FTSE 100 reshuffle: Ocado and St James’s Place out, and one surprising new entrant

Ocado and St James’s Place have been given the boot from the flagship FTSE 100 index in a quarterly reshuffle.

The index includes the 100 largest London-listed businesses by market capitalisation, and is given a shake every three months.

Industrial and electric outfit RS Group also fell out of the top table.

The firms will be replaced by housebuilder Vistry Group, LondonMetric Property and Darktrace – though the latter will soon leave the London markets entirely, as it goes through a takeover by US private equity giant Thoma Bravo.

A reshuffle of the FTSE 250 also saw Mobico – owner of the National Express – and Ferrexpo fall out of the secondary index.

XPS Pensions has also been added to the FTSE 250 after rising 14 per cent year-to-date. RBC analysts Derald Goh and Mandeep Jagpal noted 2024 has been a “landmark year” for the company. The analysts said “regulatory upheaval” would continue to drive topline growth with “improving operating leverage” flowing through to the bottom line.

Ocado has seen shares fall 40 per cent over the past six months, with the Square Mile’s perennial jam tomorrow stock failing to hold onto its gains.

And St James’s Place, which has found itself on the front of the business news pages on a number of occasions in the past year, has seen its share price chopped in half over the past 12 months despite an otherwise buoyant FTSE 100.

The move reduces the number of asset managers in the flagship index to one.

The changes will come into effect in time for trading on June 24, with the new constituents of the FTSE 100 trading in indices that day.

Analysts were unsurprised to see Ocado in the relegation zone.

“Although there has been an improvement in the retail side for Ocado, potential legal action looming with M&S over a withheld performance payment has knocked sentiment. Deals are also not being signed as fast as investors were hoping on for its future growth engine, Solutions. It charges third-party retailers to use Ocado’s robotic systems,” said Susannah Streeter at Hargreaves Lansdown.

“There’s still big potential here, but timeframes of growth look more questionable and that’s knocked the valuation. It’s led to speculation that the company may pursue a listing in the US instead.”

The full list of the changes:

FTSE 100 additions:

FTSE 100 relegations :

FTSE 250 additions:

FTSE 250 relegations:

Inditex: Zara owner unfazed by wet weather as viral Tiktok clothing drives sales

The owner of Zara, Bershka and Pull and Bear, has hailed a strong start to the summer as wet weather did not seem to deter shoppers from hitting the high street. 

Over the first quarter of the year, Inditex said it’s spring and summer collection flew off the shelves with sales up 7.1 per cent  to €8.2bn (£6.9bn). 

Cash cow Zara has remained one of the most resilient retailers in recent years, surging in popularity following the demise of Phillip Green’s Arcadia brands. 

Garments the store sells regularly go viral on Tiktok, with social media stars regularly posting hauls of the latest items in stock. 

@zoeilanahill

This is your notice that the viral zara leather jacket is back in stock ✨ #zara #zaraleatherjacket #zarafinds #newinzara #zarahaul

♬ Flowers – Miley Cyrus

Inditex, which also owns the Massimo Dutti and Stradivarius brands, also said gross profit increased 7.3 per cent to €4.9bn (£4.1bn). 

Earnings before interest, taxes, depreciation, and amortisation grew eight per cent to €2.4bn (£2bn). 

Commenting on the results, the board said: “Inditex continues to see strong growth opportunities. 

“Our key priorities are to continually improve the fashion proposition, to enhance the customer experience, to increase our focus on sustainability and to preserve the talent and commitment of our people. Prioritising these areas will drive long-term growth.”

“To take our business model to the next level and extend our di¡erentiation further we are developing several initiatives in all key areas for the coming years.”

Inditex,runs a total of 5,698 stores globally. During the period it also reopened 19 stores across seven brands and resumed online operations in Ukraine. 

Its success comes amid a challenging period for retailers, particularly in the UK,  as damp weather has damaged sales. 

According to a recent study by Barclays, overall retail spending fell -0.4 per cent – the biggest drop since September 2022 – with in-store spending (excluding groceries) and clothing sales dropping by -2.6 per cent and -1.0 per cent respectively.

