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Market Update

Dixons Beat Sales Estimate, M&S Profit Tumbles

Author: Sarla Buch
Last Update: 11:58 AM ET May 24 2017

4:00 PM Frankfurt – Dixons Carphone reported strong sales but lowered profit forecast. Glencore made an informal approach to Bunge. Ineos agreed to buy DONG Energy for £770 million. Kingfisher said comparable sales fell. M&S profit tumbled 71% on higher costs of new stores.

In London trading, FTSE 100 index advanced 28.78 or 0.4% to 7,514.07 and in Frankfurt the DAX index slid 15.72 to 12,642.96.

In Paris, CAC 40 index fell 5.63 to 5,342.53.

Dixons Carphone Plc jumped 5% to 343 pence after the U.K.-based electrical and telecommunications retailer said group revenues in the year ending in April soared 9%, comparable sales increased 4% from a year ago and gross margins broadly stable across the year.

Dixons lifted pretax forecast in the year between £485 million and £490 million from earlier estimated range of £475 million to £495 million.

Glencore Plc rose 0.3% to 292.85 pence after the Switzerland-based metals and minerals producer said that its agriculture unit had made an informal approach for “a possible consensual business combination” to the U.S.-based soybeans and corn trader Bunge Limited.

Ineos Group AG, the U.K.-based privately held petrochemicals company agreed to acquire oil and gas assets across the Denmark, Norwegian and the U.K. sectors from Denmark-based DONG Energy’s Oil & Gas for about £770 million or $1.05 billion plus contingent payment of $150 million.

The acquisition is estimated to add approx 100,000 barrels of oil to its total production per day.

""We are pleased to acquire this competitive, well-run business, with its highly successful and experienced team, strong portfolio, long-life assets and very good mix of existing production and developments across the North Sea."" said chairman Jim Ratcliffe.

Kingfisher Plc declined 6.7% to 335.30 pence after the U.K.-based home improvement products retailer said revenues in the first-quarter ending in April jumped 5% from a year ago to £2.9 billion, comparable sales fell 0.6% and sales dropped 5.5% in France but sales in the U.K. and Ireland advanced 3.5%.

Screwfix performed strongest growth after comparable sales in the first quarter soared 12.6% while sales in B&Q segment increased only 0.5%.

In the U.K. and Ireland sales in B&Q business slumped 4.6% while sales in Screwfix segment surged 20.3%.

Kingfisher said sales in France Castorama and Brico Depot plunged 5.5%.

Marks and Spencer Group Plc gained 1.1% to 391.70 pence after the U.K.-based specialty retailer reported revenues in the year ending in March rose 0.7% from a year ago to £10.6 billion.

Net profit in the year tumbled 71.4% from a year ago to £115.7 million from £404.4 million and diluted earnings per share declined to 7.2 pence from 24.8 pence.

Clothing and home sales revenue fell 3.4% but revenues in food segment jumped 4.2%.

ZPG Plc, formerly Zoopla Property Group Plc advanced 3.1% to 369.30 pence after the U.K.-based property advertising services provider said revenues in the first-half ending in March soared 22% from a year ago to £117.9 million.

Net profit in the period declined 25% from a year ago to £16.9 million from £22.6 million and diluted earnings per share rose to 7 pence from 6.8 pence.

Zoopla recorded record traffic in the period for more than 314 million visits to its websites and apps with over 68% of those via mobile drove record revenues while higher costs from series of acquisitions led to pre-tax profits decline of 20%.

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