Companies roundup: St James’s Place & Fevertree

Shares in St James’s Place (STJ) climbed by 8 per cent this morning after a surprisingly strong final quarter pushed assets to record levels. 

The wealth manager achieved net inflows of £1.5bn in the three months to 31 December, against estimates of £0.9bn. Across 2024 as a whole, inflows reached £4.3bn, lower than last year but better than the market expected. Investment returns also “compare favourably against peer groups”, helping to drive total funds under management up by 13 per cent to £190bn – a record for the group. 

St James’s Place said Labour’s Budget “created uncertainty for UK consumers” and led to an increase in both gross inflows and outflows in October. However, engagement levels were high throughout the quarter as clients sought advice on what to do with their money. JS

Read more: This FTSE favourite is now a classic value play

Fevertree agrees US partnership with Molson Coors

Fevertree Drinks (FEVR) has entered into a “strategic partnership” with Molson Coors (US:TAP) through which the brewer will take on the selling and distribution of Fevertree products in the US.

Molson Coors is also acquiring an 8.5 per cent stake in Fevertree for £71mn, which the company plans to redistribute to shareholders via buybacks starting next month.

Under the agreement, Molson Coors will pay annual royalties to Fevertree based on a share of profits, with guaranteed payments set to be made between 2026-2030 based on an agreed business plan.

Fevertree co-founder and chief executive Tim Warrilow also said the partnership would be “fuelled by a step change in marketing investment to take advantage of the highly compelling opportunity ahead”, with both sides agreeing to increase spending.

Investec analyst Matthew Webb argued that the deal “transforms [Fevertree’s] prospects in its biggest market”. Molson Coors is the second-biggest brewer in the US, with “a wide and deep distribution reach” and a desire to sell more premium and non-alcoholic products, he said.

He expects the agreement to improve Fevertree’s cash conversion given its reduced working capital commitments in the US, which could allow it to increase payouts to shareholders over time.

Fevertree’s shares rose by 24 per cent. MF

BT sees mixed trading, but costs continue to shrink 

Shares in BT (BT.A) drifted lower on release of a mixed Q3 update which detailed an expansion of its fibre network and 5G customer base. Openreach reached a record half a million connections through the period. 

Consumer service revenue crept up through the period, while the 5G customer base was also on the rise. But weaker handset trading and deteriorating trading conditions outside the UK were in evidence, although they were offset by higher prices and growth in the ultra-fast broadband network. The group’s cost transformation continues apace, which hasn’t gone unnoticed among sell-side analysts. MR

Read more: Has BT really turned the corner?

Ricardo shares plunge on profit warning

Shares at Ricardo (RDCO) fell more than 20 per cent this morning after the engineering and environmental consultancy warned full-year results would fall short of market expectations.

The shortfall was attributed to order delays in the energy and environment division, where first-half revenue and profits were hit by a phasing of orders due to global elections and a delay in UK water asset management plan cycle spend. The rail division was also impacted by the postponement of the California High Speed project due to the Los Angeles wildfires.

The firm reported a 10 per cent increase in order intake for its continuing operations, with a 2 per cent year-on-year rise in the order book. Net debt shrunk from £59.6mn at the end of June to £18.5mn on 31 December after the £64.3mn sale of the defence division. VM

Mulberry to focus on British heritage

Luxury leather goods brand Mulberry (MUL) announced a new strategy aimed at reviving the brand.

The company’s board acknowledged “recent performance has been suboptimal” and set out a two-pronged improvement plan focused on rebuilding gross margin and profitability in the short term while setting a medium-term revenue target of £200mn (last year’s sales were £153mn) and a 15 per cent adjusted operating margin.

Its strategy for achieving this involves refocusing on the UK market and growing its US presence while shifting activities in Asia “with a reduced emphasis on China”.

It also plans a more focused product range, and a reduction in promotional activity and a brand “refresh’ to reposition Mulberry as a British lifestyle brand, the company said.

Mulberry’s majority shareholder – a vehicle owned by Ong Beng Seng and Christina Ong – recently rebuffed two takeover bids from minority shareholder Frasers Group (FRAS), whose founder Mike Ashley had been heavily critical of the company’s performance.

Mulberry described trading over Christmas as “satisfactory”, despite recording an 18 per cent decline in revenue for the 13 weeks to 28 December.

The company said it “continued to take actions to manage costs and inventories”, with 12 lossmaking stores in the Asia Pacific being shuttered as part of plans by new chief executive Andrea Baldo to cut operating costs by 25 per cent. The shares rose by 3 per cent. MF

Alfa Financial’s new business boosted by SaaS transition

Alfa Financial Software (ALFA) beat Q4 trading expectations, registering a 13 per cent hike in operating profits to £34mn as subscription and software revenues continued to impress. The transition to a SaaS model is also supporting top-line visibility, while eight contract wins have driven total contract value to a record £221mn. (Licence income is now largely recognised within the Subscription revenue stream).

Alfa Systems 6 has now been fully launched across all regions highlighting the positive strides made on the new business front, leading to an “exceptional quarter for converting prospects into wins”. Andrew Denton, chief executive, said the group has “laid the foundations for our future with the laun

ITM Power raises guidance

ITM Power (ITM) shares gained 12 per cent in early trading after the company raised its annual guidance on an improved performance in the first half.

The electrolysers manufacturer maintained revenue guidance but now expects lower adjusted cash profit losses and a stronger cash position at the year-end.

For the six months to 31 October, results were in line with December’s trading update. Revenue jumped by almost three quarters, while the adjusted cash profit loss improved from £18.1mn to £16.8mn. ITM now has a record contract backlog of £135mn, after signing notable deals with Shell (SHEL) and RWE (DE:RWE). CA

UK car production crashes

The UK manufactured over 1.6mn cars annually as recently as 2019, but the latest production figures highlighted struggles with exports and raised more questions about the auto industry's transition to electric vehicles (EVs).

The number of cars produced in the UK tumbled by 14 per cent to 780,000 in 2024, according to the Society of Motor Manufacturers and Traders (SMMT). Exports declined 16 per cent, and the production of EVs-related vehicles fell by a fifth.

SMMT chief executive Mike Hawes argued that “growing pains are inevitable” for EVs production and “the potential for growth is clear”. CA