Fintech giant Worldpay, Inc Class A Com Stk (DI) (WPY) changes hands again after $43bn US swoop. Global payments giant Worldpay changed hands for the fourth time in a decade on Monday after a US rival swooped with a $43 billion (£32.5 billion) takeover. The company, which employs around 4000 people, will come together with US-listed Fidelity National Information Services (FIS) in a cash-and-shares deal that underscores the rapid consolidation in the industry. Worldpay forms the backbone of Britain’s payments system, accounting for 42% of all UK payments, and processing 400 transactions per second.
Footasylum (FOOT) family hits jackpot as JD Sports Fashion (JD.) swoops to buy chain. The children of troubled Footasylum’s co-founder were on Monday in line to share a near £50 million payday, after larger rival JD Sports agreed a takeover for the trainers retailer. FTSE 250 firm JD Sports has agreed to buy the 81.3% in Footasylum it does not already own for £90.1 million. The High Street chain will pay 82.5p in cash for each share in a move that could leave some investors in Footasylum disgruntled: it floated at 164p per share in November 2017.
Cake Box Holdings (CBOX) could be a flyer over the next few years. It might seem a little dangerous backing a cake-seller so soon after the disaster that was Patisserie Valerie. But if the house brokers at Shore Capital are anything to go by then Cake Box could be a flyer over the next few years. According to Darren Shirley, analyst at the brokerage, “we’re expecting double-digit growth and this to be strongly cash generative. It currently has 111 stores and it should open 24 new ones per annum.” Recent results show that sales soared from £8.7 million in 2017 to £12.8 million in the year to March 2018, and pre-tax profits jumped 73% to £3.34 million. Shirley adds: “All of Cake Box’s franchise stores are serviced from the central facility in Enfield, which serves as the manufacturing facility for the egg-free sponge used as the base for all the cakes made instore.” The company says it sells it more than 22,000 cakes every week, at prices ranging from £18.99 to wedding extravaganzas which cost in the region of £250. Just last week the business bought two new warehouses — in Coventry and Bradford — for £1.4 million so that it can expand further in the Midlands and up North.
Sir Martin Sorrell hails surging revenues at his new advertising business S4 Capital (SFOR). Former WPP chief Sir Martin Sorrell today declared his new digital-only business was in the “sweet spot” of the advertising world as the companies he has bought reported surging revenues. Sir Martin left WPP under a cloud last year but launched a start-up focusing solely on online ads, buying content producer MediaMonks and automated “programmatic” ad-space buying firm MightyHive. Revenues from the businesses are up 58% at £135.9 million for the year to 31 December, with underlying profit of £21 million in what were the first set of figures for the new firm. Sir Martin said the digital market was growing at 20-30% while the market for the big holding companies such as WPP, Publicis and others was only growing at 2-3%.
Miton Group (MGR) have had a bumper year. The boutique fund manager really bumped up the bonuses last year after a sales boom. Pay for fund managers and sales staff at the retail investors’ favourite rose 71% to £5.8 million, thanks to higher revenues and a change to bonus plans. Before, staff were paid in shares but are now paid in line with revenues. Adjusted pre-tax profits were up 34% to £9.2 million. Assets under management were £4.6 billion at the end of February and inflows were flat. Chief executive David Barron said clients were a “touch more cautious” because of the unusual political situation.
