Promotional products maker 4imprint tumbled after it reported the pandemic had wiped out its profits for the latest year.
Pre-tax profits at the group, which makes things like branded bags and water bottles, dropped 93pc to just $3.84m (£2.76m), with Covid-19 having a “devastating” impact on trading.
It said weekly order counts hit a low of 20pc of pre-pandemic levels last April, but gradually recovered to a run-rate of about 70pc by the final quarter. They fell back again to 65pc of pre-virus levels in January and February this year, a drop which the group attributed to weakness after the busy festive period.
Chairman Paul Moody said: “The group is financially strong and very well placed to capitalise on the opportunities arising in recovering markets.”
Liberum’s Joe Brent said 4imprint’s performance was below expectations, but the group’s employee retention put it in a good position to bounce back as restrictions ease.
Shares in the group plunged 220p to £24.70, leaving it the second biggest faller on the FTSE 250. The only sharper fall came for Petrofac, down 10.7p at 98.7p, as it continued to reel after it was banned from bidding for contracts with Abu Dhabi’s oil company.
Fellow energy services provider John Wood Group closed down 16.1p at 301.1p after swinging to a £150m annual loss. The group agreed to pay out £6.5m to the Civil Recovery Unit after one of its subsidiaries was found to have paid bribes to secure a pair of contracts in Kazakhstan.
Royal Bank of Canada’s Victoria McCulloch said the outlook for the company remained “challenging”.
The FTSE 250 as a whole rose solidly, outperforming most European indices with the vast majority of its members rising.
Mid-cap climbers included Just Group, up 5p to 99.9p after full-year results. The specialist financial services company beat City predictions for operating profit, with analysts noting it had turned cash-positive for the first time. The group said it expects strong demand for its pension products to continue.
Gains were moderate but slightly more muted on the FTSE 100, with pharmaceuticals giant AstraZeneca rising 254p to £72.32 and giving the index a heavyweight upwards nudge as the European Medicines Agency offered a continued endorsement of the group’s Covid-19 vaccine.
Its gains were offset by oil majors Royal Dutch Shell, down 27.4p to £14.59, and peer BP, which dropped 4.9p to 311.3p, as cyclical shifts continued across global stock markets.
Antofagasta fell 20.5p to £17.16 even though the Chilean copper miner posted a 3.3pc increase in 2020 revenues to $5.1bn, with its underlying losses narrowing from $1.3bn to $80.8m.
06:47 PM
Wrapping up
That's all from us today - thank you for following along.
Numbers on: Inflation final reading (eurozone); Federal Reserve announcement, building permits, housing starts (US)
06:33 PM
Smoking to disappear in part by 2050
Marlboro
Smoking will disappear by 2050 from the US, parts of Europe, Australia and large chunks of Latin America if the declining trend in the last decades continues, according to a note by Citi analyst Adam Spielman, analyst at Citi, and reported by Bloomberg.
It comes as the industry has been diversifying to alternative products including vaping and cannabis, in reaction to falling sales as habits change. Last week British American Tobacco (BAT) bought a £126m stake in Canadian cannabis producer Organigram.
In countries like China, France and Russia, cigarette smoking is likely to still be common in 2050, according to Mr Spielman.
“The current trends do not suggest a world without cigarettes,” he said
06:03 PM
US markets pull back
US markets have pulled back through morning trading, dragged by a retreat in tech shares.
Tech shares like Apple and Microsoft briefly pushed the Nasdaq 100 to a two-week high before paring some gains. Dow Jones fell from a record high, by 0.4pc by early afternoon in New York, with Boeing and Goldman Sachs among the biggest decliners.
The benchmark S&P500 dipped 0.7pc.
"It seems that traders are seeking out relatively cheap tech stocks today, in light of the fact they fell the most in the past month," said David Madden, market analyst at CMC Markets.
05:23 PM
G4S shareholders approve Allied's takeover offer
Following an extensive bidding war, G4S shareholders have voted 79pc in favour of a takeover by Allied Universal.
