The FTSE100 has started the week on a positive note despite a tit for tat move by China to suspend US military visits to Hong Kong in response to a law passed in the US last week backing Hong Kong protesters. Meanwhile, lower down the markets, the FTSE Aim 100 has slipped back by more than 1 per cent. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
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Bloomsbury Publishing (BMY) has entered the domestic Chinese market through a joint venture with the China Youth Publishing Group, a state-owned publisher, and Roaring Lion Media (RLM), a limited company subsidiary of CYPG. The joint venture will be based in Beijing and will publish its own titles originating from China, along with licensing titles from Bloomsbury and other global publishers, in the Chinese language for the mainland market. Bloomsbury has 50 per cent ownership in the joint venture, CYPG has 30 per cent, and RLM has 20 per cent. Bloomsbury’s announcement this morning noted that the investment is “de minimis”. Buy.
MJ Gleeson (GLE) announced that interim chief executive James Thomson has been appointed to the role on a permanent basis. Mr Thomson - who was previously chief executive of Keepmoat Homes - has now resigned as a non-executive director of privately-owned Keystone (the parent company of Keepmoat Homes), in which he holds a 3.7 per cent equity interest. Buy.
St Modwen (SMP) has sold its interests in a purpose-built student accommodation building at Swansea University Bay Campus for £38m. The sale follows the disposal of a first phase of student accommodation, totalling 2005 rooms, to University Partnerships Programme in February 2018. Buy.
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Shares in Ocado (OCDO) have fallen by around 8 per cent this morning after the group launched a £500m convertible bond offering. The debt will be used to fund capex on the solutions business’s commitments and will carry a coupon of 0.75-1.25 per cent annually until 2025. The group also announced it expects retail revenue growth of 10-11 per cent for the 13 weeks to the beginning of December.
LSL Property Services (LSL) reported a 3 per cent decline in revenue during the first 10 months of the year, including the impact of closures within the Your Move and Reeds Rains branch networks. However, on a like-for-like basis, revenue rose 5 per cent despite the property services group reporting subdued market activity during the period.
Ted Baker’s (TED) shares are down 5 per cent this morning after the group announced it had overstated the value of its inventories by £20m-£25m. It has appointed law firm Freshfields Bruckhaus Deringer, and will also be appointing independent accountants, to carry out a review. The group reported inventories of around £210m at the half-year, so the adjustment is only about a tenth, but the announcement will further damage confidence in a group already struggling following a slew of bad press and poor results.
