Debenhams, Hornby and Safestore

“The FTSE 100 opened on the front foot on the last day of trading before the EU referendum. Opinion polls show the Remain and Leave camps neck-and-neck with both sides making a last ditch attempt to woo voters,” says AJ Bell Investment Director Russ Mould.

“The dip in Debenhams’ third quarter like-for-like sales has underlined the ongoing malaise facing high street retailers which has already seen the collapse of  Austin Reed and BHS this year. The 0.2% fall compared with like-for-like growth of 1.1% at the half-year stage and will be a disappointing departing gift for chief executive Michael Sharp who leaves at the end of this week after five years in the hot seat.

“The figures, though, were better than some forecasts and incoming CEO Sergio Bucher will be buoyed by the online sales growth of 7% against strong comparatives. Bucher is joining from Amazon’s fashion arm and is being brought in to ensure Debenhams’ online offering is  up to scratch.

“Toy maker Hornby is slashing its range by 40% and seeking to raise £8m to fund its restructuring after a difficult and disappointing year. Hornby will concentrate on its key brands which include Scalextric, Airfix and Corgi and even after the overhaul will still have around 1400 product lines. Hornby’s shares were down by around 3.5% in early trading.

“Self-storage provider Safestore was a prominent FTSE250 riser after it confirmed it would complete the acquisition of Space Maker Stores by 29 July. The deal is expected to be immediately accretive to group earnings and will support future dividend capacity. Safestore has a strong operational knowledge of the SMS portfolio, having managed the business since 2010 under a management services agreement.”

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