|Bid||78.20 x 45600|
|Ask||78.40 x 37200|
|Day's range||78.08 - 83.20|
|52-week range||78.08 - 204.00|
|Beta (3Y monthly)||0.64|
|PE ratio (TTM)||N/A|
|Earnings date||31 Jul 2019|
|Forward dividend & yield||0.14 (15.10%)|
|1y target est||144.34|
Why BoohooGroup plc (LON:BOO) is a great retail growth stock for any investor, according to Tom Rodgers.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Faced with the choice of accepting rent cuts or hunting for new retailers to fill hundreds of stores, U.K. mall owners are swallowing their medicine.Some of Britain’s biggest commercial landlords including Hammerson Plc and British Land Co., voted in favor of a rescue plan for billionaire Philip Green’s Arcadia Group that meant having to accept dozens of store closures and rent cuts of at least 25% at almost 200 sites.But their approval for the so-called Company Voluntary Arrangement was grudging and highlights how much pressure they are under from the pain inflicted on retailers by consumers choosing to shop online rather than in department stores.Land Securities Group Plc, Standard Life Aberdeen Plc and the Crown Estate had intended to vote against Arcadia’s proposals and switched at the 11th hour, according to people familiar with their plans who asked not to be named discussing information that isn’t public. One landlord, Intu Properties Plc, voted against, calling the deal unfair to tenants that pay full rent.“It really is like being stuck between a rock and a hard place,” said Daniel Swimer, property litigation partner at law firm Joelson. “Landlords could have rent reductions forced upon them or, if the CVA doesn’t get passed, they’re left with a large retailer failing in the current retail climate.”Deal ApprovedThe fact the deal was approved is likely to put further pressure on mall rents and values, and raises the possibility that commercial property owners could be tipped into a crisis similar to that faced by the retailers who make up some of their biggest tenants.The cost of insuring Land Securities’ debt against default saw the biggest daily rise since December on the day after the Arcadia vote, according to ICE Data Services. Moody’s Investors Service warned of possible damage to the creditworthiness of retail property owners that already face “weak operating performance, with declining footfall and retail sales, and downward pressure on rents.”The landlords came under pressure from Arcadia to back the deal or put about 18,000 jobs at risk if the company was forced into administration, people with knowledge of the negotiations said. Several were told they would be shirking their social responsibilities and be blamed for job losses, an accusation they resented, some of the people said, asking not to be identified as the talks were private.Arcadia representatives declined to comment.Ultimately the decision to back the CVA came down to the best commercial interests of the landlords, given that they could be left with empty sites if Arcadia fell into administration, two of the people said.Spokesmen for Land Securities, the Crown Estate and Standard Life Aberdeen confirmed they had backed the plans but declined to comment on the detail of the negotiations. Representatives of Hammerson and British Land declined to comment.Smaller CutsWhile many companies have preceded Arcadia’s CVA, few have been so large and many secured less generous rent cuts. The risk is that following Arcadia, other retailers now demand the same, even those that have previously undertaken rent cuts.“There’s nothing to stop companies coming back for a second bite,” Andrew Hughes, head of European general retail at UBS said at a media briefing last month.Intu has previously highlighted the likely impact of Arcadia’s CVA, saying last month that store closures are worse than expected and it sees net rents falling 4% to 6% this year. The company, which owns eight of the top 20 malls in the U.K., is under pressure itself to sell assets to cut debt and CVAs are hampering those efforts.Falling ValueIntu said in February that a further 10% fall in the value of its properties would cost 1 million pounds in extra expenditures in order to avoid a breach of loan covenants. U.K. Retail property values fell 10.25 percent in the year through May, according to data compiled by broker CBRE Group Inc.Some landlords are pushing back on department store chain Debenhams’ outlet closures which won creditor approval in May. Sports Direct International Plc has grouped together with landlords to challenge the CVA and property investor M&G Investments has launched another challenge, a spokeswoman for the asset manager confirmed.But it will be hard for landlords to stop the trend. Consumers’ shift to online shopping shows little signs of abating and insolvencies have jumped by more than a fifth since 2016, with more than 1,200 retailers collapsing last year.“What is 100% certain is that retailers can’t carry on paying the rents they have historically,” said Richard Hyman, an independent retail consultant. “There’s less money in the pot to fund it and the pain has to be shared by the landlord as well as by the retailer.”\--With assistance from Antonio Vanuzzo.To contact the reporters on this story: Katie Linsell in London at email@example.com;Jack Sidders in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Chris Vellacott, Shelley RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Sir Philip Green has told Sky News "a win is still a win" after his high street retail empire narrowly averted the prospect of collapse. Arcadia Group - whose brands include Topshop, Dorothy Perkins and Burton - needed to get 75% support in a series of rescue deal votes among creditors. The vote in the City was delayed by a week as landlords held out for improved terms on rent cuts they were also being asked to approve at 194 of the remaining sites.
