Morrison Stays Focused on Turnaround, Co-op Bank to Raise

Sarla Buch
09 Mar, 2017
New York City

Co-operative Bank, the struggling lender is seeking to raise

[R]4:00 PM Frankfurt – Co-operative Bank, the struggling lender is seeking to raise £750 million. Domino''s Pizza dropped on slower growth. Merck profit surged 45%. Linde reaffirmed outlook after merger with Praxair. Morrison management stays focused on turnaround.[/R]

In London trading, FTSE 100 index dropped 38.69 or 0.5% to 7,296.19 and in Frankfurt the DAX index slid 9.99 to 12,960.58.

In Paris, CAC 40 index edged up 1.22 to 4,961.70.

The Co-operative Bank Plc, the U.K.-based personal banking services provider said total revenues in the year ending in December dropped 10.2% from a year ago to £737.8 million.

Net loss in the year narrowed from a year ago to £418.7 million from £623.3 million and diluted loss per share decreased to 92.74 pence from 138.5 pence.

The loss-making bank said net losses continue on ""legacy issues"" and lower rates, last month the bank announced it agreed to seek a buyer for itself and ""inviting offers.""

Net interest income in 2016 fell to £394.8 million from £471.5 million and in 2016 the bank closed 59 branches and reduced the network to 105 branches.

However, retail mortgage in the year jumped 5% to £14.1 billion from a year ago period and the struggling lender said if the disposal plan fails, it has to generate additional core capital of about £750 million.

""We plans to close 10 branches in 2017,” chief executive officer Liam Coleman said.

Domino''s Pizza Group Plc tumbled 15.7% to 332 pence after the U.K.-based pizza chain said revenues in the year ending in December jumped 13.8% from a year ago to £360.6 million.

Same store sales in the core U.K. division which generates approx 90% of Domino''s annual revenue, increased 7.5% from 12% surged in a year ago.

Net profit in the year surged 44.5% from a year ago to £71.8 million from £49.7 million and diluted earnings per share decreased to 14.3 pence from 9.8 pence.

Separately, today the pizza chain said it agreed to acquire Norway-based Dolly Dimple''s, the third largest pizza company in the nation.

Merck KgaA fell 0.4% to €102.65 after Germany-based drugs maker reported net sales in the year ending in December soared 17% from a year ago to €15 billion.

Net income in the year surged 45.4% from a year ago to €1.6 billion from €1.1 billion and diluted earnings per share advanced to €3.75 from €2.55.

""For us this is an event of almost historic proportions,"" chief executive officer Stefan Oschmann said in a news conference.

Merck won priority review for, Avelumab, the new generation biotech drugs by the U.S. Food and Drug Administration for usage in rare form of skin and bladder cancer.

Linde AG rose 0.3% to €102.65 after Germany-based gas and engineering services provider said revenues in the year ending in December fell 2.3% from a year ago to €16.9 billion.

Net income in the year was flat from a year ago to €1.1 billion and diluted loss per share swung to €0.28 from diluted earnings per share of €0.09.

WM Morrison Supermarkets Plc declined 5.3% to 234 pence after the U.K.-based retail supermarket chain operator reported revenues in the year ending in December rose 1.2% from a year ago to £16.3 billion.

Comparable store sales in the year increased 1.7%.

Net income in the year soared 37.4% from a year ago to £305 million from £222 million and diluted earnings per share jumped to 12.95 pence from 9.47 pence.

""It''s only one year, our turnaround just started and we have more plans and important work ahead,” chief executive officer David Potts said.