City news: M&S chief, Virgin airline sale, Chemring and Chapel Down
NEW M&S chief executive Steve Rowe will maintain direct control of its clothing business as he seeks to revive flagging sales.
Steve Rowe will maintain direct control of M&S’ clothing business
Rowe, who took over from Marc Bolland last Saturday, has told staff not to expect a replacement for him as head of the retailer’s general merchandise unit as he makes its turnaround his “number one priority” after falling same-store sales in all but one of the last 18 quarters.
He said: “We have a tendency to over-complicate things. I’m a big believer in keeping things simple. Doing things simply means we work more efficiently.”
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Take-off for Virgin airline sale
SIR Richard Branson is on course for a £500million-plus payout after Alaska Air Group struck a deal to buy Virgin America for £1.8billion.
Branson’s Virgin Group owns about 30 per cent of the California-based budget airline.
Alaska beat off competition from JetBlue Airways as it had agreed to pay $57 (£40) a share for Virgin America, which flies to destinations in the US and Mexico.
The deal, worth £2.8billion including Virgin’s debt and operating leases, will increase Alaska’s annual revenue by 27 per cent to more than £4.5billion.
Virgin’s operating revenue rose 2.7 per cent last year, with pre-tax profit up 174 per cent to £117million.
Alaska Air Group has struck a deal to buy Virgin America
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Defence group is back with a bang
SHARES in Chemring were back on the march yesterday after a delayed ammunition contract with an unnamed customer in the Middle East finally got under way.
The defence group is involved in cyber protection and producing flares used to counter heat-seeking missiles.
It is recovering from losing nearly half its market value in the four months following a profit warning last October, when it announced a delay to the order as it was still waiting for permits and approvals.
Chemring said the 40mm ammunition contract had begun, with the multi-year deal to provide “a significant contribution” to this year’s results.
Shares climbed 10¼p to 140¼p.
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Chapel Down has smashed its £1million fundraising target to expand its beer and cider business
Cheers! Boost for brewery
ENGLISH winemaker Chapel Down has smashed its £1million fundraising target to expand its beer and cider business.
It raised more than £1.7million, including £1.16million from a crowdfunding campaign on website Seedrs, for a new Kent brewery for Curious Drinks.
Nearly 900 new investors came on board, with individual backing ranging from £100 to £35,000.
Chapel Down chief executive Frazer Thompson said: “The success of the crowdfunding campaign is further testament to the revolution taking place in the British beer business.”