LIVEBUSINESS LIVE: Pendragon to Sell UK Motor and Leasing Unit
By Live Commentary
Updated: 11:54 BST, 18 September 2023
The FTSE 100 is experiencing a 0.4% decline in midday trading. Today, Pendragon, Mondi, Phoenix Group, S4 Capital, Majestic, and BP Marsh are among the companies providing reports and trading updates. Read the Monday 18 September Business Live blog below.
<If you are using our app or a third-party site click here to read Business Live>
Pendragon agrees £280m Sale of UK Motor and Leasing Business
Mondi to complete Russia exit with £666m Plant Sale
The FTSE 100 paper and packaging group, Mondi, is set to finalize its exit from the Russian market. It has agreed to sell its largest plant in the country, Mondi Syktyvkar, to Moscow real estate developer Sezar Group for 80 billion roubles (£666 million) in cash.
S4 Capital Shares Plummet as Ad Group Downgrades Outlook on Recession Fears
S4 Capital shares have experienced a nearly 25% plunge after the advertising firm downgraded its outlook for the rest of the year. The digital advertising firm, led by Sir Martin Sorrell, informed investors that it anticipates a year-on-year decline in like-for-like net revenue due to a slower than expected summer. S4 also revised its core earnings margin to be between 12% and 13.5%, down from the previous guidance of 14.5% to 15.5%.
Market Open: FTSE 100 Down 0.1%; FTSE 250 Off 0.1%
London-listed stocks have opened the week with a slight decline as investors await interest rate decisions from the US Federal Reserve and the Bank of England (BoE). Additionally, Britain’s main manufacturing trade body revised its growth forecast for the sector downwards for this year. Market participants are closely monitoring these policy decisions, as well as domestic inflation data, in hopes of an end to the monetary tightening cycle.
Shares of Phoenix Group Gain 1.6% on Strong Cash Generation Expectations
Phoenix Group has seen a 1.6% increase in shares after the life insurer announced that it expects its 2023 cash generation to be at the top end of its forecast range. The company reported that its new business long-term cash more than doubled in the first half of the year.
Mondi Surges 4.9% as it Sells Largest Plant in Russia
Mondi has experienced a 4.9% increase in its shares after agreeing to sell its largest plant in Russia to Sezar Group, a Moscow-based real estate development firm, for 80 billion roubles.
Phoenix Ups Expectations for 2023 Cash Generation
Phoenix Group upgraded its expectations for 2023 cash generation after reporting strong performance in its new business long-term cash. The company, specializing in managing closed life insurance books, now expects cash generation to be at the top end of its forecast range, which was initially set between £1.3 billion and £1.4 billion.
Wilko Contributes to High Street Job Losses Totaling 100,000
Recent figures from the Centre of Retail Research (CRR) highlight the significant crisis faced by the industry since the pandemic began. High-profile casualties such as Debenhams and Philip Green’s Arcadia empire have already resulted in job losses, with Wilko also now contributing. Up to 12,500 jobs could be permanently lost at Wilko, despite B&M and Poundland purchasing a total of 122 stores. The Range has acquired Wilko’s brand and website, saving only 36 jobs in the digital team.
Mondi Finally Sells Russian Plant
Papercraft and packaging company Mondi has agreed to sell its largest plant in Russia to Sezar Group, a Moscow-based real estate development firm, for 80 billion roubles (£666 million) in cash. This announcement comes after Mondi previously canceled a 95 billion rouble deal due to a lack of progress in obtaining approvals.
Heineken Acquires Stake in Served, Ellie Goulding’s Cocktail-in-a-Can Brand
Heineken has purchased a minority stake in Served, a cocktail-in-a-can brand created by Ellie Goulding in 2020. The brand offers premade mojitos, pina coladas, and alcoholic sparkling water priced at around £3 per can. With this partnership, Served aims to grow in the UK’s “ready to drink” product market, which was valued at approximately £866 million in 2022.
Pendragon to Sell Entire UK Motor and Leasing Businesses
Pendragon, a British automotive retailer, is preparing to sell its UK motor and leasing businesses to Lithia UK Holding for a gross aggregate consideration of £250 million. Bill Berman, CEO of Pendragon, expressed confidence in Lithia’s ability to build on the progress made by Pendragon and emphasized the exciting opportunity to create a best-in-class product for customers with the launch of Pinewood as a standalone company.
Share or comment on this article: Some links in this article may be affiliate links. If you click on them, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
