Below are the key headlines from today’s updated papers, featuring the Financial Times, The Times, The Telegraph, The Daily Mail & more - see the full Press section here.
Dearth of deals sends City broker Cenkos profits tumbling. City broker Cenkos Securities (CNKS) saw profits plunge by 68% after a “difficult” year hit by a lack of large deals. The small and mid-cap specialist, which worked on large flotations of AA and BCA Marketplace five years ago, could only piece together small transactions in 2018, such as the £43 million listing of Rosenblatt law firm and £170 million placing for Breedon. Profits fell to £3.2 million from £10 million. Chief executive Anthony Hotson, who stands down this summer, said: “2018 was a difficult year for stockbrokers. The deal flow in the first half was way down. In the second half it improved a lot. Deals were delayed. It was lots of smaller transactions.” Cenkos also said Brexit had “disrupted confidence”.
Avon Rubber clinches $250m contract to provide US Army with hi-tech masks. Avon Rubber (AVON) , the UK industrials group, will supply American Special Forces with chemical and biological protection masks after clinching a $246 million (£186 million) US Department of Defense contract. The mask, known as the M53A1, protects against radioactive dust and biological weapons. The deal will run for up to seven years and includes self-contained breathing apparatus.
Shares in plumbing supplier Ferguson (FERG) tumbled after the FTSE 100 listed but US-focused company said profit the full year would come in at the lower end of market expectations. Ferguson, previously known as Wolseley, said it expects sales to rise between 3 to 5% over the full year – which implies the company saw a modest growth in the second half after sales increased 6.5% in the first half. For this reason, the company now expects full year trading profit to be at the lower end of guidance, just below $1.6billion. That’s despite Ferguson, which makes the majority of its sales and profits in America, reported an 8% rise in trading profits to $744million (£564million) in its first half to the end of January. First half reported revenues jumped 8.2% to $10.85billion (£8.2billion), helped in part by the exit of its Dutch plumbing and heating business, which generated $255million in cash.
Fever-Tree UK retail growth could have peaked after supermarket sweep. The boss of Fevertree Drinks (FEVR) on Tuesday suggested the tonic maker’s remarkable growth in Britain may have peaked. Tim Warrillow cheered a 53% UK sales jump in 2018, but said supplier contracts to supermarkets have little room to grow. He said: “We are so well stocked by UK retailers [already] and the clear market leader, so it is natural that we will see a moderation in growth rates this year.”
Men’s apparel firm Moss Bros Group (MOSB) blamed stock shortages, extreme weather and heavy discounting for swinging to its first loss in eight years. The retailer, which was stung by stock shortages in the first quarter, booked a loss of £4.2million in the year to January 26, the first annual loss before tax since 2011. That compares to a profit of £6.7million in 2017, with boss Brian Brick saying 2018 was an ‘extremely challenging’ year. Moss Bros said the hot summer and World Cup dented demand, to which it responded by lowering prices, a move which ate into margins. Revenues were also down 2.1% at £129million and like-for-like sales dropped 4.3%. Gross margin dropped to 57.5% from 59.8%, also due to the impact of a weaker pound during the first half.
Ocado back on track with Coles deal in Australia. Ocado Group (OCDO) on Tuesday bagged one of its largest international deals, allaying fears that a huge fire at its Andover warehouse last month would hold back growth. The online retailer has signed its eighth partnership with another retailer, selling its robots and software to Australian grocer Coles. Finance boss Duncan Tatton-Brown said: “The importance of this deal is that it’s just another deal. We were always confident we had no issues [with the technology]… but it’s not unhelpful that we’ve signed a deal after Andover.”
Crest Nicholson poaches new chief from rival. Crest Nicholson Holdings (CRST) has hired Peter Truscott, chief executive of rival housebuilder Galliford Try (GFRD) , to head up its own business. The leadership change has been overseen by Stephen Stone, the chairman, and is designed to bring in a new skill set. Mr Truscott will be in charge of a shift in strategy “from growth to cash generation”, bringing a stronger emphasis on public sector partnerships and other joint ventures to de-risk the portfolio and build more homes. Patrick Bergin, who replaced Mr Stone as chief executive a year ago, will step down in May. Mr Bergin has been with the group since 2006. Mr Truscott will arrive in September and Chris Tinker, currently chairman of major projects and strategic partnerships, will take up the role in the interim.
Debenhams warns Sports Direct takeover bid won’t solve its funding crisis. Struggling retailer Debenhams (DEB) has said it will give any firm takeover offer from Mike Ashley’s Sports Direct International (SPD) “due consideration” but said it would continue with emergency funding plans. Sports Direct said after market close on Monday it was considering making an offer to buy Debenhams to save the beleaguered department store chain. Debenhams said given the “timetable associated with any public offer”, a bid from Sports Direct would not address its immediate financing needs. It confirmed Sports Direct now has until 5pm on April 22 to announce a firm intention to make a bid or walk away, under City takeover rules.