Groupe Casino Cautious on Outlook, Worldpay Net swing to Profit

Sarla Buch
07 Mar, 2017
New York City

Ashtead profit surged after growth in North America and weak British pound. Direct Line net tumbled 52% after new law of discount rates. Groupe Casino net swung to profit after divestment of operations in Asia. Just Eat net soared on increasing orders and number of active customers.

[R]4:00 PM Frankfurt – Ashtead profit surged after growth in North America and weak British pound. Direct Line net tumbled 52% after new law of discount rates. Groupe Casino net swung to profit after divestment of operations in Asia. Just Eat net soared on increasing orders and number of active customers.[/R]

In London trading, FTSE 100 index fell 14.39 or 0.2% to 7,337.26 and in Frankfurt the DAX index edged up 0.20 to 11,958.60.

In Paris, CAC 40 index slipped 24.15 or 0.5% to 4,947.85.

Ashtead Group Plc slipped 1.8% to 1,712 pence after the U.K.-based construction and industrial equipment provider said revenues in the third-quarter ending in December soared 13% from a year ago to £804.5 million.

Net income in the quarter surged 26.4% from a year ago to £109.3 million from £86.5 million and diluted earnings per share advanced to 21.9 pence from 17.3 pence.

Ashtead said improved net income after strong growth in North American market and weak British pound.

Direct Line Insurance Group Plc dropped 3% to 338 pence after the U.K.-based property and casualty insurance services provider said gross written premium in the year ending in December jumped 3.9% from a year ago to £3.3 billion.

Net income in the year tumbled 52% from a year ago to £278.8 million from £580.4 million and diluted earnings per share slumped to 20.2 pence from 40.1 pence.

Direct Line said before the Ogden discount rate cut, pretax profit in the year soared 12.4% to £570.3 million from a year ago period.

The Lord Chancellor Elizabeth Truss slashed the discount rate for personal injury damage as a result it needs to reduce operating profit of £175.1 million in 2016.

Groupe Casino SA declined 4.7% to €49.77 after France-based mass retailer reported revenues in the year ending in December advanced 5.7% from a year ago to €36 billion.

Same store sales in the year increased 0.3%.

Net in the year swung to profit from a year ago to €2.7 billion from a loss of €43 million.

The retailer said net in the year swung to profit after capital gains from the divestment of operations in Asia and their disposals accounted in 2016. The retailer plans to sell Via Varejo operations, including the assets of Cnova in Brazil.

Just Eat Plc surged 6.2% to 550 pence after the U.K.-based online food delivery services provider stated revenues in the year ending in December soared 52% from a year ago to £375.7 million.

Comparable sales in the year advanced 46%.

Net income in the year soared 210.4% from a year ago to £71.4 million from £23 million and diluted earnings per share jumped to 10.5 pence from 3.7 pence.

Just Eat said revenues benefited by 42% increase in orders to 136.4 million from 96.2 million and the number of active users jumped to 17.6 million from 13.4 million.

The food delivery services provider forecasted fiscal 2017 will be another year of ""material growth.""

Paddy Power Betfair Plc, formerly Paddy Power Plc, the Ireland-based public online betting and gaming services provider reported revenues in the year ending in December soared 18% from a year ago to £1.5 billion.

Net in the year swung to a loss from a year ago to £5.7 million from profit of £108.2 million and diluted loss per share swung to £0.072 from diluted earnings per share of £2.358.

The betting services provider said operating profit and earnings per share each jumped 44% to £330 million and 331 pence per share respectively but hit by £300 million in profits for the year due to the merger costs.

Shawbrook Group Plc fell 0.7% to 317.20 pence after the U.K.-based lending and savings bank rejected an improved proposal that received on Friday from a consortium lead by private equity fund manager Pollen Street Capital and buyout firm BC Partners LLP for £825 million or $1 billion.

The offer price submitted on January 31, 2017 was 330 pence per share in cash and final dividend if any due for 2016, the bank said in a statement.

However, Pollen Street Capital already owns 38.9% stake in Shawbrook.

Worldpay Group Plc slid 0.3% to 274.20 pence after the U.K.-based online and by mobile payment services provider reported revenues in the year ending in December surged 15% from a year ago to £4.5 billion.

Net in the year swung to profit from a year ago to £131.5 million from a loss of £29.8 million and diluted earnings per share swung to 6.6 pence from diluted loss per share of 1.8 pence.