Below are the key morning headlines from today’s papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Thomas Cook shares tumble 30% on second profits warning. Thomas Cook Group (TCG) has issued its second profits warning in two months and suspended its dividend after taking extra charges for restructuring and flight disruption on top of a slump in demand this summer. In an unscheduled update the holiday operator said that it now expected full-year underlying profits of £250 million. This is down £58 million on last year and below its guidance of £280 million in September, when it admitted that the impact of the scorching summer weather on margins had been much worse than expected, sending the shares tumbling by 28% in a day
De La Rue switches strategy after losing UK passport contract. Banknote and security printer De La Rue (DLAR) is refocusing away from producing entire passports after the loss of the contract with the British government to print identity documents. Alongside half-year results, the company sketched out a new strategy after being beaten by European rival Gemalto to the £400m, 10-year deal to print UK passports. Martin Sutherland, chief executive, said losing the contract kicked off a review that found that while De La Rue’s passport operations had “strong foundations, market dynamics have consolidated”.
Pets at Home vet arm takes a bite out of profits. Pets at Home Group (PETS) half-year profits have tanked by 80.5% after the animal goods retailer said it would be nursing a hefty writedown on its veterinary business after an ill-fated rampant expansion. The company recorded a slide in profits from £40.8m to £8m during the six months to Nov 11 after a decision to radically overhaul its vet practice business. Chief executive Peter Pritchard, who took the reins in May, said that the company had realised that some vet practices would struggle to generate enough of a return to pay back the £300,000 of debt incurred to start up a practice. As a result, Pets plans to buy 55 of its 471 joint venture vet practices.
Amigo makes friends with quickfire dividend payout. Amigo Holdings (AMGO) has announced its first dividend since becoming a public company over the summer after the guarantor lender reported a 40 per cent rise in profits for the first half of its financial year. The Bournemouth-based business said that it would pay a 1.87p-per-share inaugural dividend, equivalent to 35% of its adjusted post-tax profits, as it reported results that it said showed a “strong start” to its life as a listed business.
‘Blue Planet’ effect makes recycling lucrative for Pennon Group (PNN). Environmentally conscious consumers inspired by TV shows like Blue Planet are reinvigorating the recycling industry and boosting profits at Pennon, the owner of waste business Viridor. The company’s pre-tax profits in the six months to Sept 30 rose by 8.7% to £142.5m compared to the same period the year before. Revenue climbed 3.1% to £746.7m. Chris Loughlin, chief executive, said the company’s “strong performance” was helped by “favourable” conditions in the waste market, with rising environmental concerns “spurring action”. Shares in Pennon, which also owns South West Water, rose 1.6% to 768p in morning trading.
Topps stockpiles tiles amid Brexit shortage worries. The list of retailers stockpiling to prevent shortages after Brexit lengthened still further yesterday when Topps Tiles (TPT) said that it was increasing reserves of its key selling lines before the country’s looming departure from the European Union. As Britain’s largest tile specialist revealed a 25.3% fall in annual profits, it warned that Brexit could disrupt the flow of imported goods, which in turn could result in lower sales, and expressed concern about a “reduced labour pool resulting in staffing issues”.
Greggs serves up a treat for investors. A surprise profit warning in May has been buried under an avalanche of sausage rolls, sandwiches, snacks and drinks as stellar sales delighted investors in Greggs (GRG)yesterday. The bakery chain said that its total sales in the eight weeks to November 24 were up 9%. Like-for-like sales in its company-managed shops were up 4.5% and Greggs said it now expected full-year underlying profits of at least £86 million. This is up from its previous forecast that its profits would be broadly flat compared with the £81.8 million recorded last year. All that proved to be a cue for the City to form a queue for the shares and to tuck in hungrily, lifting them by almost 12%, or 145p, to £13.82.
Booming West End boosts Shaftesbury but boss warns of ‘chaotic’ Brexit risk. The boss of West End landlord Shaftesbury (SHB) has insisted it is insulated from the troubles gripping the nation’s high streets but warned that the “chaos” surrounding Brexit could hit its tenants’ workforces and supply chains. The property company, which owns clusters of shops, restaurants and offices around London’s Carnaby Street, Chinatown and Covent Garden, saw its net property income grow 6.2% to £94m in the year to September. Pre-tax profits slumped 42% to £176m but only because of lower gains from property revaluations than in the previous year.
City chatter about a potential sale of STV Group (STVG) triggered a surge in the share price of the Scottish broadcaster at the end of trading yesterday. ITV was seen as the most likely buyer of the Channel 3 licence-holder in Scotland. Simon Pitts, the former ITV (ITV) director who joined STV as chief executive in January, insisted over the summer that there were no plans to sell the company as he defended its decision to close the STV2 channel and cut jobs. That, though, does not appear to have been the last word. More speculation in the City that a sale could be looming sent the shares up 25½p to 370p.
Cracking year for wrapping firm: IG Design Group enjoys soaring sales amid strong in America. The company that makes Christmas crackers for the Queen posted soaring sales amid strong demand for its products in America. IG Design Group (IGR), which makes gift wrap and greeting cards, enjoyed a 23% boost in revenues to £205.2million in the six months to September 30. Profits soared 48% to£14million compared with a year earlier. Sales in the Americas soared by 44.1% to£103.2million, while the UK and Asia edged up by just 2.3% to £60.6million. IG Design Group, the largest consumer gift packaging business in the world, supplies the likes of Tesco, Amazon, Harrods and Walmart.
With obesity an increasingly serious issue, OptiBiotix Health (OPTI) is hoping its newly approved slimming treatment will fly off the shelves. Its Slimbiome sachets, which are designed to make consumers feel fuller and so eat fewer unhealthy foods, received European approval as a medical device. It can now be marketed throughout the European Economic Area, and follow quicker medical product registration procedures in markets such as China.
