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.
Thomas Cook shares plunge after profit warning. Thomas Cook Group (TCG) shares crashed 30% on Tuesday after a second profit warning in three months rocked investor confidence in the travel firm that dates back to 1841. A hot British summer and fierce discounting in the market for late holiday sales punished Cook’s bottom line. It is suspending the dividend for the year, alarming the City, which sent the stock down 15p to 33p. They were around 130p when former chief executive Harriet Green was ousted back in November 2014. Thomas Cook says profits will be £30 million lower than expected as recently as September, when the guidance was cut from £323 million to £280 million. In the year to September sales were up 6% to £9.58 billion, but “underlying” profits are down £58 million to £250 million.
Greggs profits on the rise as it bucks high street slowdown. Bakery chain reports 9% rise in sales after opening shops in stations and airports, and updating menu. Shares in Greggs (GRG) jumped 12% on Tuesday after investors were cheered by the news that profits in 2018 would be stronger than previously expected thanks to bumper sales in October and November. The bakery chain was the top FTSE 250 riser after reporting a 9% increase in sales in the eight weeks to 24 November. As well as offering its traditional favourites such as sausage rolls and pasties, Greggs customers can now indulge in the chain’s Christmas range, including its festive bake, its turkey, bacon and cranberry roll, and its mince pies. Greggs said that after the stronger sales it was now expecting full-year pretax profits of at least £86m in 2018, having previously expected profits to be roughly in line with the £81.8m achieved in 2017.
De La Rue (DLAR) revamps passports arm after losing out to French. Banknotes printer De La Rue is shaking up its passports division after losing out on the £500 million tender to make the new, blue British passport. The 197-year-old company, which controversially lost the contract to French firm Gemalto, will focus on selling off-the-shelf security features to countries who print their own passports. This will be instead of so-called “solutions”, which are computer systems used to manage ID information. Chief executive Martin Sutherland said: “We want to focus the growth in the identity business on the supply of those security features. “These are clever bits of materials science which make sure documents are difficult to counterfeit
Amazon ‘eyes Asda and Sainsbury (J) (SBRY) stores post-merger’. Amazon could be eyeing some of the stores Sainsbury’s and Asda may be forced to offload as part of their £14 million mega-merger, it has emerged. During a meeting on November 5 about the tie-up, the technology giant told the competition watchdog that acquisitions and investment in the UK grocery market are on the table. Competition and Markets Authority documents said Amazon executives had told them deals in the food market and other UK sectors are “under review”. The CMA added: “Amazon explained that Amazon Fresh is a recent entrant in the UK. At the moment, they are focusing on how to improve the customer experience.”
Pets at Home Group (PETS) has fired the starting gun on radical overhaul of its veterinary division that could lead to the disposal of up to 30 of its vet practices. The retailer warned today that its full-year profits will be lower than expected as a result, after the restructure took a nasty bite out of its half-year earnings. The overhaul involves buying out 55 joint venture vet practices from its 471-strong Vet Group chain
Topps Tiles (TPT) is stockpiling key products ahead of the UK’s exit from the European Union as it prepares for possible supply disruption. The retailer said it would increase stock levels of ‘key selling lines’ ahead of March 2019, echoing the likes of Premier Foods and Pets at Home which have also said they will store products in case of disruption. It came as Topps Tiles unveiled a 25% decline in profits for the year to September 29, as it absorbed the costs of integrating its newly acquired commercial business
The chief executive of Amigo Holdings (AMGO) said the lender has indirectly cashed in on the collapse of controversial payday giant Wonga as regulators direct customers away from high-cost providers. The business, which lends up to £10,000 to those with bad credit histories provided payments are guaranteed by friends or family, said pre-tax profits over the first half jumped 66pc after an increase in customer numbers. Chief executive Glen Crawford said the results, the company’s first since it joined the FTSE 250 earlier this year, were boosted by Wonga’s downfall despite the lenders offering very different products because its failure caused the City watchdog to clampdown on the sector.
Environmentally conscious consumers inspired by TV shows like Blue Planet are reinvigorating the recycling industry and boosting profits at Pennon Group (PNN), the owner of waste business Viridor. The company’s pre-tax profits in the six months to Sept 30 rose by 8.7pc to £142.5m compared to the same period the year before. Revenue climbed 3.1% to £746.7m. Chris Loughlin, chief executive, said the company’s “strong performance” was helped by “favourable” conditions in the waste market, with rising environmental concerns “spurring action”.
The boss of West End landlord Shaftesbury (SHB) has insisted it is insulated from the troubles gripping the nation’s high streets but warned that the “chaos” surrounding Brexit could hit its tenants’ workforces and supply chains. The property company, which owns clusters of shops, restaurants and offices around London’s Carnaby Street, Chinatown and Covent Garden, saw its net property income grow 6.2pc to £94m in the year to September. Pre-tax profits slumped 42% to £176m but only because of lower gains from property revaluations than in the previous year.
