The FTSE 100 is down 0.2 per cent in early trading. Among the companies with reports and trading updates today are Dr Martens, Nightcap, Revolution Bars, Auto Trader and De La Rue. Read the Thursday 30 May Business Live blog below.
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De La Rue in talks to sell core divisions
Banknote printer De La Rue is in talks with suitors interested in buying each of its core divisions following a strategic review.
The Basingstoke-based group, which prints banknotes for central banks across the world, said it has spoken with ‘a number of parties who have made proposals”‘related to either its currency or authentication operations.
Nevertheless, it stressed that there is no certainty the interest will result in any deal.
Clive Whiley, chairman at De La Rue, said: ‘Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group’s divisions.
‘The board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full year results in July.’
Auto Trader ‘showing the benefits of its market leadership position’
Fiona Orford-Williams, director of TMT, at Edison Group:
‘Auto Trader has come in with good results, ahead of market consensus and clearly showing the benefits of its market leadership position. The underlying market dynamics are broadly favourable and average revenue per retailer was up 12%, through adding value to the offering as well as moving pricing ahead.
‘This is set to continue in the current year, with ARPR set to rise a further 8-10% on a slight decline in the number of forecourts. The group continues to innovate, increasingly using AI to smooth the customer journey, making good use of the large quantities of proprietary data within the business.
‘Operating margins of 71% will likely dip to 69% at the underlying level in the current year as the group’s scale places it in the zone for the incoming Digital Services Tax but should be slightly up at a group level and, overall, we would expect forecasts to be edged ahead.’
London markets ‘less attractive’ than international rivals say boss of tech unicorn Oaknorth
Tech unicorn Oaknorth says London’s public markets are looking ‘less attractive’ than their international peers as it mulls a potential float.
Rishi Khosla, co-founder of the digital business bank, has joined the criticism of the capital, saying: ‘The UK has not done the best in branding over the last two, three, four years… really since the Brexit referendum vote,’ he told City AM.
Auto Trader profits soar as used car market roars back
Auto Trader saw operating profits soar 26 per cent last year as sales bounced 14 per cent thanks to improved revenue per advertiser and a rebound in the used car market.
The firm posted a £349million profit, with double digit revenue growth across all segments driving its operating profit margin to 71 per cent.
Auto Trader said: ‘The used car retail market has been robust throughout the financial year, which we expect to continue. Demand is resilient with cars continuing to sell faster than before the pandemic and used car supply has gradually improved. Trade prices softened in the latter months of the calendar year, which subsequently impacted retail prices, but monthly pricing movements have since stabilised in line with typical seasonal trends.’
US energy giant Conoco Phillips buys Marathon Oil in £17.7bn deal
US energy giant ConocoPhillips has bought Marathon Oil in a deal valued at £17.7billion – the latest in a series of acquisitions in the US oil sector.
There was £200billion in sector merger and acquisition activity in the past year, including Exxon Mobil’s £48billion acquisition of Pioneer Natural Resources and the Chevron-Hess tie-up.
The acquisition will enable ConocoPhillips to strengthen its position in shale oil and gas-rich US regions such as the Bakken Basin and the Permian Basin.
Nightcap abandons Revolution Bars bid
London-listed hospitality firm Nightcap has abandoned its attempted takeover of Revolution Bars after its previous offer was rejected.
Revolution Bars earlier this week said Nightcap’s offer, which included a shake-up of the group’s restructuring plans, was ‘incapable of being delivered’.
Nightcap told sharehoders this morning:
‘The board of Nightcap believes that the Possible Offer, if it had been implemented, would have seen Revolution Bars’ highly dilutive £12.5m fundraising replaced by a merger of the two businesses, allowing for Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment.
‘The Possible Offer would have included a fundraising and the implementation of the restructuring plan… to be followed by a combination of the Nightcap and Revolution Bars businesses as well as a sale of the Peach Pubs brand.
‘Nightcap respects that the board of Revolution Bars wish to pursue a different outcome and as a result Nightcap today confirms that it does not intend to make an offer for the entire issued and to be issued share capital of Revolution Bars.’
City fails to back Czech Sphinx’s £3.6bn Royal Mail takeover
‘Czech Sphinx’ Daniel Kretinsky’s £3.6billion swoop for Royal Mail’s parent company has failed to win over the City – despite the company’s board agreeing to the deal.
Shares in International Distribution Services rose 4.3 per cent, or 13.8p, to 335p on the announcement, still short of the 370p offer price.
Dr Martens profits stomped by US sales slump
Dr Martens has outlined up to £25million of annual cost-cutting measures after the iconic British bootmaker’s profits were hammered by a major slump in US demand last year.
Pre-tax profits fell 42.9% to £97.2million in the year to 31 March after a 24 per cent decline in Americas revenues driven by adrop-off its wholesale business.
The company said the cost cuts would come from ‘organisational efficiency and design, better procurement and operational streamlining’.
Kenny Wilson, Dr Martens’ chief executive, said: ‘We are clear that we need to drive demand in the USA to return to growth in (financial year 2026) onwards and are executing a detailed plan to achieve this, with refocused and increased USA marketing investment in the year ahead.
‘We are also announcing a cost action plan across the group, targeting savings of £20m to £25m. I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.’