WPP Share News (WPP)

LONDON (Alliance News) - The following is a summary of top news stories Tuesday.
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COMPANIES
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Vodafone beat earnings and revenue expectations in its recently-ended financial year, boosted by one-off gains and acquisitions, and returned to organic growth in its fourth quarter as it reported "increasing signs of stabilisation" in many of its European markets and increasing demand for data. For the year to end-March, Vodafone reported earnings before interest, tax, depreciation and amortisation of GBP11.92 billion, up from GBP11.08 billion a year before, and beating analysts' expectations of GBP11.87 billion. However, excluding mergers and acquisitions and at constant currency, Ebitda fell 6.9% due to further revenue declines in Europe.
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Land Securities Group reported strong growth in returns and profits in its last financial year as property valuations continued to surge and it achieved strong leasing levels across its new developments in London, and it also said the outlook remains positive as London remains supply constrained despite the growth in new developments. The real estate development trust reported a total business return of 30.7% for the year to March 31, with net asset value per share rising to 1,343 pence from 1,069 pence a year earlier. The company raised its dividend for the year to 31.85 pence, from 30.70p a year earlier, as it raised its final dividend to 8.15p from 7.90p.
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Rio Tinto said the development of the underground mine at Oyu Tolgoi in Mongolia has taken a significant step forward after the shareholders in the project signed a deal that sets out the development plan. The mining giant said the government of Mongolia, Turquoise Hill Resources and Rio Tinto have signed a deal that addresses the key outstanding shareholder issues and sets out an agreed basis for the funding of the project. It will now shift focus to finalising the project finance, the feasibility study and securing all necessary permits so that the underground mine development can proceed.
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Unilever said Chief Financial Officer Jean-Marc Huët has decided to step down and will leave on October 1 after more then five years in the role, with Graeme Pitkethly, the consumer goods giant's current head of UK and Ireland, moving into the role at that time.
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Media buying giant WPP said it has acquired a majority stake in London-based sports marketing agency Two Circles Ltd. Financial details of the acquisition were not disclosed. Two Circles posted revenue of GBP2.7 million for the year to end-August, with gross assets of GBP1.0 million. It has clients including the England and Wales Cricket Board, Ascot Racecourse and Liverpool FC.
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BTG posted a fall in pretax profit for its recently-ended financial year as it increased investment in its business, particularly its Interventional Medicine segment, which offset a strong rise in revenue, and it guided for a further increase in revenue for its current year. For the year to end-March BTG posted a pretax profit of GBP26.7 million, down from GBP33.3 million in the previous year, as a rise in revenue to GBP367.8 million from GBP290.5 million was offset by an increase in selling, general and administrative expenses to GBP124.8 million from GBP84.0 million, and adjusting and reorganisation costs of GBP33.0 million.
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Distribution company DCC Group said it struck a EUR464 million deal to acquire liquefied petroleum gas company Butagaz SAS from Royal Dutch Shell as it also posted a rise in pretax profit for the year to the end of March. DCC said the acquisition of Butagaz, which operates in the liquefied petroleum gas cylinder and small bulk market segments, will provide its DCC Energy business with a substantial presence in the French market. It said Butagaz holds a 25% share of the French LPG market. DCC said it will partly fund the acquisition via the issue of at least 4.2 million shares, raising GBP184.3 million based on its closing price of 4,390 pence on Monday. The remainder of the funding required for the acquisition will come from existing cash resources.
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MoneySupermarket.com Group founder Simon Nixon sold a 3.7% stake in the company, Credit Suisse Securities (Europe) Ltd announced. The sale of 20.0 million shares at 280 pence per share raised GBP56 million before expenses for Nixon. The amount of shares sold is at the top end of the range announced late Monday. Following the sale, Nixon continues to hold 69.8 million shares, about 12.8% of the total, with this shareholding subject to a 180-day lock up.
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ICAP reported lower profit for its last financial year, as the interdealer broker continues with a shift to electronic markets and post trade risk and information divisions from voice broking. ICAP said it made a GBP95 million pretax profit in the year ended March 31, compared with GBP121 million in the prior year. Revenue was down to GBP1.28 billion from GBP1.38 billion, as higher revenue in its post trade risk and information division was more than offset by slower revenue in electronic markets and a 13% drop in global broking, its voice broking division. ICAP maintained its dividend for the year at 22.0 pence per share.
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Engineering software company Aveva Group said its pretax profit fell 20% in the year to the end of March, as revenue was hit by falling demand in the oil and gas industry, though the group tried to sweeten the pill for shareholders by hiking its final dividend by 14%. FTSE 250-listed Aveva said its pretax profit for the year to the end of March was GBP54.9 million, down from GBP69 million a year earlier. The fall in profit was driven by a 12% decline in revenue in the year to GBP208.7 million from GBP237.3 million.
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AIM-listed GVC Holdings confirmed its reverse takeover bid for Bwin.Party Digital Entertainment would be jointly financed by GVC and Canadian gaming and gambling company Amaya. Toronto-listed Amaya is the owner of the PokerStars, Full Tilt and the European Poker Tour gaming brands. It has a market capitalisation of CAD4.31 billion, GVC noted. GVC and Amaya face a rival bid in the cash and shares proposal tabled by 888 Holdings on Monday.
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Greencore Group reported huge growth in profit in the first half of its financial year, boosted by sales growth particularly in its food-to-go business in the UK and US. The food producer reported pretax profit of GBP26.3 million in the half year ended March 27, more than treble the GBP8 million profit made in the same period the prior year, which it said was driven by growth in revenue of 3.2% to GBP639.8 million from GBP619.8 million, as well as continued operational improvements and focus on cost control. Greencore will pay an interim dividend of 2.4 pence, an increase of 9.1%.
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MARKETS
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London share prices are trading higher, although Vodafone is the worst-performing stock in the FTSE 100 despite reporting earnings and revenue ahead of expectations.
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FTSE 100: up 0.3% at 6,991.07
FTSE 250: up 0.5% at 18.108.10
AIM ALL-SHARE: up 0.1% at 760.82
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The pound fell to an eight-day low against the dollar after data showed that UK consumer prices declined for the first time since 1960.
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GBP: down at USD1.5527
EUR: down at USD1.1193

