Yahoo Finance Trending tickers: AB Foods | Cineworld | Aston Martin Lagonda | BAE Systems
AB Foods (ABF.L)
Primark owner AB Foods said its sales jumped over the latest quarter amid higher prices, and was now upgrading its full-year profit expectations.
Primark posted a 13% increase in sales to £1.99bn ($2.5bn) for the 12 weeks to 27 May 2023, while like-for-like sales were up 7%, which it credited to “higher average selling prices”.
The fast fashion brand, which has some 400 sites worldwide, reached sales of £1.99bn as it worked on improving its website for customers in mainland Europe and the US and continued to trial click and collect services.
Emma-Lou Montgomery, associate director from Fidelity Personal Investing’s share dealing service, said: “Cost conscious consumers — who are after all, Primark’s bread and butter — have kept the tills ringing despite the cost of living crisis raging on in the UK. The no-frills fashion retailer, which has still only established the most basic of online presences, saw sales rise 13% in the third quarter."
Read more: LIVE: FTSE 100 and European stocks mixed as Primark-owner ABF lifts profit outlook
Analysts at Shore Capital described the update as “pleasing,” and raised its EPS forecast by 6.5% to 140.3p.
Associated British Foods, which also has major sugar, ingredients and other food businesses, said its total sales surged by 16% over the three months to the end of May to £4.7bn.
Cineworld (CINE.L)
Troubled cinema chain Cineworld has said it will file for administration in the UK as part of a restructuring plan that is set to wipe out shareholders.
The world’s second largest cinema chain said it will apply for administration for the London-listed company in July, which will see shares in the firm suspended.
The cinema firm said its proposed restructuring would involve calling in administrators and could release approximately $4.53bn (£3.56bn) of its funded indebtedness, a rights offering to raise $800m (£629m) and the provision of $1.46bn (£1.15bn) in new debt financing.
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Shareholders are set to be wiped out by the arrangements, however, with the firm confirming it would “not provide for any recovery for holders of Cineworld’s existing equity interests.”
The move will not impact the British operations for the holding company, with cinemas continuing to remain open as usual.
Cineworld filed for Chapter 11 bankruptcy in the US last year after being weighed down by its mounting debts and weaker-than-expected audience numbers.
Aston Martin Lagonda (AML.L)
Luxury carmaker Aston Martin has struck an electric vehicle (EV) supply deal to create “industry-leading ultra-luxury high performance electric vehicles.”
As part of the agreement, US-based EV maker Lucid will supply Aston Martin with select powertrain components for initial and some future battery-electric models. Shares jumped 10%.
Aston will issue 28.4 million shares to Lucid and make cash payments of around £182m. Lucid will hold a 3.7% stake in Aston.
Read more: Stocks that are trending today
Roberto Fedeli, chief technology officer of Aston Martin, said: “Combined with our internal development, this will allow us to create a single bespoke BEV platform suitable for all future Aston Martin products.”
Aston Martin has said it will reveal a future model lineup this summer that includes a full-electric car.
BAE Systems (BA.L)
BAE Systems was the biggest faller on the FTSE 100 (^FTSE) index in London, down 3% as shares in European defence companies fell after the Wagner mutiny in Russia.
Strategists at Deutsche Bank said: “Markets will start the week trying to work out what to make of the volatile situation in Russia that saw a remarkable turn late Friday and into Saturday.”
“In truth perhaps the mutiny and then truce, all within 24-36 hours means more political instability longer-term than shorter-term,” Deutsche Bank analysts added.
Overall, the index of European aerospace and defence stocks is down by 1.5%, following a 30% surge over the last 12 months.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The Wagner incident may have exposed Putin’s weakness, and was the most serious threat to his rule in two decades. It could be a turning point in the war in Ukraine. But nothing is more unsure."
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