Morning Financial Press Review 24/01/20
Posh hot chocolate machines and a vegan range helped boost sales for over Christmas, but the retailer warned its overseas expansion had run up higher costs than expected. The confectioner posted an 11% rise in sales for the 13 weeks to Dec 29, boosted by demand for a £100 Velvetiser device that claims to allow customers to create “barista-grade” hot chocolate in their home. Hotel Chocolat said demand had exceeded expectations for new flavours including dark mint and raspberry white chocolate. Its new vegan “milk” chocolate – five years in the making and dubbed Nutmilk – had also been an immediate hit, the firm said. However the firm, which was co-founded by chief executive Angus Thirlwell in 1993, said costs associated with its overseas expansion were higher than expected due to issues with its supply chain that it plans to address this year. - The Telegraph
A big boost in sales over the crucial Christmas period has reassured investors that is getting back on track after a tumultuous year that included two profit warnings. The fashion retailer reported a 20% increase in sales to £1.1 billion for the four months to December 31, comfortably beating City predictions. Asos chief executive, soothed shareholders by saying that there had been a “robust operational performance” during the peak period and Black Friday, when its warehouses are under the most pressure to deal with a spike in orders and returns. He said that during the peak the warehouses dealt with 2,000 orders a minute. - The Times
About 3,000 management jobs are being cut at as part of a shake-up of its stores that will also involve the hiring of thousands of shopfloor workers. Morrisons plans to remove the higher-paid middle-management roles across its 500-strong store chain and to recruit 7,000 new hourly paid roles. The grocer said the net 4,000 increase in personnel was designed to improve customer services and many will be on its fresh food Market Street counters, including butchers and bakers. - The Times
The £6billion takeover of could be delayed because of a surprise competition probe by regulators. The Competition and Markets Authority (CMA) last night confirmed it was examining the company’s tie-up with Dutch rival Takeaway.com despite previously indicating it posed no concern. The inquiry is looking at whether Takeaway.com would have re-entered the UK food delivery market were it not for the deal. Takeaway.com said its ‘unsuccessful’ UK business was closed in August 2016 and only had revenues of £76,000, because it was ‘unable to compete’ with rivals. - Daily Mail
Analysts and shareholders have forecast major changes ahead for online bank Bó after it emerged that the banker who spearheaded the launch of the money saving app is set to leave. The Monzo-rival’s future has been plunged into chaos after it was reported that Mark Bailie, who was at one point tipped as a successor to former chief executive Ross McEwan, was going to leave just months after the app’s high-profile debut. Ian Gordon, a banks analyst at Investec, said Mr Bailie’s exit puts Bó “at risk” or “subject to review” while Goodbody analyst John Cronin said a rebrand is more likely to be on the cards. - The Telegraph
The boss of , one of Britain’s best-known investors in public infrastructure, is to return to his native France. Olivier Brousse, 54, has been chief executive of John Laing for the past six years and saw through its flotation on the London Stock Exchange in 2015. Yesterday, the £2 million-a-year executive announced he had resigned from the group to return to his former employer, Veolia, the French utilities conglomerate. John Laing says he will leave when a successor has been identified. He leaves after doubling the share price in five years. John Laing has investments in assets valued at £1.5 billion and is valued on the stock market at £1.8 billion. - The Times
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.