Green’s Arcadia Group Ltd., which owns well-known U.K. fashion brands including Topshop, Dorothy Perkins and Miss Selfridge, said on Wednesday that its plans were approved by the “required majority” of creditors. Arcadia, which employs 18,000 people globally, told creditors last month that it was “highly likely” to go into administration immediately or soon after if the vote was unsuccessful. While the vote buys Arcadia precious time, the company may not be entirely out of danger.
Creditors to Green’s Arcadia Group Ltd. meet in London this afternoon to vote on its proposals to cut rents and close stores in order to ensure its survival after a consumer shift to online shopping has decimated the profits of traditional retailers. Green was once the king of British retail and among the nation’s richest people, with a net worth of $6.6 billion six years ago, according to the Bloomberg Billionaires Index. “Whatever the outcome today, this marks a huge fall from grace of Philip Green as a retailer,” said Richard Hyman, an independent retail consultant.
Arcadia Group - the company behind the Topshop, Dorothy Perkins and Burton brands - needs the support of at least 75% of creditors in a series of ballots that were delayed last week because of significant opposition from landlords . After suspending last week's vote, Arcadia said it would reduce the severity of its proposed rent reductions in a bid to win enough support. Sky's City editor Mark Kleinman reported that Intu's voting rights were so great that every other major Arcadia landlord had to back the CVAs if they were to be carried.
Sir Philip Green's plan to save his high street empire from collapse edged closer to failure on Tuesday when its second-biggest landlord indicated it would oppose a last-gasp rescue deal. Sky News has learnt that Intu Properties, which owns the Lakeside and Trafford Centre shopping centres, has informed Arcadia Group that a compromise deal aimed at winning over sceptical property-owners had not persuaded it to support a proposed Company Voluntary Arrangement (CVA). The move inches Arcadia, which needs the support of 75% of creditors at a rescheduled vote on Wednesday, to the brink of administration, and casts renewed doubt over 18,000 high street jobs.
The future of Sir Philip Green's retail empire remains in the balance after a meeting to secure backing for a rescue plan was adjourned until 12 June. Arcadia was unable to gain support from enough of its landlords to push through an agreement for its restructuring plan. It needs approval from creditors in order to avoid administration or liquidation for its seven brands - Topshop, Topman, Burton Menswear, Dorothy Perkins, Evans, Miss Selfridge and Wallis.
"A key strategic objective for us is making smart use of capital ... Dushyant will be key in delivering disciplined capital allocation across the business," Chief Executive Matthew Roberts said. Since joining in 2010, Sangar has worked on deals worth over 5 billion pounds, including the acquisition of intu Trafford Centre, and played a key role in Intu's foray into Spain, the company said. Sangar previously held roles at MGPA, a private-equity real estate investment advisory company that was bought out by BlackRock, as well as in investment banking at UBS.
