Three things you need to know as the UK financial markets open, from Tony Cross.
#1. Kingfisher offloads Romanian arm
News from Kingfisher LON:KGF this morning that they have offloaded their Romanian Brico Dépôt group of stores to a local buyer. An enterprise valuation of £58m has been realised, with the division contributing £269m of sales and generating a retail loss of £18m in the last financial year. The move allows Kingfisher to focus on its stronger core markets to improve shareholder returns, whilst the acquiring party – Altex Romania – gets to exand into the local DIY market.
#2. NI, wage hikes put the boot into Shoe Zone investors
Footwear retailer Shoe Zone LON:SHOE has a trading update out today, noting that the start of the financial year has been challenging with soft consumer confidence and unseasonal weather both taking a toll. The company will also see costs increase significantly off the back of NI and minimum wage charges, stores will be closed as a result and full year profit forecasts have been cut by 50% Dividend payments will also be suspended.
#3. Falling energy prices, new hotel openings to offset higher costs at Dalata
Hotelier Dalata [LON:DAL] has a full year trading update out today with revenue and adjusted EBITDA both coming in ahead of the 2023 figure. Group RevPAR (Revenue Per Available Room) is up 3.5% and management note a strong performance in both Dublin and the UK. However rising employment costs on both sides of the Irish Sea are expected to increase payroll by 5% on a like for like basis in 2025, although this will be countered by falling energy prices and new hotel openings.
