Perhaps, then, if the industry can so categorically ignore concerns about its business model, it will be up to the virus to hold back growth after all.
With the 22 hour curfew remaining in place and the holiday season canceled, the specter of Covid suddenly appears a little bigger. A warning about the “pressure” on the disposable income of its “20-year-old clients” was enough to wipe 10% of Asos’ shares yesterday.
Still, when you can pick up a pair of tracksuit bottoms on sale for under £ 15, maybe life goes on as usual.
G4S must do better
Regarding takeover defenses, the revelation that G4S’s revenues have been “resilient” is unlikely to stimulate its attempts to escape the clutches of Canada’s Gardaworld.
That probably sounds impressive in the context of a pandemic, but the security giant will have to do better than that, especially when, as Canadians were only too happy to point out, a more precise description would likely be “slumped.” Admittedly, a 2 pc drop in sales is not crisis territory at all but, as they also pointed out, there was “no mention of profit or cash flow” for the period nine. month.
This is all very disappointing and risks giving the private equity-backed Gardaworld the upper hand, even if it does nothing to truly deserve it. Sure, G4S’s turnaround has been very promising and short of delivery, but 190p-per-share is obviously too low and therefore should be easy to dismiss. Meanwhile, a supposed rival offer has yet to materialize into a concrete offer, and it is unlikely to be.
The G4S card needs to improve its game.
In case there was any doubt about the extent to which government support backs struggling businesses, the dropping number was near an all-time low in the past three months, according to KPMG.
The accountant says, “The question remains… if the can is just thrown on the road. Short answer: of course. Prepare for an avalanche of insolvency in the New Year.