Bunzl profits rise, eyes more deals

The FTSE 100 company also announced it had completed two further acquisitions: California-based Cool-Pak, a leading distributor of packaging to fruit and vegetable growers in the US, and Brazil’s AM Supply Comércio Representação e Serviços, which supplies personal protection equipment to the country’s oil sector.

Stripping out amortisation and the cost of the purchases, profits rose 8pc to a better-than-expected £125m.
Michael Roney, chief executive of Bunzl, said: “In spite of the continuing difficult economic conditions, I am pleased to report good growth in profitability and continued strong operating cash flow for the first half of 2010.
“This, combined with the resumption of acquisition activity which has resulted in us acquiring businesses with annual revenues of £140m so far this year, gives us a platform and momentum for further growth.”
Shares in Bunzl, which started life as a haberdashery in Bratislava in 1854, rose 0.7pc to 707p.
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AIM bosses get pay hikes after bonuses dry up, report finds

By Daily Mail ReporterLast updated at 4:31 AM on 31st August 2010

Directos of small listed companies have been awarded generous pay rises to make up for dwindling bonuses, a report has shown.
The average chief executive of a company on AIM - the London Stock Exchange’s junior market - was handed a 6.1 per cent salary boost in the last financial year.
It takes average basic pay to £203,191, rising to £288,917 including bonuses and incentives.

Generous hike: The average boss of an AIM company was given a 6.1 per cent salary boost last year

The pay increase has more than offset an average 7 per cent decline in bonus payments, according to the report from Incomes Data Services, making a mockery of the mantra that everyone must tighten their belts in a recession.
 

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Northern Rock returns to profit

3 August 2010 Last updated at 07:50 ET

Northern Rock Asset Management (NRAM), the so-called “bad bank” part of the old Northern Rock business, has reported a return to profit.
NRAM holds most of the rescued bank‘s old mortgages and unsecured loans.
Pre-tax profit came in at £349.7m for the first six months of the year, compared with a loss of £724.2m in the same period last year.
However, Northern Rock PLC, the “good bank” holding savers’ deposits and new loans, made a pre-tax loss of £142.6m.
This is the first set of results since Northern Rock was split into two.
Since 1 January, savers’ money and some existing mortgages have been held by Northern Rock PLC, which was spun off from the old bank, now renamed NRAM.
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The swing from loss to profit over the past six months looks pretty impressive”

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Housebuilder Barratt announces healthy profits

Last updated at 11:02 AM on 14th July 2010

Housebuilder Barratt Developments said operating profits were likely to more than double after a strong end to its financial year. The group has benefited from cost controls and an 18% jump in average selling prices in the second half of the year, primarily due to a greater mix of house sales than a year earlier.It said profits for the year to June 30 will be ahead of expectations but added that the outlook was likely to remain challenging as a result of restricted mortgage availability and economic conditions.

Barratt completed the sale of 11,377 properties in the year to June 30,
including 6,324 in the second half of the period

An increase in the number of sales outlets, rather than higher sales
rates, means it expects growth of between 5% and 10% in completions in
2011.
‘Our focus will remain on optimising price and not pursuing volumes,’ Barratt added in a trading update.
The company, which trades as Barratt and David Wilson Homes, said it
legally completed the sale of 11,377 properties in the year to June 30,
including 6,324 in the second half of the period.
The average selling price rose 11% to around £174,000 and should
help operating profits to reach at least £85 million, compared with
£34.2 million a year earlier.
Shares improved by more than 3% today, although Hargreaves Lansdown
analyst Keith Bowman said the stock had underperformed the wider FTSE
250 Index in recent months.
He added: ‘Mortgage availability remains constrained, with new FSA
proposals potentially adding to the difficulty, whilst changes in
planning regulations and the uncertainty created by pending public
spending cuts provide further hurdles.’

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Renold links gain to restocking

Orders for Renold in the three months to June 30 were 30pc up on the same
quarter last year, according to the trading update yesterday, but Mr Davies
warned he remained “cautious” about sales growth continuing beyond
September because of the “uncertain macro-economic conditions”.
However, he added: “If there is a shortfall in demand we will just see
that, not the extra 10pc to 15pc we saw last year from destocking.”

Manchester-based Renold also produces gears and couplings. It is the market
leader in the UK and Europe. Renold shares rose 1.93, or 8pc, to 25.18p,
valuing it at £55m.

