MARKET REPORT: Investors bet B&M will cash in on Wilko collapse

B&M shares rose as analysts said the group was in a good position to strengthen its grip over the discount retail industry following the collapse of Wilko.

Bargain stores have been popular among consumers over the last decade and B&M enjoyed an impressive rise in sales and profitability during the pandemic.

Advising clients that they buy B&M shares, analysts at Deutsche Bank Research said: ‘The Wilko administration offers further opportunity for B&M to take market share.’

The report also noted ‘an acceleration in the pace of new store openings in the UK and France’.

Shares yesterday rose 3 per cent, or 16.2p, to 554p.

Well placed: Bargain stores have been popular among consumers over the last decade and B&M enjoyed an impressive rise in sales and profitability during the pandemic

The FTSE 100 fell 0.23 per cent, or 17.01 points, to 7507.15 and the FTSE 250 was down 0.2 per cent, or 38.27 points, to 18761.43.

Miners came under pressure as China’s economic rebound stalled and shares in the country’s property powerhouse Country Garden hit a record low after it missed bond payments on the back of ballooning losses. 

Anglo American slid 3.6 per cent, or 77p, to 2074p, Antofagasta sank 0.9 per cent, or 13p, to 1503p and Glencore dropped 2.5 per cent, or 10.9p, to 433.8p.

Plus 500 gained 1 per cent, or 14p, to 1445p as the online trading platform outlined plans to return £94million to shareholders.

That will be in the form of £47million dividend and new £47million share buyback programme.

Analysts at Jefferies pointed out that the company has returned £1.5billion of the £2.4billion of profits it has made since floating in 2013.

Plus 500 added its results are on course to meet expectations this year despite ‘quieter market conditions’ during the first half of 2023. 

Stock Watch –  Harvest Minerals

Shares in Harvest Minerals fell after it reduced its sales forecast as farmers delayed orders, crop prices remained low and energy costs soared.

The fertiliser producer reported weaker-than-expected fertiliser sales of 36,000 tonnes over the first seven months of the year.

The second half of the year tends to be the group’s most active sales period. 

But it lowered its sales target for the whole of 2023 to 70,000 tonnes from 120,000. Shares tumbled 27.7 per cent, or 0.9p, to 2.35p.

Revenues for the six months to the end of June fell 28 per cent to £290million while profits were down 43 per cent at £137million.

Housebuilder Persimmon slid 3 per cent, or 34p, to 1095.5p following target price downgrades from Jefferies and Citigroup.

Demand for storage space and price hikes helped Lok’nStore increase its revenue by 5.3 per cent in the 12 months to the end of July.

The group, which lets households and businesses rent self-storage units, said revenue rose slightly faster than expected in the second half of the year while prices increased by 6.8 per cent.

Analysts at FinnCap said the group is ‘very well placed to take advantage of the growth opportunities in the under-supplied UK self-storage market’. Shares, however, lost 1.9 per cent, or 14p, to 746p.

The founder and former chief executive of On the Beach has increased his stake in the package holiday group.

Simon Cooper, who led the group from 2004 until June, purchased almost 3m shares at 88p each, according to a stock market filing. That means he owns 12.5m shares having raised his holding from 5.83 per cent to 7.51 per cent.

Shares soared 13.9 per cent, or 12.7p, to 104.4p.

Nanoco rose 7.8 per cent, or 1.4p, to 19.4p after a rebel bid to oust the tech group’s board was defeated.

The proposal was led by one of its top shareholders, Tariq Hamoodi, who believed that the £125m settlement fee agreed with Samsung should have been higher.

But investors overwhelmingly voted down all resolutions to remove Nanoco’s board.

Chairman Christopher Richards said that while management is ‘always open to scrutiny and critique’, the ‘actions and unfounded allegations have caused damage’ to the group’s image. He added: ‘The business is in a better position than it’s ever been.’

Georgian retail lender TBC Bank hit a record high after Peel Hunt reiterated its ‘buy’ rating on the stock and raised the target price from 3425p to 3504p. 

Shares rose 3 per cent, or 80p, to 2795p.