Allied's cash offer of 245p-per-share represents a premium of 68pc to the G4S's closing price on September 11, 2020, the last business day before bidding started.
John Connolly, chairman of the G4S Board, said: “We are pleased that a very large proportion of shareholders have accepted Allied Universal’s final offer. The G4S board believes that the offer provides shareholders with an attractive premium, while securing the future success of G4S for employees, customers, pension scheme members and other stakeholders."
Ashley Almanza, chief executive of G4S said: "The combination of G4S and Allied Universal creates the global leader in security with revenues of over $18billion, industry leading talent and expertise and unmatched market coverage. This unique combination will offer customers exceptional service and provides employees with an exciting future."
05:02 PM
Even more similarities between Norse Atlantic and Norwegian Air
Norwegian
In more details on the new Norwegian carrier Norse Atlantic...not only is it seeking to fill collapsed Norwegian Air's void, but its using the carriers actual old planes.
In an interview with Bloomberg, Norse's chief executive Bjorn Tore Larsen said the company has agreed to lease nine Boeing 787 jets which were used by Norwegian. It'll give them a new coat of paint, but keep the insides as they are.
Norse has begun recruiting pilot and cabin crew through Mr Larsen's OSM Aviation, which also provided crew for Norwegian Air. It is in talks about gaining airport slots with London's Gatwick high on the list (a former hub for Norwegian).
In the interview, Mr Larsen said the launch of the carrier - expected by the end of this year - has the flexibility to be delayed until the start of 2022, depending on travel restrictions.
Profits at STV Group plunged by two-thirds last year despite the Scottish media company achieving record viewing numbers as people stayed at home during the pandemic.
My colleague Simon Foy reports:
Pre-tax profits at STV tumbled to £6.7m in 2020 from £19m a year earlier, though this was still ahead of analyst expectations. Total revenues declined by 14pc to £107m.
The London-listed company also laid out plans to shift its focus away from traditional broadcasting to concentrate on its digital business as the market for on-demand services continues to surge.
The group plans to invest £30m over the next three years as it looks to expand its studios business and the STV Player. It aims to double its digital viewing, users and advertising revenue to £20m by the end of 2023, it said.
Audience numbers for its television channel jumped 14pc, while its STV player catch-up service posted growth of more than four-fifths.
Chief executive Simon Pitts said: “STV is coming through the pandemic with confidence. With profit and net debt materially better than expectations, the 2020 financial results we are confirming today are testament to the strength of our business and the commitment and creativity of our people in what has been an extraordinary 12 months.”
04:12 PM
Market moves
It looks like we’re heading for a fairly quiet close. European markets are steadily higher, while Wall Street is making only small gains. Here’s how things have moved today:
03:45 PM
Visa plans post-Brexit fees hike – Sky News
Payments giant Visa plans to hike fees for purchases made by UK customers, in a post-Brexit move that will add to fears of higher prices, Sky News reports.
Sky News has learnt that Visa plans to inform its roughly 4,000 clients later this week that so-called interchange fees will increase to 1.5pc for online credit card payments – a fivefold increase.
For debit card transactions, the rate will go up from 0.2pc to 1.15pc.
The move will particularly affect online transactions with EU-based companies in sectors such as online retail, hospitality and travel.
Interchange payments are levied on behalf of banks each time a payment is made, with the money then passed on to the card-issuing bank.
03:21 PM
Volkwagen aims to out-speed Tesla with 1m EV sales
Volkswagen has set its sights on Tesla, with the German automotive giant targeting sales of 1m electric vehicles in 2021 – double the amount Elon Musk’s company sold last year.
My colleague Alan Tovey reports:
The forecast came as VW confirmed its annual results, selling 9.3m cars in 2020, a drop of 15.2pc that it attributed to the pandemic. Revenue fell by 12pc to €223bn and operating profit halved to €10.6bn. The 1m electric cars target more than doubles VW’s sales of vehicles with an electric element in the power train achieved in 2020.
Last year the company sold 422,000 electrified vehicles, including those with hybrid systems which contain an internal combustion engine. Only 231,000 of the total were all electric vehicles.