Remembering D-Day is an exercise in not forgetting Ukraine

It has become something of a cottage industry in academia, and polite society, to denigrate the achievements of the past. And national myth-making deserves scrutiny, for it forces us to confront the bad old days of the past, too, in order to create a better future.

One war, however, has mostly avoided the too-clever-by-half revisionism of so many of the ivory tower brigade. For as national stories go, the nation that stood up to fascism on the continent – on its own, holding out, before fighting back with democratic allies – isn’t a bad one to have.

Today’s commemorations are what they deserve to be: marking the bravery of those who went, and celebrating those who are still with us. It sounds trite because we’ve heard it so many times, but nothing we take for granted today would have been the same without boys as young as 15, 16, 17 rushing into unrelenting machine gun fire.

The stories that have been told since the war have painted a fairer picture than the gung-ho mythology: kids, young men, often absolutely terrified, smiling for the occasional press photographer out of duty more than excitement.

War is horrible. The cause was just. Unfortunately, war is once again with us on the continent. Ukrainian soldiers – picking up weapons not through choice but obligation – are fighting today’s battles. The fear that they could soon be joined by Lithuanian, Latvian or Estonian soldiers is a real one, too.

As we commemorate the 80th anniversary of a global battle against tyranny, we cannot allow ourselves to be bored by the struggle in Ukraine. Russia’s rulers will not stop – they have no shame, no decency, no honour.

And they will fight for every bit of eastern Europe that they can, spilling the blood of hundreds of thousands on all sides with casual disregard.

Putin is a monster. We mustn’t forget that, too, as we look back on what was surely our greatest generation.

Workspace CEO: Wework recovery poses no threat to business as firm hikes dividend

The chief executive of one of London’s biggest flexible hybrid providers, Workspace, said rival Wework has done a “lot of good things” for the sector as the chain emerges from Chapter 11 bankruptcy. 

On Wednesday, the troubled co-working provider hailed the end of a restructuring of its offices in both the UK and Ireland. 

The American firm, which was beloved by corporate workers for its trendy layout and office perks, has trimmed down its estate from about 50 to 40 offices across the area. 

It also shut down a handful of offices in London and a flagship building in Manchester as part of the restructuring and secured new leases with landlords to whom it pays rent, according to a report in PA. 

Last November, the firm filed for Chapter 11 bankruptcy in the US after racking up hefty debts but hopes to emerge from this situation by this month. 

When it was founded in 2010, the company quickly grew in popularity but fell on hard times after the pandemic forced employees into remote working. 

Wework’s uncertain future left many worried about the sector’s state, but fellow providers in the space assured them its wobble would not impact trade. 

Flexible office provider Workspace will kick off the recruitment process for a new chief executive, following the retirement of its current boss. 
PICTURED: Graham Clemett, chief of Workspace

Outgoing boss Graham Clemett told City A.M. Wework had done a lot of good things for the flexible space market and made flexible working “much more mainstream product”. 

Clemett, who will step down as chief next January, said he does not see its rebound as a threat. 

His business tends to cater to smaller companies and those in the fashion and production industries. 

This means that, often, they require a physical space to carry out their job, unlike the typical office worker who would have used a Wework. 

The firm, which has 78 buildings across London and the South East, upped its dividend on Wednesday as a decision to raise rents across its buildings helped push profit higher. 

The value of its portfolio slumped 9.5 per cent to £2.4bn, largely due to the sale of non-core assets to strengthen its balance sheet. 

Throughout the year to March, the business completed 1,238 lettings and 705 lease renewals worth £53.3m. On a like-for-like basis, the company’s rent roll jumped 9.6 per cent.

Its rent per available square foot was lifted by 10.4 per cent to £44.27. 

Clemett said he expected rental growth this year to be slightly slower but noted a “vibrancy and strength of demand” for the space in its business centres across London.

Shares in Workspace added five per cent on Wednesday following the announcement.

