The revelation of a not entirely unexpected move by the government to suspend parliament in the lead up to the Brexit vote at the end of October has hit UK-focused shares, and the FTSE250 in particular, this morning. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
WH Smith’s (SMWH) plan to grow its travel business is continuing to grow strongly. The group’s pre-close trading update for the year to August revealed it is continuing to expand its store portfolio in the travel division. Most notably, much of this growth has come from opening outlets in hospitals, which now make up the second-largest channel in the UK travel business. Buy.
Fulham Shore (FUL) shares rose nearly 4 per cent in early trading on the back of a trading update that detailed more store openings and disclosed increased revenues at its Franco Manca restaurants. But owing to “the long spring and summer 2018 heatwave, which has not been repeated in 2019,” its Real Greek chain has seen like for like revenues until recently slightly behind last year. We remain sellers.
KEY STORIES:
BP (BP.) has sold its Alaskan assets for $5.6bn (£4.6bn), taking it much closer to the 2019-2020 selloff target of $10bn. The oil and gas supermajor has said it would shed assets to make up the $10.5bn spent on the BHP (BHP) onshore assets, with $1.5bn announced as of June 30. The 60-year-old Alaska business includes a 26 per cent share in the massive Prudhoe Bay oilfield and 49 per cent of the Trans Alaska Pipeline. In 2017, BP upstream boss Bernard Looney said at the 40th anniversary of production at the field the “story of Prudhoe Bay is far from over”. The buyer is the private Houston-based Hilcorp Energy.
Thomas Cook (TCG) will sell a majority stake to investor Fosun Tourism Group, securing 75 per cent of the embattled travel company’s equity and 25 per cent of its airline in return for a £450m contribution. The deal, which the parties aim to conclude in October 2019, could lead to Thomas Cook being delisted, although “the current intention of the board is to maintain the company's listing”. Thomas Cook has agreed to cover up to £5.43m of Fosun’s costs and expenses incurred by the arrangement.
Shares in Headlam (HEAD) have dropped close to 2 per cent this morning, despite the flooring group reporting like-for-like sales growth of 2 per cent in the first half of the year, compared with a decline in the full year 2018.
OTHER COMPANY NEWS:
Half year results from James Fisher (FSJ) indicate revenue has increased to £287m for the six months to 30 June, a 4 per cent increase at constant currencies and excluding acquisitions. Meanwhile, underlying operating profit has remained flat at £24.5m, with growth in offshore oil and tankships offset by a slow start in marine support, a weak market in South African and contract and doubtful debt provisions. Shares are down almost 4 per cent this morning.
Shares in IG Design (IGR) are up slightly this morning following a positive trading update from the group. The order book has continued to grow, as have production volumes. Management said the group’s growth in the period was due to a combination of organic growth and the acquisition of Impact Innovations in August last year.
