Watchdog will block Asda merger if it hits shoppers. The Competition and Markets Authority (CMA) said it needed to ascertain how the deal could affect competition for consumers as Sainsbury (J) (SBRY) and Asda were not only large grocery retailers, in stores and online, but also competed to sell fuel, electricals, toys and clothing. The inquiry will consider whether the deal could reduce choice, increase prices and lead to a deterioration in the quality of service.
Concrete progress for CRH (CRH) after lull in construction. CRH, which bought Tarmac, the cement, aggregates and asphalt group, three years ago, said that even after the impact of the Beast from the East storm and rising energy and labour costs it managed to increase revenues by 1% to €11.9 billion and increase pre-tax profits 5% to €497 million in the first half of the year.
John Laing on fast track after ditching trains. John Laing Group (JLG) has posted better than expected half-year results after the infrastructure investor and public-private partnership project manager sold out of the intercity express train programme.
OneSavings Bank (OSB) raises guidance for lending growth as profits rise. Net new loans rose by 11% in the first half and the bank said it expected to achieve percentage growth for the full year “in the high teens”. Previously it had guided to the mid-teens.
Playtech (PTEC) weighed down by Asian rivals. The company, which sells software to many of the world’s biggest bookmakers and online casinos, delivered a 4% rise in first-half revenues to €436.5 million. However, fierce competition in Asia — a key growth market — wiped 34% off its adjusted net earnings, which fell to €83.3 million.
Stobart adds PR veteran to its boardroom. Ginny Pulbrook, a veteran spinner of the listed mid-cap sector, is to become a non-executive director of Stobart Group Ltd. (STOB) in October as part of a shake-up in which the company, best known as the operator of Southend airport, had promised to bring in outside expertise and address the lack of women on its board.
City property hot again after Brexit pause. Figures from Savills (SVS), the property adviser, show that UK funds have invested £761 million so far this year, buying nine buildings. This is already significantly more than the £493 million they invested in the City for the whole of 2017. It includes £265 million by M&G Prudential to redevelop Anglo-American’s headquarters in Farringdon.
Finance chief Firebrace to leave newly listed law firm Rosenblatt Group (RBGP). Patrick Firebrace, 43, joined Rosenblatt in January and will leave on August 30 for personal reasons, according to a statement to investors. Robert Parker, formerly chief financial officer of Ubisense, has been appointed interim finance director while a replacement is found.
Premier Oil (PMO) has reported a surge in profits as it set out plans to increase production in the North Sea. The explorer and producer said that higher oil prices led to operating profits rising to $185.5 million in the first half from $141.4 million the year before. It pumped 76,200 barrels of oil a day, down from 82,100 barrels, with asset sales and natural field decline only partly offset by the start-up of its Catcher field in the North Sea.
Restaurant group feasts on rival sites. The owner of Franco Manca and the Real Greek chains has reported a rise in revenues as it opens new outlets and picks over the remains of sites formerly occupied by struggling rival businesses. The Fulham Shore (FUL) said it had enjoyed “encouraging revenue increases” for both chains in the first 21 weeks of its financial year.
Boohoo.com (BOO) fell out of favour after briefing shareholders and analysts on disruption from a major warehouse move of its sub-brand, Pretty Little Thing. The under-pressure retail sector has been subject to big share price fluctuations on minimal disturbances as investors try to work out who will be the winners and losers in this tough climate.
Evraz (EVR) was the biggest gainer on the blue-chip index, as it continues to ride the wave of high Chinese steel prices. It was also bolstered by a fall in the rouble, in which much of its costs are priced, and a notification by the Russian government that a proposed tax on mining and metals companies has been shelved for the time being.
Travis Perkins (TPK) slumped 27½p to £11.30 after UBS reduced its target price for the British builders’ merchant and home improvement retailer from £15.15 to £12.40. Analysts cited a lack of market share growth at its general merchanting arm and the drop in profits at its DIY chain, Wickes.
Kingfisher (KGF) was bolstered by further analysis from UBS which found that store closure proposals by Homebase, a DIY rival to B&Q, would create a 30% sales capture for B&Q stores, adding 1.4% to its sales and £11 million of earnings. The same analysis for Wickes would result in about £3 million of additional earnings, or 1% of pre-tax profit, according to UBS.
TalkTalk Telecom Group (TALK) gained 10½p to 134p after Barclays upgraded it from “equal weight” to “overweight”. A growing customer base, revenues firmly back to growth and lower fibre pricing were all cited as justifications for the upgrade.
Aortech International (AOR) rose 6p to 70¼p after the company said it was transitioning from a firm focused on licensing its medical device technology to a medical device development business.
Tempus – Phoenix Group Holdings (DI) (PHNX): Hold. Assuming no stumbles, prospects look good for both acquisitions and growth