However, the company could be given a boost by the launch late last year of its ID.3 electric car, the first model VW has designed from the ground up to be battery powered.
The ID.3 has been warmly received by motoring critics. In December, the ID.3 was the second bestselling car of any type in Europe, beaten only by VW’s Golf. Tesla’s Model 3 was the third bestselling.
Moving with the times: how fossil fuel giants can find new ways to make money in the age of electric vehicles
03:10 PM
French economy likely to contract again amid new lockdowns
Macron - YOAN VALAT/POOL/AFP via Getty Images
France’s economy could go back into reverse with President Emmanuel Macron considering a fresh lockdown as intensive care wards fill up and the vaccine rollout stalls.
My colleague Tom Rees reports:
Economists warned that the French suspension of AstraZeneca's Covid vaccine will be “catastrophic for the economy” as the threat of tougher restrictions darken the country’s growth outlook.
Another lockdown imposing the level of measures seen in November would extend the flatlining of the French economy and delay any recovery, City forecasters said.
ING economist Charlotte de Montpellier warned a longer lockdown extending until the end of April or May would cause a fresh fall in GDP over the second quarter, a setback following the 8.3pc tumble in 2020.
US tech stocks jumped for a second day as bond market volatility eases.
S&P 500 +0.2pc
Dow Jones -0.2pc
Nasdaq +0.9pc
02:00 PM
HSBC closes Hong Kong HQ due to Covid outbreak
HSBC is closing its Asian headquarters in Hong Kong until further notice, after three people working tested positive for Covid-19, according to the Hong Kong Economic Journal.
Any visitors who stayed in the building for more than two hours between March 2nd and March 15th will have to take a test, the paper reported, citing a memo by the bank.
01:42 PM
Norway, EU and UK reached agreement on North Sea fisheries
Norway, the EU and the UK have reached an agreement on joint management of North Sea fish stocks, according to a statement from the Scandinavian country’s trade ministry.
Talks with the UK over a two-party agreement continue with “full force”.
Norwegian minister of fisheries Odd Emil Ingebrigtsen said:
Both parties have been flexible and solution-oriented, and I believe we have a balanced agreement that supports our good relationship
01:35 PM
More details
Emer Cooke, the executive director of the European Medicines Agency, said they remain convinced that the benefits of the AstraZeneca vaccine outweigh the risk of side-effects.
My colleague Max Stephens reports:
Ms Cooke said that there is no indication that the estimated 17m AstraZeneneca vaccinations delivered across Europe have caused these blood clot incidents.
She said that the number of thromboembolic cases seems not to be higher than that seen in general population.
“We know that many thousands of people develop thousands of clots annually for many different reasons,” she said.
Anyone who has received the vaccine and have experienced a side-effect should contact their relevant health care system, she added.
At a press conference currently taking place, the European Medicines Agency has said the benefits of the AstraZeneca/Oxford University vaccine outweigh its risks.
They said there is no indication that the vaccine has caused blood clots at present.
You can watch live here:
Astra shares are up the most so far in 2021 (not a mega jump, but big for such a large company):
12:56 PM
ScS sees sales and profits rise after summer boom
Sofa seller ScS posted an increase in sales and profits thanks to pent up demand during the summer months after shops were allowed to reopen.
My colleague Laura Onita reports:
Revenue was up 14.4pc to £173.9m compared to £152m the year before; it made pre-tax profit of £17.7m following a £600,000 loss. The firm warned that performance in its second half is unlikely to be as strong due to the third lockdown.
It benefited from £6.6m of Government support including furlough cash and business rates relief. ScS plans to pay back the £1.3m received via the job retention scheme.
David Knight, chief executive, stepped down on Tuesday, with Stephen Carson taking over. Mr Knight extended his tenure by six months to respond to the pandemic.
12:46 PM
US retail sales fall more than expected
US retail sales dropped by 3pc on a seasonally-adjusted basis in February. It’s a sharper fall than the 0.5pc decline expected by economists, but January’s growth was upgraded from 5.3pc to a revised 7.6pc, so the overall reception of those figures might be somewhat neutral.
