UK Clears Informa, UBM Merger; FirstGroup Tumbles on Quarterly Loss

Sarla Buch
31 May, 2018
New York City

CRH forecasted higher margin and said it has

[R]4:00 PM Frankfurt – CRH forecasted higher margin and said it has €7 billion in financial capacity. FirstGroup tumbled after disappointed annual results. The U.K. competition regulator cleared UBM takeover by Informa. Johnson Matthey profit declined.[/R]

In London trading, FTSE 100 index fell 37.86 or 0.5% to 7,652.77 and in Frankfurt the DAX index declined 201.50 or 1.6% to 12,582.26.

In Paris, CAC 40 index slipped 32.11 or 0.6% to 5,394.56.

CRH Plc jumped 3.7% to 2,780 pence after the Ireland-based diversified building materials maker said it plans to merge its Europe Lightside, Europe Distribution and Americas Products business into a new unit from January 1, 2019.

In 2021, CRH forecasted operating margin of about 300 basis points and after capital expenditure and dividends payout the company estimated to have €7 billion of financial capacity.

FirstGroup Plc, tumbled 14.7% to 94.55 pence after the U.K.-based passenger transportation services provider reported revenues in the year ending in March soared 13.2% from a year ago to £6.4 billion.

Net in the year swung to a loss of £296 million from profit of £112.3 million in a year ago period and diluted loss per share swung to 24.2 pence from diluted earnings per share of 9.2 pence.

The coach and rail services provider booked impairment charge of £277 million in its U.S. coach division, Greyhound.

“Our ability to mitigate these revenue challenges through further cost efficiencies is limited by ongoing increases in fleet maintenance and driver costs, resulting in a significant reduction in Greyhound’s margin,” said chief executive officer Tim O''Toole.

However, chief executive Tim O''Toole will be replaced by Wolfhart Hauser and act as executive chairman until a successor is appointed.

Informa Plc advanced 3% to 791.20 pence after the U.K.-based business events organizer and publisher announced that The Competition and Markets Authority said that its takeover of the rival UBM is did not qualify for an investigation.

Informa said this completes the regulatory review process in the U.K. for the offer, following successful completion in China, Germany, Turkey and the United States.

UBM Plc stock jumped 3.5% to 1,033 pence.

Johnson Matthey Plc soared 3.3% 3,508 pence after the U.K.-based specialty chemicals and sustainable technologies provider reported revenues in the year ending in March surged 17% from a year ago to £14.1 billion.

Profit in the year plunged 27% to £359 million from £493 million in a year ago period and diluted earnings per share slumped to 155.2 pence from 201.2 pence.

Johnson Matthey said in the year it booked impairment and restructuring charges of £90 million and £50 million for legal settlement.