12th Jan 2016 11:18
LONDON (Alliance News) - The following is a summary of top news stories Tuesday.
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COMPANIES
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J Sainsbury once more emerged as the only 'Big Four' winner in the latest UK grocery sales figures from Kantar Worldpanel, with Tesco, Asda and Wm Morrison Supermarkets all suffering further declines. Sainsbury's sales for the 12 weeks to January 3 rose 0.8% year-on-year, with its market share inching up to 17.0% from 16.9% the year earlier. Tesco, still the market-share leader by some distance, saw sales decline 2.7% over the period, while its market share declined to 28.3% from 29.1%. Morrisons sales declined 2.6%, with its market share slipping to 11.0% from 11.3%.
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Separately, Morrisons reported a fall in total sales in the Christmas trading period, although sales grew on a like-for-like basis excluding fuel, and it announced the planned closure of a further seven stores. The grocer said total sales excluding fuel were down 1.2% in the nine weeks to January 3, on the same period the year before, and down 1.7% including fuel. On a like-for-like basis, sales excluding fuel grew 0.2% but fell 0.6% including fuel.
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Debenhams reported growth in like-for-like sales in the first 19 weeks of its financial year, and in its Christmas trading period, as it benefited from less discounting and a reduction in stock levels. The department store operator said group like-for-like sales in the 19 weeks to January 9 grew 1.9% on the same period the year before, rising 1.8% in the seven weeks to the same date. Debenhams said it made further progress on its strategic priorities which helped to deliver a strong trading performance and record sales in the Christmas week.
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Online takeaway delivery services Just Eat reported steaming hot rises in both reported and like-for-like order volumes in 2015. The company said its reported order growth for the year to the end of December was 57%, with like-for-like growth, which strips out the contribution from Australia's Menulog, which Just Eat agreed to buy in May, at 46%.
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Online electrical appliances retailer AO World said trading remains in line with its expectations for its full financial year after a solid performance in the third quarter to the end of December. AO World said its UK business continued to show growth across all categories, with revenue from its AO.com website up 35% and total UK revenue rising 24% in the third quarter year-on-year.
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Cinema operator Cineworld Group said trading for 2015 met its expectations, with revenue growth across the business over the course of the year. The group's pro-forma total revenue increased 12% in the year to the end of December, with box office revenue up 12%, retail revenue rising 14% and other income up 13%. The pro-forma numbers include Cinema City, the central and eastern Europe-based business that Cineworld acquired in February 2014.
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Recruiter Michael Page International said its gross profit dipped in the fourth quarter due to currency weakness across its operations and tougher trading in Asia Pacific. The group said its total gross profit fell 0.5% in the fourth quarter to the end of December, though it would have increased 5.3% in constant currencies.
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Greggs reported growth in sales in its recently-ended financial year, driven by sandwiches, drinks, hot food and coffee, although like-for-like sales growth slowed over the Christmas period against a strong comparative period and amid weaker footfall. The bakery and food-to-go retailer said total sales grew 3.7% in the 52 weeks to January 2, compared with the 53-week prior year. Excluding the prior year's 53rd week, total sales rose 5.2% against the 52-week prior year comparable, while company-managed shop like-for-like sales rose 4.7%.
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Direct Line Insurance Group was counting the cost of insurance claims in the wake of three storms and severe flooding in parts of the UK over December, with the costs to it to range between GBP110.0 million and GBP140.0 million. The motor and home insurer said the actual losses it incurs from storms Desmond, Eva and Frank will not be known with certainty for some while, meaning that the figure could rise. Direct Line said claims are expected to be incurred in both its home and commercial division.
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Troubled Anglo-South African miner Anglo American said it has sold its Tarmac Middle East interests to France's Colas Moyen Orient SAS. Colas Moyen Orient is part of Colas SA, which itself is owned by French conglomerate Bouygues Group.
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Virgin Money Holdings said it has poached Tesco Bank's chief financial officer to take up the same role at the lender in 2017. Peter Bole, whop has led Tesco Bank's finance function since 2009, has previously held senior finance positions at Royal Bank of Scotland Group and as an investment director at Standard Life. Virgin Money said its new CFO is likely to replace Dave Dyer in 2017 as a result of his "contractual position" at Tesco Bank. Dyer will remain with the business in a part-time advisory role "for a period of time".
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MARKETS
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UK indices were trading higher with supermarket chain Tesco leading the gainers following the results of the latest Kantar Worldpanel data. The pound fell to its lowest level against the dollar since June 2010 after a report that UK industrial production unexpectedly declined. Oil fell to a low of USD30.41 a barrel. Wall Street pointed to a higher open.
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FTSE 100: up 1.0% at 5,927.04
FTSE 250: up 0.4% at 16,731.02
AIM ALL-SHARE: up 0.3% at 722.44
GBP: down at USD1.4444 (USD1.4545)
EUR: flat at USD1.0846 (USD1.0885)
GOLD: down USD1,091.06 per ounce (USD1,098.88)
OIL (Brent): flat at USD31.63 a barrel (USD31.74)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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UK industrial production declined unexpectedly in November on falling energy output, figures from the Office for National Statistics showed. Industrial output slid 0.7% month-on-month after staying flat in October. It was forecast to grow 0.1% in November. Likewise, manufacturing output dropped 0.4%, confounding expectations for a 0.1% rise. In October, output fell 0.4% from prior month.
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The UK Financial Conduct Authority has said it did "not consult with any external body" as it made the decision to drop a review into banking culture, according to a Financial Times report. The financial watchdog's statement came in response to a freedom of information request, the article said, backing up a claim by Chancellor George Osborne that he was not aware of the plans.
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Like-for-like sales in the UK were up just 0.1% on year in December, the British Retail Consortium said. That was well shy of forecasts for an increase of 0.5% following the 0.4% contraction in November. Overall retail sales gained 1.0% on year. In the three months to December, sales were up 0.9%, including a 0.2% gain in food sales and a 1.5% increase in non-food sales.
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Russia could give asylum to Syrian leader Bashar al-Assad if he is forced to leave his country, Russian President Vladimir Putin said in an interview. "It was surely more difficult to grant Mr Snowden asylum in Russia than it would be in the case of Assad," Putin told Germany's most popular tabloid, Bild, referring to former US intelligence worker turned whistleblower, Edward Snowden, who was given asylum in Russia in 2013. Putin said it was too early to say whether Russia would have to shelter al-Assad, whose country has disintegrated in a civil war that has lasted almost five years. "First the Syrian population has to be able to vote, and then we will see if Assad would have to leave his country if he loses the election," Putin said.
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Senior diplomats from Japan, the US and South Korea will hold talks later this week in Tokyo to discuss responses to North Korea's recent nuclear test, the Japanese government said. "The idea is to confirm close trilateral cooperation in dealing with North Korea," Foreign Minister Fumio Kishida told reporters, referring to the meeting planned for Saturday. The US military sent a B-52 long-range bomber over the Korean peninsula Sunday in response to Wednesday's nuclear test, which Pyongyang said was of its first hydrogen bomb.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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