Top story
Agri services group Origin Enterprises (OGN) has completed its €41.3m deal to acquire a majority stake in Brazil-based nutrition and crop business Fortgreen Commercial Agricola.
The deal, worth an initial €41.3m with additional payments of €9m over 12 months depending on profit performance, was first announced on 19 June.
The linked transaction to acquire a 20 per cent shareholding in the Brazilian based agronomy services and crop input distribution business Ferrari Zagatto is expected to complete during the first half of the 2018/2019 financial year.
Ferrari Zagatto has common shareholders with Fortgreen.
Origin said the Fortgreen and Ferrari deals underline its strategic priority to scale its technology and service portfolios in markets which provide tangible growth opportunities.
“The transactions also provide the platform to address the group’s requirements for meaningful geographical diversification and seasonality balance,” the group said.
Morning update
John Menzies (MNZS) has reported a 15% rise in underlying profit before tax in its final results before becoming a pure-play aviation business.
After agreeing the sale of its Menzies Distribution business to private equity player £74.5m, the group reported a 15% rise in underlying pre-tax profits in the first half of the year to £28.5m, which represented a 22% rise at constant currencies.
That improvement driven by its core Menzies Aviation business, particularly from new operations, increased cargo tonnage and contract wins in EMEA and the Rest of World.
However, the group reported a loss before tax of £2.9m (compared with a profit of £0.5m in the corresponding period last year) with stronger trading profit offset by exceptional items totalling £26m relating to the integration of acquisitions, the impact of the disposal of Menzies Distribution and the continuing de-risking of the defined benefit pension scheme.
The group’s turnover, adding back that of the discontinued distribution segment, was £1.25bn up from £1.22bn.
Menzies Distribution delivered an improved result with operating profit at £13. after benefiting from a £1.5m reduction in depreciation and amortisation charges with the business being classified as an asset held for sale from 1 April 2018.
On a like-for-like basis the underlying operating profit for the division was £11.5m. Revenues for the division in the first half were £606.7m up from £591.4m.
On the markets this morning, the FTSE 100 has opened up 0.2% to 7,659.4pts recovering some lost ground from Monday.
Early risers include Stock Spirits (STCK), up 2.5% to 205p, Greene King (GNK), up 2.1% to 486p FeverTree (FEVR), up 1.6% to 3,469.6p and Ocado (OCDO), up 1.1% to 1,057.5p.
Fallers so far include Hilton Food Group (HFG), down 1% to 964p, PayPoint (PAY), down 0.6% to 938.1p and Premier Foods (PFD), down 0.5% to 42p.
Yesterday in the City
The FTSE 100 dropped another 0.3% to 7,642.5pts as worries over the currency crisis in Turkey and its potential fallout persist.
Weak UK consumer spending figures from Visa yesterday helped increase negative sentiment around UK retail stocks.
Fallers yesterday including SSP Group (SSPG), down 3% to 682.1p, Markst & Spencer (MKS) down 1.4% to 298.3p, Tesco (TSCO), downw 1.3% to 262.8p, B&M European Value Retail (BME), down 1.2% to 411p and Morrisons (MRW), down 0.8% to 262.2p.
Other fallers yesterday included Devro (DVO), down 3.1% to 188.4p, Stock Sprits Group (STCK), down 2.7% to 200p, Domino’s Pizza Group down 2.4% to 290p, Greene King (GNK) down 2.3% to 275.8p and Nichols Beverages (NICL), down 2.2% to 1,420p.
The days few risers included Kerry Group (KYGA), up 1.4% to €94.15, PayPoint (PAY), up 1.4% to 944p, Majestic Wine (WINE) up 1.1% to 419.5p and McBride (MCB), up 1% to 139.2p.
No comments yet