Melrose takes a hit as it begins GKN turnaround with sell-offs. The clear-out of GKN has begun after its hostile takeover by Melrose Industries (MRO) in the spring, which has created an £11 billion FTSE 100 international industrial powerhouse. In accordance with commitments made during its controversial bid Melrose is retaining and investing in GKN’s automotive and aerospace businesses.
Yorkshire potash miner digs itself into a costly hole. Sirius Minerals (SXX) is excavating tonnes of earth every day from beneath the purple heather of the national park. It is aiming to tap a giant body of potash-based fertiliser located 1,500m below ground. Yesterday the project suffered a significant setback. In a warning that sent shares in Sirius Minerals tumbling by 16%, Sirius revealed that it would cost $4.2 billion to complete the project, $500 million more than it had previously budgeted. The update set online bulletin boards alight. Sirius has 20,000 small shareholders, of which about 5,000 are thought to be local residents.
Bovis ‘back in game’ as it predicts record year. said it was confident that it would deliver a record set of profits this year as it tries to move on from a troubling period in which hundreds of customers complained of badly made homes and unfinished properties.
Genus feels chill of China’s swine fever. Genus (GNS) lost a fifth of its market value at one point yesterday as it warned that trade disputes between the United States and China and the spread of African swine fever could dent growth. Analysts downgraded their forecasts for the FTSE 250 company and investors turned bearish as Genus released its financial results for the 12 months to the end of June.
Chapel Down Group said it would become the biggest vineyard in England after agreeing to lease 388 acres of farmland next to its existing vineyards on the North Downs. The sparkling winemaker, based at Tenterden, Kent, said that once the additional land at the Boarley and Abbey farms, by the village of Boxley, had been vined, Chapel Down Group plc (CDGP) would be able to source its grapes from about 950 acres.
World Cup proves a winner for Dixons Carphone. After a difficult six months for Dixons Carphone (DC.) that included a profit warning, a data breach and its share price falling by more than a fifth, the electricals and mobile phone retailer has given its investors some better news. It said that profits this year would be about £300 million after trading in its first quarter, which ended on July 28, was in line with forecasts. Sales of televisions before the World Cup had helped to offset a slower market for white goods such as fridges and washing machines.
Slowdown in American shale hits Weir Group. Weir Group (WEIR) has warned that demand for new equipment across shale basins in the United States is slowing. The FTSE 250 company issued a statement to the stock exchange before its annual investor roadshow, which started in London yesterday.
Go-Ahead shunts rail troubles aside to increase profits. Go-Ahead Group (GOG) found favour with investors yesterday as the transport giant posted a £146 million profit despite admitting that improved rail timetables would not be restored until the end of the year.
Intermediate Capital Group (ICP) announced yesterday that Philip Keller, its chief finance and operating officer, would be stepping down next year after 13 years with the asset manager to spend more time with his, er, orchestra.
Weaker market cuts into profits at retirement housebuilder McCarthy & Stone. A weaker property market in the south of England and uncertainty over government policy on ground rents has cut into profits at McCarthy & Stone (MCS)
Britain’s biggest pub company accompanied a positive trading update with a £150 million bond issue and confirmed that it had appointed advisers for a possible £300 million sale of its commercial property unit. EI Group (EIG) said it had hired Rothschild to help it to explore “possible routes to optimise value” for its 376 properties, adding: “This may include the disposal of all or part of the portfolio.” Ei’s commercial properties are run at arm’s length on long-term leases with no support from the company, unlike its 4,700 pubs.
Activist American hedge fund Elliott Management has launched the sale of 15 million shares in a UK challenger bank a week after they reached a record high. The hedge fund’s placing of shares in Charter Court Financial Services Group (CCFS) at 340p per share involves it selling a 6% stake in the business, leaving it holding 32%
Centrica (CNA) was the top performer on the blue-chip index, rising 7¼p to 150½p after Ofgem, Britain’s energy regulator, proposed an annual energy price cap of £1,136, which was ahead of consensus expectations.
The housebuilding sector continued its positive streak for the week after Bovis Homes said it expected full-year profits to be at the top end of expectations. edged up 14½p to £11.46; Barratt Developments (BDEV) rose 8p to 553¼p; and Berkeley Group Holdings (The) (BKG) added 38p to £35.76.
Sound Energy (SOU) fell 1p to 39p after the ministry of energy in Morocco awarded the company and its partners a production concession for the development of the Tendrara gas discovery, which covers 133.5 sq km.
Tempus – Bakkavor Group (BAKK): Avoid. The market is uncertain, the shares are depressed and there is little sign of that changing soon
Tempus – Just Group (JUST): Hold. There is no point moving either way until we have a regulatory outcome
