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.
SSP chief quits. Shares slide as one of the most highly regarded names in retail moves on. Kate Swann surprised the stock market yesterday after announcing that she will step down as chief executive of the transport catering group SSP Group (SSPG)
. The news that one of the most highly regarded executives in the retail industry will leave at the end of May disappointed the group’s loyal shareholders, sending shares in the FTSE 250 stock tumbling by 57¼p to 627½p.
Babcock caught in eye of storm: Shares hit a seven-year low as profits sink 64% to £65m. The boss of Babcock International Group (BAB) came out fighting as £120million of write-downs sent its profits plunging. In a combative performance, chief executive Archie Bethel insisted the troubled defence stalwart had enjoyed a ‘pretty solid’ six months. But shares fell nearly 5% to 566p – their lowest level for seven years – as first-half profits dived 64% to £65.1million.
Kingfisher boss Véronique Laury’s project in doubt after lacklustre sales. Pressure is growing on Véronique Laury, the chief executive of Kingfisher (KGF) , after a disappointing third-quarter performance cast fresh doubt on her ambitious transformation programme for the DIY chain. The group behind B&Q and Screwfix reported a lacklustre 1.3% fall in group like-for-like sales in the three months to the end of October yesterday, impacted mostly by a poor performance from its Castorama DIY chain in France. In the UK, B&Q continued to report negative like-for-like sales and Kingfisher announced a plan to pull out of its mostly loss-making operations in Russia, Spain and Portugal.
Johnson Matthey cleans up despite diesel’s dirty name. The sustainable technology company Johnson Matthey (JMAT) has reversed a 27% slump in its share price since the summer by reporting a 19 per cent rise in profits, with the promise of more. The stock, which has been hit hard by the fall in sales of diesel cars around the world, ended the day the best-performing FTSE 100 share of the session, 364p higher at £31.41, a rise of 13.1%. Robert MacLeod, Johnson Matthey’s chief executive, said it had outmanoeuvred its rivals BASF of Germany and Umicore of Belgium and taken its market share from 45 to 60%
Talktalk sticks to full-fibre diet despite failure of joint venture. A new company has been created by TalkTalk Telecom Group (TALK) to expand its full-fibre broadband network after a £1.5 billion joint venture broke down. Talktalk has formed Fibrenation to extend its infrastructure to three towns in the north of England after a trial in York. It plans to reach 100,000 premises within 18 months as part of a target of reaching three million premises. The project was announced despite Talktalk not having investors after an agreement with Infracapital, the infrastructure investment arm of M&G Prudential, stalled. It said yesterday that it would “not be progressing on the basis of the heads of terms” it announced in February with Infracapital.
Water firm’s profits surge as bills go up. An inflation-busting increase in water bills for households in the North West has helped United Utilities Group (UU.) to a 22% rise in profits, which is being passed on to shareholders with a dividend rise that is ahead of inflation. The 4.4% increase in average water bills to £435 a year for homes in Cheshire and Lancashire, and from the Lake District to the Scottish border, led to a £40 million increase in United Utilities’ revenues to £916 million in the six months to the end of September. Most of that fell straight to the bottom line, with pre-tax profits for the water supplier coming in £36 million higher at £196 million. The company is increasing its interim dividend by 3.9% to 13.76p, which is likely to raise shareholder payouts for the year to nearly £280 million.
Sage’s ‘profit sacrifice’ pay plan. The new boss of Sage Group (SGE) has said he is willing to sacrifice short-term profits to move more of the software developer’s customers on to monthly payments. Steve Hare said the FTSE 100 accounting and payroll software provider would spend £60 million this year in an attempt to lure more clients on to services delivered over the cloud. The shift would reduce operating profit margins to 23-25% next year, from 27.8% currently. The chief executive said the “rate of change in technology is accelerating and we need to accelerate too”.
Sofa so good for furniture seller SCS. The solid run of form at SCS Group (SCS) has continued, with the furniture retailer reporting a strong uplift in like-for-like orders, despite tough trading conditions. Alan Smith, chairman of SCS, said that the chain’s comparable order intake was up 3.5% in the 16 weeks to November 17, adding: “We believe the group’s increasing resilience and value proposition will enable us to manage the continued economic uncertainty and take advantage of opportunities.” SCS floated in 1997 but went into administration in 2008. It was bought by Sun Capital Partners and returned to the stock exchange in 2015 with an opening price of 185p per share.
Five-fold rise in sales at Sosandar (SOS) . Animal print dresses and leather jackets helped sales at online womenswear retailer Sosandar to soar more than 400%. The firm posted a 407% leap in revenues to £1.8million in the six months to September 30 despite launching just two years ago. A version of a green leather skirt worn by Meghan Markle costing £139 was also a best-seller.
Syncona’s portfolio rises by a third as gene therapies show progress. Healthcare investment company Syncona Limited NPV (SYNC) net assets increased by a third in the first half of its financial year, as the biotech businesses in its portfolio reached major clinical milestones, including progress on cutting-edge gene therapy treatments for haemophilia and blindness. Syncona, which is listed on the London Stock Exchange, invests in healthcare companies and backs researchers – predominantly in the UK – developing promising new treatments for disease. It is part-owned by the Wellcome Trust and Cancer Research UK.
NewRiver upbeat on retail despite falling property values. The chief executive of NewRiver REIT (NRR) has claimed he is positive about the challenges facing the high street despite the real estate investment trust being hit by falling property values. Allan Lockhart, who took the helm earlier this year after his father’s ill health led him to step down, said the company had near “zero exposure” to department stores and casual dining, which have both felt the impact of online retail and competitive pricing. The FTSE 250 company, which has a market cap of £693m, specialises in convenience stores, pubs and discounters. It counts B&M Bargains, Wilkinson, Aldi, Lidl and Iceland as tenants.
London-listed Ubisense Group (UBI) is soon to change its name, after selling one of its divisions and the Ubisense brand to Bahrain-based investor Investcorp for up to £35million. It sold its Smartspace business, which connects industrial machines over the internet and tracks activities to allow efficiency to be assessed. Renaming itself IQGeo, the firm will keep the MyWorld business which allows companies to track all their systems and machines.
