Volkswagen Sets Aside

Nigel Thomas
22 Sep, 2015
New York City

AA net swung to a loss of

[R]4:00 PM Frankfurt – AA net swung to a loss of £51 million. Clinigen profit tumbled 68% but revenues soared 45%. Meggitt agreed to acquire the composites unit of EDAC. Stagecoach launched £400 million 10-year bonds. Volkswagen plans to set aside €6.5 billion to cover the ongoing investigations.[/R]

In London trading, FTSE 100 index dropped 146.20 or 2.4% to 5,962.48 and in Frankfurt the DAX index slumped 323.66 or 3.3% to 9,623.

In Paris, CAC 40 index declined 154.70 or 3.4% to 4,430.80.

AA Plc plunged 8.4% to 305.30 pence after the U.K.-based roadside assistance service provider reported group revenues in the first-half ending in July slipped 1.4% from a year ago to £484.6 million.

Net in the period swung to a loss from a year ago to £51.1 million compared to profit of £27.5 million and diluted loss per share swung to 8.8 pence from diluted earnings per share of 5.7 pence.

The company said roadside assistance revenue in the period jumped 2.1% to £359.1 million while operating profit declined 5.9% to £199.2 million.

Clinigen Group Plc slumped 2% to 738 pence after the U.K.-based bio therapeutic drugs maker stated revenues in the year ending in June soared 45% from a year ago to £184.4 million.

Net profit in the year tumbled 67.5% from a year ago to £5.3 million compared to £16.2 million and diluted earnings per share dropped to 5.9 pence form 19 pence.

Separately, today the company agreed to acquire Singapore-based rival Link Healthcare Private Ltd on a cash-free and debt-free basis for £44.5 million with additional consideration of up to £55.5 million based on milestones up to fiscal 2017.

Meggitt Plc decreased 1.6% to 466.63 pence after the U.K.-based engineering company agreed to acquire the composites unit of EDAC, the aerospace components maker from Greenbriar Equity Group and other associated sellers for $340 million in cash.

The transaction is expected to close by the end of this year.

Regenersis Plc gained 1.5% to 145.20 pence after the U.K.-based after-sales services provider said revenues in the year ending in June jumped 2.6% from a year ago to £202.6 million.

Net profit in the year surged 81.2% from a year ago to £5.40 million compared to £2.98 million and diluted earnings per share increased to 6.97 pence form 5.41 pence.

Separately, the company agreed to acquire the U.S.-based privately held data erasure software provider Tabernus LLC for $12 million.

Stagecoach Group Plc slid 0.9% to 337.40 pence after the U.K.-based public transport company successfully launched £400 million 10-year bonds with an annual coupon of 4%.

The company plans to use proceeds for general corporate purposes and to repay the existing debt.

Volkswagen AG plummeted 19.5% to €106.55 after the Germany-based carmaker said its plans to set aside a provision of €6.5 billion to cover the ongoing investigations and the charge will be recognized in the third-quarter of the current fiscal year.