Bookie is a winner in the Super Thursday frenzy
WITH 27 FTSE 100 and 250 companies reporting results – the most in 20 years – it was a Super Thursday for the stock market.
Days like this happen a couple of times a year, usually in the summer and just before Christmas as firms get their latest accounts out of the way before staff go on holiday.
There was no great theme, with the FTSE 100 trading fairly flat in what one Jefferies analyst called ‘a day from hell’ as brokers picked through reams of documents filed on the London Stock Exchange.
A sharp rise in online punters offset the falling popularity of bricks- and- mortar bookies at
Ladbrokes Coral yesterday. The FTSE 250 firm saw its digital revenues grow 17pc year-onyear over the first half of 2017, versus a 6pc drop in turnover at its High Street betting shops.
Its online arm reported a 25pc jump in revenues, with a 27pc lift in bets staked on sports matches and an 11pc leap in online games such as roulette.
Elsewhere, the bookie bumped up the amount it believes it will save each year from its merger with Coral – from £100m to £150m.
Investors were impressed, as they added £147.1m to Ladbrokes Coral’s market value, but some remained sceptical. Key to their worries is a Government review into gambling machines amid concerns they may harm vulnerable people.
George Salmon, equity analyst at Hargreaves Lansdown, said: ‘Sweeping reform has the potential to be hugely damaging, and this is much of the reason behind the recent share price weakness.’
Regardless, the firm had a day of strong gains, and shares finished up 6.5pc, or 7.7p, to 126.7p.
The FTSE fell 0.1pc, or 9.31 points, to 7443.01.
Pest control firm Rentokil reported a remarkable 637pc jump in pre-tax profits over the first half of the year to £592.9m. It was boosted by its sale of eight French laundries to German firm Haniel for £481.6m.
Rentokil sold the businesses to reinvest the proceeds in pest control and hygiene, which represent more than 90pc of its revenues.
Chief executive Andy Ransom called the move a ‘step change’ and increased guidance for revenue, profit, and cash delivery over the medium term to reflect its increased focus on higher-growth markets. Furthermore, the firm, which has made 25 acquisitions over two years, said it expects to spend a further £50m on buying companies in the second half of 2017.
Analysts at Peel Hunt gave it a ‘buy’ rating, and said its valuation is far more attractive than US peer Rollins. Shares rose 5.8pc, or 16p, to 289.1p.
All Bar One and Toby Carvery owner Mitchells & Butlers rose 20.8pc, or 46.5p, to 270p after warm weather lifted food and drink sales in the ten weeks to July 22 by 1.3pc and 3.8pc respectively. Despite this, analysts at Liberum retained a ‘sell’ rating over worries that it will run out of cash after it announced it had agreed to pay pension contributions of £46m a year until 2023.
Trading firm CMC Markets shot up after appearing completely unperturbed by an ongoing crackdown on the spread betting industry by the Financial Conduct Authority, which decimated its shares in December.
The firm said it has not seen any changes in customer behaviour since the review was announced, with revenue per client increasing by 9pc year-on-year in the three months to June 30. Shares rose 5.5pc, or 8p, to 153p.