The FTSE 100 is flat in early trading. Among the companies with reports and trading updates today are De La Rue, Superdry and Hipgnosis Songs Fund. Read the Tuesday 19 December Business Live blog below.
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Nasdaq in bid to lure UK more British companies to list in New York
A leading US stock exchange is on the hunt for more British companies to list in New York.
Karen Snow, the global head of listings at Nasdaq, said she is in talks with a number of UK firms about making the move.
Analysts slash Superdry forecasts
Analysts have began slashing forecasts for Superdry after this morning’s profit warning.
Peel Hunt has cut Superdry’s rating from ‘buy’ to ‘hold’, and its target share price from 130p to just 40p.
‘Superdry benefited strongly from the prior year cold snap, particularly through third-party platforms such as Next.
‘As a brand that over-indexes in coats and outerwear, this year’s warm autumn weather has weighed heavily on sales in store, online and through platforms.
‘We cut full-year sales assumptions c.15% to £506m, to reflect 1H trading trends across the second half, particularly in Wholesale.
‘We expect management to focus more on stock clearance ahead of full-price trading,and anticipate lower margins over 2H too.Cost savings remain on track, as previously identified, with more to come.
‘The net effect is a full-year loss of c.£45m (previously c,£5m).
‘Superdry was on track at the end of September, but has clearly seen a deterioration in trading over October and November, as evidenced by the last update in the recent sale document regarding the Asian IP’
Octopus Energy valued at £6.2bn in another investment round
Octopus Energy has been valued at £6.2billion in another investment round.
The energy giant raised a further £630million from existing shareholders, including Japanese giants Origin Energy and Tokyo Gas, as well as former US vice president Al Gore’s Generation Asset Management.
This means its valuation has jumped 60 per cent since its last fundraising in December 2021.
Hipgnosis delays results on valuation concerns
Embattled music royalties fund Hipgnosis has been forced to delay the publication of its half-year financial results amid concerns about the valuation of its assets.
It told shareholders this morning:
‘The valuation the Company received from its independent valuer is materially higher than the valuation implied by proposed and recent transactions in the sector, in particular, the proposed sale of assets to Hipgnosis Songs Capital for net consideration of $417.5million, reflecting a discount of 24.3 per cent to the valuation of these assets as at 31 March 2023, and the recent sale of non-core assets of $23.1million, reflecting a 14.2 per cent discount to to the valuation of these assets as at 30 September 2023.
‘The Board therefore sought advice from Hipgnosis Song Management Limited, its investment adviser, which is majority owned by funds managed and/or advised by Blackstone, on their opinion on the independent valuer’s valuation.
‘Hipgnosis Song Management Limited eventually provided an opinion, which was heavily caveated, such that the Board has concerns as to the valuation of the Company’s assets in its interim results.’
Wages are rising too fast to lower interest rates, says Bank of England
A senior Bank of England official has played down growing expectations of an interest rate cut – even as a report warned that the economy was just ‘limping along’.
Deputy governor Ben Broadbent said the central bank needs to see a ‘more protracted and clearer decline’ in wage growth but the job has been made harder by ‘muddy’ data.
That is despite growing market expectations that it will go for a rate cut as soon as May amid signs of inflation easing and the economy stuttering.
Superdry profits hit by warm weather
Struggling fashion retailer Superdry has flagged a hit to annual profits, hurt by challenging trading environment including warmer weather.
The company, the fashion line of which mostly includes sweatshirts, hoodies and jackets, said unseasonal weather through the early autumn had led to a delayed uptake of its autumn/winter range, hurting sales in the first-half of fiscal year ended 28 October.
Founder and CEO Julian Dunkerton said:
‘The unseasonal weather through the early autumn led to a delayed uptake of our Autumn/Winter range and this impacted sales in the first half of the year.
‘Whilst we have seen modest signs of improvement through the recent spell of colder weather, current trading has remained challenging, and this is reflected in the weaker than expected business performance.
‘The operational progress we have made in the first half has been more encouraging with the IP sale for the South Asian region and strong progress on our cost efficiency programme.’
Adobe calls off £16bn Figma takeover after clashing with regulators in Britain and Europe
Adobe has terminated its £16billion takeover of design platform Figma after clashing with regulators in Britain and Europe.
The companies said there was ‘no clear path’ to get approval from the Competition and Markets Authority (CMA) and the European Commission.
Photoshop-owner Adobe will pay Figma a termination fee of almost £800million.
De La Rue cheers bank note demand
A recovery in demand for currency notes has lifted De La Rue profits, with the banknote printer beating expectations of breakeven for the first half of the financial year with adjusted operating earnings of £7.9million.
The 200-year-old company still expects to post a full-year adjusted operating profit in the low £20million range.
Clive Vacher, CEO of De La Rue:
‘De La Rue’s robust performance in the first half reflects the important actions that we have taken since 2020 to make the company resilient to changing market conditions.
‘These actions have allowed us to navigate a downturn over the past 18 months, particularly in Currency, and I am pleased that the market is now showing signs of continuing recovery. We have doubled the Currency order book since September 2023 and are exhibiting a high win rate, with more opportunities in the pipeline.
‘Authentication continues on its path to £100m in revenue for the full financial year. We have secured a significant multi-year contract extension, and we are in the late stages of securing another contract extension in GRS. Our Australian passport programme continues apace and is a significant driver of growth this year.’