FTSE 100 ticks higher after down week, Boohoo faces pay revolt and Revolution Bars rejects Nightcap approach

“After losing some of its momentum last week, the FTSE 100 seems to have come back from the bank holiday mildly refreshed as it nudged into positive territory,” says Dan Coatsworth, investment analyst at AJ Bell.

“Some strength in the aviation, mining, energy and insurance sectors helped give the index a lift after a resilient trading session for many Asian markets. Later this week a second estimate of US GDP for the first quarter, the core PCE reading of inflation which the Federal Reserve likes to pore over when making decisions on rates, and Chinese manufacturing figures are likely to dominate the market’s agenda.”

Boohoo

“Boohoo never seems to do itself any favours from a governance perspective. The fast fashion company has faced criticism over its supply chain and greenwashing claims during a scandal-hit stay on the stock market.

“Now reports suggest it could face major shareholder opposition to plans to reward founders Carol Kane and Mahmud Kamani and CEO John Lyttle with sizeable bonuses despite the business racking up losses in the 12-month period to February 2024. The stage is set for a sizeable revolt at the AGM in less than a month’s time.”

Revolution Bars

“Revolution Bars appeared to confirm suspicions that combining with Nightcap would just double the problems facing the two troubled night spot operators. It is striking to see a company say a bid is ‘incapable of being delivered’ and Revolution Bars continues to push shareholders to stick with its own restructuring plan.

“The bigger issues, throbbing away in the background like an insistent beat, are the rising costs and waning demand faced by this end of the hospitality sector. Fewer younger people are in the habit of going out drinking on a regular basis, meaning late-night operators need to come up with new ways to keep people frequenting their outlets.”

These articles are for information purposes only and are not a personal recommendation or advice.