大象视频

Asos (ASC) shares continued their descent after the lossmaking fashion retailer reported steep revenue declines in its full-year results.

Sales fell 14 per cent, with all regions reporting declines. The US led the fall, with like-for-like revenues down over a fifth. The UK fared slightly better, albeit still reporting a drop of 9 per cent.  

The company is in the midst of a turnaround, and while Asos鈥� weak top line reflects continued consumer caution, management is making efforts to move away from its previous fast-fashion strategy of low prices and high volumes, towards a more varied pricing mix.

Although sales were down, some progress was made in reducing net debt, as well as narrowing its loss before tax from 拢379mn last year to 拢281mn this time around. 

However, broker Peel Hunt remains circumspect. Analyst Anubhav Malhotra said next year鈥檚 guidance suggests 鈥淎sos is bracing for another year of sales decline鈥�. So far, efforts to trim costs and inventory have only managed to 鈥減lug the holes in a leaking bucket鈥�, he added.

Investors are feeling a bit bewildered after a sharp reversal in fortunes yesterday. Nvidia had rallied at the open, and positive stock futures continued into the cash session to push the S&P 500 up 1.9 per cent at its highs before a sudden switch saw sellers take over. The broad market ended down 1.6 per cent for the day. The Nasdaq saw even greater volatility 鈥� erasing a gain of 2.6 per cent to finish the day down 2.2 per cent. April 8 was the last time such a swing took place. It was, in short, a tough day for bulls and a tough day for the Nvidia-will-save-the-market narrative. 

 This morning, European stock markets couldn鈥檛 help but slide in sympathy despite little genuine AI or chipmakers in the mix...risk-off sweeping all aside. The FTSE 100 declined about half a per cent, hitting a one-month low, and trades about 4 per cent off its highs now. Paris is down about the same but the Dax is more than double that. Stock futures in New York this morning are a bit firmer, indicating a positive open, but yesterday鈥檚 reversal has done some damage.

Carry on reading

Babcock (BAB) reported a 5 per cent increase in revenue and a 19 per cent increase in underlying operating profit in its interim results 鈥� both of which were ahead of analysts鈥� expectations.

The company also said market dynamics in both defence and nuclear remained 鈥渟trong鈥�, with its contract backlog standing at 拢9.9bn at the end of September 鈥� a 拢400mn increase on the prior year. Full-year expectations remained unchanged.

The shares dipped by 5 per cent in early trading but later recovered and are up by more than 120 per cent since the start of the year.

PPHE Hotel Group (PPH) has launched a strategic review that could explore a full sale of the hotel operator. The move follows news last week that the group鈥檚 largest shareholders were considering selling down their stakes.

Founder Eli Papouchado and president Boris Ivesha, who hold a combined 44 per cent of PPHE, said at the time they were in talks with 大象视频 about a range of potential options, including a 鈥減artial monetisation鈥� of their stakes. Bloomberg had reported the process could lead to the business being taken private.

The hospitality real estate company, whose 拢2.2bn portfolio includes the Park Plaza hotel brand, has now hired bankers from Rothschild to advise on the strategic review and the formal sale process if it goes ahead.

Last week鈥檚 announcement sent the share price soaring by 20 per cent. Today鈥檚 news boosted the shares by a further 2 per cent to 1,792p.

Shares in Tullow Oil (TLW) fell by nearly 30 per cent after a trading update sparked fears that a refinancing could be painful for shareholders.

The West African oil and gas producer has $1.3bn (拢994mn) of bonds due for repayment by next May but is struggling to refinance them, given 鈥渞isks associated with business performance鈥� and wider market conditions.

Tullow reaffirmed earlier guidance that production for this year would be 鈥渁t the lower end鈥� of its guided range of between 40-45,000 barrels of oil equivalent per day and said that it was chasing the Ghanaian government for $200mn of receivables.

Analysts said that a heavily dilutive debt-for-equity swap may be needed to allow the company to refinance its bonds. Panmure Liberum鈥檚 Ashley Kelty warned that this could potentially wipe out existing equity holders.

鈥淭he company is in dire straits with a declining asset base and a mountain of debt that needs to be refinanced imminently,鈥� he said. 鈥淲ith little scope to sell any more assets to raise funds, the company has to cross its fingers and hope that lenders are open to restructuring the debt.鈥�

Shares in NWF (NWF) sank by 15 per cent after the company issued a profit warning, blaming weaker demand for heating oil and commercial fuel.

This has led to price wars that have eroded margins and impacted profitability, the company stated. Although a recovery is expected over the colder winter period, this won鈥檛 be enough to make up lost ground, and it expects profits to be 鈥渟ignificantly below market expectations鈥�.

House broker Peel Hunt cut its forecasts for NWF鈥檚 current financial year by nearly a quarter. Earnings per share are forecast to be 23 per cent lower at 15p, with next year鈥檚 earnings also downgraded by 9 per cent to 19p a share.

Shares in Canal+ (CAN) jumped 8 per cent this morning after the pay TV broadcaster clinched exclusive rights to show the UEFA Champions League in France through to 2031, and crucially, at a lower price.

Champions League football is Canal+鈥檚 single biggest cost, currently at 鈧�480mn (拢424mn) a year, almost a quarter of its overall content spend. The rights tender for four seasons as of 2027/28 started on 18 November, with a structure designed to attract global streaming platforms.

Management didn鈥檛 name the new number, but Bernstein said in a note that chief executive Maxime Saada confirmed on a call Thursday night the deal was below the current annual cost, in an unspecified proportion, 鈥渋nteresting鈥� for Canal+.

鈥淭he most important cost line of the company will decrease substantially, securing a path to normalising profitability of Canal+ France,鈥� said analysts Christophe Cherblanc and Annick Maas.

Bernstein estimated the savings could add about 鈧�100mn to operating profit from the second half of 2027 and 鈥減ossibly more鈥� if the cost reduction is at least 10 per cent and Canal+ sublicences some matches to beIN Sports for at least 鈧�50mn. In France, the group holds Premier League rights until 2028, as well as Formula 1 and MotoGP through 2029.

Find out why we鈥檙e bullish on Canal+ here