BUSINESS LIVE: Inchscape sells UK retail unit; PageGroup profits slump; Kingfisher chair

(Reuters) – British commodities broker Marex Group said on Monday it is seeking a valuation of up to $1.49billion in its initial public offering in the United States.

The company said in a filing it is offering to sell about 15.4 million shares at a price range of $18 to $21 apiece to raise about $323million.

Marex, backed by private equity firm JRJ, in December last year confidentially filed a draft registration statement with the U.S. market regulator to launch an IPO.

The company has applied to list its ordinary shares on the Nasdaq Global Select Market under the symbol “MRX”.

Barclas, Goldman Sachs and Jefferies are among the underwriters for the offering.

In a recent article, I said at least 20 micro-cap life sciences stocks were waiting to pop once interest returned to the sector.

Investors can now add Hemogenyx Pharmaceuticals to the watch list after it pulled off the near impossible by raising $4.2million at a time when investors have largely gone into hibernation.

Mitie Group revealed fresh share buyback plans on Monday as the outsourcing giant said it expects to post record revenues for last year. .

The group told investors ahead of its full-year results that it expects to post year-on-year revenue growth of 11 per cent to ‘at least’ £4.5billion for the 12 months to 31 March.

PageGroup continued to axe jobs at the start of 2024 amid a challenging market backdrop across most territories.

The Surrey-based company reduced its fee earner headcount by a further 100, or 1.7 per cent, to 5,751 in the first three months of this year.

Home insurers paid out a record £573million in claims for bad weather last year, new figures show.

The bumper payout was 36 per cent higher than the £421million paid in 2022, according to the Association of British Insurers (ABI) trade body.

Tesla will lay off ‘more than 10 per cent’ of its global workforce as demands for its electric vehicles starts to falter in a highly competitive market.

CEO Elon Musk sent a company-wide email over the weekend announcing the layoffs, tech publication Electrek reported on Monday.

Kingfisher chairman Andrew Cosslett will step down in June after seven years leading the B&Q owner’s board.

Cosslett will be succeeded by Claudia Arney, who has served as an independent non-executive director of Kingfisher since 2018.

When people buy a home they tend to think they are making a sound investment, as prices tend to rise in the long run.

But unless they are a cash buyer, they require a mortgage from a lender in order to purchase a property.

Hong Kong’s securities regulator has approved the first spot bitcoin and ethereum exchange traded funds (ETFs).

The Hong Kong Securities and Futures Commission (SFC) has given regulatory approval to the Hong Kong units of both China Asset Management and Bosera Asset Management to launch the ETFs, the firms said on Monday.

Inchcape plans to sell its UK retail operations to US car dealership giant Group 1 Automotive in an all-cash deal worth around £346million.

The group said the sale would help it focus on becoming a distribution-focused business covering fields like logistics, product planning and aftersales.

Victoria Scholar, head of investment at Interactive Investor says:

‘There has been a negative reaction from the oil market to Iran’s retaliatory attack on Iran over the weekend, partly because a lot of the geopolitical risk was already priced in last week after oil hit six-month highs. Plus risk-off sentiment gripped markets overnight with a sea of red across Asia-Pacific markets. And Israel’s government said the damage was limited.

‘Having already gained around 18% so far in 2024, there are growing concerns that brent crude could surge past $100 a barrel. Money managers have been upping their long positions on US crude futures and options lately in anticipation of a possible threat to supply. There are worries about disruptions through the Strait of Hormuz in particular which sees around 20% of global oil pass through the waterway.

‘One of the biggest risks for the UK economy from $100 oil is that it could push inflation higher again. The Bank of England and the government have been desperately trying to depress price pressures since the end of the pandemic because they were largely responsible for the cost-of-living crisis. Higher oil has the potential to push up prices across various parts of the economy again, not just in terms of petrol pump prices, but also in other industries like transportation, manufacturing, and food production.’

Chair of E0uropean home improvement retailer Kingfisher, Andrew Cosslett will step down in June after seven years in the role and will be succeeded by non-executive director Claudia Arney.

The changes will take place at the conclusion of the company’s annual general meeting on 20 June, said the FTSE-100-listed owner of B&Q and Screwfix in Britain and Castorama and Brico Depot in France.

Arney has served as an independent non-executive director of Kingfisher since 2018 and is currently chair of Deliveroo and a non-executive director of Derwent London.

London-listed stocks start the week on a lower note as escalating tensions in the Middle East cause market participants to tread cautiously, while downbeat corporate earnings also weigh

Precious metal miners lead sectoral losses, sliding 2.9 per cent, while heavyweight oil and gas shares have dipped 1.6 per cent, tracking lower crude prices as market participants dialled back risk premiums amid news of escalating tensions in the Middle East and fears of a wider regional conflict.

On the data front, figures on US retail sales for March are due Monday, while British consumer prices and retail sales data is due later in the week.

PageGroup has shed 6.4 per cent after the recruiter reported a nearly 13 per cent fall in group gross profit in the first quarter.

Marks and Spencer chairman Archie Norman has become the latest boss to sound the alarm over Labour’s plans to reform workers’ rights.

Policies fronted by the party’s deputy leader Angela Rayner would see staff given rights from day one in new jobs as well as a crackdown on zero-hours contracts.

PageGroup profits fell by nearly 13 per cent in the first three months of the year, due to slow hiring across its markets, and said job flows deteriorated toward the end of the quarter.

Global recruiters have flagged persistent challenges in the hiring market due to low confidence among employees and employers accompanied with a slowdown in the technology sector and slower recovery in China.

‘Conversion of final interviews to accepted offers is still the most significant challenge, as candidate and client sentiment remains subdued reflecting the general macro-economic uncertainty in most of our markets,’ CEO Nicholas Kirk said.

London-listed car dealer Inchscape has agreed to sell its UK retail business to Group 1 Automotive UK in an all-cash deal worth £346million, following a strategic review launched in January.

Inchscape group CEO Duncan Tait:

‘As we continue to deliver on our strategic ambition of becoming the leading global distribution partner to our OEM partners worldwide, this transaction represents a significant step along that journey.

‘Our UK Retail business is a high-quality business, with an experienced and high-performing management team, and has been an important part of the Group’s growth.

‘With our active international expansion into higher value distribution activities, the strategic importance of the UK retail operations has become limited. The Board has therefore concluded it is the right time for a new owner to take this business forward.

‘This transaction aligns with our strategic priorities, simplifies our business and represents a compelling opportunity to deliver meaningful returns to our shareholders. We believe it will enhance the Group’s overall value proposition and enables us to drive growth and long-term value creation for all stakeholders as we further develop our differentiated distribution platform.’

Auto Trader has unveiled which used cars are currently flying out of second-hand dealers fastest – and which are sat gathering dust on forecourts.

The data suggests Britons are turning to cost-effective used hybrids, with the top 10 dominated by the green fuel type.

Nationwide’s £2.9billion attempt to take over Virgin Money has won the backing in principle of the most influential lobby group for mutuals.

Peter Hunt, founder of Mutuo, the UK’s leading advocate for building societies and co-ops, said a successful deal would be a watershed moment.