Bonmarché and YouGov

“The latest Brexit setback has put another dent into sterling with the currency falling 0.5% against the dollar. This currency movement is positive for the FTSE 100 when you translate the large number of overseas earnings back into sterling. As such, it isn’t a surprise to see the blue chip index rise by 0.2% on Tuesday, helped by strength among miners and oil companies,” says Russ Mould, Investment Director at AJ Bell.

Bonmarché

“Move over Mike Ashley, there’s another king in town.

“Struggling womenswear specialist Bonmarché could be the next retailer to leave the stock market after receiving a takeover bid from Edinburgh Woollen Mill owner Philip Day.

“Day is looking to grab a bargain from the high street and has offered considerably less money for Bonmarché than its market value last night, having already built up a controlling stake.

“Day wants to help save Bonmarché which has suffered multiple profit warnings in recent years.

“Taking the business private and out of the City spotlight would theoretically help the retailer to focus on a recovery plan and not have its every move scrutinised by investors.

“However, shareholders aren’t getting a good deal from the takeover so they would lose out should Day be successful in revitalising the business.

“Day’s career includes buying Peacocks, Austin Reed and Jacques Vert. His approach is very similar to fellow retail mogul Mike Ashley in that he likes to acquire troubled groups out of administration, or while they are on the knees when trading as a public company.”

YouGov

“With talk of an election in the air to break the Brexit deadlock, today’s first half results from polling and research company YouGov are timely.

“The company may be adept at reading the mood of voters and consumers, but you don’t need their skills to pick up on the bullish sentiment emanating from this announcement.

“The numbers themselves are ahead of expectations on several measures and the company has set ambitious new five-year targets for sales and earnings growth alongside margin improvement.

“Although best known for polling work, YouGov’s growth story is actually the higher margin Data Products & Services business, selling subscription-based insights based on an online panel made up of millions of individual respondents.

“As is often the case with YouGov’s results there are significant differences between the adjusted and unadjusted figures.

“Much of this relates to the way the company treats investment in the business – previously this was not factored into adjusted profit and earnings. However, the plan is to recognise this spending in the profit and loss account in the future which should make the story easier to understand for investors.”

These articles are for information purposes only and are not a personal recommendation or advice.