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World Cup sales disappoint Argos

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By
Rupert Steiner
Last updated at 10:16 PM on 10th June 2010

Weak demand for flat screen televisions ahead of the World Cup caused a steeper than expected dip in sales at Argos, the chain’s owner Home Retail Group revealed.
The catalogue retailer posted an 8.1pc fall in underlying revenues over the 13 weeks to May 29 as analysts said it stocked the wrong type of TVs.
Chief executive Terry Duddy said 70pc of the sets sold by Argos are own-brand and priced at the entry level, not the stateof- the - art LCD and plasma giants shoppers have been demanding.

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Flexible working better than bonuses

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Michael Rendell, head of human resource services at PwC, said that the
recession has changed people’s attitude towards work.

“With companies mindful of taking on new employees, existing staff have
been expected to do more with less,” he said.

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Minnesota man out to change UK retail

By Louise Armitstead






Published: 11:26PM BST 24 Apr 2010

But just days away from leading his attack, Brian J Dunn, chief executive,
doesn’t appear to represent an insurmountable challenge.

In photos, the stocky mid-Westerner sports a bushy handlebar moustache and
goofy teeth. On Twitter his mantra is “People. Technology. And the
Pursuit of Happiness.”. On Facebook he lists the Best Buy store in
Saginaw, Michigan as one of his children.

Mr Dunn, 49, started his career as a teenager when he took a full-time job at
a local grocery store and, although his rise has been meteoric, he’s been
chief executive of Best Buy for just 10 months.

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JD Sports profits swell 26% on young fashion

The success of clothing aimed at young buyers boosted profits at JD Sports by
26 per cent last year, but the sports retailer warned that tough economic
conditions could still deter customers.

Profits swelled to £67.4 million for the year to the end of January 2010, the sixth
consecutive year of growth which largely due to the strong performance of
its fashion brands focused at the teen to mid-twenties age group.

The company, which operates stores under the JD Sports, Size?, Bank and Scotts
brands, said it would lift its final dividend to shareholders by 65 per cent
to 14.7p per share.

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Morrisons hails 21% profits surge for 2009

Last updated at 9:26 AM on 11th March 2010

Morrisons today hailed ‘another good year’ as profits climbed 21 per cent and sales hit record levels.The UK’s fourth biggest supermarket chain reported pre-tax profits of £767million for the 12 months to January 31, from £636million in the previous year.Morrisons, which said it expects economic conditions to remain challenging this year, saw like-for-like sales growth slow across the period to 6 per cent, compared with 8 per cent the year before.The Bradford-based grocer saw turnover rise 6 per cent to £15.4billion.

 Marc Bolland, the former CEO, has left to join M&S
It is engaged in a growth strategy put in place by former boss Marc Bolland, who has left to join Marks & Spencer.
Morrisons opened 43 new outlets in the year, taking its total to
425, and it plans to keep expanding its store base to reach more
customers.
Last year presented a challenge for UK supermarkets as the recession squeezed consumers’ wallets.

Morrisons said it put in place 30,000 price cuts during the year and
‘delivered a promotional programme that enabled our customers to save
money whilst eating good fresh food’.
Sales of its own label value range rose 34 per cent in the year, while sales of premium organic and fairtrade products declined.
Christmas trading saw a surge for the firm as it outperformed the
market for the fourth year in a row during the festive season, putting
larger rivals in the shade.
Morrisons chairman Sir Ian Gibson welcomed the firm’s new chief
executive Dalton Philips, who takes up his post later this month.
Mr Philips is a relative unknown in UK retail but has plenty of
grocery experience as a former executive of US giant Wal-Mart and chief
operating officer of Canadian food group Loblaw.
Sir Ian said the supermarket would continue with its long-term
strategy of investing in growth, with new selling space and
manufacturing capability in the year ahead.
‘We expect the economic environment to remain challenging,
disposable incomes to be under pressure and value to remain a high
priority for consumers,’ he said.
‘The board believes that Morrisons’ unique offer of high quality,
fresh food at great value prices will continue to attract customers
from our competitors and drive market share growth in the year ahead.’
The firm said that based on research from Kantar it believes it has
grown its share of the market to 12.6 per cent from 12.3 per cent.
Nick Bubb, of Arden Partners, said the results comfortably beat analyst expectations and were ‘pretty impressive’.
Growth exceeded rival Sainsbury’s as like-for-like growth was driven through promotions without sacrificing margins.
Meanwhile, food price inflation also buoyed the industry for much of the year.
Mr Bubb said the new chief executive is inheriting a business in good
shape, with growth potential in online and overseas markets.
‘It’s an ideal place to be coming in at because you have fantastic momentum and lots more to do in the long term,’ he said.

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