Shares in London's main indices are off colour again with domestically focused shares in particular feeling the strain of uncertainty around the general election result. Click here for The Trader Nicole Elliott's latest thoughts on the markets.
IC TIP UPDATES:
Stagecoach (SGC) half-year revenues dropped to £800m from £1bn, reflecting the end of the Virgin Trains East Coast franchise in June 2018 and the end of the East Midlands Trains franchise in August 2019. The transport group attributed lower operating profits to lower UK Bus profit, including “2018's exceptionally good summer weather contrasting with this summer's poorer weather” and the non-repeat of revenue last year from operating bus services linked to rail re-signalling work in the Derby area. Sell.
Shares in JD Sports (JD.) are down 8 per cent this morning after majority shareholder Pentland sold shares equivalent to 2.47 per cent of the retailer’s issued share capital at 741p each. Pentland still owns 55 per cent of JD’s shares. It said the sale will allow it to fund future investments and increase the free float “to meet the increasing interest expressed in JD by other shareholders. The share price movement looks scary, but it simply brings the price in line with Pentland’s sale price. Buy.
Team17’s (TM17) share price is up 4 per cent this morning after the group announced the launch of The Survivalists, a new game for Nintendo Switch, Playstation 4, Xbox One and PC. It will launch next year, and builds on the group’s existing franchise The Escapists. Buy.
KEY STORIES:
After market-close last night, beleaguered M&C Saatchi (SAA) announced that executive director Lord Saatchi has tendered his resignation. It also said that non-executive directors Lord Dobbs, Sir Michael Peat and Lorna Tilbian have stepped down with immediate effect. “We are determined to restore the operational performance and profitability of the business and are already implementing all of the recommendations set out in the PwC report we announced last week” said chairman Jeremy Sinclair. Mr Sinclair added that a process had started to reconstruct the board with new independent directors. Shares in the advertising group were down by around 6 per cent this morning.
Saga (SAGA) has appointed Euan Sutherland as chief executive, starting January 2020. Mr Sutherland recently served as chief executive of Superdry (SDRY), until he resigned immediately after founder Julian Dunkerton was reelected to the board, following months of criticism of Sutherland’s strategy and leadership. Saga highlighted Sutherland’s “substantial experience having led major consumer-facing businesses, including financial services, through periods of change”.
OTHER COMPANY NEWS:
Spread-betting and online trading firm IG Group (IGG) has a new chairman. Mike McTighe, a former executive at Cable and Wireless, Philips, Motorola, and GE, and the current chairman of Openreach Limited, will take over from interim chair Jonathan Moulds at the beginning of February.
Allied Minds (ALM) has today launched a wholesale shake-up of its board and broader restructuring, in the intellectual property group’s latest effort to balance its cash position and “maximise monetisation opportunities” in the portfolio. Co-CEO Mike Turner and chairman Jeff Rohr will step down in March and June, respectively, while Mark Lerdal joins as a non-executive director. Head office costs will be reduced to “no more than $6m” a year, while shareholders are now set to receive $40m from the sale of the Hawkeye360 stake, up from an initial $32.8m. Shares are up 4 per cent in early trading.
