Today’s markets: The Fed is unlikely to do risky assets a favor

Companies

City Pub Group suggests future acquisitions

City Pub Group (CPC) shares rose more than 10% after he said in an update for the six months ending June 26 that trading had returned to pre-pandemic levels and that he is looking to grow the business through the acquisition bias.

Half-year revenue rose 193% from a year ago to £26m and the company expects trading to “remain resilient” for the rest of the year.

Low indebtedness “will allow the group to take advantage of the opportunities that will arise in these most difficult times”, the company said. California

Schneider signs an agreement on Aveva

Schneider Electric (FR:SE) and Aveva (AVV) have reached an agreement on the terms of their all-cash deal. Schneider will acquire the remaining shares of industrial software company Aveva for 3,100p in cash. Schneider already owned 60% of the company. This values ​​the business at £9.48 billion, implying an enterprise value of £10.1 billion.

Aveva was valued at around 13.2 times its annual recurring revenue, which makes it quite expensive for a software company. It is also a 41% premium to the August 23 closing price.

There have been a number of deals for UK software firms this year by overseas buyers – including Emis and Micro Focus – implying that public markets here are undervaluing them. Cloud transitions are expensive and take a while to generate growth and it seems UK investors are unwilling to wait for cash flow. Schneider is happy to be patient. AS

Payday for former JD Sports boss

When JD Sports (JD.) announced in May that he was getting rid of the dual role of chairman and chief executive and Peter Cowgill with him, it looked like a clear sign that improved governance was in place and the conquering boss was out.

Now the retailer has announced a multi-year deal with Cowgill in which it will receive £3.5million for not starting a rival business or hiring JD employees for two years, and an additional £2million for consulting the new managing director Régis Schultz and president Andy Higginson. The combined payouts are more than he earned as executive chairman in the last fiscal year. However, he is still trailing a retrospective £6million bonus he received three years ago. He has also sold a significant number of shares over the past decade, worth £50m.

Cowgill oversaw the company’s massive growth, but also the failed merger with Footasylum, which it had to offload after the Competition and Markets Authority blocked it. Higginson said he was “happy to have settled the terms of [Cowgill’s] Departure”. Ah

Sainsbury’s sells £500m of assets to LXi

Sainsbury’s (SBRY) eyes £500m sale of supermarkets to long-income property investment trust LXi REIT (LXI). Under the terms of the sale-and-leaseback agreement, the retail chain would transfer ownership of the 18 stores to LXi and then lease them to the REIT under long-term leases.

LXi said the deal, which was first reported by Sky News, would generate a 5% return. He added: “The portfolio benefits from several defensive characteristics, including: strong commercial performance, very low and sustainable indexed rents, long-term ‘green’ leases, low site coverage and modern buildings which provide an option omnichannel sales. ML

Supermarket revenue items jump in pre-tax profit

Supermarket Income Reit (SUPR) posted a 36% increase in pre-tax profits in its annual results for the year to June 30. The supermarket property investment trust’s figures were driven by a 50% rise in net rental income and a £432m rise in the value of its portfolio. However, the average investment return of his portfolio fell slightly from 4.7% to 4.6%. Chief Executive Nick Hewson said: “I am pleased to report another set of strong annual results for the company. » M.L.

FCA steps up Woodford action

The FCA has taken initial action against Link Group for its involvement in the Woodford scandal, with a proposed £50million fine.

The regulator has issued a draft warning notice to the company’s subsidiary Link Fund Services, which managed the bankrupt Woodford Equity Income fund, with a proposed penalty of £50million before any discount for a speedy settlement . However, Link could have to pay up to £306million.

“This potential repair figure reflects FCA’s current view on [Link’s] failures in the management of the liquidity of the Woodford Equity Income fund,” the regulator said in a statement.

“This does not reflect any amount that may be owed to anyone, including members of the fund, as a result of potential wrongdoing by other parties. The remedy determined by the FCA is based on misconduct rather than losses caused by fluctuations in the market value or price of investments.

Issuance of a Draft Warning Notice is a step in the FCA enforcement process and provides the recipient with the opportunity to resolve the case by agreement. Link will now have 14 days to respond. Unless it chooses to settle the case by agreement within this period, the company will have the opportunity to challenge the findings of the CAF and the proposed sanction. comics

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