Famous five of business this week (August 30-September 03)

Monday – August 30

1.      Ryanair Holdings Plc (LON: RYA)

Europe’s largest airline in terms of passenger count, Ryanair expects a strong recovery in its short-haul flights within Europe. The company forecasts its capacity to reach pre-pandemic levels and has also introduced services on 14 new routes from London airports. The company will commence new flights between Gatwick airport and Spain; Luton to Gran Canaria, Naples and Grenoble; and Stansted to Stockholm and Helsinki. The company expects to fly 10.5 million passengers per month by the next quarter. Ryanair also announced the inauguration of a new base at the Newcastle International Airport in 2022.

Tuesday – August 31

  1. Babcock International Group Plc (LON: BAB)

Babcock International Group, the UK-based defence and engineering company, sold its helicopter operations to an American company CHC Helicopter for £10 million, after spending £1.6 billion in 2014. The company sold its helicopter business to repay its outstanding debts. As per the terms of the sale, CHC Helicopter will take over around 30 helicopters catering to the energy industry in Denmark, Australia and the UK. The sale is part of Babcock’s turnaround plan that encompasses disposals worth £400 million to get the underperforming company back on track.

Wednesday – September 01

  1. Melrose Industries Plc (LON: MRO)

Melrose Industries, a manufacturing company with expertise in acquiring underperforming businesses, announced to return £729 million or 15 pence per share to shareholders on 14 September 2021, generated from the proceeds of the sale of its air conditioning business - Nortek Air Management. Melrose’s share rose from 8p to 180p, bringing the company’s current valuation to £7.9 billion. It reported a profit of £109 million for H1 2021 compared to the previous loss of £80 million in H2 2020. The company’s net debts reduced from £3.4 billion to £300 million as of 30 June 2021. Melrose also inherited a £1 billion pension fund blackhole post the purchase of GKN, and the company’s net deficit is currently down to £150 million.

Thursday – September 02

4.      Delivery Hero AG (LON: 0RTC)

Delivery Hero announced the issuance of convertible bonds valued up to EUR1.25 billion ($1.48 billion) to leverage possible investment opportunities. The company’s dual-tranche bonds will be due in 2026 and 2029 and will be issued on or around 10 September 2021, which can be converted into newly issued shares. In August, the company also announced that it was not considering making an offer for Deliveroo, post its acquisition of a 5.09% stake in the British online delivery rival. According to the acquisition rules, Delivery Hero will be unable to bid for Deliveroo for a period of six months. However, the German delivery giant expressed the possibility of entering into an agreement with Deliveroo.

Friday – September 03

5.      Dunelm Group Plc (LON: DNLM)

Dunelm, a UK-based retailer of homeware and soft furnishing, reported sales rose by over 26% year-to-June despite store closures, as customers focused on redecorating their homes post lockdown. Sales in the Q4 ended June 2021 registered a robust growth of 102% due to the reopening of its physical store outlets. However, the company expects profits getting impacted by the rising cost of inflation of goods and growing supply chain constraints on the back of heavy goods vehicle driver shortages. The group expects a pre-tax profit of around £158 million for the year ended 30 June 2021 and reach about £164 million for the financial year 2021-2022. The new company warehouses at Stoke and Daventry may increase operating costs by £8 million for the year ending June 2022. The retailer will release its official trading figures for the year on 8 October 2021.

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