Member Info for MY21

Product testing group Intertek has warned that persistent weak conditions for its commodities and oil and gas customers will mean full year revenues would be lower than previously expected and margins unimproved on last year's. Although underlying organic revenues returned to growth in the third quarter, this was only after excluding its exit from certain low-value contracts at its industry and assurance division.

John Lewis crashes through £100 million weekly sales barrier: Department store John Lewis said sales in the week ending 15 November rose 7.2% compared to the same time last year.

Outsourcing woes laid bare at Mitie: Outsourcing group laid bare the challenges facing the U.K. outsourcing sector as it slumped to a first-half loss, sending shares 4% lower. Mitie has expanded into construction projects in addition to building maintenance for clients such as Lloyds Banking Group and local councils. The company said it was now exiting loss-making parts of the business to focus on the core building maintenance operation. There are two parts of Mitie’s business that are proving to be very painful at the moment. Firstly, it is exiting from its loss-making mechanical and electrical engineering construction business; secondly, it is drastically cutting back its asset management arm, where it built energy-from-waste plants. The company said that as a result of “significant deterioration” in the financial performance on these contracts it would book £45.7 million of charges during the first half. Questor thinks this largely comes down to chasing revenue growth by bidding too cheaply to win the work in the first place. In terms of the balance sheet, debt levels are rising. Net debt increased to £223.8 million at September 30, from £221.8 million at the same stage last year, against a net asset value of £373.2 million, or 110p per share. Market consensus is for revenues to edge up to £2.25 billion in the current year, giving adjusted pretax profits of £118 million, and earnings per share of 24.9p. That leaves the shares trading on 11.7 times forecast earnings and offering a prospective dividend yield of 4%. However Questor is uncomfortable with the gap between adjusted and reported pretax profits and would rather wait to reassess the situation once the troublesome businesses have been fully exited. We said avoid the shares back in August 12, at 305.8p, since when they have fallen by 9%, the recommendation remains, avoid. Mitie at 276.7p-14½p Questor Says “Avoid”.

Reckitt Benckiser shareholders should sell new pharma shares: Household goods giant Reckitt Benckiser has confirmed plans to hand shares in the demerged pharmaceutical business to investors. So, should investors hold onto the shares in the new company — Indivior — for the long term or flog them at the flotation? Reckitt would probably have preferred to sell the pharma business but it has struggled to attract buyers. The business is struggling with falling revenue and profits as its drugs face stiff competition from copycat versions. In the third quarter, pharma revenue was down 16% to £161 million. So, despite the pharma division contributing only 7% of the total group revenues, it accounted for just under a fifth of Reckitt’s profits. The decision to dispose of the pharma unit should leave the rest of the business as a solid long-term investment. In terms of Indivior’s prospects as a stand-alone pharmaceutical company, the future looks tough. The company will not have the backing of a cash rich parent to fund research into new drugs and competition will be fierce. Questor would sell the Indivior shares once they have been received and then either reinvest in Reckitt, or for pharmaceutical exposure, opt for AstraZeneca or GlaxoSmithKline. Reckitt Benckiser shares are by no means cheap, trading on 20 times forecast earnings and offering a prospective dividend yield of 2.6%, but the company has a proven track record. Reckitt Benckiser at £53.20-5p Questor Says “Hold”.

Eurozone woes lift Prudential to record highs: The looming crisis in the Eurozone has been a boon for Prudential, attracting assets from southern Europe in to M&G, its fund management arm

UK house price index advanced more than expected in September In September, on a YoY basis, the ONS house price index in the UK recorded a rise of 12.10%, compared to a rise of 11.70% in the earlier month. Markets were anticipating the house price index to climb 11.20%.

At 0430GMT today, Brent crude oil one month futures contract is trading 0.04% or $0.03 higher at $78.50 per barrel. Yesterday, the contract declined 1.06% or $0.84, to settle at $78.47 per barrel as investors weighed the prospect of OPEC slashing its oil production at its November 27 meeting in Vienna. Moreover, the commodity was further pressurised after the American Petroleum Institute reported that US oil stockpiles advanced by 3.7 million barrels in the week ended November 14.