GOLD: down at USD1220.10 per ounce
OIL (Brent): down at USD65.48 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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UK consumer prices declined for the first time since 1960, data from the Office for National Statistics showed. Consumer prices fell 0.1% in April from last year, while it was forecast to remain flat as seen in March. This was the first annual fall since the official series started in 1996. Based on comparable estimates, it was the first drop since 1960. Month-on-month, consumer prices rose 0.2%, the same rate of increase as seen in March.
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House price inflation in the UK accelerated notably in March, after easing in the previous five months, figures from the Office for the National Statistics showed. Average house prices climbed 9.6% year-over-year in March, faster than February's 7.4% growth, which was revised from a 7.2% rise estimated earlier. In January, prices had risen 8.4%.The latest rate of increase was the highest in three months. The pace of annual house price growth increased across the majority of the UK, the ONS added.
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Eurozone annual inflation remained flat in April as initially estimated after falling for four straight months, final data published by Eurostat showed. Harmonized consumer prices fell 0.1% in March and 0.3% in February. The European Central Bank targets inflation below, but close to, 2% over the medium term. Core inflation that excludes energy, food, alcohol and tobacco held steady at 0.6%.
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Eurozone merchandise trade surplus increased notably in March from a year ago, as exports grew faster than imports, preliminary figures from Eurostat showed. The unadjusted trade surplus advanced to EUR 23.4 billion in March from EUR 16.1 billion in the same month of the previous year.
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EU foreign and defence ministers agreed to establish a naval mission to crack down on migrant smuggling networks in the Mediterranean Sea, but the mission will need a United Nations Security Council mandate to meet its target launch date in June. The mission, codenamed EUNAVFOR Med, will aim to "break the business model of smugglers and traffickers of people in the Mediterranean," ministers said in a statement. It will be headquartered in Rome, under the command of Rear Admiral Enrico Credendino.
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A free trade deal between the EU and Ukraine will enter into force on January 1 despite Russian concerns, EU Trade Commissioner Cecilia Malmstrom said Monday after talks with ministers from Moscow and Kiev. "There will be no amendments," she said after meeting with Russian Economic Development Minister Alexei Ulyukayev and Ukrainian Foreign Minister Pavlo Klimkin.
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Airstrikes aimed at Houthi rebel groups in Yemen targeted the key southern city of Aden and areas in the north as a Saudi-led coalition resumed its attacks after the sunset of a five-day humanitarian truce. UN diplomats had pushed for the truce to be extended, pointing out the amount of aid they had managed to bring into the region during nearly a week in which the fighting had waned although not entirely stopped. The ceasefire, which was marred by repeated clashes between Houthi fighters and local militias in southern and central Yemen, expired at 11 pm (2000 GMT) on Sunday.
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The UN office tasked with coordinating relief operations said almost 25,000 people have fled Ramadi, the capital of Anbar province, following recent attacks by Islamic State in Iraq. With fierce fighting in the city, most of the displaced are heading towards Baghdad, with several thousands of families fleeing for the second time in a month.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

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