Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Full year forecasts dialled down marginally at Kingfisher
Retailer Kingfisher LON:KGF published Q3 numbers this morning, noting sales as being flat year on year but adding that performance was in line with or ahead of sector peers. Management deemed the performance as resilient but noted weakness emerging in both the UK and French markets in October ahead of respective government budgets.
That’s not helping with the broadly uncertain backdrop, but the note adds that early Q4 performance is outpacing the ‘exit rate’ seen at the end of Q3. Full year pre-tax profit forecasts have now been tightened to a range of £510m-£540m but there’s also a commitment here to continue with the return of surplus capital to shareholders.
#2. Anglo American exits steelmaking coal business
Anglo American LON:AAL has agreed to dispose of its steelmaking coal business in a deal that will generate up to $4.9bn in cash – although admittedly this also includes $1.1bn already announced via the disposal of its Jellinbah minority interest. This is part of an ongoing strategy by the business to focus on core copper, iron ore and crop nutrients and follows a number of other divestments which have been made recently.
#3. Funding progresses at boohoo
There’s an update on a fundraising from boohoo LON:BOO this morning, noting that lender consent has now been granted for the move. This comes at an interesting time for the company as it continues to bat away attempts by the significant but minority shareholder Frasers Group to place their directors into the management team.
