Market report: FTSE 100 rises and Ted Baker shares bounce despite sales slump
When a company can report a halving in sales to the City and see shares bounce 10%, you know you’re living in strange times.
The reaction was perhaps a reflection in how far Ted Baker has fallen, and the scale of the hit to retailers, that the stock rose 7p to 77p, just above last month’s 75p fundraising price.
Ahead of its AGM, the fashion retailer posted a 55% fall in revenues to £60.9 million in the 11 weeks to July 18. Newish boss Rachel Osborne, who is leading a strategy overhaul, dubbed the performance “encouraging” and investors were pleased it has £57 million of cash on the balance sheet after making cost cuts — it is axing more than 500 jobs, including 200 in London. The company was already reeling from its founder Ray Kelvin’s “Hug-gate” scandal before Covid forced it to shut all of its stores.
Liberum analyst Wayne Brown said: “Trading is ahead of forecast assumptions with strategic plans already being delivered on.”
It was an up day in world markets as momentum built from positive vaccine updates yesterday was kept going by EU leaders thrashing out a pandemic recovery package. The FTSE 100 rose 43.8 points to 6305.32.
Mining giant BHP saw shares in a hole, off 31pp at 1767p. The Anglo-Australian company posted a 7% rise in fourth-quarter iron ore output but warned that demand for its key commodities remains under threat from a potential resurgence of Covid and it widened its annual production forecast range.
Investors climbed aboard rail ticketing site Trainline, as it appointed former eBay executive Jody Ford to the newly created chief operating officer role. He joins the company — which has suffered as rail travel has plummeted — from photo printing site Photobox, where he was chief executive. The shares accelerated 31p to 430p.
Ten Entertainment was also on good form, up 2% at 156p. The bowling alley operator, which has sites in Croydon and Acton, said it plans to reopen its 39 centres in England on August 1.