Yahoo Finance FTSE 100 Live: Aviva, Entain and Domino’s results, WANdisco raises fraud alarm
Ladbrokes owner Entain, insurance giant Aviva and Domino’s Pizza UK are among a large number of companies reporting today.
Aviva boss Amanda Blanc hailed the insurer’s “excellent progress” and continued trading momentum as it overcame significant market volatility to lift 2022 operating profits by 35% to £2.2 billion. The total dividend rose 40% to 31p a share.
Blanc said: “We have radically simplified Aviva, we are financially strong and we are utterly focused on transforming and growing the business.”
FTSE 100 Live Thursday
Aviva in £300m share buy back
WANDisco reveals potential fraud, suspends shares
Ladbrokes owner Entain eyes acquisitions
Struggling fintech Railsr agrees rescue deal to avoid collapse
17:12 , Simon Hunt
Beleaguered fintech Railsr is set to be rescued from collapse after it agreed a sale to investors.
The London-based business has received investment from a group including D Squared Capital, Moneta VC and Ventura Capital in a move that will allow it to continue trading uder a new entity, with the existing one being put into administration. The terms of the sale were not disclosed.
It comes after reports the Financial Conduct Authority was keeping a close eye over the health of Railsr after it initiated talks to complete an emergency sale.
Railsr said the change of control has been agreed with the Financial Conduct Authority in the UK and the company will remain headquartered in the City of London.
What next for the Paperchase store estate as retailer adds to long list of empty shop spaces?
14:08 , Joanna Hodgson
On a chilly day this week at a Enfield shopping centre there were plenty of clothing retailers to visit, but there was one large vacant shop with a “unit to let” sign in the window.
This space was once home to a buzzing north London Topshop branch popular with local fashion-loving millennials, and new data shows it is just one of hundreds of stores in Great Britain currently empty following three high-profile retail casualties.
The latest figures could send a shiver down the spines of some Paperchase landlords preparing for the stationery retailer to exit 106 stores and concessions within the next two months, resulting in the loss of 900 jobs.
From the mess of Commercial Accident, a strong Aviva finally emerges
12:11 , Simon English
On February 25 1998 a corporate calamity was born.
Commercial Union merged with General Accident – two companies who were supposed to measure risk but plainly could not – in a deal that quickly became known as Commercial Accident.
In search of yet more excitement, they added on the newly stock market listed Norwich Union to form Commercial GNU.
This was an oddly shaped animal to say the least.
Image consultants were called in and decided to rebrand the whole shambles as Aviva. A name that worked equally well in all time zones since it meant nothing to anyone.
Markets lower as miners struggle, Hammerson down 8%
10:27 , Graeme Evans
Hammerson shares are down 8% in the FTSE 250 index after the Brent Cross shopping centre business posted its 2022 results.
The company, whose portfolio also includes Birmingham’s Bullring and Cabot Circus in Bristol, said footfall recovered to 90% of 2019 levels as it also bolstered the balance sheet with disposals that have focused operations on key city centre locations.
Chief executive Rita-Rose Gagné said Hammerson was now a “better, more agile, and resilient business” as adjusted earnings rose 60% to £105 million. However, broker Peel Hunt said the figures were a little light. It added: “The balance sheet still needs some TLC and the lack of a final dividend will disappoint some.”
Hammerson fell 2.4p to 26.9p but wasn’t alone in suffering a results-day slump, with thermal energy management business Spirax-Sarco Engineering and Endeavour Mining down 5% in the FTSE 100 index.
A number of other mining stocks took a hit from increased expectations that the US Federal Reserve will hike interest rates by 0.5% later this month. The FTSE 100 index dropped 0.8% or 60.38 points to 7869.54, with Anglo American 55p lower at 2825.5p and Rio Tinto off 5% or 277p to 5683p as the latter’s shares began trading without the right to the latest dividend.
In the FTSE 250 index, North Sea-focused explorer Harbour Energy today revealed post-tax profits had been wiped out by the government’s Energy Profits Levy.
The company, which delivered about 15% of the UK's domestic oil and gas supplies, said certain investment opportunities were now delayed or no longer being progressed. Shares edged up 1.1p to 288p but are down for the year despite higher oil and gas prices.
The FTSE 250 fell by 1.1% or 221.83 points to 19,630.14, with National Express off 6% or 8.1p to 134.5p after analysts at Liberum gave the coach operator a “sell” recommendation amid concern over the company’s debt position.
