BUSINESS LIVE: Dr Martens US sales slump; Nightcap abandons Revolution Bars bid; Auto Trader profits soar

Just before close, the FTSE 100 was 0.59% up at 8,230.96.

Meanwhile, the FTSE 250 was 1.4% higher at 20,721.90.

The FTSE 100 has fallen from record highs achieved earlier in May as investors have pushed back expectations of when central banks will begin cutting interest rates.

Britain’s blue-chip index achieved record highs multiple times over the space of a short period, peaking at an intra-day high of 8,474.71 on 15 May, which marked a 9.4 per cent gain since the start of the year.

Hundreds of Border Force officers at Heathrow Airport will launch a three-day strike on Friday in a dispute over rosters coinciding with the end of half-term holidays.

The Public and Commercial Services union (PCS) said more than 500 of its members working on passport control at terminals 2, 3, 4 and 5 are taking action in protest at new rosters being imposed.

The number of smart meters being fitted in homes fell 10 per cent in the first three months of the year, continuing a long-term decline in new installations.

Latest government figures show 780,000 smart meters were fitted by large energy firms between January and March, down from around 870,000 in the previous three months.

Scandal-hit property investor Home Reit has kicked out its biggest tenant, a charity which paid no rent on hundreds of properties for more than a year in a protest.

Liverpool-based organisation Big Help has agreed to give up leases on more than 600 properties, which equates to around 30 per cent of Home Reit’s portfolio.

National Savings & Investments has quietly increased the rate on two of its variable accounts.

Its Direct Saver Easy Access Account now pays 4 per cent, up from 3.65 per cent.

Springfield Properties has signed a new £6.3million deal with Wheatley Group to deliver more affordable houses.

The Elgin-based housebuilder intends to begin constructing the homes immediately and complete them before October 2025.

The troubled jet firm has been set a deadline of today to present its plans to federal regulators Federal Aviation Administration (FAA) on how it will fix the safety problems that has plagued some of its aircraft.

New American Express Gold card holders can get 30,000 bonus points as part of an enhanced offer.

The credit card giant has increased the sign-up bonus on its Preferred Rewards Gold credit card from 20,000 to 25,000 points.

Auto Trader Group shares rose sharply on Thursday to a record high after the business posted higher profits and revenue for last year.

The group’s revenue increased by 14 per cent to £570.9million, amid a ‘robust’ second-hand car market continues to enjoy higher demand than before the pandemic.

Nightcap has ended its takeover pursuit of Revolution Bars after being told its recent bid was not feasible.

The hospitality business, co-founded by former Dragons Den star Sarah Willingham, offered to buy Revolution, but was turned down last week.

We have all daydreamed about landing a windfall — perhaps from a lottery win, Premium Bond prize or a large inheritance from a distant relative.

But one source most of us never consider is finding a long-lost pension pot — even though the odds are thousands or even millions of times more likely.

Marks and Spencer appointed a new finance chief last night in another fillip for the High Street chain.

Rightmove chief financial officer Alison Dolan said she was thrilled to be part of reshaping the business as it ploughs ahead with its turnaround plan.

Basingstoke-based banknote maker De La Rue has confirmed it is in talks with a number of parties interested in buying its core divisions.

The group, which prints banknotes for the Bank of England and other central banks across the world, has delayed the publication of its full-year results amid the talks.

Dr Martens is set to undergo a radical shake-up and cost cutting plan in a bid to turn its fortunes around and boost its bottom line.

The group on Thursday announced plans for a ‘cost action plan’, which aims to save the group between £20million to £25million, after revealing a sharp fall in annual profits.

Three of Japan’s biggest car makers have shunned electric vehicles and vowed to achieve carbon neutrality by developing cleaner internal combustion engines (ICE).

Toyota, Mazda and Subaru announced in Tokyo this week they will commit to bringing to market smaller engines as well as utilise hybrid technology and adopt green biofuels to lower vehicle emissions.

