Safestore CFO stepping down, 888 flags weaker end to financial year

Stocks to watch

Self-storage group Safestore has announced that its chief financial officer Andy Jones is to retire, after over 10 years with the company. An external search for his replacement will begin soon, but Jones will continue in his role until a successor is found. "I and the board of Safestore would like to sincerely thank Andy for his exceptional contribution and commitment to Safestore over the last 10 years," said chief executive Frederic Vecchioli. "He has been an excellent and trusted support to me and instrumental in delivering the market leading progress of the business in that time. I wish him well in his retirement."

Gambling operator 888 Holdings reported a 10% decline in third-quarter revenue in a trading update on Thursday, to around £400m due to compliance changes, “customer-friendly” sports outcomes, and other factors. The company said it now expected fourth-quarter revenues to be sequentially higher than the third quarter but lower year-on-year by mid-single digits, before returning to growth in 2024. Its adjusted EBITDA margin for 2024 was projected to be 18% to 19%, with the company maintaining its 2025 targets.

Pub and restaurant chain Mitchells & Butlers said it expected full-year earnings would be at the top end of expectations after a strong rise in sales and easing of cost headwinds. The company said strong trading had continued through the fourth quarter, bringing year to date like-for-like sales growth to 9.1%, with total sales growth now of 10.5%.

Newspaper round-up

Embattled Chinese property giant Evergrande has suspended share trading on the Hong Kong stock exchange only a month after it resumed trading after a 17-month suspension. Trading in its two other units – the property services and electric vehicle groups – also stopped at 9am on Thursday, according to notices posted by the stock exchange. – Guardian

The risk of blackouts in Great Britain will be lower this winter thanks to higher gas storage levels in Europe and more nuclear power imported from France, the company responsible for keeping the lights on has said. National Grid’s electricity system operator (ESO) said Britain was in a stronger position heading into the coldest months than it was a year ago when Russia’s invasion of Ukraine had left officials scrambling for backup power. – Guardian

Too much government borrowing is undermining faith in official economic forecasts, the Institute for Fiscal Studies has warned. The think tank said a raft of unexpected and expensive policies rolled out by recent Chancellors had led to a surge in the size of the state and fuelled Britain’s deficit, while also making forecasts less accurate. – Telegraph

A “whatever it takes” attitude to making money meant PwC’s Australian partners overlooked rule-breaking from “rainmaker” colleagues, a report on the firm’s leaking of confidential government tax plans has said. The report, released yesterday, criticised a concentration of power at the top, which allowed the chief executive “relatively unchecked authority”. – The Times

Ryanair’s chief executive has said British air traffic control is by far the worst in Europe, after travellers were hit by more cancellations this week due to staff sickness. Michael O’Leary criticised the UK’s air traffic control network as “by far and away the least productive, most inefficient”. – The Times

US close

US stocks closed mixed on Wednesday, with the 'good-news-is-bad-news' approach dominating market sentiment as durable-goods orders came in much higher than expected.

Meanwhile, the very real prospect of a government shutdown next week was looming large, which may only exacerbate the economic crisis as the Federal Reserve sticks to its hawkish stance over monetary policy.

The Dow Jones Industrial Average finished down 0.2% at 33,550, the S&P 500 was flat at 4,275, while the Nasdaq gained 0.2% to 13,093.

"Day in and day out, the ongoing reality of higher-for-longer interest rates sets in deeper as the Fed's messaging strengthens on 'The Street'," said Stephen Innes, managing partner at SPI Asset Management. "Gone are the days when the market was pricing in rate cuts in the relatively near future. [...] the market is now not pricing in a full Fed rate cut until the end of next year."

US durable-goods orders registered a surprise increase of 0.2% in August, helped by a rise in defence spending, after a revised 5.6% drop the previous month. Analysts had pencilled in a 0.5% decline. Meanwhile, core orders, which exclude defence and transportation, jumped 0.9%.