Wizz Air profit tumbles as costs mount. Rising costs have caused budget airline Wizz Air Holdings (WIZZ) to report a sharp decline in third quarter profits. The low-cost carrier, which mainly carries passengers in central and eastern Europe, announced that pre-tax profit tumbled 87.6% to €1.7m (£1.5m) in the last three months. It blamed higher staff and fuel costs. Revenue rose 21% to €512.7m over the period, on the back of a 15% spike in passenger numbers to 8.1m. The FTSE 250 company maintained its revised profit guidance of between €270m and €300m for the year, but admitted that performance would be affected by outcome of Brexit and the fact that Easter falls after the financial year end.
Recruiter Staffline spooks investors by delaying annual results. Shares in one of Britain’s biggest recruitment firms plunged to their lowest level in almost five years after after it delayed publication of its annual results without giving any reason. In a brief stock market announcement Staffline Group (STAF) said it was putting back the publication, which had been due on Wednesday morning, to an unspecified date and would “provide a further update as soon as possible”. A spokesman declined to elaborate on the reason for the delay. The news sent Staffline’s shares tumbling more than a quarter to 715p, a low not seen since early 2014.
Chinese giant makes North Sea’s biggest gas discovery in a decade. One of China’s biggest oil companies has rejuvenated the “lifeblood” of the North Sea after unveiling its biggest gas discovery in more than a decade. China National Offshore Oil Corporation, or CNOOC, together with French oil major Total and Italy’s Edison revealed a 250 million barrel discovery in one of the oil basin’s most depleted areas. CNOOC tried and failed to drill for gas at the Glengorm field twice in 2017 before striking the quarter billion barrel discovery some 20 years after it was first mapped out for exploration.
Banker wanted big bonus for ‘saving’ Barclays during crisis. Former Barclays (BARC) bosses were motivated to close a deal with Qatari investors during the financial crisis because they felt their pay “inevitably would be attacked” or they would be forced out if the bank was bailed out by the Government, a court heard on Tuesday. Prosecutors from the Serious Fraud Office (SFO) said one of the defendants, the bank’s former Middle East head Roger Jenkins, told a colleague in an email that the bank’s bosses should give him a special reward for his work to “save our a****” after securing the fundraising deal.
Domino’s Pizza admits opening some stores too early. Domino’s Pizza Group (DOM) has for the first time admitted to failings in its ambitious store expansion, with some stores having been opened “a year or two early”. The comments came as the takeaway company revealed annual profits had been hit by “growing pains” in its international business. Domino’s is chasing a long-term plan of 1,600 UK outlets, but was forced into downgrading annual targets last year. Domino’s opened 95 stores in 2017 and was aiming for 75 new sites last year, before reducing the total to 60. “We do think that some of the stores were opened a year or two early,” chief financial officer David Bauernfeind said at the company’s capital markets day.
Brexit and trade wars hammer investor confidence, warns Hargreaves Lansdown. The boss of Britain’s biggest broker Hargreaves Lansdown (HL.) has warned that investor confidence was at a record low due to Brexit and the US-China trade war. Chief executive Chris Hill said it was a “very tough time” for investors with “confidence lower than we have ever seen it, and that includes [during] the banking crisis, due to uncertainty over Brexit and Trump trade wars”. His warning comes as the company announced that its assets under administration at the end of last year fell 6pc to £85.9bn.
Nigerian problems take their toll on PZ Cussons profits. Shares in PZ Cussons (PZC) have lost their lather after the maker of Imperial Leather soap and Original Source shower gel warned that annual profits will be £10m lower after “extremely challenging” conditions in Nigeria, its largest market. Analysts speculated that the ongoing troubles of the Nigerian division means it could be sold after the company said it had approved “strategic initiatives” to focus on its European and Asian business. Shares in PZ Cussons fell almost 11% to 186.7p in afternoon trading. Pre-tax profits dropped by a fifth to £26.7m during the six months to 30 November as operating profits in the African region crashed by 70% to just £1.2m despite sales hitting almost £100m.
Shaftesbury’s largest shareholder steps up attack on board ahead of AGM. Sammy Tak Lee, the largest shareholder in West End landlord Shaftesbury (SHB), has renewed a war of words with its board, saying he will vote down its right to raise cash by issuing new shares at its AGM next week. In a letter to fellow shareholders the Hong Kong-based billionaire, who owns 26% of Shaftesbury, attacked its decision to raise £265m through a share placing in 2017, which he said was a deliberate attempt to dilute his stake in the company. Mr Tak Lee, who also owns the neighbouring Langham Estate north of Oxford Street, said the cash call was “unnecessary” as Shaftesbury was “not under any financial strain” and could have raised debt instead.
Royal Mail shares fall to a new low as junk mail volumes tumble. Royal Mail (RMG) shares plumbed new depths after it warned that falling volumes of junk mail and general “business uncertainty” meant letter deliveries were likely to drop off faster than expected this year. The former state monopoly blamed new data protection rules introduced last year for a sharp reduction in marketing mailshots that would contribute to a 7-8% slump in letter volumes in the year to March. It now expects full-year adjusted operating profit to be between £500m-£530m, having previously indicated it would be between £500m-£550m.
Slowdown in London home sales dents profits at Crest Nicholson Holdings (CRST). The boss of housebuilder Crest Nicholson said it would continue to deliver for shareholders despite a “humbling” year in which profits were dented by a slowdown in sales of high-priced homes in London and the south-east. Patrick Bergin said that while demand was likely to remain subdued until buyers had more clarity over Brexit, “the signs of latent demand are there”. “Uncertainty is a real passion killer for consumers and businesses – that’s why it’s so important there is some clarity of direction emerging over the next hours and days,” he added. Profits were down 15% to £176m in the year to October, despite a 3% rise in the number of homes Crest sold to about 3,000.
Questor: GlaxoSmithKline (GSK) breakup is a neat solution to its debt problem, so it’s time to buy back in. Glaxo’s plan to split into two, and allocate its debts to the part better able to support them, should lead to a better outcome for shareholders
