MARKET REPORT: ITV shares spike by 3.8% as broadcaster says it won’t buy Endemol

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Deal or No Deal: Endemol created the popular game show, hosted by Noel Edmonds


There will be No Deal between ITV and media company Endemol Shine.

ITV has ruled itself out as a buyer of the Deal or No Deal creator, which relieved shareholders’ worries about how the broadcaster would raise the cash to pay for Endemol.

Shares in ITV, sinking over recent weeks, hit their highest level since August yesterday, climbing 3.8 per cent, or 5.9p, to 162.3p.

Deal or No Deal: Endemol created the popular game show, hosted by Noel Edmonds

Deal or No Deal: Endemol created the popular game show, hosted by Noel Edmonds

Endemol Shine creates a host of hit programmes, including MasterChef and Big Brother, but has been on the block for months as its owners 21st Century Fox and private equity giant Apollo want to cash in on it. 

They were hoping it would attract significant buyer interest, from traditional broadcasters looking to gain competitive advantages in their efforts to ward off newcomers such as Netflix and Amazon.

A precedent was set when US broadcaster Comcast coughed up a massive £30 billion for Sky but ITV did not take the bait.  Just last month, chief executive Carolyn McCall said ITV would not grow just for growth’s sake but would instead ensure shareholder returns by being ‘incredibly disciplined’ about acquisitions.

It will look to focus on its own subscription streaming service – including a premium version of its catch-up service ITV Hub, which is rumoured to be a collaboration with the BBC and Channel 4.

Speculation that B&Q owner Kingfisher might be ripe for an activist investor to swoop caused the shares to creep up 3 per cent, or 7.6p, to 261.2p. 

Stock Watch: Premier African Minerals

Tungsten miner Premier African Minerals slid after it announced the results of a consultation on how to bring one of its Zimbabwean mines back into production.

The study concluded it was viable, but would cost £818,000. After 15 months, it would only be making £474,000. 

In a separate announcement, it said it may have to reconfigure the layout of the mine to take advantage of where minerals were detected. Shares fell 17.5 per cent, or 0.03p, to 0.13p.

Analysts at Northern Trust Capital Markets said splitting up the firm, which also owns Screwfix, would boost its value even if the French businesses and B&Q were valued at zero.

Kingfisher has little to show for its long-running turnaround, and pressure is piling up.

The FTSE 100 rose 0.48 per cent, or 35.73 points, to 7510.28. A hefty 8.6 per cent slide from Tesco, which fell 20.2p to 215p, failed to drag the blue-chip index into the red.

At the smaller end of the London Stock Exchange, Topps Tiles surprised investors with a remarkably upbeat trading update.

The UK’s largest tile retailer said revenues for the year would be up around 1.5 per cent at £215 million, while like-for-like revenues would be flat compared to the previous year.

In 2017, by contrast, like-for-like revenues fell by 2.9 per cent. Just this April it was buffeted by bad weather and a ‘challenging’ market, and in July it warned sales were still falling. 

But this time, Topps said it had outperformed competitors as a turnaround paid off. Pre-tax profits will be slightly ahead of expectations.

The business has launched more than 25 ranges over the past 12 months, and redeveloped some of its stores to draw in DIY customers as well as professionals.

Companies like Topps are often seen as a bellwether for households’ willingness to spend on big-ticket items like kitchen and bathroom refurbishments. Its shares shot up by 9.6 per cent, or 6p, to 68.7p.

On London’s junior market, gaming technology company Nektan announced another record quarter for the first three months of its 2019 financial year.

Net gaming revenue, from the online sites which it operates around the world, rocketed 64.6 per cent to £6.4 million compared to the first quarter of last year. Shares reciprocated, rising 7.5 per cent, or 1.5p, to 21.5p.

Colombian oil company Amerisur Resources also impressed investors, saying it had achieved a flow of 590 barrels per day from its Pintadillo-1 discovery. Chief executive John Wardle called the result ‘exciting and very positive’, as shares soared 13.2 per cent, or 1.5p, to 13p. 



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