Despite growing its revenues by 8.6 per cent to £1.37bn through higher retail prices and a jump in technology sales, Ocado (OCDO) fell to a deeper loss as higher costs, including a £70mn increase in exceptional items, hurt its bottom line. The 5 per cent rise in revenues in the key retail division - the joint venture with Marks and Spencer (MKS) - was driven by an 8.4 per cent increase in selling prices and a 10.6 per cent uplift in active customer numbers, though cost of living pressures were apparent in the 6.3 per cent contraction in basket size. Management kept full-year guidance steady, which helped the shares up by 12 per cent in early trading to 656p, though they are more than £20-a piece below the highs seen during the pandemic. CA
Read more: Supermarket customers are winning – investors are not
Boohoo and Revolution Beauty resolve board dispute
Cosmetics group Revolution Beauty (REVB) has reached an agreement in its ongoing spat with shareholder Boohoo (BOO) that will see chief executive Bob Holt and chair Derek Zissman walk away from their roles. In return, Boohoo has agreed to withdraw its request to hold a general meeting, at which it planned to install its own candidates on Revolution’s board.
Shares in the cosmetics brand were up 7 per cent by mid-morning, while Boohoo’s were essentially flat. JJ
Read more: Chaos at Revolution AGM as Boohoo battle intensifies
Eli Lilly drug hailed as Alzheimer’s breakthrough
The drug donanemab, produced by Eli Lilly (US:LLY), can slow the progression of Alzheimer’s disease by 35 per cent in its early stages, according to the results of a new clinical trial. Lilly unveiled the outcomes of the phase 3 trial at the Alzheimer’s Association International Conference in Amsterdam yesterday. It has also submitted the drug to major regulators for approval and expects decisions before the end of the year.
Biogen (US:BIIB) already has a similar drug, lecanemab, on the market under the name Leqembi. Both drugs target deposits of a protein called beta-amyloid that builds up in the brains of Alzheimer’s patients. Lilly’s share price moved less than a single percentage point in response to the news – suggesting markets have already priced in donanemab’s success. The group’s shares are up almost 23 per cent in the year to date. JJ
Return of live events sparks record revenues for Midwich
Audio-visual equipment distributor Midwich (MIDW) reported strong trading in the first half of 2023, with revenue exceeding £610mn, up 7.5 per cent year-on-year. The company underperformed during lockdown but the return of live events is fuelling higher-margin sales, and partially offsetting “slower corporate and education markets”.
The group’s gross margin has risen to 16.3 per cent, significantly higher than 2022 levels, due to the more profitable live events market. EMEA markets performed well, with revenues up 14 per cent year-on-year. Meanwhile, the UK & Ireland region managed to increase operating profits despite slightly lower revenue.
The company completed significant acquisitions in Canada and the US in the period, bolstering its presence and customer base in the audio and visual markets. With a healthy order book, the board expects full-year trading to remain in line with market expectations. AA
Read why we’re bullish on Midwich: An underestimated small cap on an 'extreme' discount
Zotefoams’ Rezorce to be trialled in stores
Shares in Zotefoams (ZTF) jumped after the company said it had signed a deal with a major packaging company to trial its ReZorce product at a major European retailer.
Rezorce is a single-material product developed as a drink carton that contains fewer polymers and is easier to recycle than traditional composite containers, the company said. The joint venture also contains non-binding provisions for further co-operation and work is expected to begin next year. Zotefoam’s shares rose by 8 per cent. MF