Shell wins $3bn India tax court case Ruling follows string of battles between multinational companies and revenue authorities

HOUSING MARKET 'SUBDUED UNTIL ELECTION' Savills, the estate agent, says it expects the UK residential markets "to remain somewhat subdued during the extended pre-election period". Labour's mooted mansion tax is slowing down the market ahead of May. Scotland is picking up after the referendum though

Pharmaceutical group Astrazeneca has hailed the progress it has made on its strategy to deliver "sustainable growth and value through innovation". In a presentation to investors and analysts in London on Tuesday, the company is expected to update on its growth prospects and pipeline, saying it remains on track to return to growth by 2017. "I am delighted with the progress we are making on our strategy," said chief executive Pascal Soriot.

Right boot forward: Sports Direct in for Kitbag: The sportswear chain, led by Newcastle United Owner Mike Ashley, is thought to be eyeing up a possible £20 million move for Kitbag which sells replica tops of major football, rugby and American football teams.

Private rental costs set to nearly double by 2040 while wages rise just 40% sending millions into poverty, claims study: A lack of house-building could see private rents rise more than twice as fast as incomes in the next 25 years, sending more than half of England’s private renters into poverty, a new study has warned.

Reckitt Benckiser: the season of giving: One for every Reckitt Benckiser share (if the shareholder has been good this year). The demerger of Reckitt Benckiser Pharmaceuticals – due to complete on December 23 – is as close to a plain vanilla demerger as you can get, for which the company should be applauded. But do not expect this deal to “unlock” much value. Revenues at RB’s pharma business peaked at £837 million in 2012, according to S&P Capital IQ. Its pretax profit fell 13% in the first nine months of this year. The hope is that it can use its cash flow to develop ever more forms of Suboxone, or buy or even discover new products. And there is the chance that it might be bought. The rump (if one can call it that) of RB is far larger. A consumer goods company increasingly focusing on health and hygiene, it has annual sales of about £9 billion, growing at about 4%. Add in some margin improvement, and profits rose 8% in the first half of this year. Based on first half trends, the business could make a net profit of £1.6 billion this year. Put that on 21 times earnings (a small premium to where the group trades at the moment) and there is a £34 billion market capitalisation. Add the two together: £37 billion. At the close of business on Monday RB’s market capitalisation was £38 billion. The demerger will do a lot, not least set a valuation for potential buyers of Indivior. Just don’t expect it to deliver a Christmas bonus.

Oil price opens cracks in Opec: Oil prices flirted with a new four year low, piling more pressure on Saudi Arabia to turn off the taps to stem the global oversupply of crude.

Marks & Spencer has appointed a new finance director in the form of John Lewis's Helen Weir. Weir will take up her role after working her six-month notice period at John Lewis, where she has been the finance director for less than three years. Her appointment follows a four-month search by M&S for a replacement for Alan Stewart, who handed in his notice in July to take up a role at Tesco. M&S chief executive Marc Bolland said Weir, who is also a non-executive director of SABMiller, is "extremely well qualified" and "brings a wealth of relevant financial, retail and consumer experience". Weir, who used to be head of retail at Lloyds, added: "This is an exciting time to be joining the company and I am delighted to be part of the team."

Talk Talk has announced a new multi-year commercial agreement with Telefónica UK, under which Telefónica UK will provide TalkTalk with access to its 2G, 3G and 4G services in the UK. "This is a significant commercial relationship for us as we build upon our success to date in mobile," the FTSE 250 group said.

Qataris to raise bid for Canary Wharf owner: Qatar Investment Authority (QIA) and Brookfield Property Partners are close to tabling a higher takeover bid for Canary Wharf Group’s parent company, Songbird Estates, after their earlier £2.2 billion offer was rejected.

Cheaper petrol for ‘months or years to come’ as price of oil hits four-year low below $80 a barrel: The price of a barrel of oil fell below $80 to a four-year low last week and it has further to fall, said the International Energy Agency, raising the prospect of lower petrol prices for months or years to come.

Reckitt Benckiser to launch pharma spin-off: Reckitt Benckiser, the U.K. consumer goods group, is expected this week to launch the spin-off of its pharmaceuticals division when it reveals detailed plans to list the addiction control specialist as a standalone company on the London Stock Exchange.

U.K. bookies eye legalised betting bonanza stateside: Britain’s bookies are eyeing a potential U.S. betting goldmine after the head of the National Basketball Association urged U.S. lawmakers to legalise what has turned into a $400 billion (£250 billion) industry largely controlled by the black economy.