Justin King, the former Sainsbury’s boss, is to return to Marks & Spencer Group (MKS) as a non-executive director as the struggling retailer beefs up its board. Mr King was credited with reviving Sainsbury’s during his decade-long rein at the supermarket between 2004 and 2014 by turning it from a retailer that struggled with empty shelves to spearheading its lucrative push into the convenience market, notching up nine years of sales increases. He previously ran Marks & Spencer’s food division and set up its Simply Food chains, which until recently had remained the biggest growth driver for the retailer.
WPP (WPP) will cut 3,500 jobs and shut dozens of offices in an attempt by new chief executive Mark Read to steady the advertising giant after a torrid two years marked a bitter parting with the architect of its sprawling empire, Sir Martin Sorrell. Mr Read said the overhaul would cut costs by £275m by 2021 and restore sales growth. About 80 WPP offices worldwide have been earmarked for closure, with a further 100 agencies due to share accommodation. “The old WPP was in structural decline,” he said. “The new WPP will not be.” Half the savings will be reinvested, including hiring 1,000 new staff to reinvigorate the creative side of its business and push further into technology.
Carpetright (CPR) losses have widened dramatically as the embattled retailer has been hurt by weak consumer demand and the whiplash of a rescue plan that has closed dozens of stores. The company said that it had been a “transitional year” as it reported that pre-tax losses had ballooned to £11.7m in the 26 weeks to Oct 30, compared to losses of £0.6m a year earlier. Sales tumbled 15.7pc to £191m after the retailer shut 65 stores during the period. The company said that like-for-like sales had improved from a 16.8pc slump in the first quarter to an 8.9% drop as the company repaired some of the damage to its reputation caused from its restructuring. Suppliers withdrew their product and consumers shunned the brand while there was “negative sentiment” associated with its company voluntary arrangement (CVA), it said.
Mysale Group (MYSL), the Australian online retailer backed by retail tycoons Mike Ashley and Phillip Green, lost half its market value as the fashion seller issued a profit warning amid “challenging” market conditions.
Carl Jackson, chief executive, said he was “very disappointed” with the performance after the company said that revenue and profit for the year to June 2019, would be “significantly” below market expectations
The Aim-listed retailer also said that it swung into a loss before interest, tax, depreciation and amortisation in the first half of the year, though it expected an improvement in the second half.
Shares in the company fell more than 50pc to 16p in afternoon trading. Its market cap fell to £25m.
Crossrail delayed indefinitely as bosses warn it could require £1.7bn injection. The crisis-hit Crossrail project has been delayed indefinitely as bosses warn that the project could require an extra £1.7bn funding injection, according to transport executives and politicians. The flagship new Elizabeth Line that will run east-west through London was originally due to open this month. Now the company has admitted it does not know when it will open. “It has now become clear that more work is required than had been envisaged to complete the infrastructure and then commence the extensive testing necessary to ensure the railway opens safely and reliably,” Crossrail said in a statement.
Shares in outsourcer Interserve (IRV) plunge after confirming plan to hand control to lenders. Crisis-hit outsourcer Interserve saw the value of its shares cut in half on Monday after revealing plans for a deal with its lenders that could leave its current investors’ stakes all but wiped out. The company, which builds schools, cleans prisons and maintains roads, said it was in talks with creditors including HSBC and RBS about a possible debt-for-equity swap to tackle its ballooning debt pile which is expected to grow as high as £650m by the end of the year. It hopes to cut its leverage to 1.5 times pre-tax earnings in a move that “could result in material dilution for current Interserve shareholders”. Cenkos analyst Kevin Cammack said the figures implied Interserve would need to create new shares worth as much as £500m, dwarfing its current stock market value of around £17m.
Interserve (IRV) scrambles for survival in the shadow of Carillion. Since the dramatic collapse of Government contractor Carillion 11 months ago, the question on the City’s lips has been: “Who will be next?” Outsourcers have had a rough time over the past few years, competing fiercely for contracts on tiny margins and racking up big debt piles that have forced several of them to tap shareholders for more cash. Some thought Capita (CPI), the “white collar” contractor that runs recruitment for the British Army and IT networks for a number of Whitehall departments, was done for. Others turned their attention to facilities management specialist Mitie Group (MTO) and construction contractor Kier Group (KIE). But it has now become clear that Interserve, which cleans hospitals, feeds prisoners and builds roads, is the most in peril.
Shares in Hollywood Bowl Group (BOWL) were on a roll after the bowling alley operator announced a special year-end dividend for the second consecutive year. Pre-tax profits rose 12% to £24.9m in the year ending September 30 after a 5.8% rise in sales to £120m sending stock jumping 26.50p to 210.0p on the back of the news. The company, which is the largest bowling alley chain in the UK, proposed a special dividend of 4.33p per share, 30% higher than last year’s special dividend, while the final dividend was raised 7.1% to 4.23p. Chief executive Steve Burns, said that while the company was “mindful” about the uncertainty surrounding Brexit, Hollywood Bowl offered a “low-cost experience which is less likely to be impacted by any squeeze to consumer spending”.
Shares in electricity and gas supplier Centrica (CNA) dipped 4.58%, or 6.40p, to 133.20p following a report that suggested the firm might find it difficult to maintain its dividend policy. In a review of European utilities, Deutsche Bank downgraded its rating for the British Gas owner from ‘buy’ to ‘hold’ and reduced its target price to 115p from 135p. Last month the company confirmed it had lost an additional 370,000 customers at its residential supply division in the four months to October.
Questor: this wallpaper firm has had two thirds stripped from its share price and is now a buy. A series of mishaps has sent shares in Walker Greenbank (WGB) to a valuation of just seven times earnings, so there is plenty of scope for gains
