Close Brothers confident over FY; Ladbrokes, Gala Coral may have to sell 400 shops
London’s FTSE 100 was seen starting 57 points higher than Thursday’s close at 6,110.
Stocks to watch
Financial services group Close Brothers said it delivered an improved third quarter performance, with good loan book growth, tighter cost control and better market conditions for its market making unit Winterflood. It added that it was confident of “delivering a satisfactory outcome for the full year”.
The banking division's loan book increased 4.0% in the quarter and was up 8.2% in the year to date to £6.2bn benefiting from strong growth in leasing products and a seasonal uplift in motor finance.
“The return on net loan book remains strong, as both the net interest margin and bad debt ratio have remained broadly in line with the first half. The rate of growth in expenses was lower than the first half as we continue to tighten cost control whilst maintaining investment in the business and in new growth initiatives,” Close said.
Provisional findings from the Competition and Markets Authority into the proposed merger between bookmakers Ladbrokes and Gala Coral have identified potential competition concerns in hundreds of local areas.
The authority said that in order to resolve the concerns, 350 to 400 shops may need to be sold for the merger to be conditionally cleared - if the provisional findings were confirmed in the final report.
Ladbrokes and Gala Coral Group - the second and third largest bookmakers in the UK by number of outlets - have 2,231 and 1,850 betting shops in the UK respectively.
In the press
Deutsche Bank has become the latest big company to be hit by investor ire over executive pay after shareholders voted down its new remuneration plan for top managers. The vote follows pay rebellions at Citigroup and Renault, and capped a shareholder meeting full of criticism for Deutsche, which made a €6.8bn loss last year, and is battling to restore its fortunes and reputation after years of poor returns and high legal costs. – Financial Times
Bookmakers have cut the odds on Britain voting to remain in the EU, as a flurry of bets suggests the result may not be as finely balanced as the polls show. William Hill cut its odds on a Remain vote for a third day running on Thursday to 1/5, giving an implied probability of 83 per cent, and it was joined by a host of other high street bookies. – Financial Times
Two of the world’s biggest tobacco companies have vowed to continue to fight plain packaging in the UK, after the High Court today rejected a bid by the cigarette industry to prevent the introduction of the new law. Plain packets of cigarettes will be officially imposed tomorrow after Mr Justice Green dismissed a challenge against the measure by four industry giants: British American Tobacco (BAT), Japan Tobacco International (JTI), Imperial Tobacco, and Philip Morris International (PMI). – Telegraph
BHS’s administrators have lined up a trio of liquidators should talks over a sale of the failed retailer come to nothing. Restructuring firms Alteri, Hilco and Gordon Brothers, experts in high street liquidations, have been asked to assess how much BHS would be worth if all its assets including existing stock were sold-off piecemeal. – Telegraph
US close
US stocks ended weaker but off lows on Thursday as the prospect of a rate hike as early as June continued to unnerve investors.
The Dow Jones Industrial Average ended down 0.5%, the S&P 500 fell 0.4% and the Nasdaq lost 0.6%.
Minutes from the latest Federal Open Market Committee meeting released on Wednesday revealed that an interest-rate hike in June was a possibility, with a number of participants already angling for an increase at the April meeting.