Britain's biggest retailer Tesco (TSCO) has agreed to pay a £129m fine to settle an investigation surrounding the overstatement of profits from 2014. There are also reports that two of the supermarket chain’s biggest shareholders have called for Tesco to withdraw its £3.7bn agreed offer for wholesaler Booker (BOK), potentially casting doubt on the deal's progress. This all leaves the share price flat at 190.15p, although investors will be keen to get more detail on any possible financial claw back.
British tour operator Thomas Cook (TCG) expects to hit its full-year operating targets after seeing early signs that tourists were returning to troubled markets Turkey and Egypt. But that fails to spark much interest from investors, the shares barely unchanged at 89.75p. Package tourism has taken a battering during the past year thanks to a number of terror attacks making many Brits think twice before booking holidays abroad.
Heating and plumbing products supplier Wolseley (WOS) soars to the top of the Footsie leader board, up nearly 6% at £51.60, as it reports 25% rise in first-half profit. Growth in the United States more than makes up for tough trading conditions in the UK and the Nordic region. The company also unveils plans to pull out of the latter market and change the name of the group to Ferguson, reflecting its US division that now pulls in 84% of group trading profit.
British housebuilder Redrow (RDW) has confirmed that it does not plan to make another offer to buy fellow builder Bovis (BVS) just two weeks after its tentative approach was rejected as too low. Redrow shares remain flat at 503.5p, with investors perhaps relieved not to see an inflated acquisition pushed through. Out of favour Bovis shares are also largely unchanged, edging less than 1% lower to 867.5p.
Motoring group AA (AA.) posts full-year trading earnings before interest, tax, depreciation and amortisation (EBITDA) of £403m on Tuesday. That’s about in line with expectations for the year to 31 January 2017 although it shows little progress on 2016 equivalent £402m numbers. The shares nudge 1.5% higher to 259.7p.
British bookmaker Ladbrokes Coral (LCL) sees 2016 operating profit jump 22% despite paying out heavily on a number of gambler-friendly sports results towards the end of the year. But that’s not enough to assuage ongoing concerns, the stock off around 2.5% at 132p on Tuesday.
Aerospace and defence company Cobham (COB) has flagged plans to raise £512.4m through a fully underwritten 2-for-5 rights issue to pay down debt. Cobham stock is currently changing hands at 126.4p.
