Companies roundup: ABF, IG Group and CMC

Associated British Foods (ABF) reported meagre sales growth in the four months to 4 January, with like-for-like sales at Primark coming in below analysts’ expectations.

ABF’s sales increased by 0.5 per cent at constant currency rates, although they fell by 2.2 per cent at actual rates.

Primark’s sales were up 2 per cent, but this was due to growth in Europe and the US. In the UK and Ireland, which make up 45 per cent of revenue, like-for-like sales dropped by 6 per cent.

ABF said the overall clothing retail market had witnessed a decline, which it blamed on “cautious consumer sentiment and a lack of seasonal purchasing catalyst” given a milder autumn.

It also tweaked its sales growth forecast for Primark this year to “low-single-digit”, from mid-single previously. Analysts trimmed full-year earnings expectations, and ABF’s shares fell by 2 per cent. MF

IG Group ups buybacks after successful half 

IG Group (IGG) has extended its share buyback programme by £50mn after achieving double-digit revenue and profit growth in the first half of its financial year. 

The trading platform, which specialises in spread betting and contracts for difference, said market conditions had been “supportive”, with “uncertainty and volatility” presenting customers with investment opportunities. The group grew net trading revenue by 12 per cent to £452mn in the six months to November, while adjusted profit before tax rose by 30 per cent to £267mn. 

It has extended its share buyback programme by £50mn to £200mn, to be completed in the second half of this financial year. Last week, the group also bought investment platform Freetrade for £160mn, as part of a push to increase its presence in the UK. JS

CMC tumbles on lack of profit upgrade 

Shares in CMC Markets (CMCX) fell by 12 per cent this morning – even though the investment platform reaffirmed its full-year guidance.

In a short trading update, CMC said it was on track to achieve annual net operating of £333mn, in line with last year. It also “remains confident” of meeting its £225mn cost guidance, excluding variable remuneration and non-recurring charges. JS

Read why we’re bullish on CMC Markets

Energean hits revised 2024 guidance 

Israel gas producer Energean (ENOG) has announced sales of $1.78bn for 2024 and cash earnings excluding exploration costs of $1.17bn, both an increase of a quarter compared to 2023. The growth came from higher production levels, with full-year average production of 153,000 barrels of oil equivalent per day (boepd). The company dropped guidance to 150,000-155,000 boepd from 155,000-165,000 in November, citing weather and “market dynamics”. 

In today’s trading update, Energean also said terms had been agreed with a bank to swap $625mn in notes coming due next year for a 10-year $750mn term loan. The balance sheet will be boosted in the coming months by the completion of its $945mn sale of Egyptian, Italian and Croatian assets to private equity giant Carlyle. AH

Games company Team17 rebrands 

Rebranding can be a fraught exercise – just ask those running what used to be called Standard Life Aberdeen. Team17 (TM17) has a good reason, however – it has both a division using that name as well as the overall group, which also includes StoryToys and Astragon. 

Chief executive Steve Bell, in the job since 2023, has form in the renaming endeavour given his previous role running a marketing and strategy company. “In my career, I’ve worked with and rebranded some of the most innovative brands in the world. It’s something I believe in beyond a superficial badging or creative exercise,” he said. The ticker will change to EVPL tomorrow and the name will change next month. 

The company also announced a good Christmas trading period had pushed sales and adjusted Ebitda “slightly ahead of market expectations”, sending the shares up 11 per cent. The full-year results will come out in March. AH