Dr Martens is set to undergo a radical shake-up and cost cutting plan in a bid to turn its fortunes around and boost its bottom line.

The group on Thursday announced plans for a ‘cost action plan’, which aims to save the group between £20million to £25million, after revealing a sharp fall in annual profits.

The cost cuts will stem from ‘savings from organisational efficiency and design, better procurement and operational streamlining’, the bootmaker told shareholders.

Dr Martens said the cost of implementing these cuts meant their benefits will not be seen until 2026, adding that more detail would be provided at its half-year results in November.

The pound has hit its highest level against the euro for nearly two years in a boost for British holidaymakers who are enjoying a half-term break.

Sterling climbed to just below €1.18 versus the single currency, its strongest level since August 2022 – before later giving up some of its gains.

Investors have been ramping up bets against Ocado as the online grocer’s struggles to turn a profit and speculation over its future persists.

Scandal-hit property investor Home REIT has pushed through a deal to recoup hundreds of leases from a major tenant as its turnaround efforts continue.

Liverpool-based charity group Big Help has agreed to give up leases on more than 600 properties, which equates to around 30 per cent of Home REIT’s portfolio.

The pair have been in a major row since the start of last year after the charity withheld rent in protest over housing conditions.

The FTSE 100 is at near a one-month low in early trading, mirroring weakness in Asian bourses as investors await key US inflation data due on Friday, while Anglo American has added to losses.

The US Federal Reserve will tomorrow publish its preferred inflation gauge, the personal consumption expenditures (PCE) price index data, for clues on the future path of monetary policy.

A speech by Bank of England Governor Andrew Bailey due later today will also be closely watched as the central bank will meet in three weeks to decide Britain’s next monetary policy action.

Anglo American has dropped 2.3 per cent after BHP Group walked away from its $49billion takeover pursuit. BHP’s London-listed shares have slipped 1.4 per cent.

Severn Trent is down 2.7 per cent as it traded without entitlement to its latest dividend payout.

Auto Trader Group has soared 8.5 per cent and was the top gainer on the FTSE 100 as the online car marketplace firm beat full-year profit estimates.

Dr Martens leads gains on the mid-cap index with a 5 per cent jump after its new CFO lays out cost-savings plan.

Adam Vettese, analyst at eToro:

‘This has been another update that makes grim reading for Dr Martens, with revenues declining and US sales once again a weak spot. The firm has announced a raft of cost cutting measures and it seems they do need to pull themselves up by the bootstraps to get out of this financial quagmire.

‘The new CFO is targeting savings of £20-25 million, news of which is being well received by the market this morning. This morning’s bid however is a drop in the ocean, given that the shares have pretty much been on the decline since the IPO in 2021.

‘Consumers have been under pressure in this higher inflation environment and with their punchy ticket price, a pair of Docs is probably one of the first luxuries to make way. The numbers would back this up.’

Banknote printer De La Rue is in talks with suitors interested in buying each of its core divisions following a strategic review.

The Basingstoke-based group, which prints banknotes for central banks across the world, said it has spoken with ‘a number of parties who have made proposals”‘related to either its currency or authentication operations.

Nevertheless, it stressed that there is no certainty the interest will result in any deal.

Clive Whiley, chairman at De La Rue, said: ‘Since my appointment a year ago, the board has considered a broad range of possible strategic alternatives including transactions with multiple parties which may involve a combination with, or the sale of, the group’s divisions.

‘The board confirms that the discussions with the relevant parties are advancing, and we expect to update further at the time of the full year results in July.’

Fiona Orford-Williams, director of TMT, at Edison Group:

‘Auto Trader has come in with good results, ahead of market consensus and clearly showing the benefits of its market leadership position. The underlying market dynamics are broadly favourable and average revenue per retailer was up 12%, through adding value to the offering as well as moving pricing ahead.

