Israel's Netanyahu says will visit Bahrain soon

Compass FY20 Profit Declines; Plans To Rebuild Underlying Margin Above 7%

Food and support services company Compass Group Plc. (CPG.L,CMPGF.PK) reported Tuesday that its fiscal 2020 profit before tax plunged 85.9 percent to 210 million pounds from 1.49 billion pounds last year. Earnings per share were 8 pence, down 88.8 percent from 71.6 pence last year.

Underlying profit before tax was 427 million pounds, compared to 1.77 billion pounds last year. Underlying earnings per share were 18.6 pence, compared to 83.8 pence last year.

Earnings per share on IAS 17 proforma basis was 19.1 pence, compared to 83.8 pence a year ago.

Operating profit fell 81.9 percent from last year to 294 million pounds, as a result of the impact of COVID-19, and the resizing programme to adjust cost base, among others.

Underlying operating margin was 2.9 percent, down 450 basis points from 7.4 percent last year.

Revenue fell 19.8 percent to 19.9 billion pounds from 24.9 billion pounds a year ago, as COVID-19 related restrictions reduced volumes in Business & Industry, Education and Sports & Leisure in all three regions.

Underlying revenue declined 18.8 percent to 20.2 billion pounds.

The company noted that although COVID-19 severely impacted the business from late second quarter, new business wins remained robust, and retention was high.

Looking ahead, the company expects first quarter of fiscal 2021 margin to be around 2.5 percent. The company is committed to rebuilding the Group underlying margin to above 7 percent before it returns to pre COVID-19 volumes.

Credit Suisse expects $450 million impairment on York Capital Management

Credit Suisse said it expects to take a roughly $450 million impairment in the fourth quarter after alternative investment firm York Capital Management on Monday informed investors it would wind down its European hedge funds business.

"In view of this announcement, Credit Suisse will take an impairment to the valuation of the non-controlling interest that the bank has owned in York since 2010. The amount of the impairment taken will be assessed as part of our year-end process, but is currently expected to be approximately $450 million," the Swiss bank said in a statement on Tuesday.

Germany's DAX to expand to 40 members from 30 in index shake-up

Germany's blue-chip DAX index will expand to 40 from the current 30 companies with tougher membership criteria, exchange operator Deutsche Boerse said on Tuesday.

The overhaul comes in the wake of the Wirecard accounting scandal and marks the biggest shake-up in the index's history.

Since its founding in 1988, the DAX has been Germany's answer to the Dow Jones Industrial Average in New York and the FTSE in London, with 30 members forming the corporate elite in one of the world's'largest economies.

Most of the index's founding members have since dropped out.

The most recent departure was payments company Wirecard, which in a blow to Germany's capital markets, filed for insolvency just two years after its promotion to the index. The payments company owed creditors billions in what auditor EY described as a sophisticated global fraud.

The expansion diversifies the index. The proposal to expand was pushed by Deutsche Boerse Chief Executive Theodor Weimer and had faced opposition by some investors.

The expansion will take place during the third quarter of 2021, Deutsche Boerse said.

Cranswick H1 Profit Climbs, Lifts Dividend; FY20 View Unchanged; Stock Up

UK food producer Cranswick plc.(CWK.L) reported Tuesday that its first-half profit before tax grew 13.3 percent to 53.7 million pounds from 47.4 million pounds a year ago.

Earnings per share were up 11.9 percent to 81.9 pence from prior year’s 73.2 pence.

Adjusted profit before tax was 60.7 million pounds, compared to 46.4 million pounds a year ago. Adjusted earnings per share were 92.8 pence, compared to 71.6 pence last year.

Adjusted Group operating profit climbed 30.8 percent from last year to 62.0 million pounds. Adjusted Group operating margin improved 50 basis points to 6.7 percent.

Revenue climbed 21 percent to 931.6 million pounds from 770.0 million pounds last year. Revenue grew 17.3 percent at constant rates.

The company reported exceptionally robust demand across all categories, reflecting the current shift towards greater in-home consumption.

Further, the company announced interim dividend increased by 12.0 percent to 18.7 pence.

Looking ahead, Adam Couch, Cranswick’s Chief Executive Officer, said, “Although we remain cautious about the longer-term economic impact of COVID-19 and the continued uncertainty surrounding the ongoing Brexit negotiations, we are well positioned to address these challenges. Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick’s successful long-term development.”

In London, Cranswick shares were trading at 3,707.85 pence, up 2.3 percent.

South African Treasury Says SAA Bailout Still Intact

South Africa’s National Treasury said a Cabinet decision to bailout the country’s insolvent national airline hasn’t changed after Tito Mboweni, the finance minister, questioned in a series of tweets on Sunday whether the country needed it.

“The allocation of the 10.5 billion rand is a Cabinet decision and it still stands,” the Treasury said on Tuesday in response to queries.

Israel's Netanyahu says will visit Bahrain soon

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu speaks during a joint statement with U.S. Secretary of State Mike Pompeo in Jerusalem, November 19, 2020. Maya Alleruzzo/Pool via REUTERS

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Tuesday that he will visit Bahrain “soon” at the invitation of the Gulf state’s Crown Prince Salman al-Khalifa.