FTSE 100 Live Wednesday
- Burberry in red, warns of job cuts
- GSK boosts pipeline with $2bn deal
- Pawnbroker H&T backs US takeover
Market update: Burberry shares bounce, M&S leads lacklustre FTSE 100
10:28 , Graeme EvansLoss-making Burberry today led the FTSE 250 index after better-than-expected results fired up hopes that the “best days are ahead” for the luxury goods group.
Shares rose 60p to 886.8p, continuing their recovery from April’s low point of 627.8p, as figures for the year to 29 March came in ahead of City forecasts.
Like-for-like sales fell 6% in the final quarter compared with the 8% predicted, while second half earnings of £67 million were better than the £52 million consensus.
Burberry still recorded a full-year loss of £66 million, down from a profit of £383 million amid the impact of economic turbulence and the early stages of the turnaround led by new chief executive Joshua Schulman.
He told investors today that “I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time".
In an effort to fund growth opportunities, Schulman hiked the company’s cost savings target for the 2027 financial year by £60 million to £100 million. This will put about 1700 jobs at risk.
Burberry shares were the best performing in an otherwise disappointing session for those companies reporting today.
Imperial Brands fell 6% or 187p to 2703p as the worst performing stock in the FTSE 100 after it announced that chief executive Stefan Bomhard is to leave after five years in the role.
Finance boss Lukas Paravicini will lead the Bristol-based maker and distributor of brands including JPS, Davidoff and Blu from October.
The CEO change was announced alongside interim results showing that the company remains on track to meet full-year expectations.
Compass shares dropped 37p to 2569p after the catering giant reiterated guidance, while the thermal engineer Spirax dropped 4% or 295p to 6290p after it said demand trends were consistent with those highlighted in March.
The data and technology company Experian also declined 74p to 3908p in the wake of annual results, despite forecasting total revenue growth of 9-11% for the new financial year.
The FTSE 100 index fell 0.2% or 20.71 points to 8582.21, while the FTSE 250 index drifted 22.61 points to 20,737.06.
Marks & Spencer shares showed signs of recovery after their recent cyber attack losses, putting back 3% or 11.8p to 357.2p as the best stock in the FTSE 100 index.
MFI set to return as homewares business
09:44 , Graeme EvansMFI has been given a new lease of life after Victorian Plumbing today announced it will use the name for a standalone online homewares business.
The group obtained the brand and three letter domain name as part of its Victoria Plum acquisition in May 2024. Kitchens and furniture specialist MFI went into administration in 2008.
AIM-listed Victorian Plumbing said it will operate MFI from two warehouses it previously vacated in Skelmersdale, Lancashire.
Founder and chief executive Mark Radcliffe said: “I am very excited about the upcoming re-invention of MFI, allowing us to tap into more of the £20bn UK Homewares market.”
The MFI disclosure came as Victorian Plumbing announced a 6% rise in half-year revenues to £152.7 million and 3% lift in adjusted profits to £11.8 million.
Shares fell 15% or 16p to 91.5p after it said that MFI launch costs would leave this year’s profit between £21 million and £22 million.
Imperial falls in steady FTSE 100, Burberry up 9%
08:36 , Graeme EvansThe FTSE 100-listed shares of Imperial Brands and Compass are down 7% and 4% respectively after they posted half-year results today.
Despite both companies reiterating full-year guidance, Imperial declined 208p to 2682p and the catering giant dropped 95p to 2511p.
The FTSE 100 index rose 4.22 points at 8607.14, while the FTSE 250 index is 0.4% or 79.81 points higher at 20,839.48.
Burberry shares rose 9% or 73.2p to 900p after the luxury goods group increased its annual cost savings target to £100 million.
FirstCash unveils H&T takeover deal
08:25 , Graeme EvansAmerican pawn store business FirstCash is to enter the UK market after it today unveiled a £351 million deal to buy the UK’s largest pawnbroker.
AIM-listed H&T Group, which has 285 stores, said it will recommend the 650p-a-share proposal to shareholders after receiving four approaches from FirstCash since December.
FirstCash, which is listed on the Nasdaq exchange, has more than 3000 pawn stores in the United States and Latin America. It employs 20,000 people.
The deal, which is subject to the approval of H&T shareholders, represents a 44% premium to last night’s price of 458p and is 71% above the three-month average.
Imperial Brands names new boss, sticks to guidance
08:01 , Graeme EvansImperial Brands today announced that Stefan Bomhard is to step down as chief executive after five years in the role.
Finance boss Lukas Paravicini will lead the Bristol-based maker and distributor of brands including JPS, Davidoff and Blu from October.
The CEO change was announced alongside interim results showing that the company remains on track to meet its full-year guidance.
Tobacco price growth of 5.9% offset a 3.2% decline in volumes to 87 billion stick equivalents, while revenues from next generation products rose 15.4%.
Net revenues lifted 3.2% to £3.6 billion, although volume declines in high excise markets and adverse foreign exchange meant the reported revenues figure fell 3.1% to £14.6 billion. Operating profit dipped 2.5% to £1.5 billion.
Burberry posts loss, warns jobs under threat
07:36 , Graeme EvansBurberry is to step up its cost saving programme after the luxury fashion group slumped to a bottom-line loss of £66 million for the year to 29 March.
The former FTSE 100-listed group warned that 1700 jobs could be impacted after increasing its annual savings target to £100 million by 2027.
The change from the previously announced £40 million will also come from efficiencies around procurement and real estate.
Burberry said the savings will be used to fund its biggest growth opportunities.
Chief executive Joshua Schulman said: “While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time."
Revenues fell 17% to £2.5 billion, with retail like-for-like sales down by 6% in the fourth quarter compared with 12% for the financial year as a whole. The group made a profit of £383 million in 2023/24.
GSK boosts pipeline with $2bn liver treatment deal
07:18 , Graeme EvansGSK today unveiled a deal to acquire a “potential best-in-class” specialty medicine to treat and prevent progression of steatotic liver disease (SLD).
Under the agreement to acquire Boston Pharmaceuticals' lead asset Efimosfermin, GSK will pay $1.2 billion upfront followed by additional success-based milestone payments totalling $800 million.
Affecting up to 5% of the global population, the company said SLD represents an area of significant unmet medical need with limited treatment options.
GSK said the phase III-ready treatment will significantly expand its hepatology pipeline and provide the opportunity to develop a new potential best-in-class medicine with first launch expected in 2029.
FTSE 100 set to continue lacklustre run, pound at $1.33
07:03 , Graeme EvansA mixed performance by leading US and Asia benchmarks has put pressure on the FTSE 100 index after yesterday’s unchanged finish.
London’s top flight is seen opening 0.2% lower at about 8585 after the Dow Jones Industrial Average fell by 0.6% at last night’s closing bell.
The S&P 500 index rose 0.7% and the Nasdaq Composite lifted 1.6% after inflation figures boosted the outlook for US interest rate cuts.
In Asia, the Nikkei 225 is slightly lower while the Hang Seng index has risen by about 1.8%.
The pound has improved to $1.33 in the aftermath of yesterday’s softer-than-forecast US inflation reading, while Brent Crude is at $66.32 a barrel.
