Today’s news in brief-22/10/24

Mulberry’s board has backed Challice, the majority shareholder, in rejecting Frasers Group’s increased £111m takeover bid. Challice made it clear last week that it has no intention of selling its shares or offering any commitment to Frasers. Mulberry’s board emphasised its unanimous decision to reject the offer, focusing instead on strengthening the business, especially after the appointment of a new CEO, a fresh debt facility, and a capital raise.

Ocado Group is reportedly considering Adam Warby, a former Microsoft executive, as its next chairman, replacing Rick Haythornthwaite, who has taken up the role of chairman at NatWest. Warby, who chairs the board of Heidrick & Struggles and is a senior advisor at KKR, may take over at a critical time for Ocado, which saw a 25% drop in share value last year.

Halfords reported flat revenues for H1 FY25, with a slight 0.1% dip as cautious consumer spending continues amid economic uncertainty. Retail sales dropped 0.7%, partly due to a particularly wet spring, which impacted leisure cycling. However, motoring product sales were better than expected, and performance cycling, particularly through Tredz, showed positive growth. The company’s autocentres posted a modest 0.8% increase in like-for-like sales, after a robust 18% rise in the same period last year.

Wickes experienced a 4.2% jump in retail like-for-like sales to £312.1m in Q3, as customers caught up on outdoor projects delayed by spring’s wet weather. TradePro, Wickes’ professional-focused segment, saw strong sales, growing 16% year-on-year. Despite a decline in DIY sales and ongoing challenges in the design and installation business, the group’s overall revenue increased by 2.1% to £391.3m..

Sosandar reduced its losses to £0.7m in H1 FY25, down from £1.3m last year, due to improved margins and controlled costs. The company’s revenue dropped from £22.2m to £16.2m as it shifted away from heavy price promotions. However, gross margin increased to 62.2%, showing the effectiveness of the margin enhancement strategy. Sosandar opened its first three standalone stores with strong trading results, boosting website traffic in those regions.