Carillion (CLLN) was “like a Ponzi scheme” and subject to “inadequate” Government scrutiny, according to the UK’s longest-ever serving auditor general. Sir John Bourn said he was “angry and disappointed” when the troubled construction and outsourcing giant collapsed in January, leaving almost 500 public contracts in limbo and tens of thousands of suppliers and sub-contractors unpaid.
House of Fraser’s flagship Oxford Street store saved from closure. The Oxford Street store was one of 31 stores set to close through a Company Voluntary Arrangement (CVA) before the retailer entered administration. Michael Murray, head of elevation, said: “We said we would keep as many stores open as possible, and in less than a week we have saved the biggest store. “Oxford Street was meant to close in January and now it’s safe which is great news for all parties.”
Sainsbury (J) (SBRY) sales lag ahead of Asda merger as rivals bask in the sun. In the 12 weeks to August 12, Sainsbury’s sales grew just 1.2%, compared with a 3.5% average across all the grocers. The retailer’s market share also fell to 15.5% from 15.9% compared to the same period last year, according to figures from Kantar Worldpanel. The growth rate was Sainsbury’s fastest since January, but it lagged the 2.6% growth of Asda, which it agreed to buy in a £15bn tie-up in April.
Persimmon (PSN) shrugs off higher interest rates and Brexit uncertainty. Britain’s second-largest housebuilder Persimmon shrugged off a rise in interest rates, uncertainty over Brexit and a slowdown in some parts of the market to post a 13% jump in profits in the first half of the year.
Investors check out of Hostelworld Group (HSW) after warm weather keeps backpackers at home. Booking numbers were up 2% in the six months to June but the company said the figure was likely to be flat across the full year after it endured “softness in bookings in the peak summer months of July and August”.
puts ‘traumatic’ years behind it with record dividend. The world’s biggest mining company announced a 42% jump in its final dividend to a record 63 US cents a share, taking total payouts for the year to $2.5bn (£1.9bn).
Wood Group (John) (WG.) costs to fall by a quarter after oil services takeover. Oil services giant Wood Group will reap even greater savings from its £2.2bn takeover of Amec Foster-Wheeler than first expected. The Aberdeen-based contractor said its cost savings will be 24% higher, or $210m, following the integration of the two service groups.
Game Digital sales hit by lacklustre demand for second-hand titles. Game Digital (GMD) has moved to cut costs by renegotiating leases with landlords as sales suffered from a waning demand for second-hand video games.
British American Tobacco (BATS) led the FTSE 100’s big dollar earners lower, dropping 100p to £41.23, while Diageo (DGE) dragged on the index after edging down 31.5p to £27.67.
Morrison (Wm) Supermarkets (MRW) climbed 4.3p to 268.1p after reclaiming its crown as the fastest growing “big four” supermarket. The FTSE 100 firm pushed ahead of rival Asda to post sales growth of 2.7% in Kantar’s latest industry data as shoppers splashed out during the heatwave.
Aggreko (AGK) powered up after HSBC argued that the company’s troubles are “cyclical rather than structural”. The upgrade to “buy” extended Aggreko’s one-month rally, boosting it 39.8p to 882p.
Questor shares investors’ nerves, but we’ll resist the urge to lock in gains on CLS Holdings (CLI). A yield of almost 3%, well covered, is an additional attraction and the shares are a solid hold for long-term investors.
