Business news in brief
Wickes beats profit targets as DIY demand stays strong
Wickes said first-half profits surpassed its targets on the back of strong digital volumes, as the company announced its first dividend payment. Shares in the home improvement retailer, which only floated on the stock market earlier this year after splitting from Travis Perkins, rose after the positive trading update. Wickes told investors that adjusted pre-tax profits increased to £46.5m for the six months to 26 June, ahead of its previous guidance of around £45m. It said it therefore now expects to deliver a full-year adjusted pre-tax profit towards the
“upper end” of market expectations. The company said activity has continued to grow over the past year, with homeowners seeking to work on their properties after reassessing them during lockdowns.
Tobacco firm seals £1.1bn takeover of inhaler maker
Philip Morris International (PMI), the company which produces Marlboro cigarettes, has confirmed that its bid for inhaler maker Vectura has become unconditional after a majority of the target company’s shareholders agreed to sell their stock. PMI said that it has received support from 74 per cent of shareholders in Vectura, pushing the number above the 50 per cent threshold required for the deal to go through. It is now urging the remaining shareholders to accept the deal. The fact that the offer has become “unconditional”, means that remaining shareholders are unable to prevent it from happening and can be compelled to sell. While a deadline of 15 September has been set for Vectura investors to decide whether to sell to PMI.
Galliford Try managing supply chain issues as profits return
Builder Galliford Try has seen a return to profit and said it is successfully managing material shortages and price hikes amid supply chain problems. The group posted better-than-expected pre-tax profits of £11.4m for the year to 30 June, against underlying losses of £59.7m the previous year. It said it is continuing to trade well in the new financial year, despite mounting pressures on the sector from material shortages and rising costs. “Our disciplined approach to bidding and active engagement with our supply chain have proved particularly important during the recent period of materials shortages and inflation,” it said. “Through our careful project management we have successfully managed and mitigated these challenges without any material impact on trading or margin.” It expects profit margins to continue improving over the year ahead, in line with targets.
Abu Dhabi to invest in UK full-fibre broadband rollout
The government of Abu Dhabi and a foundation linked to furniture giant Ikea have thrown £825m at an effort to rollout full-fibre broadband in the UK. CityFibre said that it had secured more than £1.1bn to invest, including £300m worth of new loans. It is money that will help the company reach into a third of UK homes by the middle of the decade, it said on Thursday. Investors include Abu Dhabi sovereign wealth fund, the Mubadala Investment Company, and Interogo Holding – which is owned by a foundation set up to “safeguard the IKEA Concept”. “This new capital will not only underpin our rollout to up to 8 million homes across 285 cities, towns and villages, but will also enable our participation in the government’s Project Gigabit programme to extend our future-proof infrastructure to rural areas and ensure no one is left behind,” said the CityFibre chief executive, Greg Mesch.
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