BUSINESS LIVE: Ithaca cuts UK investment; Travis Perkins boss exits; S4 Capital suffers

Shares in Donald Trump’s social media business soared on their stock market debut in New York yesterday – valuing the former US president’s stake at nearly £5billion.

Trump Media & Technology Group, which is behind his Truth Social platform, rose almost 60 per cent to $79 on the Nasdaq in early trading.

A transatlantic bidding war has broken out for London-listed packaging group DS Smith.

The FTSE 100 firm last night said it is in talks with US rival International Paper over a possible takeover offer worth 415p a share or £5.7billion.

S4 Capital’s turnover fell last year for the first time since its founding as clients cut back on advertising spend amid  greater economic uncertainty.

Sir Martin Sorrell’s firm revealed like-for-like net revenues declined by 4.5 per cent to £873.2million in 2023, following double-digit growth over the previous four years.

The advertising agency said corporate customers were taking an increasingly short-term attitude towards ‘larger transformation projects’, leading to longer sales cycles and spending cuts among some smaller clients.

S4 Capital shares were 6.6 per cent down at 41.6p on early Wednesday morning, meaning they have plunged by more than three-quarters over the past 12 months

Travis Perkins chief executive Nick Roberts will step down after five difficult years at the helm of Britain’s biggest building materials supplier.

Roberts, 55, has agreed to remain in the role until a successor is identified, the group said in a statement on Tuesday.

The boss of Blackrock has warned of a global retirement crunch as people live longer but cannot afford to pay for it.

In his annual letter to investors, Larry Fink said: ‘As a society, we focus a tremendous amount of energy on helping people live longer lives.

A transatlantic bidding war has broken out for London-listed packaging group DS Smith.

The FTSE 100 firm last night said it is in talks with US rival International Paper over a possible takeover offer worth 415p a share or £5.7billion.

The discussions come just weeks after DS Smith threw its weight behind a lower offer of 373p a share or £5.1billion from fellow Footsie group Mondi.

That would have created an £11billion packaging giant listed in London.

Sir Martin Sorrell’s S4 Capital reported a 25 per cent drop in core earnings in a ‘difficult’ 2023, illustrating a downturn in advertising markets the firm expects to continue into next year.

There is reluctance among S4 Capital clients to commit to larger projects, while new business.

The group expect clients to remain cautious in the short term as it forecast another fall in like-for-like net revenue in 2024 and earnings broadly around the same level as 2023’s £93.7million.

‘After our first four strong net revenue growth years, we had a difficult 2023 reflecting challenging global macroeconomic conditions, fears of recession and high interest rates.

‘This resulted in client caution to commit and extended sales cycles, particularly for larger projects, a difficult year for new business, as well as spend reductions from some regional and smaller client relationships. We saw better relative performance and continued resilience in our top 20 and top 50 clients, with our ten largest client relationships strong.

‘We took significant actions to reduce costs in the year and maintain a disciplined approach to operational efficiency.  We are targeting like-for-like net revenue for 2024 to be down on the prior year, with a broadly similar overall level of profit performance to 2023.’

The chief exevutive of Travis Perkins Nick Roberts will step down from the role after a difficult five years at the helm, Britain’s biggest supplier of building material revealed this morning.

Chair Jasmine Whitbread: ‘On behalf of the Board, I would like to thank Nick for his dedication and contribution to the business over the last five years.

‘While there has been good progress made in modernising the business, the Board fully recognises the under performance of the business over recent reporting periods, in the context of continued economic challenges and end market weakness.

‘We remain fully focused on improving profitability and enhancing cash generation, as well as accelerating changes to our operating model to create a simpler, more efficient business, well positioned to emerge stronger when markets recover and to grow shareholder value.’

The boss of British Gas owner Centrica saw his pay almost double last year after high energy bills boosted the firm’s share price.

Centrica chief executive Chris O’Shea took home £8.2million in 2023.

That compared to £4.5million the year before – a figure he recently said was impossible to justify.

North Sea oil group Ithaca Energy plans to slash investment in the UK after earnings were hammered by Britain’s Energy Profits Levy in 2023.

Ithaca Energy’s full-year profit slumped to $215.6million from $1.03billion last year, as it produced about 70,239 barrels of oil equivalent per day (boe/d), down from record output of 71,403 boe/d the previous year.

The group paid an EPL rate of 35 per cent, meaning it paid $333.4million in the year. It also suffered large write-downs and the impact of weaker oil prices.

The Energy Profits Levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled. The extension of the Energy Profits Levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces.

Interim boss and finance chief Iain Lewi said:

‘The Energy Profits Levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled.

‘The extension of the Energy Profits Levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces.’