Frasers Group (LON:FRAS ) shares rose 13.85% to 499p as it saw profits rise
Mike Ashley’s Fraser Group, owner of Sports Direct and the department stores, reported an 18% rise in pre-tax profits as it continues talks about its potential acquisition of Debenhams.
It is mulling over a take over of Debenhams which is currently preparing to close all of its outlets by March 2021 if a buyer cannot be found by the time it has sold remaining stock.
Frasers said that underlying EBITDA had increased by 24.9%, largely driven by the strong reopening of stores after lockdown, growth in its online business, new Flannels stores, a full year of trade of the prior year acquisitions and continued operating efficiencies.
Excluding acquisitions and on a currency neutral basis, underlying EBITDA was up 18.8%.
Meanwhile, underlying profit before tax increased by 43.7% to £146.3m (1H20: £101.8m).
“The successful reopening of our stores in England on 2 December 2020 combined with continuing strong online performance means we can confidently raise the bottom end of our full year guidance for FY21,” Chris Wootton, Chief Financial Officer told investors.
Jaywing (AIM:JWNG ) shares soared 50.49% to 7.75p after return to profitability
The integrated data science agency posted its half-year results for the six months ended 30 September 2020. The group reported a significant turnaround in profitability, delivering £1.4m of adjusted EBITDA for 1H20 compared to a loss of £0.6m during 1H19.
‘Despite a fall in revenue primarily brought about by COVID, we have been able to stabilise the business and restore it to both profitability and strong cash flow generation,’ it noted.
While revenue in 1H20 fell to £9.34m from £12.00m in 1H19, loss before tax narrowed to £0.251m from £1.54m 1H19. Jaywing also reported a strong improvement in cash generation in 1H20 of £1.9m, enabling a reduction in net debt excluding IFRS 16 to (£5.1m).
Jaywing added that it continues to win new business with new clients including Ikano Bank, Starling Bank, Studio Retail and Costcutter, as well as further business with existing clients.
Looking forward, the group told investors, “We are nonetheless confident that the business is now on a secure footing with the foundations in place for recovery and future growth.”
Applegreen (AIM:APGN ) shares jumped 42.66% to 505p with potential cash offer
Shares in the roadside convenience retailer soared during afternoon trading after the company revealed that it is involved in discussions that might lead it to a cash offer.
The group said a consortium including B&J Holdings Limited, which holds a 41.3% interest inApplegreen, and Blackstone Infrastructure Partners, are considering an offer of €5.75.
B&J Holdings Limited represents the holdings of Applegreen’s founders, Robert Etchingham and Joseph Barrett, who maintain their current management positions as CEO and COO.
7digital (AIM:7DIG ) shares rose 34.09% to 1.4p as it turns to profitability
The B2B end-to-end digital music solutions firm said it has made ‘significant progress’ in its second half as it announced that it had become "operationally profitable" for the first time.
The company said it had seen "significant progress" in three key areas, social media, home fitness and artist monetisation, as evidenced in new contracts signed in the second half and renewed or extended contracts with the likes of ROXI, GrandPad, jazzed and Moodagent.
CEO, Paul Langworthy, said, "7digital is gaining momentum in each of our three key areas. Our strategy of focusing on social, home fitness and artist monetisation demonstrates our ability to create value for new markets in a rapidly evolving music industry.”
He added, “"As we ramp up activity in these markets and continue to support and improve services for current clients, we anticipate substantial growth in our business and revenues in 2021."
Crest Nicholson (LON:CRST ) shares fell 6.96% to 288.5p with ‘buy’ to ‘hold’
Shares in the house building firm fell after Deutsche Bank downgraded the company from to ‘hold’ from ‘buy’ as the investment bank said it sees risks on the horizon for the sector.
While trading for the year ending 31 October 2020 had been better than expected, in turn prompting the group to raise its guidance, the bank have since downgraded its rating.
The bank said ongoing Brexit negotiations as presenting ‘two-way risks’ and the transition to a new ‘Help to Buy scheme’ and the end of stamp duty holiday as potential headwinds.
It added that broader effects of the economic downturn, which the Office for Budget Responsibility forecasts will include unemployment peaking at 7.5% in 2Q of next year.
Shares in the company have shed almost 5% in the past week and still remain well below their pre-pandemic worth despite value having doubled since the beginning of October.