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Market Update

Boohoo Lifted Forecast, Elis in 2.2 B Deal with Berendsen

Author: Sarla Buch
Last Update: 12:07 PM ET June 08 2017

4:00 PM Frankfurt Auto Trader profit surged on 9% jump in revenues. Boohoo revenues doubled and raised 50 million through share sale and the retailer also lifted fiscal revenue forecast. Berendsen agreed for 2.2 billion takeover bid from French rival Elis. Flybe net swung to a loss.

In London trading, FTSE 100 index fell 23.05 or 0.3% to 7,455.13 and in Frankfurt the DAX index gained 44.75 or 0.3% to 12,717.24.
In Paris, CAC 40 index slid 1.24 to 5,265.

Auto Trader Group Plc declined 5% to 410.10 pence after the U.K.-based online vehicles sales marketplace operator reported revenues in the year ending in March jumped 9% from a year ago to 311.4 million.

Net profit in the year surged 22.1% from a year ago to 154.7 million from 126.7 million and diluted earnings per share advanced to 15.60 pence from 12.65 pence.

The marketplace operator said operating profit in the year soared 18% to 203.1 million and pretax profit surged 23% to 193.4 million while net debt dropped 37.6 million to 355 million from a year ago period.

Boohoo.Com Plc surged 11.9% to 247 pence after the U.K.-based online fashion retailer said that the company has completed 50 million through share sale of 36.6 million shares help a new warehouse.

The acquisition of land and construction site will cost of about 150 million over three years to fiscal 2020.

The retailer plans to construct a new ""automated super-site"" of 600,000 square feet which is intended to provide boohoo with over 2 billion of net sales capacity, in addition to the estimated 1 billion net sales being provided by the extended Burnley site.

Boohoo said group revenues in the first-quarter ending in May doubled from a year ago to 120.1 million and comparable sales soared 78%. Revenues jumped 48% to 86.4 million after sales in the U.K. surged 41%, sales in Europe advanced 44% and sales in the U.S. surged 97% while sales in the rest of world jumped 50%.

Active members in the quarter increased 24% to 5.2 million form same period a year ago.

The retailer revised current year revenue to jump 60% from the earlier estimate of 50%.

Elis SA slid 0.1% to 20.08 after France-based laundry services provider revised its offer to buy the U.K.-based rival Berendsen Plc for 5.40 in cash and 0.403 new Elis shkares for each share of Berendsen and lifted revised offer to 2.2 billion from 2.05 billion.

Berendsen returned to Elis on revised higher offer of 150 million after repeated rejections.

However, based on closing price of Elis, possible offer values each Berendsen share at 12.50 per share, excluding the interim dividend that implies a total equity value of about 2.2 billion on a fully diluted basis.

The offer consists 43% in cash and 57% in Elis stock.

Berendsen Plc stock jumped 9.8% to 1,215 pence.

Flybe Group Plc jumped 3% to 33.99 pence after the U.K.-based budget airline services provider said revenues in the year ending in March soared 13.4% from a year ago to 707.4 million.

Net in the year swung to a loss from a year ago to 26.7 million from profit of 6.8 million and diluted loss per share swung to 12.3 pence from diluted earnings per share of 3.1 pence.

The carrier reported a pre-tax loss of 19.9 million and write-off of intangible assets totalled to 4.3 million to an upgrade of its IT systems.

Rocket Internet SE slipped 1.3% to 20.72 after Sweden-based Kinnevik AB said that Kinnevik Internet Lux Sarl sold its remaining 6.6% stake or approx 10.9 million shares at a price of 20 or $22.50 per share to institutional investors and the gross proceeds will amounted to 217 million.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc