Shares in car dealer Inchcape rose as it revealed it could sell its UK retail arm.
The division has 3,700 staff across 70 sites and works with car makers such as Audi, BMW and Toyota.
The FTSE 250 group has hired bankers at Rothschild to work on the possible sale in a deal that could be worth several hundreds of millions of pounds.
Shares increased 0,7 per cent, or 4.5 p, to 688 p.
‘Inchcape confirms that following approaches from a number of interested parties it is reviewing strategic options for the UK retail business, which potentially could include a sale,’ the company said in a statement.
‘This review is at a very early stage and there can be no certainty that it will result in a transaction.’
Up for sale: Inchcape’s UK retail arm has 3,700 staff across 70 sites and works with car makers such as VW, Audi, BMW and Toyota.
The firm’s retail operations across the UK, Poland, Australia, New Zealand and the Philippines, account for less than 10 per cent of group profits.
Inchcape has repositioned its business to focus on automotive distribution, which involves working with car makers such as Toyota in Singapore to plan the pricing, timing and logistics of bringing vehicles to market.
It is among a handful of car dealers to remain listed in London after Lookers was snapped up last year, while private equity predators have circled Pendragon (up 0.6 per cent, or 0.2p, to 34.4 p).
On a subdued start to the week, the FTSE 100 inched down 0.03 per cent, or 2.35 points, to 7632.74 and the FTSE 250 lost 0.14 per cent, or 26.86 points, to 19,311.16.
A data centre and wireless network investor that floated in London three years ago has proposed winding down its business.
Digital 9 Infrastructure started a strategic review in November last year.
This included agreeing to sell its entire stake in its prized asset, Verne Global, for around £456million.
Stock Watch – Inspecs
Eyewear firm Inspecs lost almost a third of its value after business slowed last month.
The Bath-based group, which designs, makes and sells sunglasses, frames, and lenses, warned its results for 2023 will be weaker than expected following a poor December.
While its profits should increase 16 per cent to £18 m, revenues of £200 m were broadly flat on the year before. Shares, which floated at 195 p in February 2020 and peaked at 408 p in January 2022, plunged 28.9 per cent, or 25p, to 61.5 p.
And yesterday, Digital 9 said it would be in the ‘best interests’ of shareholders for it to shut up shop. It intends to sell its assets and return some of the proceeds to investors. Shares gained 5.5 per cent, or 1.35 p, to 25.95 p.
Heading in the other direction was Ferrexpo as investors fretted over a legal case against one of the iron ore miner’s businesses that may be taken to the Supreme Court in Ukraine. Shares dropped 2.5 per cent, or 2.1 p, to 83.75 p.
Another faller was Kingfisher following a downgrade from analysts at RBC who warned that the weakness in the French home improvement market was unlikely to ease any time soon.
The investment bank added that it does not expect the retailer to see ‘meaningful profit growth’ until 2025 amid subdued housing activity.
Shares fell 1.9 per cent, or 4.2p, to 220.9 p. Wealth manager Schroders was also in the firing line, with City analysts offering a bleak outlook. Shares slid 3.7 per cent, or 15.8p, to 409.2p.
Trainline made gains after analysts at investment bank Morgan Stanley increased the online ticketing app’s target price. Shares rose 3.4 per cent, or 10.6 p, to 326.6 p.
Higher gold prices sparked a rally among precious metal miners. Fresnillo rose 10 per cent, or 49.8p, to 548.6 p and Hochschild Mining added 8.7 per cent, or 8.45p, to 105.6p.
But Serabi Gold – which mines in Brazil – reported a fall in fourth-quarter production and sales alongside higher operating costs. Shares slid 11.6 per cent, or 5p, to 38p.
Investors in Union Jack Oil showed their support for the company’s plans to start doing business in the United States. Shares were flat at 18p.
Hostel chain Safestay had a solid set of annual results amid demand from families and business travellers.
It also flagged a recovery in large school and college group bookings after the pandemic. Shares rose 4.4 per cent, or 1p, to 24p.
