Sainsbury (J) (SBRY), Morrison (Wm) Supermarkets (MRW) – Boom time for grocers as heatwave lifts alcohol and food sales. Consumers spent almost £500m more in the 12 weeks to Sept. 9 due to the summer heatwave and the World Cup, boosting British grocery sales up 3.8%. In what was the hottest British summer on record, the latest figures from Kantar Worldpanel show shoppers spent £228m more on alcohol, £178m more on soft drinks and £74m more on ice cream than during the same period last year. Although Tesco (TSCO) remains the UK’s biggest supermarket chain, with a 27.4% share, Asda recorded the strongest performance of the big four grocers, with sales up 3.1%. Discount rivals Aldi and Lidl increased their market share 13.9% and 8.3% respectively over the period, while the Co-op benefited from the summer spending with increased sales of 8.5%, its fastest rate since 2011.
Spire profits plunge amid NHS squeeze. An “unprecedented decline” in NHS patient admissions is set to dramatically affect earnings at Spire Healthcare Group (SPI) as it posted a massive drop in profits for the first half of the year. Profit before tax at the private healthcare company fell 57.9% compared with the same period last year to £5.1m, largely due to £15.3m of exceptional items. The largest of these was a £12.6m property impairment on its Spire Alexandra hospital site.
BAE signs £5bn Qatar fighter sale after Liam Fox tells UKEF to back deal. The Government has ordered UK Export Finance to underwrite export sales so BAE Systems (BA.) and other defence companies could seal a massive deal to sell a fleet of warplanes to Qatar. In a £5bn agreement, the Gulf nation is buying 24 Typhoon fighters and nine Hawk trainers from the defence giant, along with a training and support package.
Cenkos profits plunge as new rules bite and deals put on ice. City broker Cenkos Securities (CNKS) has unveiled a 90% plunge in profits for the first half of the year after being knocked by new rules and delayed deals. The group, which has this year advised on the listings of City law firm Rosenblatt, investment vehicle Safe Harbour, and construction services provider RA International, said profits had fallen from £4.6m to £500,000 for the six months to June.
Ocado confident of sales surge as robot warehouses ramp up. Online supermarket Ocado Group (OCDO) has said it expects a surge in growth in the last quarter of year, following steady sales in its most recent quarter. The news comes after the company reported an 11.5% increase in retail sales in the 13 weeks to Sept 2 as it continues to invest heavily in automated warehouses. Chief financial officer Duncan Tatton-Brown said to “expect a significant increase from where we are today” in the next three months. “We are in vesting in a number of areas, primarily in our new platforms.”
Bumper payouts and job cuts on the cards as US giant Marsh snaps up JLT for £4.9bn. Shares in Jardine Lloyd Thompson Group (JLT), which traces its roots back to a Hong Kong-based conglomerate that traded opium 180 years ago, shot up more than 30% on Tuesday after the deal was announced. The takeover, which has the backing of the JLT board, will net senior management payouts of £100m.
Questor: shares in sausage skin maker Devro (DVO) seem poised to sizzle, so keep buying
