End of an era as Rupert Murdoch sells £11.6bn Sky stake. Rupert Murdoch is to exit Sky (SKY) nearly three decades after launching the British satellite broadcaster, bringing to an end a turbulent era in the history of British television. 21st Century Fox is to sell its 39% stake in Sky to Comcast for £11.6 billion, halting Mr Murdoch’s ambition to take full control of the broadcaster before he sells a large part of his media empire to Walt Disney.
‘Pothole epidemic’ puts the skids under AA turnaround. A 15-year high in the number of call-outs to repair broken-down vehicles and a “pothole epidemic” caused by the extreme weather this year hit profits at AA (AA.) and raised concerns among investors that a recovery is not on track. The company said that pre-tax profits fell by 65% to £28 million in the six months to the end of July and that its revenue rose by 2% to £480 million.
Anne Stevens, ex-GKN boss who bagged a bonus, now in charge of pay. The former chief executive of GKN has been put in charge of pay at Anglo American (AAL), months after taking home an estimated £2.5 million from her 16-week stint leading the engineering group’s unsuccessful defence against an £8 billion takeover bid. Pirc, the shareholder advisory group, said that it had significant concerns about the appointment, which will put Ms Stevens in charge of determining bonus policy at the miner less than a year after reaping £1.8 million as part of a contentious bonus award at GKN.
Boohoo sales are firing on all cylinders. High demand for swimwear, bodycon dresses and cycling shorts this summer helped to drive a 50 per cent surge in sales at Boohoo.com (BOO), sending the shares in the online retailer up 11% after it lifted forecasts for the year. Total sales rose to £395.3 million in the six months to August 31, beating City forecasts as the fashion group’s Pretty Little Thing and Nasty Gal brands doubled revenues. Pre-tax profits rose 22% to £24.7 million.
Hurricane disrupts Elementis. The ill wind of Hurricane Florence, which killed nearly 50 people on the US eastern seaboard, also hit Elementis (ELM). The company said its Castle Hayne facility in North Carolina has stopped producing chromium after severe flooding. But it expects to resume production next month and the stock closed only ¼p down at 267p. Chromium is used in industrial coatings to make components more durable, and it is also used in the beauty market.
Fastjet on a journey to nowhere. Fastjet (FJET) has said it urgently needs more cash within a month for it to continue operating, sending its shares tumbling by nearly 50%. The African budget airline, which was launched in 2012 and is modelled on no-frills airlines such as Easyjet and Ryanair, has been running short of cash for more than two years and it was unclear if investors would continue to back the company. Its shareholders include M&G Investments, Janus Henderson and Solenta, a South African carrier.
Halfords looks to prop up wobbly rival. Britain’s biggest bike retailer is trying to rescue its rival, which has fallen victim to challenging high street conditions. Halfords Group (HFD) has tabled a provisional proposal to buy Evans Cycles, which is trying to agree to a takeover to secure its future. It is one of several parties to have made indicative offers in recent days, according to Sky News.
Indivior falls again as outlook for addiction treatment is cut. A sharp cut to forecasts for an important new treatment at Indivior (INDV) has triggered a renewed sell-off in the drug company’s shares. Indivior rushed out an unscheduled trading update shortly before the stock market closed in London yesterday to warn that revenue from Sublocade, its new opioid addiction treatment, would be far lower than hoped this year.
Chief executive shares pain as Mitie profits fall. The boss and shareholders of Mitie Group (MTO) took a severe hit on their investment after the company warned that profits have dipped, debt has risen and the order book is in decline. The news sent Mitie shares tumbling 12%, to a 14-year low, off 19p at 135p, and is costing its chief executive dear. When he joined Mitie nearly two years ago Phil Bentley, 59, who is reckoned to have made more than £20 million from stints at Cable & Wireless and British Gas, struck a £3.6 million bet on Mitie’s stock rising above the 194p it was trading at. At current levels he is more than £1 million out of the money.
Card Factory (CARD) investors had an unexpected cause for celebration after an activist hedge fund built up a significant position in the stock, sending shares up almost 8%. Teleios Capital, the Swiss fund, has established a 5.14% stake in the FTSE 250 UK retailer, a move that will give them a voice at the company and reassure investors.
TUI AG Reg Shs (DI) (TUI) rose to the top of the premier index on the day before its interim results, as investors decided the moderate sell-off earlier in the week on the back of Thomas Cook’s profit warning was overdone. Thomas Cook Group (TCG) chairman thought shares in the British travel company had been oversold when they slumped 28% on Monday after it admitted the impact of hot weather on the end-of-season market had been worse than expected. Frank Meysman spent almost £90,000 buying 150,000 shares at just under 60p a share, according to a stock exchange filing yesterday.
NMC Health (NMC) was a top gainer on the FTSE 100, closing up 108p at £34.94, after a number of known sellers cleared their positions, making way for new entrants keen to buy into the company’s growth story. The hospital operator has risen on the back of the growing healthcare sector in the Gulf.
Stride Gaming (STR) fell 4p to 93½p after the online gaming operator announced it would be making a £4 million provision to cover a possible penalty imposed by the Gambling Commission on one of its subsidiaries.
Fairfx Group (FFX) gained 5.8% after reporting a 97% rise in revenues to £12 million, or 15% on a like-for-like basis, and passing the one million customer milestone.
Barclays snubs Bramsom idea. The boss of Barclays (BARC) has dismissed an attempt by an activist investor to change the bank’s strategy, describing a letter calling for a revamp as “cute”. Edward Bramson, writing to investors in his vehicle, Sherborne Investors, which owns a 5.4% stake in Barclays, had claimed the board might be open to his ideas for improving strategy. However, Jes Staley told Bloomberg: “I think the letter had very little impact, if any. Not a single shareholder called us, and the board is 100 per cent supportive of the strategy.”
Tempus – CMC Markets (CMCX): Avoid. The company will revive but it will take time and it will be less compelling afterwards
Tempus – PZ Cussons (PZC): Avoid. No reason to dive in while uncertainty in Nigeria persists