12:18 PM
Market moves
We’re about halfway through the session, and European markets are steadily higher, with the FTSE 100 leading the way among top indices (while feeling a slight boost from a weaker pound).
11:59 AM
France draws bumper demand for second green bond sale
France drew €34.5bn of orders for its second green bond sale, with investors keen to snap up debt that will be used to fund climate and environmental projects.
Bloomberg has more details:
The orders were about 50pc more than what it received for its offering in 2017, according to data compiled by Bloomberg. The world’s biggest issuer of green debt is raising €7bn from the securities via banks that mature in 23 years, a person with knowledge of the matter said. Italy also racked up record orders for its debut green note this month.
Tuesday’s sale highlights France as a trend-setter in the market for environmental-project funds – one of the fastest-growing sectors in global finance.
Ferguson is paying a $400m (£290m) special dividend after selling its UK arm as the plumbing and heating business reported interim profits up almost a fifth.
My colleague Alan Tovey reports:
In January FTSE 100-listed Ferguson offloaded its British-based Wolseley division for £308m to private equity firm Clayton, Dubilier & Rice.
The sale of the unit which has about 550 outlets and 4,400 staff allowed Ferguson to concentrate on its much larger North American operations.
In the six months to the end of January, Ferguson posted sales of $10.3bn, up 4.2pc, and pre-tax profits 17.7pc higher at $739m.
As the pandemic hit early last year, Ferguson suspended its dividend and halted a $500m share buyback to preserve cash.
11:18 AM
EMA press conference at 1pm
It looks like we might be waiting a bit longer than expected for the European Medicines Agency’s new verdict on the AstraZeneca/Oxford University vaccine – Sky News’ Scott Beasley says a press conference is planned for 1pm:
Shares in Antofagasta have dipped slightly this morning amid a broader sell-off of miners, with the group posting solid full-year results for 2020.
The Chilean copper miner posted a 3.3pc increase in revenues to $5.1bn, with its loss before tax after exceptional items narrowing substantially from $1.3bn to $80.8m.
The group has benefited from a rebound in demand and prices for copper on hopes of a global economic recovery.
It described 2020 as an “unusual” year for copper, with demand also disrupted by temporary suspensions at some of its mines.
It struck a broadly upbeat tone on the road ahead, saying:
In early 2021, sentiment in the copper market is positive despite a second wave of the pandemic in many countries, as markets took encouragement from the successful development of several vaccines and their accelerating rollout.
Demand is expected to recover the volumes lost in 2020, and to grow further. There is, however, some uncertainty about stimulus packages in China continuing as strongly as in 2020, but the economic recovery expected in the USA, Europe and elsewhere in the world, supported by fiscal stimulus packages, will positively impact sectors that use copper.
10:40 AM
BofA: Fund managers no longer see Covid-19 as biggest risk
Global fund managers no longer see Covid-19 as the biggest risk to global markets, with inflation and fears of a ‘taper tantrum’ registering higher on their list of concerns.
Sentiment among the world’s top investors is now “unambiguously bullish”, according to the findings of Bank of America’s latest survey of fund managers.
It’s the first time Covid-19 has been knocked off the top spot since February last year.
BofA
The survey also recorded the biggest drop in exposure to tech stocks for 15 years, with many money managers worrying that trading of top stocks such as Apple, Amazon, Google, Facebook and Microsoft has become too crowded.
Most investors now see a V-shaped global economic recovery, with a record number (91pc) anticipating their local economies will strengthen further from here.
10:23 AM
Pound drops
The pound has steadily fallen this morning against a backdrop of rising strength for the US dollar. The US currency’s strength suggests continued nerves across global markets driven by fears of a resurgence in inflation, with the dollar a common haven asset for investors worried about volatility.
10:04 AM
German investor confidence rises
Sentiment among German investors remains low but rose slightly on February’s levels, while hopes for the future were at their highest level since the early autumn.
The latest results from the ZEW Institute’s surveys gave a current situation assessment score of -61, up from -62 last month, and an expectations reading of 76.6, up from 71.2 last month.
