Shares in Peppa Pig maker rise after ITV bid rumours
ENTERTAINMENT One kept investors gripped yesterday. Rumours circled that ITV was planning to make a play for the Canadian firm, best known for household favourite Peppa Pig.
Shares jumped into the primetime slot as the market opened and a firm denial from the company behind family favourites such as Ben & Holly’s Little Kingdom did little to dissuade investors that it wasn’t worth a punt.
They finished the day 13.5pc, or 21.5p higher, at 180p. ITV said it ‘does not comment on speculation’.
Its own shares climbed 1.46pc, or 3.5p, to 243.7p. The FTSE 100 continued its own climb, hitting a new peak for the year after finishing up 2 points, or 0.03pc, at 6,365. The All Share was dragged down half a point to 3,483.
Strong performances from engineering group renold - up 5p, or 14.3pc, to 40p – and recruitment firm Hays – up 9.1p, or 7.3pc to 133.2p – couldn’t offset mothercare’s dismal day. Poor international sales from the parent and baby retailer sent shares spiralling 20.7pc, or 39p, to 149.5p in the day. The firm reported that it was having teething problems in the Middle East and China, where consumer confidence was weak because of the oil price collapse and slowing economy respectively.
Mothercare has some 1,310 stores overseas across Asia, Europe, Latin America and the Middle East. Sales were down across all four regions.
On home turf things looked more positive, though. Sales were up 2.1pc across its 170 UK stores. Online sales grew 5.6pc, now accounting for more than a third of total domestic sales. The firm says it still expects its profits to meet market expectations this year. Peel Hunt cut its target price for the shares 35p to 240p.
Mothercare wasn’t the only store on the high street to suffer. Shares in Moss Bros, Ted Baker and Burberry all took a tumble. Poundland took a beating after revealing sales were down 4.9pc in a tough second half of the year. It slumped 3.5pc, or 5.2p to 142p. intu Properties, which owns major shopping malls across the country such as Manchester’s Trafford Centre, was also feeling the effects of lacklustre consumer confidence. Its shares dropped 3.3pc, or 10.6p, to 307.4p.
Zoopla, in which Daily Mail parent company DMG Media has a 31.3pc stake, saw a flurry of activity as rival OnTheMarket found itself embroiled in a row with agents.
OnTheMarket launched last year with the aim of disrupting the online estate agent market by offering a cheaper alternative to market leaders Rightmove and Zoopla.
The firm caused controversy from the off when it asked estate agents to sign a contract effectively banning them from advertising properties on one of either of its rivals if they wanted to use its services.
The majority chose Rightmove. Early converts who were promised discounted rates if they signed up to OnTheMarket at launch are now said to be angry after discovering agents who have signed up later may have been offered even lower prices. There were reports last week that some members, frustrated with fees and disappointed with the site’s growth, wanted to leave the portal.
It is thought that OnTheMarket may be taking legal action against these agents for breach of contract as a result. A spokesman said: ‘The overwhelming majority of more than 6,000 estate and letting agent offices listing at OnTheMarket wholly support the portal.
‘Any firm which joins us at a lower subscription rate than the founders does so for a limited period and without full membership status and benefits.’
Because most agents chose Rightmove as their one other portal when they signed up to OnTheMarket, Zoopla could see a flood of new customers if they do move home. Zoopla’s shares jumped 6.5pc, or 17.2p, to 280.9p.
Liberum speculated that if OnTheMarket fell back then rightmove would be able to increase its own subscription prices. However, the market leader’s shares dipped 50p, or 1.3pc, to 3,940p.