Mark Crouch, analyst at investment platform eToro said “The commercial property market suffered more than most during the pandemic. Work from home models remained in place, and with business owners choosing to downsize to accommodate the hybrid model and cut costs, Workspace Group found themselves in a tight spot.

“Despite these challenges, demand in the capital has remained strong and although shorter leases have resulted in frequent turnover, Workspace Group have capitalised, using the breaks to nudge rents higher while maintaining an occupancy rate of 88.1 per cent.”

Boxpark sets sight on new Camden location as it takes over Buck Street Market

Boxpark will come to Camden, as the trendy hospitality firm has taken over Buck Street Market with plans for a “comprehensive renovation” of the site. 

Boxpark said on Tuesday it had agreed a long-term property management deal with Places for London, Transport for London’s Property Company, for Camden’s shipping container food and retail complex, Buck Street Market.

The 12,000 square-ft site, which was bought by Places for London in October 2023, will undergo a “significant refurbishment to revitalise the space and support over 40 independent food operators and retailers”. 

Subject to planning permission from Camden Council, the north London location will be its fifth site in the capital. 

Simon Champion, chief of Boxpark said: “It’s an exciting challenge for Boxpark to reinvigorate an iconic destination like Buck Street Market. It’s no secret we have a love of locations beaming with culture and community, and Camden is no different.

“Camden Town boasts a world of food, music and the arts that is just so aligned with Boxpark’s movement and culture. “

“We are committed to flying the flag for independent businesses across the country, and this restoration will allow us to continue this in one of the most significant takeovers London will see this year.”

Buck Street Market currently hosts 23 retail and 23 food units, operating seven days a week. 

An initial investment will refresh the site, with plans for  further investment in collaboration with Places for London in the coming year following engagement with existing businesses and the local community.

Barking mad! Here is how you can get paid to go the pub

Lovers of both pints and puppies now have the opportunity to get paid to bring their dog to the pub as part of an exciting new competition to rate the most pooch-friendly pub across Britain. 

Rover, the app which connects owners to dog walkers and sitters, is offering to pay 11 lucky pet owners to test 10 pubs in their region (along with their furry friend) over the course of 7 weeks. 

In addition to enjoying a tipple of their choice, winners will have to visit each pub, complete a questionnaire provided by Rover and take social media-friendly photographs of their dog. 

It comes  as research shows some 37 per cent of pet parents say they have not returned to a pub solely due to the lack of doggy facilities,

In exchange for judging 10 pubs, Rover will pay participants £1000. This will be paid in two  parts, £500 at the start of week 1 of the 7-week period, and £500 4 weeks into the 7-week period.

Adem Fehmi, Rover’s Canine Behaviourist, said: “Under appropriate conditions, taking your dog along with you to the pub can be a truly enjoyable experience for both you and your pooch – helping to socialise your dog and provide them mental stimulation. 

“However, whilst many dogs are very social by nature, this is not the case for all, and you must first carefully consider if you believe your dog will be comfortable in this kind of environment and, equally, that they will not be a disturbance to others.”

How to Enter

Submit the below to rovercomps@brands2life.com:

The deadline for submissions ends on 16th June.

Oxford Street: Vacancy rates back to pre-Covid levels as Euros and Olympics to give London a tourist boost

Commentators were quick to proclaim the end of brick-and-mortar retail and premier shopping districts such as Oxford Street following the coronavirus pandemic.

And until recently, they looked to be on the money.

However, recently, Oxford Street has staged a stunning comeback.

According to the latest data just two per cent of units across Oxford Street are now either vacant or let to “low quality” retail space.

The retail drag has been boosted by booming tourist numbers and big events, a trend that seems set to continue.

Dee Corsi, head of New West End Company, told City A.M she is confident the next few months will see a drive in footfall across the retail drag thanks to events such as the Euros and the Paris Olympics. 

She said: “It may have been a wet start to summer, but we are confident that the next few months will see a surge in visitors to Oxford Street and the wider West End. 

