Superdry shares sink

SUPERDRY shares resumed trading today after being suspended over an accounting snafu – and immediately plummeted.

The already out of fashion shares lost another 11% to 49.9p. That leaves the company, once worth £1.6 billion, valued at just £48.5 million.

The shares were suspended because auditors said they needed more time to finalise the accounts.

While that in itself may not be significant, it added to concerns in the City about the future of the business.

Founder and CEO Julian Dunkerton floated the business in 2010.

He returned as CEO in 2019 in anger at what other bosses had done to the brand. He felt they had tarnished the clothes with an over reliance on garish logos and fewer product lines.

Dunkerton admits it has been a “difficult year” for the company, but insists it is improving.

A new flag ship store on Oxford Street is well stocked. He complains that the area needs “serious help” to thrive as a shopping destination however.

Superdry has had to raise money at high rates of interest and sold brand rights in the Asia-Pacific.

City analysts say the middle market is particularly tough for retailers at the moment. Ted Baker was sold to the US giant behind Reebok. Joules was rescued by Next.

Dunkerton owns about 25% of the stock himself. Last week the group reported an annual loss of £22 million. Sales looked healthy however, up 2% at £622 million.

No net zero target among reasons 21% voted against re-electing Grafton chair

Grafton Group said the company’s record on climate and gender diversity were among the reasons 21% of shareholders voted against re-electing its non-executive chair.

The Irish DIY retail giant launched a consultation after more than a fifth of investors chose not to support the resolution to re-elect Michael Roney at the firm’s annual general meeting in May.

In a statement on Monday, the FTSE 250 firm said “a mix of factors” were behind the shareholder rebellion.

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Redundancies set to start at Wilko offices on Monday as hopes remain for shops

The first round of potentially thousands of layoffs at failed retailer Wilko is expected to start on Monday even as hopes of a rescue deal for parts of the business remain.

Administrators confirmed last week that 269 people in the company’s Worksop support centre would be having their last day with the business.

Redundancies at the company’s Worksop and Newport warehouses are also due to start early this week.

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Wetherspoons dropping food and drink prices for one day only

Wetherspoons pubs are cutting the prices of all food and drinks for one day this week in a bid to highlight the tax burden on the hospitality industry.

The chain will reduce prices by 7.5% in pubs across the UK and Ireland on Thursday.

It means that, for example, a customer spending £10 on food and drinks will pay £9.25 for one day only.

The move is being done to mark Tax Equality Day, by highlighting the benefit that a permanent VAT reduction would have on pubs and restaurants across the UK.

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FTSE 100 higher amid China focus. Watches of Switzerland rallies

London’s top flight today rose 0.7% or 53.34 points to 7517.88 as traders welcomed fresh support for China’s property sector and the restructuring of debt repayments at troubled developer Country Garden.

The Hang Seng index, which was closed on Friday due to Typhoon Saola, jumped 2.5% in a boost for several London-listed stocks.

Risers included Hong Kong-based insurer Prudential with a gain of 14.6p to 984.4p and luxury goods group Burberry after a rise of 43p to 2225p. Stronger mining stocks included Glencore and Anglo American, with shares in both up by 2%.

In the FTSE 250 index, Watches of Switzerland rallied 3% or 17p to 606.5p after it emerged that finance boss Anders Romberg, chair Ian Carter and two non-executive directors bought shares on Friday at around 585p.

They made their moves after a slide in valuation triggered by Rolex buying one of Watches of Switzerland’s major rivals. Last month, the UK-listed company fell 26% to a three-year low even though Rolex said the purchase of Bucherer would have no bearing on its current distribution arrangements.

On AIM, property firm Belvoir jumped 4% or 8.4p to 228.4p as it praised its “entrepreneurial” franchisees and self-employed financial services advisers for overcoming a tough market with 10% higher half-year profits at £4.4 million. The performance was driven by a strong lettings market and remortgaging activity.

Advanced Medical Solutions shares plummet on US insurer warning

Life sciences firm Advanced Medical Solutions Group saw its share price plummet by nearly 30% as it warned of the impact of US insurers opting not to cover its ulcer treatments.

Organogenesis, which licenses the patent for Advanced Medical Solutions’ foot and leg ulcer treatments, withdrew its profit guidance last month, blaming the “uncertainty” created by a number of insurers not covering the products.

Now, AMS says it has removed all royalty income from Organogenesis for these products from its guidance.

“Given that Organogenesis has withdrawn its own guidance and that we have no control of, and minimal insight into its sales, we are unable to quantify the financial impact on AMS at this stage,” AMS said. “We therefore believe it to be prudent to remove this royalty in its entirety from Q4 2023 guidance onwards.”

That change means AMS’ profit guidance for this year is now £2 million lower, at between £25 million and £27 million. Profit for 2024 and 2025 is now expected to be £4 million lower.

Shares lost 66p, or 26%, to 184p.

Building society’s new mortgage aims to get renters back on property ladder

Former homeowners turned renters can now get a helping hand back onto the property ladder, according to a building society.

Skipton Building Society is expanding the pool of aspiring homeowners who can apply for its track record mortgage, to support more “trapped renters”.

The move could potentially help people who have previously moved out of homeownership back into the rental sector due to a divorce or needing to relocate, for example.

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Prudential leads FTSE 100, Hammerson shares 3% higher

European shares have made a strong start to the week, with the FTSE 100 index up 0.6% or 42.29 points at 7506.83.

Hong Kong-based insurer Prudential rose 2% or 17.6p to 987.4p and mining stocks Rio Tinto and Glencore lifted 1.5% following a strong session for Asia markets.

On the fallers board, Centrica shares gave up half a penny at 153p after a recent strong run for shares in the British Gas owner.

The FTSE 250 index rose 0.3% or 61.12 points to 18,598.02, with shopping centre owner Hammerson the best performing stock after a rise of 3% or 0.8p to 24.8p.

Hang Seng index rallies amid property support

Under-pressure property stocks have led a rally for Hong Kong’s Hang Seng index after troubled developer Country Garden secured a deadline extension for onshore debt payments.

The agreement with bondholders came as authorities in China unveiled more measures to support the economy, including a cut in banks’ currency reserve requirement ratios.

UBS Global Wealth Management said: “We have been looking for more significant property rescue measures for some time to shore up sentiment and consumer confidence, and this now appears to be materialising in a more convincing way.

“Alongside a pending drop in mortgage interest rates, housing demand may finally turn around, albeit gradually.”

The Hang Seng index, which was closed on Friday due to Typhoon Saola, rose 2.4%. Country Garden shares were 18% higher.

Ryanair breaks monthly passenger record again despite bank holiday chaos

Ryanair broke its monthly record for passengers again in August, even despite the chaos of last weekend, when a computer error shut down thousands of UK flights.

The low-cost carrier flew 18.9 million passengers, up from July’s record of 18.7 million and 11% more than in August 2022. However, it said that more than 350 flights, with 63,000 passengers, were cancelled “due to NATS ATC computer ‘failure’ which has still not been explained”.

Rival low-cost airline Wizz Air carried 6.1  million passengers, up 23.9% from last year, with new flights including Luton to Cairo.