The FTSE 100 ended 0.4 percent higher, following three sessions of decline, and the FTSE 250 overturned earlier losses to close up 0.1 percent. HSBC was the biggest support to the main bourse, rising 2 percent to its highest level in over eight months as its profit surpassed analysts' expectations thanks to a surge in income from its core Asian business. Miners snapped a seven-day losing streak with a 1.1 percent jump as metal prices picked up with China and the United States set to resume trade talks next week.
Intu shares tumbled more than 8 percent to 91.90 pence at 0725 GMT, taking the stock to the bottom of the midcap index. The company, whose properties include the Trafford Centre in Manchester, now expects net rental income for the year to decline between 4 percent and 6 percent, compared with its previous view of a decline of 1 to 2 percent. "We expect the remainder of 2019 to be challenging due to a higher than expected level of CVAs and a slowdown in new lettings as tenants delay their decisions due the uncertainties in the current political and retail environments," said Matthew Roberts, who was installed as chief executive last month.
Britain's main index inched up on Friday, after three sessions in the red, as a profit beat lifted HSBC and miners jumped after Tesla said it expects global shortages of copper. Intu Properties weighed down midcaps after an annual target cut.
(Adds company news items and futures) May 3 (Reuters) - Britain's FTSE 100 index is seen opening 1 point higher at 7,352 on Friday, according to financial bookmakers, while FTSE 100 futures were up 0.13 ...
Cale Street Investments, which is backed by Kuwait's sovereign wealth fund, plans to buy half the interest in the Derby shopping centre, which is visited by 22 million shoppers each year, Intu said in a statement on Thursday. "While expected, the transaction provides some confidence in Intu's ability to dispose of assets in what is a tough backdrop for retail assets – at a price which is supportive of current valuations," Liberum analyst James Ashley said. Intu bought the shopping centre, which had net rental income of 25.2 million pounds in 2018 and houses retailers such as Marks & Spencer, Next, H&M, Sainsbury's and Zara, for 390 million pounds in 2014.
British shopping centre operator Intu Properties Plc on Thursday said it would form a joint venture with Cale Street for the Intu derby shopping centre. Cale Street Investments, an investment firm backed ...
The management reshuffle comes as Intu feels the impact of tough conditions in the retail sector that forced it to scrap its final dividend in February. Gibbes will take the finance chief's role on an interim basis pending the appointment of a permanent successor to Matthew Roberts who was named chief executive last week.
British shopping centre operator Intu Properties named Barbara Gibbes as its interim chief financial officer on Thursday, a week after it appointed its former finance chief as its new chief executive. Gibbes, who joined the company as director of finance in 2017, will begin in the new role on April 29.
The long-awaited CEO appointment comes as Intu faces persistent declines in sales at physical stores and grapples with a string of company failures in retail sector that had forced it to scrap its final dividend in February. A 2.9 billion-pound takeover bid by a consortium led by the biggest investor in Intu was also scrapped in November. The incoming CEO Roberts has been the finance chief for nearly nine years and was also the finance director of high-street retailer Debenhams, where he managed the retailer's market debut in 1998 and sale in 2003.
The property group which owns Manchester's Trafford Centre will this week elevate its finance chief to run the company as it contends with a brutal industry environment. Sky News has learnt that Intu Properties, which is one of Britain's biggest retail landlords, will name Matthew Roberts as its new chief executive in a stock exchange announcement as early as Thursday. The appointment will come after a nine-month search for a successor to veteran boss David Fischel, and just days after the company was reported to be about to hire an outsider for the job.
(Reuters) - British shopping centre owner Intu Properties Plc will name finance chief Matthew Roberts as its new chief executive officer, Sky News reported https://bit.ly/2VdDRj8 on Wednesday. The announcement ...
British shopping centre owner Intu Properties Plc will name finance chief Matthew Roberts as its new chief executive officer, Sky News reported https://bit.ly/2VdDRj8 on Wednesday. The announcement could ...