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Next (NXT.L)
Shares at Next jumped as much as 5% in London, touching a record high, after it beat forecasts with a 5% rise in pre-tax profits last year.
The fashion and homewares retailer saw pre-tax profits hit a record £918m ($1,172m) in the year to the end of January, which was £3m higher than its previous guidance. It predicted profits would now come in at £960m in 2024.
Meanwhile, sales at the high street bellwether increased 5.9% to £5.8bn.
Lord Wolfson, chief executive, said: “It has been a long time since we started a year in a more positive frame of mind. On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties.”
He added: "It feels like we are now entering a new era."
Next bought majority stakes in brands including Fatface, Cath Kidston and Reiss during the year, and is looking for opportunities to invest in more brands
It also plans to expand in the US, Middle East and Asia via new partnerships including a tie-up with US department store Nordstrom and new franchise and licensing deals in India.
Virgin Money (VMUK.L)
Nationwide Building Society has agreed terms to take over rival Virgin Money, paying 220p per share, including a planned 2p-per-share dividend payout.
This is a 38%% premium to Virgin Money’s share price on 6 March, and values the deal at £2.9bn.
The move will now create a combined group with £366bn in total assets, almost 700 branches and more than 23 million customers.
It also solidifies Nationwide’s position as the second-largest mortgage lender after Lloyds Banking Group (LLOY.L).
Bosses at Virgin Money, the UK’s sixth-largest retail bank, could share £6m from the deal.
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Nationwide confirmed it would pay £15m in annual royalties for the first four years, as well as a £250m exit fee, which will see the name disappear from UK high streets.
Nationwide said: “Nationwide’s board agreed that a binding offer to acquire Virgin Money was in the best interests of the society and its present and future members, following full consideration and the appropriate due diligence, and after taking comments from members into account.”
Shares in Virgin Money were up 2.5% at the time of writing.
Direct Line (DLG.L)
Direct Line saw its gross written premiums and related fees surge to £3.1bn, a 27.1% rise from the previous year. However, it still faced a net insurance margin decline of 8.3%, coupled with an operating loss of £189.5m.
Meanwhile, the insurer’s solvency capital ratio before dividends improved to 201%.