It continues a long-term divergence between the two, with the country’s investors holding on to hopes of an improvement as restrictions ease and vaccines are rolled out.
09:49 AM
AstraZeneca shares rise ahead of EMA ruling
Pharma giant AstraZeneca is leading risers on the FTSE 100 today, making strong gains ahead of a European Medicines Agency decision on the safety of its Covid-19 vaccine, due around 11am.
Multiple countries have suspended use of the treatment following reports it caused blood clots in some patients.
As my colleague Gareth Davies reports:
The risk of blood clots from Covid “far exceeds” any potential risks from vaccination, an expert has said.
Professor Anthony Harnden, deputy chairman of the Joint Committee on Vaccination and Immunisation (JCVI), told Good Morning Britain that around 11 million doses of the Oxford/AstraZeneca coronavirus vaccine had been administered in the UK and experts were “not seeing any increase” in signals of blood clots between those vaccinated and what would be expected in the general population.
Shares in promotional products maker 4imprint have tumbled this morning, after it reported the pandemic had wiped out its profits for the latest year.
Pre-tax profits at the group, which makes things like branded bags and water bottles, dropped 93pc to just $3.84m, with Covid-19 having a “devastating” impact on the group’s trading.
It said weekly orders counts hit a low of 20pc of pre-pandemic levels last April, but gradually recovered to a run-rate of about 70pc by the final quarter. They fell back again to 65pc of pre-virus levels in January and February this year, a drop which the group attributed to weakness after the busy festive period.
Chairman Paul Moody said:
The group is financially strong and very well placed to capitalise on the opportunities arising in recovering markets.
Liberum’s Joe Brent said 4imprint’s performance was below expectations, , but said the group’s employee retention put it in a good position to bounce back as restrictions ease.
09:06 AM
Amazon opens new till-free supermarket in UK push
US tech giant Amazon has opened the company's second till-free supermarket in London, with plans to expand further across the capital.
My colleague Morgan Meaker reports:
The new Amazon Fresh shop in Wembley Park follows the opening of another Amazon supermarket in Ealing earlier in March.
Using Amazon’s “Just Walk Out” technology, the company invites shoppers to scan their Amazon app to enter the shop. They can then shop like normal but instead of queuing to pay, they are able to walk straight out and are automatically billed when they leave.
Computacenter shares jumped as much as 5.7pc before pulling back, after the IT services group posted full-year results hailed as “strong” by analysts.
The FTSE 250 group posted a £206.6m porfit before tax for 2020, up from £141m the previous year. Its overall revenues rose 7.7pc to £5.4bn.
It said “significant reductions” in spending by industrial customers had been offset by increased demand from the public sector and financial services groups.
Chief executive Mike Norris said:
After multiple upgrades during the year and today's excellent results it is clear that the 2020 performance has exceeded all expectations and 2020 has seen the fastest profit growth Computacenter has achieved in its 22 years as a public company. Clearly, the challenge it gives us is to grow again in 2021.
Looking forward, the company said the long-term impact of Covid-19 remains “unknown”, adding that a short-term drive towards digital solutions may not be maintained as governments and businesses tighten their belts post-pandemic.
Stifel’s George O’Connor said it was “another strong set of results”, but added:
Computacenter has pipeline aplenty, but we acknowledge that there is always a nag that some customers may put extra hurdles in the procurement process until they are more certain about the economic backdrop.
08:25 AM
AJ Bell names Helena Morrissey as chair-designate
Dame Helena Morrissey - Andrew Crowley
Investment platform AJ Bell has named Helena Morrissey, formerly of Legal & G, as its chair-designate.
Dame Helena will join the FTSE 250 group as a non-executive director this July, with the intention of succeeding current chair Les Platts at the group’s next annual general meeting, slated for January 2022.
She is currently lead non-executive director at the Foreign, Commonwealth and Development Office. She was previously head of personal investing at L&G, and founded the 30% Club, which pushes for greater diversity on UK boards.