“We’ve got a fantastic summer of sport ahead, with the Paris Olympics likely to drive a spike in tourists visiting our capital.”

Just last week, the two-day Champions League Festival drove an uplift of 66 per cent week-on week in footfall on some parts of Regent Street. 

Corsi added: “We know that visitors to the West End want more than just transactional retail – they want varied, immersive experiences that simply cannot be replicated online. 

“Oxford Street is primed to deliver on this this summer, with experiences on the street ranging from John Lewis’ new rooftop restaurant to the soon-to-open Moco Museum at Marble Arch and Selfridges’ iconic beauty hall. There is, quite simply, something for everyone.”

East Side vs West Side

Oxford Street is effectively cut into two by property companies – the eastern end, from Oxford Circus to Tottenham Court Road, and west, from Oxford Circus to Marble Arch. 

The eastern trunk is set to be boosted by the opening on Ikea at the site of the former Oxford Street next spring. 

According to property agents at Savills, there has been a record 40 deals across the region in the past 12 months, and vacancy rates are in line with pre-pandemic levels. 

Sam Foyle, co-head of global retail at Savills, said: “The reduction in [business] rates has made the street more affordable and has encouraged a strong mix of new retailers to commit to new stores in the street. 

“There have been a record 40 deals on Oxford Street in the past 12 months, with a number of new deals coming through for the remainder of the year. Vacancy on the street is currently back in line with 2019 levels and competition for space has become fierce.”

It is a positive boost for the shopping district, and the wider London retail economy, which has suffered in recent years due to high inflation and shopping spending less. 

High end retailers have also been feeling the pinch, as international visitors are reportedly ditching London due to the removal of VAT free shopping.

Workspace: Flexible office provider calls market bottom as workers return to the City

Flexible office provider Workspace said its “future is bright” after it revealed a 8.7 per cent increase in profit for the year to March. 

The FTSE 250 company said demand across its 78 hybrid working buildings also remained strong.

Throughout the year, the business completed 1,238 lettings and 705 lease renewals, worth £53.3m in terms of rent roll. On a like-for-like basis, the company’s rent roll jumped 9.6 per cent.

It reported like-for-like rent per square foot of £44.27, up 10.4 per cent compared to the prior year.

Overall occupancy of its buildings was 88.1 per cent at the end of the fiscal period.

Off the back of the strong results the company announced a 28p per share dividend for the year, up 8.5 per cent. It ended the year with a EPRA net tangible asset value per share of 800p, down 13.7 per cent.

Outgoing boss Graham Clemett, chief executive officer said: “It has been a year of continued progress at Workspace, driven by the resilience and dynamism of our 4,000 SME customers. 

“The strong trading performance has once again been underpinned by rental growth with stable occupancy, delivering an 8.5 per cent growth in the total dividend to shareholders of 28p per share.

He added: “Our valuation was down in the year by 9.5 per cent, although the reduction was significantly lower in the second half.”

“I would expect this valuation to be the low point of the current cycle given the forecast of interest rate reductions combined with our ability to continue to deliver pricing growth and value-add asset management activity.”

Clemett, who has served nearly 16 years at the firm, is set to retire as chief executive. 

Last month, the firm revealed former Capital & Regional chief Lawrence Hutchings would be next to take the throne. 

Clemett said: “I am immensely proud of the distinctive culture we’ve cultivated at Workspace; it has made my time in the business hugely enjoyable, despite the challenges we have had to deal with over the last two decades. I have no doubt that Lawrence Hutchings, who succeeds me as chief executive officer, will be a great fit for the business and that Workspace will continue to thrive under his leadership.

“I wish everyone at Workspace and all our stakeholders all the best for the future. I will of course remain an invested shareholder and I look forward to watching from the sidelines as Workspace goes from strength to strength.”

Pawnbroker Ramsdens boosts dividend as cash-strapped Brits fuel profit surge

Cash-strapped Brits flogging their valuables for a quick quid helped profit at pawnbroker Ramsdens grow by eight per cent this year.

Over the six months to March, revenue at the Middlesbrough-based business also grew by 12 per cent to £43.4m. 

