Boohoo ahead as bosses fill their boots

The Daily Telegraph - Business - - Business - la­toya hard­ing mar­ket re­port

UN­DER-FIRE on­line re­tailer Boohoo re­vealed yes­ter­day that some of its bosses had in­creased their stake in the Aim-listed com­pany.

Mah­mud Ka­mani, chair­man of Boohoo, snapped up 5m or­di­nary shares at an av­er­age price of 214.28p each, to­talling £10.7m, while co-founder Carol Kane bought 2m for £4.28m.

The fast-fash­ion re­tailer has seen its share price plum­met over the last week af­ter al­le­ga­tions that fac­to­ries in its sup­ply chain paid il­le­gally low wages, as lit­tle as £3.50 per hour, and forced peo­ple to work dur­ing the pan­demic with­out pro­tec­tion.

The com­pany has since launched an in­de­pen­dent re­view of its sup­ply chain. Shares closed 25p higher at 235p, a rise of 12pc.

It came as a sell-off of Chi­nese shares in­ten­si­fied into the worst fall since Fe­bru­ary as state me­dia con­tin­ued to crit­i­cise a re­cent mar­ket rally. The bench­mark CSI 300 in­dex closed down 4.8pc, its big­gest loss since mar­kets buck­led af­ter re­open­ing in Fe­bru­ary fol­low­ing the lu­nar new year break.

Spir­its man­u­fac­turer Kwe­i­chow Moutai dropped as much as 8.7pc, wip­ing more than $25bn (£20bn) off its value, af­ter crit­i­cism from the state-owned Peo­ple’s Daily, which said “al­co­hol is meant for drink­ing, not for spec­u­la­tion or cor­rup­tion”.

Euro­pean eq­ui­ties fol­lowed Asia’s lead in end­ing lower, but lim­ited their down­side to about half a per­cent­age point thanks to up­beat US data point­ing to stronger-than-fore­cast re­tail sales fig­ures.

Lon­don’s bench­mark FTSE 100 closed 0.67pc lower at 6,250.69, while the FTSE 250 shed 0.57pc, end­ing at 17,321.29.

Stocks that have been par­tic­u­larly vul­ner­a­ble to the global health cri­sis were among the top fall­ers, with man­u­fac­tur­ing group Melrose slip­ping 4.75p to 117.75p and food­ser­vice com­pany Com­pass fall­ing 34p to £11.50.

An­glo Amer­i­can also dipped 22.8p to £19.30 af­ter cut­ting its full-year guid­ance for coal out­put. The FTSE 100 miner said over­all pro­duc­tion fell 18pc in the sec­ond quar­ter due to the lock­down and in­ci­dents at some of its mines. It cut its fore­cast for coal pro­duc­tion from be­tween 19m to 21m tons to be­tween 16m to 18m tons.

Royal Bank of Canada’s Tyler Broda said An­glo Amer­i­can’s re­sults should be taken “rel­a­tively pos­i­tively” given low ex­pec­ta­tions.

Else­where, SSE was one of the best large-cap per­form­ers even af­ter ad­mit­ting that it ex­pects profit to take a hit of £150m-£250m. De­spite the dis­rup­tion from the health cri­sis, the com­pany said it will stick to its five-year div­i­dend plan to 2022-23, and in Novem­ber in­tends to pay an in­terim div­i­dend of 24.4p.

It also con­firmed it is press­ing ahead with its £7.5bn cap­i­tal ex­pen­di­ture plan for low-car­bon projects in the next five years.

SSE shares rose 33.5p, or 2.5pc, to £13.97.

Mean­while, GVC Hold­ings dropped 3.7pc af­ter it an­nounced that it ex­pects ad­justed first-half earn­ings to be be­tween £340m and £350m, a de­cline from the £366.6m posted last year. It ended the day 33.6p lower at 879.8p.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.