Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Management look to boost shareholder value at boohoo
A business update from boohoo group LON:BOO this morning notes that a new £222m financing package has been arranged in a deal that reduces the company’s overall borrowing costs. The company has also announced strategic review plans on a ‘by-division’ basis to unlock further shareholder value which may offer some cheer. Although news that the CEO will be stepping down after five years at the helm may serve to counter at least some of the downside, the recent share price performance has been far from inspiring.
#2. MicroSalt looks to deflect new deal hopes
A note from MicroSalt [LON:SALT] the low sodium salt replacement company, whose shares jumped almost 50% on Thursday. Management have noted there are no fundamental changes in conditions, adding that a journalist interview suggesting a “blockbuster” distribution move may be nearing only reflected the view of the interviewee, not the company. However with the interviewee being the CEO of the vehicle owning 69% of MicroSalt, it’s difficult to dismiss entirely.
#3. Mothercare completes refinancing, issues numbers, shares resume trade
The once-iconic UK high street brand Mothercare LON:MTC has issued a series of releases of late, including a JV in South Asia, a refinancing deal and – this morning – its full year results. Perhaps most critically this paves the way for a resumption of trading in the stock. Accompanying the numbers – which showed a 23% fall in turnover but a big rise in post tax profits, management added “We are now focused upon restoring critical mass alongside delivering our remaining core objectives. This is an exciting prospect for our partners, our colleagues and all our stakeholders alike as we finally leave behind the turmoil of recent years.”
