Champagne: is bigger better? October 8, 2012 City A.M.’s wine industry expert When you think about buying a bottle of Champagne, which names immediately spring to mind? Bollinger? Moet & Chandon? Brands like these carry a hefty price tag but whether their wines are better than the cheaper alternatives is up for debate. You can buy a bottle of Tesco-branded Champagne for [...]
Best of the Brokers October 7, 2012 BSKYB Numis rates the media group “add” with a target price of 865p ahead of first quarter results due on 1 November. The broker expects to see strong subscription growth following a summer of sport, though earnings growth is likely to be muted at around one per cent, after the firm bought a string of [...]
Best of the Brokers October 4, 2012 TESCO UBS maintains its “neutral” rating for Tesco while raising the target price to 350p from 325p, despite first-half trading profits that slightly missed consensus estimates. SPORTS DIRECT Seymour Pierce has upgraded the athletics retailer from “hold” to “buy,” and raised its target price from 285p to 420p, saying the firm is well placed to [...]
FTSE treads waters as lack of action from ECB leaves investors nervous October 4, 2012 BRITAIN’S FTSE 100 share index stalled near the top of its recent range yesterday, supported by prospects of global central bank stimulus but struggling to break fresh ground ahead of a potentially gloomy earnings season. The European Central Bank reaffirmed its commitment to the euro and its plan to buy bonds to bring down their [...]
Clarke: Tesco at start of journey to its recovery October 3, 2012 TESCO chief executive Philip Clarke insisted that the group’s £1bn turnaround plan was paying off, yesterday, stressing “it was just the beginning” despite the group suffering its first profit fall in nearly 20 years. Although half-year profits fell 10.5 per cent to £1.6bn due to the cost of the recovery plan, Clarke highlighted that the [...]
Big supermarkets fight to master a changing market October 3, 2012 TESCO’S first fall in profits for almost two decades suggests a watershed moment for the supermarkets. On one side, the race for space against a backdrop of generous margins; on the other, an altogether tougher battle for bargain-conscious, internet-savvy and convenience-oriented customers as margins shrink. Yesterday’s results were a worrying suggestion that Tesco is losing [...]
After reporting its first fall in profits since 1994, is Tesco now facing serious decline? October 3, 2012 YES Neil Saunders Those looking for a quick turnaround from Tesco will be disappointed by the latest results, which underline deep-rooted problems. UK like-for-like sales growth has improved since the last update. However, this has been driven by more discounting; a short-term solution that treats the symptoms of Tesco’s illness, but does very little in [...]
Rapid Responses October 3, 2012 Attack on property I’m a chartered surveyor working in London, and I was recently informed that Newham Council has decided to introduce mandatory blanket licensing of all rental properties in the borough. Letting agents or private landlords must pay £150 if they apply for a license by the end of the year. Afterwards, a five-year [...]
Sainsbury’s boosted by online and convenience sales October 3, 2012 Sainsbury’s beat expectations to post a 4.3 per cent increase in total sales over the quarter this morning, thanks to strong growth in convenience stores and online. The food retailer opened 49 new convenience stores over the first half of the year, while the online business posted growth of over 20 per cent year on [...]
Tesco posts 10.5 per cent profit drop October 3, 2012 Tesco posted a 10.5 per cent drop in first-half trading profit this morning. Over the six months to 25 August, profit came in at to £1.6bn. A £1bn capital investment programme, to stem a decline in market share to chains such as Asda, Sainsbury’s and Morrisons, was largely responsible for the firm’s first fall in [...]