Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Boohoo board respond to Frasers gambit
There’s an interesting statement out from Boohoo Group LON:BOO this morning regarding Mike Ashley’s attempt to have himself appointed as CEO of the business. This provides a little more clarity over recent conversations between Boohoo and Frasers Group LON:FRAS, with the note highlighting the potential conflict on the basis that Frasers (owned 73% by Mr Ashley) also owns a significant stake in competitor ASOS LON:ASC. Boohoo’s advice to shareholders remains for now that no action should be taken but this could become something of a drawn out saga.
#2. Airtel Africa profits leap despite significant currency headwinds
Airtel Africa LON:AAF has a half year report out this morning, noting a 6.1% increase in the customer base, a 13.4% increase in mobile money subscribers and a 31% uptick in data usage. Revenues were up on a constant currency basis and although depreciation of the naira has taken a toll – in the region of $151m off the post-tax profit figure – the company has still managed to deliver a $79m print here, comprehensively outstripping the $13m loss posted 12 months ago. Currency risk is clearly an issue in maturing markets but shareholders are being rewarded with a 9% increase in interim dividend.
#3. Bumper interest income for NatWest as Q3 numbers beat expectations
NatWest Group LON:NWG has its Q3 numbers out today with a 25% increase in profits being recorded in what is seen as a better than forecast performance, coming in around 13% higher than had been predicted. The company made an impairment release of £8m and net interest income lurched sharply higher, increasing by around 75% and reflecting growth in the underlying lending activities of the bank.
