Murdoch tunes out of British TV as Disney hands £11.6bn Sky stake to Comcast. Fox, which has been under the control of Disney in the extraordinary takeover battle, said it would tender its 39% stake for £11.6bn cash. The decision marks the end of Murdoch involvement on the front lines of British television after 30 turbulent years. Fox did not intend to control Sky (SKY) for the long term going into last weekend’s record-breaking blind auction against Comcast. The Murdoch family had already agreed to sell most of its assets, including its stake in Sky, to Disney for $71bn (£54bn). If Fox had won the auction, Disney would have taken control of Sky next year.
AA (AA.) boss points finger at predecessor as potholes and bad weather dent profits. The AA’s boss put the boot into his ousted predecessor Bob Mackenzie after millions of pounds of investment in new staff and technology came too late to help the troubled roadside recovery business deal with a surge in breakdowns in the first half of the year. Wintery storms followed by one of the hottest summers on record led to an 8% increase in breakdowns which, combined with a rise in capital spending, sent profits tumbling by two thirds and left the company nursing a double-digit slump in its share price.
Barclays apologises after incorrectly telling some customers they didn’t have PPI. Barclays (BARC) is contacting tens of thousands of customers it incorrectly told were not entitled to compensation for mis-sold payment protection insurance (PPI). The banking giant admitted some customers who contacted them to check if they had PPI through a claims management company were wrongly told they didn’t.
Boohoo.com (BOO) profits keep surging thanks to PrettyLittleThing. Online fashion retailer Boohoo has bucked the doom and gloom in the wider retail market to report record sales and a 20% jump in profits in the first half of the year as animal print clothes and figure-hugging dresses proved popular with shoppers. The company’s co-founders and joint chief executives, Mahmud Kamani and Carol Kane, said “outstanding growth” at Boohoo’s sub-brand, PrettyLittleThing, had also resulted in market-leading growth in America and Europe. They now expect sales across the entire financial year to be better than forecast.
Mitie shares sink after outsourcing group predicts flat profits. Investors in Mitie Group (MTO) baulked after the struggling outsourcer warned its profits would suffer due to challenges in its social housing and cleaning arms and amid tough competition in the sector. The company, which performs services ranging from catering to security and IT support for blue chip clients including Sky, PwC and central government, said operating profits in the six months to September would be flat or slightly below last year’s £32.6m.
Brewer Shepherd Neame targets ‘beer curious’ Britons. The country’s oldest brewer has plans to target burgeoning numbers of “beer curious” Britons who are jumping on the craft beer bandwagon. Shepherd Neame (SHEP), which was established in 1698, is planning to use its heritage as a springboard to challenge disruptive craft brewers. Chief executive Jonathan Neame promised “more innovation over the next few years”. Speaking as Shepherd Neame posted a year of “consistent growth”, Mr Neame said Britain’s beer drinkers were “very savvy about provenance, authenticity and the genuine article”.
More than £300m was wiped off the value of embattled drug maker Indivior (INDV) minutes before the end of trading in London after it was forced to slash sales forecasts for its much-hyped new opioid addiction treatment. Indivior suffered another setback after admitting revenue from Sublocade would be just $8m (£6m) to $10m, compared with previous guidance of $25m to $50m.
City analysts warning of “red flags” at short-seller target Kier halted the construction contractor’s post-results rally. About 18% of Kier Group (KIE) shares are in the hands of hedge funds hoping to profit from a share-price slump. Kier attempted to silence the critics last week by swinging back to a full-year profit. But JP Morgan weighed in on the debate by downgrading Kier to “neutral” after being unnerved by its “poor cash flow track record” and “multiple possible ‘red flags’”.
PZ Cussons (PZC) rallied 5.4p to 235p after the Imperial Leather maker allayed concerns over its recent slide in profit. The Original Source owner told investors that trading had met expectations despite “continued challenges faced by consumers” in its key UK and Nigeria markets.
International Consolidated Airlines Group SA (CDI) (IAG) snapped its losing streak, nudging up 0.2p to 659.6p, despite UBS warning that numerous headwinds could blow its shares off course. Oil prices easing off today’s highs alleviated the pressure on the airline sector.
Imperial Brands (IMB) edged up 42p to £26.74 after boss Alison Cooper reiterated that the company was focused on the vaping market. Investors were cautious ahead of the Federal Reserve’s key meeting.
Struggling retailer Evans Cycles has received an approach from Halfords Group (HFD), the country’s biggest bike seller, as it grapples to fill a multi-million pound cash hole. Halfords is among a number of parties to have made indicative offers to the company’s advisers, which are running an accelerated sales process. Evans is rushing to secure a £10m rescue package to see it through the traditionally tricky Autumn and Winter seasons.
Questor: WPP (WPP) is not a sitting duck for Google and Facebook so hold on to its ‘dirt-cheap’ shares