On AIM, the Cardiff-based semiconductor wafers firm IQE slid 28% or 13.25p to 33.5p as it warned of a £30 million first half decline in revenues. It blamed the downturn on an inventory build-up throughout the supply chain.
Aviva in £300m share buy back
10:07 , Simon English
AVIVA today pledged to buy back another £300 million of shares as it bids to keep returning capital to shareholders.
Under Amanda Blanc, CEO since 2020, the once sprawling insurer now has a sharp focus. She sold eight European businesses netting £8 billion, of which £5 billion has been handed to investors.
The focus on Canada and Ireland as well as the UK, has helped protect it from tough times in the UK market that have seen rivals such as Direct Line and Admiral struggle.
In 2022 premiums rose 8% to £9.7 billion. Profits jumped 35% to £2.2 billion. And the dividend is up nearly 50% to 31p.
It seems to have met the demands of activist investor Cevian, which has been selling down its stake and is no longer the biggest investor at 4%.
Blanc has been well rewarded for her efforts, getting paid £5.5 million, up from £3 million a year ago.
Her chairman, George Culmer, got £564,000.
Blanc said: “We are making excellent progress. Operating profits and dividends are growing and we have strong trading momentum despite significant market volatility.”
Under her, a once seemingly confused business now has a much sharper focus.
That is good news for the 500,000 retail investors who hold the shares – mostly stock they got when Norwich Union demutualised.
Today the shares moved up 12p to 462p.
City analysts think Aviva could expand in motor insurance but otherwise doubt it would consider large scale deals, given Blanc’s success in shrinking the company.
“Aviva now offers one of the strongest levels of total capital return in the sector," JPMorgan analysts said in a note.
Blanc added: “The diversified model we have built at Aviva has proved its worth, providing clear benefits for customers and shareholders and driving our great results last year. Whilst I am pleased with what’s been accomplished over the past twelve months, I am clear there is significantly more value which Aviva can and will deliver in 2023 and beyond."
City Comment: Aviva finally on the up
09:33 , Simon English
ON February 25 1998 a corporate calamity was born.
Commercial Union merged with General Accident – two companies who were supposed to measure risk but plainly could not – in a deal that quickly became known as Commercial Accident.
This wasn’t funny enough for the jokesters in charge, so they added on the newly stock market listed Norwich Union to form Commercial GNU.
This was an oddly shaped animal to say the least.
Image consultants were called in and decided to rebrand the whole shambles as Aviva. A name that worked equally well in all time zones since it meant nothing to anyone.
Some of us confused it with the bus company Arriva, which was unfair since it turned up on schedule at least some of the time.
In 2009 chief executive Andrew Moss admitted to an affair with a colleague’s wife, also his HR director, which should have been no-one’s business until chairman Lord Sharman went public and insisted Moss had his full confidence and had broken no rules.
(She hadn’t either, but guess which one of them had to resign.)
This issue may not have mattered to shareholders of itself, but seemed symbolic.
Lately there is a danger that Aviva is becoming tediously functional. That from the mess of several accidents commercial and otherwise it is now doing what it is supposed to do.
(Let’s be fair and say that Moss and others may have been helpful along the way, stumbles allowing.)
Newish chief Amanda Blanc has sold eight businesses for £8 billion and returned most of it to shareholders, who have stopped assuming that a letter of apology was also in the post.
In a tough period for insurers, especially those with just a UK focus, Aviva looks like top dog (sorry Churchill).
If this runs to past form, Blanc suddenly turns acquisition crazy-go-nuts, gets a new boyfriend and diversifies into amusement arcades because he’s really into 10-pin bowling.
This doesn’t seem likely. Shareholders, customers and employees should all be thankful for that.
Ladbrokes owner focuses on acquiring, not being acquired
09:25 , Daniel O'Boyle
Ladbrokes owner Entain has set its sights on being an acquirer after being spurned by former bidder MGM, hoping to find growth in new markets as affordability measures eat into UK revenue.
The betting operator was seen as an acquisition target for much of 2021 and 2022, but last month Entain’s shares plummeted when MGM CEO Bill Hornbuckle revealed that his business was no longer interested in buying the Ladbrokes owner.
CFO Rob Wood told the Standard that whether Entain is an acquisition target doesn’t change anything about how it does business.
“It doesn’t change anything at all,” he said. “We have our own strategy, we’re growing tremendously well. We are extremely excited by and focused on our own growth.”
That strategy involves Entain itself becoming a buyer, snapping up popular betting brands in new markets as revenue growth in its core regions like the UK - where affordability checks introduced in anticipation of the Government reforms have cost roughly 10% of revenue - runs out.
