Rank Group’s positive half-year performance prompted traders and bookmakers to place bets.
Owners of Mecca Bingo & Grosvenor Casinos made a profit in the six months up to the end December, with a pretax profit of £10.4m. This is a huge turnaround from the £109.2m loss they had in the same time period last year. Key drivers included a 9 percent increase in net gaming revenues to £362.6 millions, strong operating leverage, and lower energy costs that offset labor costs.
Rank acknowledged that the economic climate was still challenging, but its optimistic outlook indicated a strong performance during Christmas and New Year, with its bosses expressing their confidence in the group’s prospects. John O’Reilly said that the company was “well-positioned to maximise the opportunities provided by the UK Government’s planned land based regulatory reforms”. This could not come soon enough to enable us to modernise and better meet the expectations of our customers.
The share price closed at 75 1/2p, up by 5p or 7.2%.
The FTSE 100, which had made early gains, reversed them after the Bank of England decided that it would hold interest rates at a 16 year high of 5.25 percent. The index fell 8.41 points or 0.1 percent to 7,622.16, and the FTSE 250, which is more focused on the domestic economy was down 226.79p or 1.2 percent to 19,131.16.
Investors were unable to choose retail stocks that they liked. Next, the high-street bellwether, was also included. After Barclays lowered its rating, the shares of Next fell by 166p or 2 percent to £83.02, after having recently reached record highs. Marks & Spencer increased its losses by 5 1/2p or 2.3 percent to 241 3/4p. Associated British Foods, the parent company for Primark, lost 60p or 2.6 percent to close the session at £22.81.
JD Sports fashion was not pleased with the cautious outlook of Adidas, a German sportswear manufacturer, who forecasted annual operating profits at €500 million. This is significantly less than analysts’ estimates of €1.2billion. The FTSE 100 tracksuits and trainers seller fell 2p or 1.8 percent to 115p.
The mid-cap index was dragged down by after Berenberg claimed that “substantial cost headwinds” would be difficult to offset through pricing.
Investors watched as regional American banks, including New York Community Bancorp, announced a loss and cut its dividend. Renewing fears about the health of the banking sector led traders to dump NatWest at 220 1/2p (down 4 3/4p or 2.1%) and Barclays at 146p (down 2 1/2p or 1.6%).
Shell is credited with helping to limit losses on the benchmark Index. Shell’s shares rose by 59p or 2.1% to £25.06, after announced a $3.5billion buybackafter exceeding forecasts in quarterly profits. Marshalls had a great day as well. The building materials company was the top riser on the mid-cap board, with an increase of 11 1/2p or 4.1 percent to 292p. Berenberg encouraged its clients to invest, saying that the company “presented arguably one of more interesting rebuild stories” in the sector.
Gresham House Energy Storage Fund, on the other hand, fell by 6 1/2p or 11.2% to a new record low of 511/2p after scrapping its fourth-quarter distribution. The company blamed its decision on “weak revenue environments” which could make cash flow difficult this year to cover dividends.
MicroSalt has made a quick start as a publicly listed company. Shares in the low sodium salt manufacturer that were priced at 43p before its Aim float, have risen by 17 per cent and closed at 50 1/2p.
Ferrari’s revenues and core earnings are expected to continue growing in 2018, supported by an order book of luxury sports cars stretching out until 2025.
Benedetto VIGNA, the 54-year-old chief executive of the company, stated that the order book was a testament to the vitality and strength of the business. It covers all regions, including 2025.
The Italian company predicted that its adjusted earnings, before deductions, would rise to at least €2.45billion this year from €2.28billion it delivered in 2023. The company said that its shipments increased by 3% last year, to 13,663 cars, due to the higher production of the four-door and four-seater Purosangue. Vigna, the carmaker, said that it generated over €930 millions of cash in 2018. Around €800 million will be distributed as dividends or share buybacks to its shareholders.
Bernstein analysts said that there was room for Ferrari to increase its guidance over the course of this year, as it gains greater visibility into personalisation rates. Personalisations accounted for about a fifth (or $5 million) of Ferrari’s revenue in 2013.
Vigna stated that “exceptional visibility” of the order book will allow the company to “look at the high end of the 2026 targets with greater confidence”.
The Milan-quoted shares of Ferrari closed at €353.50, up €29.80 or 9.2%.
Hikma Pharmaceuticals, a division Publicis and the French advertising firm, Publicis, have each reached settlements totaling $500 million in order to settle claims that they were responsible for the opioid epidemic.
These settlements are in addition to the $50 billion dollars that drug companies, distributors, pharmacists and consultants have paid to settle lawsuits and investigations regarding their role in America’s drug abuse crisis.
Hikma, a London-listed company, reached an agreement of principle with states and municipalities to settle claims for $150 million. This includes $115 million cash and $35 million worth of naloxone – a medication used to treat opioid addiction. Hikma stated that it had not admitted any wrongdoing.
Publicis Health (a subsidiary of Publicis Groupe) has agreed to pay $350,000,000 to settle claims made by all US States and Territories that it helped Purdue Pharma (the maker of OxyContin) devise marketing strategies in order to boost the sales of OxyContin.
Hikma Pharmaceuticals shares fell last night by 20p or 1 percent to £19.111/2.