‘This is set to continue in the current year, with ARPR set to rise a further 8-10% on a slight decline in the number of forecourts. The group continues to innovate, increasingly using AI to smooth the customer journey, making good use of the large quantities of proprietary data within the business. 

‘Operating margins of 71% will likely dip to 69% at the underlying level in the current year as the group’s scale places it in the zone for the incoming Digital Services Tax but should be slightly up at a group level and, overall, we would expect forecasts to be edged ahead.’

Tech unicorn Oaknorth says London’s public markets are looking ‘less attractive’ than their international peers as it mulls a potential float.

Rishi Khosla, co-founder of the digital business bank, has joined the criticism of the capital, saying: ‘The UK has not done the best in branding over the last two, three, four years… really since the Brexit referendum vote,’ he told City AM.

Auto Trader saw operating profits soar 26 per cent last year as sales bounced 14 per cent thanks to improved revenue per advertiser and a rebound in the used car market.

The firm posted a £349million profit, with double digit revenue growth across all segments driving its operating profit margin to 71 per cent.

Auto Trader said: ‘The used car retail market has been robust throughout the financial year, which we expect to continue. Demand is resilient with cars continuing to sell faster than before the pandemic and used car supply has gradually improved. Trade prices softened in the latter months of the calendar year, which subsequently impacted retail prices, but monthly pricing movements have since stabilised in line with typical seasonal trends.’

US energy giant ConocoPhillips has bought Marathon Oil in a deal valued at £17.7billion – the latest in a series of acquisitions in the US oil sector.

There was £200billion in sector merger and acquisition activity in the past year, including Exxon Mobil’s £48billion acquisition of Pioneer Natural Resources and the Chevron-Hess tie-up.

The acquisition will enable ConocoPhillips to strengthen its position in shale oil and gas-rich US regions such as the Bakken Basin and the Permian Basin.

London-listed hospitality firm Nightcap has abandoned its attempted takeover of Revolution Bars after its previous offer was rejected.

Revolution Bars earlier this week said Nightcap’s offer, which included a shake-up of the group’s restructuring plans, was ‘incapable of being delivered’.

Nightcap told sharehoders this morning:

‘The board of Nightcap believes that the Possible Offer, if it had been implemented, would have seen Revolution Bars’ highly dilutive £12.5m fundraising replaced by a merger of the two businesses, allowing for Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment.

‘The Possible Offer would have included a fundraising and the implementation of the restructuring plan… to be followed by a combination of the Nightcap and Revolution Bars businesses as well as a sale of the Peach Pubs brand.

‘Nightcap respects that the board of Revolution Bars wish to pursue a different outcome and as a result Nightcap today confirms that it does not intend to make an offer for the entire issued and to be issued share capital of Revolution Bars.’

‘Czech Sphinx’ Daniel Kretinsky’s £3.6billion swoop for Royal Mail’s parent company has failed to win over the City – despite the company’s board agreeing to the deal.

Shares in International Distribution Services rose 4.3 per cent, or 13.8p, to 335p on the announcement, still short of the 370p offer price.

Dr Martens has outlined up to £25million of annual cost-cutting measures after the iconic British bootmaker’s profits were hammered by a major slump in US demand last year.

Pre-tax profits fell 42.9% to £97.2million in the year to 31 March after a 24 per cent decline in Americas revenues driven by adrop-off its wholesale business.

The company said the cost cuts would come from ‘organisational efficiency and design, better procurement and operational streamlining’.

Kenny Wilson, Dr Martens’ chief executive, said: ‘We are clear that we need to drive demand in the USA to return to growth in (financial year 2026) onwards and are executing a detailed plan to achieve this, with refocused and increased USA marketing investment in the year ahead.

‘We are also announcing a cost action plan across the group, targeting savings of £20m to £25m. I am confident that the actions we are taking as we enter this year of transition will put us in good shape for the years ahead.’