Aberdeen Asset Outflows Continue; JD Sports and LKQ in Focus

Sarla Buch
28 Nov, 2016
New York City

Aberdeen Asset Management reported strong investment performance but recorded net asset outflows. Aryzta, the bakery products maker said first-quarter revenues fell 3.3%. JD Sports agreed to acquire Go Outdoors. The LKQ agreed to acquire 26.5% stake in Sweden-based Mekonomen.

[R]4:00 PM Frankfurt – Aberdeen Asset Management reported strong investment performance but recorded net asset outflows. Aryzta, the bakery products maker said first-quarter revenues fell 3.3%. JD Sports agreed to acquire Go Outdoors. The LKQ agreed to acquire 26.5% stake in Sweden-based Mekonomen.[/R]

In London trading, FTSE 100 index dropped 33.62 or 0.5% to 6,807.13 and in Frankfurt the DAX index slipped 79.33 or 0.7% to 10,619.80.

In Paris, CAC 40 index declined 22.31 or 0.5% to 4,527.96.

Aberdeen Asset Management slumped 3.7% to 275.50 pence after the U.K.-based investment manager net revenues in the year ending in September plunged 14% to £1 billion.

Net profit in the year tumbled 38.8% from a year ago to £189.2 million compared to the £309 million and diluted earnings per share advanced to 12.62 pence from 21.79 pence.

In the year to September 30, the fund manager said assets under management rose to £312.1 billion or $380.40 billion from £283.7 billion, largely on strong investment performance but the company recorded net outflows of about £32.8 billion.

Aryzta AG gained 1.2% to 42.33 Swiss francs after Switzerland-based specialty bakery product maker said total revenues in the first-quarter ending in September declined 3.3% from a year ago to €962.3 million.

The bakery product maker said revenues in Europe fell 1.4% to €436.3 million and revenues in the North America region plunged 7.5% to €462.5 million while revenues in the rest of the world surged 21.1% to €63.5 million.

JD Sports Fashion Plc jumped 3.3% to 330 pence after the U.K.-based fashion and outdoor sporting goods retailer agreed to acquire the rival Go Outdoors Topco Ltd for about £112 million, including net debt.

Go Outdoors reported revenues of £202.2 million in the year ending in Jan 2016 and pre-tax profit of about £4.9 million.

Mekonomen AB surged 8.2% to 165.50 Swedish kronor after the U.S.-based LKQ Corporation agreed to acquire 26.5% equity interest in Sweden-based automobile parts and accessories retailer from AXJ without disclosing financial terms.

The transaction is expected to close in early December.

Tata Steel Ltd, India-focused steel producer signed a “Letter of Intent” to sell its U.K.-based speciality steels business valued at about £100 million or $124 million with Liberty House Group.

""This is an important step, seeking a future for speciality steels,"" chief executive of Tata Steel UK Bimlendra Jha said.

""We look forward to working with Tata Steel over the coming weeks to complete this hugely important milestone transaction,” executive chairman of the Liberty House Group, Sanjeev Gupta said.

The transaction is expected to be completed in the first-quarter of 2017.