London shares are ending the week on a more downbeat note after strong gains in previous sessions. Click here for The Trader Nicole Elliott's latest take.
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In sporting parlance, the crowd is clearly being given what they want. Sports Direct (SPD) chief executive Dave Forsey has resigned as chief executive to be replaced with immediate effect by founder Mike Ashley. Many shareholders had been calling for Mr ashley to have a more defined role which made clear his responsibilities for day-to-day management of the business. Pressure for this has particularly ramped up amid the recent swirl of bad PR surrounding the company, which has seen it cede to pressure to hire an outside consultancy to review working practices at some of the group’s warehouses. Mr Forsey said he had given his “entire working life” to the company and wished all remaining there well. In June, Mr Forsey gave up a share award worth £3.7m he was due to receive next year. The shares are up 7 per cent this morning but we retain our sell recommendation for now.
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Acquisitions were a major driver in the step-up in revenue at veterinary practice business CVS (CVSG), although there was some organic growth. Total sales rose 30 per cent to £218m but the growth was a more conservative 5 per cent on a like-for-like basis. Still, pre-tax profits jumped 6 per cent to £9.1m thanks partly to a 1 percentage point rise in cash profit margins to 18.1 per cent. Encouragingly, Healthy Pet Club membership grew nearly a fifth to 253,000 while a total of 67 surgeries were acquired and integrated during the financial year to 30 June.
Shares in pharmceutical company Indivior (INDV) have fallen sharply today after the company said it was the subject of lawsuit on behalf of 35 states in the US alleging ‘violations of state and federal anti-trust and consumer protection laws’ in relation to its Suboxane treatment. Shares fell 17 per cent in early trading.
