22nd Jan 2020 11:22
(Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Berkeley Group said it intends to increase its returns to shareholders by GBP455 million over the next two years, to total GBP1 billion over the period. The FTSE 100 housebuilder's existing programme was for returns of GBP125 million to be made by March 31, 2020, and GBP280 million in each of the following financial years up to September 30, 2025. However, Berkeley's new plan is to return GBP500 million through a B share scheme in March 2020, and a further GBP500 million to shareholders through a C share scheme in March 2021. Following the GBP1 billion return, Berkeley intends to revert to annual returns of GBP280 million, by making payments of GBP140 million every six months, up to and including September 30, 2025.
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Burberry raised its full-year revenue guidance after reporting sales growth over the pivotal Christmas trading period. In the period to December 28, retail sales rose 1.1% year-on-year to GBP719 million from GBP711 million, or by 2% at constant currency. On a like-for-like basis, sales climbed 3% during the period, building on a year before when they grew by 1%. The company, famed for its checked print and trench coats, said the revenue increase was due to a rise in full-price sales, which ultimately offset disruptions from civil unrest in Hong Kong. In its Asia Pacific unit, sales rose by a low-single digit, Burberry said, with mainland China up in the "mid-teens" while Hong Kong sales halved. For the financial year ending March, the luxury retailer now expects revenue to grow by a low single-digit percentage, at constant currency. Previously, it saw flat sales at constant currency.
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Antofagasta reported a "good" 2019 despite problems such as drought and social unrest in Chile. The copper miner achieved fourth-quarter copper production of 185,500 tonnes, which it said is "only" 5.8% lower than the previous quarter. The decline was due to planned lower grades and maintenance at the Centinela mine, as well as a strike at Antucoya and fuel delivery disruption at Los Pelambres due to social unrest in Chile. Antofagasta's 2019 production of copper was 770,000 tonnes, a record for the company and at the top end of guidance. This was 6.2% higher than 2018 due to increased output at Los Pelambres, Centinela, and Zaldivar. Fourth-quarter gold production fell 28% quarterly to 55,600 ounces due to lower grades at Centinela, with the 2019 figure up 34% at 282,300 ounces.
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Strong performance in North America and northern Europe helped drive Sage Group to double-digit revenue growth in its first quarter, the company said. Newcastle-headquartered Sage achieved recurring revenue of GBP410 million in the three months to December, 11% higher than the year before. This, it said, was underpinned by software subscription growth of 25% to GBP286 million. Recurring revenue growth was "principally" driven by the North America and Northern Europe segments, Sage continued, with strong momentum in its financial year ended September continuing. North America recurring revenue was up 12% to GBP154 million, and Northern Europe rose 15% to GBP93 million.
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WH Smith reported a "good" recent performance with the company on track to meet annual performance expectations. The FTSE 250 books and stationery retailer delivered revenue growth of 7% in the 20 weeks to January 18, with like-for-like revenue falling by 1%. The High Street business's revenue fell by 5% on both a reported and like-for-like basis. Gross margin was ahead of plan, however, and WH Smith has identified further cost savings of GBP3 million, meaning savings in its year ending August will be GBP12 million. Swindon-headquartered WH Smith achieved 19% revenue growth in the Travel business, which was driven by the acquisitions of Marshall Retail Group and InMotion.
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JD Wetherspoon reported a rise in like-for-like sales in the 12 weeks to January 19, but warned its year-end net debt will be higher than first thought and it again took aim at City corporate governance rules. During the first 12 weeks of its second quarter, which included the Christmas trading spell, total sales rose by 4.2% with like-for-like sales 4.7% higher. Total year-to-date sales were 4.9% higher year-on-year, or up 5.0% like-for-like. Since the end of its last financial year in July 28, the company has opened one new pub and sold five. It eyes opening between 10 and 15 and spending GBP80 million on new units or extensions. The FTSE 250 pub chain added that it has spent GBP57 million so far this financial on freehold reversions of 18 pubs.
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MARKETS
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London shares were higher shrugging off fears about the outbreak of the coronavirus in China. In the FTSE 100, Berkeley Group was the best performer, up 5.1%. Wall Street was called for a higher open with major stock indices pointed up 0.3% to 0.6%. In addition, the World Economic Forum continues in Davos, Switzerland.
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FTSE 100: up 0.2% at 7,625.75
FTSE 250: up 0.3% at 21,803.04
AIM ALL-SHARE: up 0.4% at 966.15
GBP: firm at USD1.3060 (USD1.3045)
EUR: flat at USD1.1093 (USD1.1096)
GOLD: flat at USD1,558.15 per ounce (USD1,557.30)
OIL (Brent): down at USD64.16 a barrel (USD64.72)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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UK MPs will consider amendments to the prime minister's Brexit deal after the government was defeated five times by defiant peers. The House of Lords backed two more amendments to the EU Withdrawal Agreement Bill in a mauling for ministers on Tuesday. It followed three defeats on Monday on the rights of EU workers legally residing in the UK to have physical proof of their right to remain and the power of courts to depart from European Court of Justice rulings. With Brexit day looming on January 31, the Bill, which was passed with large majorities by MPs earlier this month, will have to return to the Commons for further scrutiny on Wednesday.
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A new virus that has killed nine people, infected hundreds and reached the US could mutate and spread, China warned Wednesday, as authorities scrambled to contain the disease during the Lunar New Year travel season. The coronavirus has caused alarm for its similarity to Severe Acute Respiratory Syndrome, or SARS, which killed nearly 650 people across mainland China and Hong Kong in 2002-2003. In Wuhan, the epicentre of the outbreak, authorities cancelled large public events, called on visitors to stay away and urged residents not to leave the central Chinese city of 11 million people. The illness is mainly transmitted via the respiratory tract and there "is the possibility of viral mutation and further spread of the disease", National Health Commission vice-minister Li Bin told a news conference in Beijing. He added that 1,394 people are still under medical observation, while 765 others have been discharged.
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Republicans and Democrats clashed over calling witnesses and demanding White House documents on the first full day Tuesday of the historic impeachment trial of US President Donald Trump. House impeachment managers led by veteran prosecutor Adam Schiff used the opening debate over trial procedures to lay out on national television their case against the US leader, underscoring why they want the Senate to immediately issue subpoenas for new evidence and Trump aides to testify. Republican Senate leader Mitch McConnell bared his own political muscle, mobilizing his side's 53-47 majority in the body to slap down one after another Democratic efforts to change the trial procedures he reportedly crafted together with the White House to protect Trump. "The basic structure we're proposing is just as eminently fair and even-handed," McConnell said. But Schiff said that order of procedure "makes no sense" and was designed instead to ensure evidence is never heard and Trump is exculpated.
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