AJ Bell said Evelyn Bourke, currently a NED at M&S and Bank of Ireland, will also join the board in July.
08:08 AM
FTSE rises at open
The FTSE 100 has risen moderately at the open, but there are signs of residual nerves on market, with the dollar stronger across the board
Bloomberg TV - Bloomberg TV
Greggs has risen following its full-year results
NatWest has dropped after those money-laundering claims
07:58 AM
NatWest accused of money-laundering failings
The City watchdog has launched criminal proceedings against NatWest for money laundering offences.
My colleague Simon Foy reports:
The Financial Conduct Authority said the bank allegedly failed to comply with money laundering regulations between November 2011 and October 2016, arising from the handling of the accounts of a UK incorporated customer.
The FCA alleges that increasingly large cash deposits were made into the customer’s accounts. In total, around £365m was paid into the accounts, of which around £264m was in cash.
The regulator claims that NatWest's systems and controls “failed to adequately monitor and scrutinise this activity”.
The lender said: “NatWest Group takes extremely seriously its responsibility to seek to prevent money laundering by third parties and accordingly has made significant, multi-year investments in its financial crime systems and controls.”
Food-to-go chain Greggs swung to a loss last year as the pandemic severely knocked its sales, but the group vowed to open 100 new shops during 2021.
The FTSE 250 chain posted a pre-tax loss of £13.7m, compared with a £108.3m profit during 2019, as sales dropped from £1.17bn to £811m. It is the first annual loss for the company since it floated in the 1980s.
It accelerated the rollout of click-and-collect and delivery options during the year in response to lockdowns, and said it saw a “progressive recovery” in sales through the second half of the year.
Greggs said sales during the start of 2021 had been stronger than expected “given the extent of lockdown conditions”.
Chief executive Roger Whiteside said:
Greggs has made a better-than-expected start to 2021 given the extent of lockdown conditions and is well placed to participate in the recovery from the pandemic. It has a clear strategy to extend its digital capabilities and to grow further in new locations, channels and dayparts. These opportunities will benefit all of its stakeholders in the years to come.
It retained the suspension of its dividend, saying it was appropriate to focus on maintaining liquidity.
06:58 AM
Agenda: FTSE set to rise
Good morning. The FTSE 100 is set to open higher as markets shrug off concerns around the Oxford/AstraZeneca vaccine.
Asian stocks rose on Tuesday after optimism about the economic recovery drove US shares to record high.
Asian stocks rose on Tuesday, tracking an advance by Wall Street's main indexes to record highs, as investors looked to key central bank meetings this week, starting with the US Federal Reserve.
An index of the region's share markets excluding Japan strengthened 0.7pc, led by a 1.2pc jump in Australia's benchmark S&P/ASX 200 index.
Japan's Nikkei 225 gained 0.6pc to just below the closely watched 30,000 mark, while the broader Topix added 0.5pc.
China's blue chip CSI 300 index climbed 0.7pc, and Hong Kong's Hang Seng gained 0.7pc.
Coming up today
Corporate: Close Brothers, Ferguson (Interim results); 4imprint, Antofagasta, Bakkavor, Computacenter, Greggs, Just Group, Polypipe, Sabre Insurance, TI Fluid Systems, Unite, Wood Group (John) (Full year)
Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing. Both Southwest and American Airlines reported first-quarter losses Thursday. CEO Robert Jordan said the airline was reacting quickly “to address our financial underperformance," including by slowing down hiring and asking employees to take time off.
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With rising inflation, American consumers are increasingly turning to the Chinese e-commerce platform Temu for their shopping needs. With its enticing tagline “Shop like a billionaire,” Temu has captured 17% of the U.S. market share, posing a challenge to traditional American retailers such as Amazon.com Inc., Dollar Tree Inc. and Five Below Inc. The rise highlights the lucrative and disruptive nature of startups. Owned and operated by PDD Holdings Inc. (NASDAQ:PDD), Temu offers a wide range of
One of Capitol Hill's most-active stock traders is sending a company with well-defined competitive advantages -- that also happens to be on the verge of its first-ever stock split -- to the chopping block.
