Saga shares crash after boss reveals strategy switch. The boss of Saga (SAGA) has been forced to defend his position after a dramatic overhaul of its insurance arm sparked a profit warning and sent its stock crashing. Shares in the over-50s group fell almost 40% on Thursday to a record low just under 70p, after it unveiled a “fundamental” change in strategy and an annual loss. Shareholders were warned that underlying pre-tax profits will slump this year as a result of the changes. Mr Batchelor defended tearing up his previous strategy, saying he had “strong board support” to stay in the role and see the new plan through.
AO World warns of extra costs after founder reshuffles team. AO World (AO.) has told investors it faces a £2.5m hit after founder John Roberts decided to shake up the management team, leading to a clutch of senior departures, following his surprise return to the the online white goods retailer. Mr Roberts, who started AO as a £1 pub bet, regained control of the business in January after a two-year hiatus when it was led by his former right-hand man Steve Caunce. At the time of the unexpected reshuffle, Mr Roberts insisted there would be no change to the strategy, but insiders have said that the culture of the company has been dramatically altered in the past eight weeks.
Peppa Pig keeps bringing home the bacon for Entertainment One. The huge popularity of Peppa Pig in China has helped Entertainment One Limited (ETO) double revenues in the region. A rise in subscription services sales, the release of a new movie to coincide with the Chinese New Year and a new Peppa Pig World of Play centres in Shanghai helped boost sales. EOne said the franchise had enjoyed a “strong” performance globally with an additional 117 episodes promised by 2023 as well as four new play centres this year. Two will be in China and the others in the US. Peppa Pig accounts for about 60% of revenues in the company’s family and brands division.
Mothercare blames closing-down sales for another weak performance. Mothercare (MTC) boss has blamed another heavy slide in sales on aggressive discounting at shops it was closing down, which “cannabalised” business away from its other stores and online. The chain’s UK like-for-like sales tumbled by 8.8% during the 12 weeks to the end of March, although this was slightly better than the near-12pc fall in the previous quarter. Total UK sales fell 14.5%. Shares in Mothercare dropped by 5.3% to 21.2p in afternoon trading. Mark Newton-Jones, who was brought back last year to lead a radical turnaround that included a brutal store closure programme, said that 40 shops had been shut in the last quarter with all stores selling their stock “down to zero”.
Big Tobacco shares went up in smoke as the decline in cigarettes sales in the US gathered pace and the Food and Drug Administration launched another inquiry into e-cigarettes. The recovery in Imperial Brands (IMB) and British American Tobacco (BATS) shares suffered a setback after Nielsen data revealed that cigarette sales in the States slumped 8.8% year on year in the four weeks to March 23. The deterioration from last year’s 5% decline revived City fears that smokers are continuing to kick the habit as e-cigarette sales skyrocket. Shares in the sector slipped further in afternoon trade after the nascent vaping market found itself back in the crosshairs of the US drugs watchdog.
Julian Dunkerton left £15m worse off in wake of Superdry victory. Julian Dunkerton’s shock victory over the Superdry (SDRY) board has wiped £15m off the value of his stake after shares in the fashion brand sank following the mass exodus of company directors. Shares in Superdry plunged as much as 12% on Wednesday before closing down 6.5%, or 32.5p, at 467.4p as investors balked at what analysts at Investec called “a management and strategic vacuum”. It is understood that Mr Dunkerton has been locked in crisis meetings in Superdry’s Cheltenham headquarters in an attempt to reassure existing staff of his strategy to revive the business.
Questor: this trust has risen by 32pc since we tipped it but recent weakness means it’s still a buy. Questor investment trust bargain: Henderson Smaller Companies Inv Trust (HSL) has an exceptional record and an experienced manager – and it should even appeal to income investors