“We very much are looking to continue with more acquisitions into 2023,” he said. “We did nine last year and I would like to do more.”
Informa hopes to take advantage of Asian post-covid recovery with $940 million acquisiton
08:55 , Daniel O'Boyle
Informa has bought trade show organiser Tarsus for $940 million to take advantage of the Asian post-covid recovery of in-person events.
Tarsus owns 160 B2B events, mostly in Asia, where the events market recover much more slowly from the pandemic than Europe and North America.
The announcement came as Informa published its full-year results, with revenue up 42.9% to £2.26 billion.
“Informa is firmly back in growth,” CEO Stephen A Carter said. “Growth in revenues, growth in profits, growth in cash flow and, importantly, growth in shareholder returns.”
Informa returned its dividend in 2022, at 9.8p per share.
FTSE 100 lower, Aviva shares up 3% after results
08:39 , Graeme Evans
The FTSE 100 index has fallen 0.5% or 39.11 points to 7890.81 and the FTSE 250 index is off 117.61 points to 19,734.36 during a weaker-than-expected session for the London market.
Endeavour Mining and thermal energy management business Spirax-Sarco Engineering are at the top of the blue-chip fallers board, with the pair’s annual results causing shares to drop 8% or 143p to 1548p and 6% or 675p to 11,195p respectively.
Weaker mining stocks Anglo American and Antofagasta also contributed to the downward pressure, while Ladbrokes owner Entain fell 24.5p to 1367.5p following annual results.
Aviva lifted 3% or 14.5p to 464.6p after it announced a new £300 million share buyback plan, while exhibitions and business information specialist Informa lifted 15.8p to 695.2p on the back of results.
In the FTSE 250 index, shopping centre owner Hammerson lost 10% of its value and Domino’s Pizza shed 5% in the wake of their full-year figures.
Domino’s cheers world cup boost after sales surge in fourth quarter
08:13 , Simon Hunt
Domino’s has cheered a boost in sales during the World Cup after revenues soared in the final months of the year.
The firm said turnover climbed 13.9% in the fourth quarter of 2022 and was up 7% over the whole year to top £600 million. Domino’s said its enhanced digital offering, including a new partnership with the Just Eat delivery app, had also helped sales.
However, the investments in technology hurt its earnings, which fell 8.4% to £110 million.
Shares fell 0.7% to 310p.
Markets calm as Fed boss softens rates message
07:48 , Graeme Evans
Wall Street markets posted a steadier session yesterday after Federal Reserve chair Jerome Powell softened his message on the pace of future rate hikes.
The S&P 500 index and Dow Jones Industrial Average finished broadly unchanged as Powell insisted a move back to larger rate rises was not a done deal.
The Federal Reserve’s next policy meeting will take place on 22 March, with futures markets currently pointing to a 0.5% increase. This position will be reinforced tomorrow if US non-farm payroll figures deliver another upside surprise.
The FTSE 100 index finished 0.1% higher yesterday and is expected by CMC Markets to open 15 points lower at 7915 when trading resumes today.
WANdisco discovers major fraud and asks for its shares to be suspended
07:34 , Michael Hunter
WANdisco, the data company that only days ago was eyeing a US listing for its shares, is now asking for them to be suspended in London after it discovered a major fraud.
The impact of “significant, sophisticated and potentially fraudulent irregularities” with revenue booked by “one senior sales employee” amounted to “a potential material mis-statement of the company’s financial position” and “uncertainty regarding its overall financial position and significant going concern issues”.
The problems were identified in investigations by its chief executive and chief financial officer, the AIM-listed firm said.
It slashed its revenue forecast for 2022 to $9 million from $24 million and said it had “no confidence in its announced FY22 bookings expectations,” as it asked for its shares to be suspended from trading.
WANdisco will conduct a fuller investigation with external legal advisers into “its true financial position”.
Aviva dividend up 41%, launches £300m buyback
07:29 , Graeme Evans
Aviva boss Amanda Blanc today said the insurer had overcome significant market volatility to grow operating profits by 35% to £2.2 billion.
She also announced a 41% increase in the final dividend to 20.7p a share, bringing the total for the year to 31p a share at a cost of £870 million.
Aviva is planning to pay a dividend of £915 million for 2023 as it upgraded guidance to low-to-mid single digit growth in the cash cost of the payout.
Confidence in the company’s capital position also means the launch of a £300 million share buyback that takes the total returned to shareholders to over £5 billion since 2021.