A national cash crunch also drove up demand for small sum short term credit, leading its pawnbroking loan book to jump by 12 per cent  to £10.8m. 

Peter Kenyon, chief executive at Ramsdens, said: “We are very pleased with the Group’s good further progress during the first half of FY24 which once again demonstrates the strength of Ramsdens’ diversified business model.”

As a result, and reflecting our confidence in the outlook, we are pleased to announce a nine per cent increase in the interim dividend.”

“We are continuing to invest in our long-term growth including opening carefully selected new stores, investing in our exceptional team, and further developing our customer proposition. This includes our new service-specific websites that will launch in the second half as well as the recently launched pre-paid travel card.”

He added: “These investments are ensuring that we continue to provide the best possible service to our growing customer base irrespective of which Ramsdens service they choose and through which channel they come to us.”

“Underpinned by our proven diversified business model, trusted brand and market leading team, the Board remains highly confident that Ramsdens is well positioned to further grow our profitability in FY24 and beyond, continue to deliver on our progressive dividend policy, and, ultimately, create value for all stakeholders.”

The pawn industry is a sector that tends to perform well in times of economic downturn as people grow desperate to shore up extra cash. 

Ramsden said it is also opening three new stores this year, taking its total number of sites to 170. 

The Board has approved a nine per cent increase in the interim dividend to 3.6 pence per share.

Discount retailer B&M beats ‘lockdown peak’ but shares slip as analysts left with ‘more questions than answers’

Bargain retailer B&M  beat its “lockdown” peak and traded at the higher end of expectations, but a failure to update on current trading sent shares sliding by five per cent. 

Analysts at Investec agreed the full year update left them with “more questions than answers,” as they rated the stock a ‘Buy’. 

They said: “There is no comment on current trading, but management allude to pivoting the business towards having a higher proportion of growth coming from ‘total volume growth’ driven by new stores. 

“That said, it also reiterates like-for-like is expected to continue to contribute towards ‘total volume growth’. 

They added: “We were disappointed that Q4 LfL sales growth last year had not accelerated by more – given relatively soft ‘post-pandemic’ comparatives.”

On Wednesday, the value-led store told markets that group revenue grew to £5.5bn over the year to March, up 10.1 per cent compared to last year. 

The London-listed retailer also noted a nine per cent leap in adjusted earnings before interest taxes, depreciation, and amortisation to £639m. 

A squeeze on living costs has driven customers to seek out affordable goods, leading to a rise in popularity in stores such as B&M. 

B&M also acquired 51 Wilko stores for £13m after the fellow discounter collapsed into administration. 

Alex Russo, chief executive at B&M, said the company is plotting the opening of at least 45 B&M stores this year, in line with plans to target to not ess than 1,200 B&M UK store

He said:  “During Q4, we accelerated our opening programme, and the step up in openings is continuing. In FY25, we will open not less than 45 gross new B&M stores in the UK, plus a meaningful number in France and for Heron. 

“We have also raised our long-term store target to not less than 1,200 B&M UK stores, which provides a clear runway of profitable growth ahead for us, from our current base of 741 B&M UK stores.

He added: “We have demonstrated strong volume-led momentum in our business throughout our trading history and that has continued, driving our profits ahead of both pandemic and pre-pandemic benchmarks.”

“Despite the more challenging comparatives, with continued new store openings, and a laser focus on low prices and best in class retail standards, we remain confident in our outlook for cash generation and profit growth.

The company said there were few lockdown winners” and who have sustained their competitive progress post-pandemic, but B&M was one. 

They said: “The retail industry remains challenged by regulatory and macro pressures. In the last 12 months a number of retailers have failed and a significant number of others have issued one or more profit warnings. In this context, we delivered increased profits and cash generation, and have this year exceeded our “lockdown” peak of £626m adjusted EBITDA”. 

Separately, the firm announced current non-executive director Tiffany Hall as chair.

She will succeed Peter Bamford who will retire from the Board at the conclusion of the AGM after six years in the role.