Estate agent Savills expects lower sales as Brexit and global slowdown fears take a toll on property investor confidence. Savills (SVS) expects lower property sales in a number of markets this year as Brexit-related uncertainty and US trade policy take a toll on property investors’ confidence. The upmarket estate agent, which has offices around the world, said prospects for 2019 are ‘overshadowed by macro-economic and political uncertainties’ globally. But the group, which also runs consultancy and property management businesses, said it still expects full-year results to be in line with expectations as these ‘less transactional’ divisions would offset a decline in sales volumes.
‘Gravy train’ continues for Persimmon as the housebuilder says profits are now expected to beat forecasts. Housebuilder Persimmon (PSN) said it expects profits to come in slightly ahead of market expectations as it issued its first trading update since the departure of boss Jeff Fairburn at the end of last year. The FTSE 100 listed company said it has sold more homes at higher prices, having benefited from the new developments it opened through the year. Revenues rose 4% to £3.74billion last year, with a 3% increase in homes sold to 16,449 and an average selling price creeping up by 1% to £215,560. For the current year, Persimmons’s forward sales are ahead 3% to £1.40billion.
Is your local M&S set to close? More than 1,000 jobs at risk, as retail giant reveals the 17 stores across the UK that will shut next. High Street stalwart Marks & Spencer Group (MKS) has put more than 1,000 jobs at risk as it unveiled its latest round of store closures. The chain is shutting over 100 stores as part of a five-year turnaround plan and on Tuesday listed the 17 shops that it will close next. They are: Ashford, Barrow, Bedford, Boston, Buxton, Cwmbran, Deal, Felixstowe, Huddersfield, Hull, Junction One Antrim Outlet, Luton Arndale, Newark, Northwich, Rotherham, Sutton Coldfield and Weston Super Mare. The closures will impact 1,045 staff.
Boohoo breezes through retail’s choppy waters to notch up bumper sales over Christmas, but shares take a dive. Online fashion firm Boohoo.com (BOO) – a golden child of UK retail – has upped its sales forecasts today after enjoying bumper trading over Black Friday and Christmas. The group, which owns Pretty Little Thing and Nasty Gal, said sales surged by 44% to £328.2million in the last four months and expects its full-year performance to top expectations as a result. Despite seemingly having the edge over its retail rivals, beating expectations by about 2%, Boohoo shares fell in early trading. The stock dipped by 5% to £1.83 amid concerns that the PrettyLittleThing brand was responsible for such a large portion of the growth.
Storm clouds darken as Europe and China falter: Germany hit by recession fear amid eurozone factory slump. Fears are growing for the global economy after sharp falls in manufacturing raised the spectre of another recession in the crisis-torn eurozone. Industrial production in the single currency bloc was 1.7% lower in November than it had been the previous month, sparking concerns of a slowdown on the Continent. A report by Bank of America Merrill Lynch warned that Germany is already in recession. In another sign of a gathering storm, exports by China slumped 4.4% in December – their biggest decline in two years – amid a trade war with the US. The figures from Europe and China came as the US government shutdown entered its 24th day, making it the longest ever period that federal agencies have been closed.
Former Barclays (BARC) bosses deny fraud over £6bn Qatar fundraising during the financial crisis. Barclays’ former boss has appeared in court to deny fraud charges. John Varley and three colleagues – including Roger Jenkins, the former head of Barclays’ Middle Eastern business – are accused of fraud when the bank raised £6.1billion from Qatar during the 2008 financial crisis.The case was brought by the Serious Fraud Office. Varley, 62, pleaded not guilty to two counts of conspiracy to commit fraud by false representation at Southwark Crown Court. Jenkins, 63, and former senior bankers Thomas Kalaris, 63, and Richard Boath, 60, also entered not guilty pleas. Varley – Barclays’ boss from 2004 to 2011 – is the most senior banker to go on trial over the 2008 crisis, which saw banks collapse around the world and triggered a string of taxpayer bailouts.
Ousted Stobart boss buys stake in Flybe hours after his former employer announces it is buying the struggling airline with Virgin. Stobart Group Ltd. (STOB) former boss bought a stake in Flybe Group (FLYB) hours after his previous employer and Virgin announced they would buy the struggling airline for £2.2million. Andrew Tinkler, who was kicked off the Stobart board last year, bought a 12.23% stake, or 26.5m shares, in the airline on Friday. The price he paid has not been disclosed although the stake is worth £1.1million.
The party’s over for bar chain Revolution as its shares tumble 21% following disappointing sales. Investors’ heads were spinning as High Street bar and party chain Revolution Bars Group (RBG) reported sliding sales for the first half of its financial year. Like-for-like sales at the boozy lunch-cum-nightclub spot, during the six months to December 29, were down 4% on the same time a year earlier. Its Revolucion de Cuba brand was propping up the group, while the Revolution brand ‘consistently traded below last year’, the company said. Despite its efforts to ‘revitalise’ Revolution, the company added that profit for the first half would be £2million lower than last year.
Investment firm Coinsilium Group Limited (COIN), which supports businesses using the blockchain technology that underpins digital currencies such as bitcoin, has disappointed investors. Shares slid 10.7%, or 0.5p, to 3.93p as Coinsilium noted its share price was linked to the price of bitcoin, since it earns a ‘significant proportion’ of its sales in the digital currency. In 2018, bitcoin fell from around $19,000 to under $3,500. Coinsilium said its long-term goal was to become less dependent on bitcoin.
Economic turmoil hit fees for recruiter Pagegroup (PAGE) in France and China at the end of 2018. Rioting in Paris amid the so-called yellow vest protests is thought to have badly damaged the French economy in the last three months of the year, triggering a fall in the number of jobs created. Page’s fees in France grew by just 10% in the final quarter of 2018, down from 21% growth in third quarter. Meanwhile the FTSE 250 firm’s fees from greater China were up 12% in the fourth quarter – down from growth of 31% – as a trade war with the US took its toll on the Asian nation’s manufacturers. The problems took the glow off improved figures for Britain and Australia.
Premier Oil (PMO) was another drag on the FTSE 250, as the oil and gas exploration business confirmed it was considering buying North Sea sites from US energy major Chevron. The sale process for the assets was launched last summer, as Chevron began to pull back from the UK. Premier has been rumoured as a potential bidder for months, but has not yet tabled an offer. Investors were worried by the prospect that they might be called upon for cash, and shares plummeted 9.2p, to 70.25p.
Ophir Energy (OPHR) unanimously slapped down a £340million takeover offer from Indonesian oil company Medco Energi. Medco last week said it was mulling a 48.5p per share cash offer for London-listed Ophir, which has assets in South-East Asia, Tanzania and Mexico. But Ophir said that this offer undervalues the company. Medco’s bid is significantly less than its previous approaches at 58p per share in October and 53.8p in December. Ophir became a takeover target after it failed to find financing for a liquefied natural gas project in Equatorial Guinea, causing its share price to more than halve over 2018.
A broker downgrade for made it the Footsie’s biggest loser, wiping 4.1%, or 270p, off its share price which ended the day at 6260p.