Tim Martin’s biggest Brexit regret
At this morning’s press conference, JD Wetherspoon’s chairman Tim Martin (LON:JDW) revealed he had pulled out of a post-result referendum show with David Dimbleby just three hours before it was due to be broadcast because he doubted Brexit would even happen. “I really missed out on an opportunity to gloat,” he lamented.
But remainers are still more than welcome in his pubs:
Tim Martin says he's happy for remainers to moan about Brexit, as long as they moan in his pubs with a pint.. "That could be our new slogan"
— Simon Neville (@SimonNeville) September 9, 2016
@tobyperkinsmp I want to have a crystal ball like Tim Martin has. He is aware Brexit hasn't happened yet?
— Mark Jones (@taptonphoto) September 9, 2016
The Brussels-bashing pub boss revealed to those in attendance that his next battle would be over tax equality for pubs.
He said the current inequality with supermarkets was “killing the pub industry.”
Chalk and cheese companies run by founders this week with Sports Direct and Wetherspoons. Mike Ashley could learn a lot from Tim Martin.
— Simon Neville (@SimonNeville) September 9, 2016
Read- JD Wetherspoon figures come a poor second to Brexit invective
Brokers back controversial Sports Direct
Earlier this week, analysts at Liberum urged Sports Direct (LON:SPD) shareholders to “align their interests with those of the founder” Mike Ashley.
It said it was the perfect time to buy as the company is just at the bottom of a “downgrade” cycle and the share price will pick up soon.
Liberum wasn’t the only broker to take a pragmatic view to the recent bad news flow, today Peel Hunt boldly upped its target price from 380p from 200p, reversing its “sell” rating to a “buy”.
Peel Hunt thinks that Sports Direct aims to become 'friends' with suppliers and work together on improved in-store execution etc.
— George MacDonald (@GeorgeMacD) September 9, 2016
“As a rule, we do not like double up/downgrades, but when a company is set to change the way it comes to market quite so dramatically, we can’t help but feel Damascene,” said the broker.
Back in July, the analyst remarked that “Sports Direct seems to be finding ever more absurd ways to shoot itself in its trainered foot,” subsequently issuing a “sell” rating. So today’s shift came as a surprise to many.
It was the store’s renewed approach to the market that really encouraged Peel Hunt.
“If Sports Direct can genuinely start to win over its suppliers again (and there are apparently some green shoots of hope), then profit progress can re-emerge.”
The broker sees adjusted earnings per share topping 20p for 2017, an upside of 40% on last year.
“Amongst all the panto at the Open Day, we sensed a genuine will to change strategy,” said Peel Hunt.
“The market is pricing in further consensus downgrades but we think our EPS numbers now reflect the nadir: recovery will take time but we see potential for medium-term margin rebuild and thus reverse our stance.”
We weren't sure what to do with pupils who didn't get into grammar schools so we've asked Mike Ashley to open a Sports Direct Academy.
— Theresa May (@Theresa_Maybe) September 9, 2016
Tesco trio charged by Serious Fraud Office
The Serious Fraud Office has charged three former Tesco (LON:TSCO) executives with fraud following the profits warning in 2014 that plunged the supermarket chain into chaos.
Financial malpractice at Tesco, Sports Direct & BHS on the front page today. Almost as if big corps don’t have our best interests at heart.
— Andy Diggle (@andydiggle) September 9, 2016
Chris Bush, the head of the UK operation at the time, Carl Rogberg the UK finance director and John Scouler the UK food commercial director have all been charged with one count of abuse of position fraud and one count of false accounting.
The issue related to volume rebates paid to suppliers by Tesco, which became a problem when the supermarket giant failed to hit the targets as sales slowed.