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News & Tips: Entertainment One, Eddie Stobart Logistics, Henry Boot & more

Toymaker Hasbro has announced it would acquire Entertainment One for 560p a share in cash, valuing it at £3.3bn
August 23, 2019

Click here to read Nicole Elliott's Market Outlook from this morning's trade and The Trader's take on the CBI's August distributive trades survey, which was published yesterday.

IC TIP UPDATES: 

Shares in Entertainment One (ETO) are up 30 per cent this morning after toymaker Hasbro announced it would acquire the studio for 560p a share in cash, valuing it at £3.3bn, which represents a 31 per cent premium to the group’s volume weighted average price over the last month. Analyst Numis said the price was fair, but “not necessarily knock-out value if other media/entertainment players can see good or even better synergies”. Await documents.

Half-year results released by Henry Boot (BOOT) this morning showed an eight per cent dip in profit before tax to £24m, alongside a 94 per cent increase in net debt, reaching over £50m. Since the end of the first half, however, a number of schemes and large sales have been concluded, putting “cash in the bank”. Chief executive John Sutcliffe claims that the debt is now “fully extinguished”. The group’s strategic land business performed especially well, with 2,148 plots of land sold in the period. Shares are up 0.24 per cent. 

 

KEY STORIES: 

USA Today has named Naked Wines (WINE) the “Best Wine Club 2019”. The award, for which it was chosen by a panel of experts, before being voted on by the public, speaks to the group’s growing popularity in the US. Management has been focusing growth efforts on the US since the sale of the Majestic Wines retail business earlier this year, and is reportedly sizing up a listing on the Nasdaq stock exchange.

Eddie Stobart Logistics (ESL) has suspended trading after a review of the group’s revenue recognition and some accounting policies determined that full-year adjusted operating profit is likely to be “significantly lower than anticipated”, and as a result the dividend policy will be reviewed. Alex Laffey has stepped down as chief executive with immediate effect and will be replaced by Sebastien Desreumaux, currently chief executive of iForce and head of contract logistics. Eddie Stobart has also delayed the release of its results to sometime in early September. 

 

OTHER COMPANY NEWS: 

Half-year results from Computacenter (CCC) indicate that revenue has surged by over a fifth to £2.4bn for the six months to 30 June while adjusted pre-tax profit has ticked up by a more muted 2.7 per cent to £53.5m. While technology sourcing sales increased by 28 per cent to £1.8bn during the period, services revenue saw only 3.6 per cent growth as the UK suffered from customer attrition in managed services and lower professional services volumes. Shares are up 4 per cent this morning.