SSP, Babcock and Kingfisher

“Markets across Europe pushed ahead despite carnage on Wall Street last night. Leading the charge on the FTSE 100 were the banks and mining stocks. The FTSE 100 was 0.7% ahead in early trading and was doing its best to break back through the 7,000 mark,” says Russ Mould, Investment Director at AJ Bell.

SSP

“The signalled departure next year of chief executive Kate Swann has gone down terribly with SSP shareholders. She is credited for leading the business at a stellar rate, increasing pre-tax profit from £16.2m in 2013 when she joined to £182.9m this year.

“Her previous role as chief executive of WH Smith saw Swann reduce the company’s reliance on the high street by embracing the much stronger growth opportunity found in travel stores.

“She is widely considered to be a best-in-class retail leader and her departure will be a real loss to SSP, hence why its shares have fallen a lot on the news.

“The big question now is whether she is up for one more big retail role. There are plenty of companies who need a helping hand yet she may be tempted to join a growing business rather than one which needs fixing, aligning with her true skills.”

Babcock

“Babcock’s results are a mess with statutory pre-tax profit down 64%. It has suffered £120m of exceptional charges as it tries to reshape its business.

“There are so many negatives in the figures today that it is no surprise the share price takes a dive. “There is nothing in this announcement to make investors want to trust the business so it is likely to remain unloved for some time.

“The market already knew the figures would be full of adjustments and one-off charges, however we’re also treated to news that the decline in revenue from UK nuclear decommissioning work is going to be worse than previously expected.

“Babcock is the latest in a long line of outsourcing companies to get stuck in a web of problems, cementing the sector’s toxic reputation.

“Many analysts still say the business is undervalued, yet it is hard to see any near-term catalysts to drive a share price re-rating.”

Kingfisher

“How long can Kingfisher’s board wait until taking admitting its ‘transformation’ programme isn’t working? The French arm once again is a shambles and B&Q in the UK isn’t exactly thriving, either.

“Poor results are happening too often with this business and it seems odd that chief executive Veronique Laury has managed to hold on to her job. In similar situations, the CEO would normally be shown the door when performance is consistently bad.

“She says transformation on this scale is “tough” and that there is no quick fix to the French problems. That language seems downbeat for someone who is meant to be leading the business with confidence and boundless energy. Is Ms Laury on the verge of admitting defeat?”

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