. He was on Provvy’s board from 2009 to the end of 2018 and his NSF role throws fresh light on the links between the two. The 60-year-old was appointed to the Provvy’s board by former chief executive John van Kuffeler, who now runs NSF and claims that if he wins the takeover bid he can boost profits at his old employer.
Flamboyant Metro Bank (MTRO) founder Vernon Hill has been accused of ‘blatantly and insulting sexist comments’ in a legal battle with former business associates. Hill, a US billionaire who set up Metro in 2010, is being sued by husband and wife Christopher and Natasha Ashton, co-founders of US pet insurance Fetch, where he is chairman and a major investor. Fetch was founded by the British couple in 2003, and Hill invested in it in 2008. The Ashtons were fired as joint chief executives last April, shortly after the birth of their first child, and claim Hill was responsible for their wrongful dismissal.
Sainsbury’s facing defeat over £14m Asda tie-up with watchdog due to publish final verdict. Sainsbury (J) (SBRY) and Asda are ‘very unlikely’ to appeal against a decision on their planned mega-merger if the competition regulator rejects it today. The Competition And Markets Authority (CMA) is due to publish its final verdict on the £14billion tie-up that would turn the UK’s Big Four supermarkets into a Big Three. But it is expected to reject the deal after its initial findings, released in February, raised a catalogue of concerns, including that customers would face higher prices and less choice.
Concern as high-interest lender Amigo Holdings (AMGO) appoints boss of rent-to-own business Brighthouse as its new chief exec. High-interest lender Amigo has appointed the boss of controversial rent-to-own business Brighthouse as chief executive. Hamish Paton will take the Amigo job this summer after more than a decade at Brighthouse, which sells white goods such as fridges to struggling buyers who have to make monthly payments. He replaces Glen Crawford, who is leaving for medical reasons. Brighthouse has been criticised for saddling customers with huge charges, which can mean items often cost double what they would from a store such as Currys, and faces a City watchdog crackdown.
Biodegradable plastics producer Biome Technologies (BIOM) is reaping the benefits of a shift to sustainable packaging. Revenue was steady in the first three months of the year, compared to the same period a year ago, at £2.1million. It also managed to remain in the black, after swinging from a loss in 2017 to a profit last year. However, its radio frequency business, which makes products from sealing devices to furnaces, was not as strong.
Retirement specialist Saga (SAGA) surfed a wave of positivity after a major bank said its recent results ‘reset expectations’. The over-50s cruises-to-insurance firm has been struggling to keep investors happy over the past year, amid a price war in insurance prompted by increased competition and price comparison sites. But analysts at JP Morgan believe the only way is up. They changed their recommendation on the stock from underweight to neutral, meaning investors need not avoid the company. After Saga’s near-50% fall in share price over the past month following its full-year results, JP Morgan’s Edward Morris said it had ‘significantly reset expectations’ and added that there is probably only a limited opportunity for the shares to fall further.
JP Morgan named Hastings Group Holdings (HSTG) as its pick of the motor insurers, which saw its shares edge up 0.2p, to 218.8p. But it downgraded Direct Line Insurance Group (DLG), saying there was little room for the shares to rise further. Direct Line ended the day down 0.2p, at 343p.
Tycoon Mike Ashley refused to give up on his pursuit of home shopping business . His , which owns 36.8% of Findel, made a £139million bid for the company in March. Embarrassingly, Ashley was forced to extend the offer deadline for the second time yesterday as he had still only received acceptances from shareholders owning less than 1 per cent of the business.
The board of Hull-based internet provider KCOM Group (KCOM) was decidedly more enthusiastic about a bid it received from Universities Superannuation Scheme, one of the UK’s largest pension providers for university workers. USS will buy Kcom for £504million or 97p per share – a 33.8% premium to its trading price on Tuesday.
Gold miner Centamin (DI) (CEY) boosted the FTSE 250, climbing 12.8%, or 10.2p, to 90.04p after digging up more gold than expected in the first quarter of the year.
