Cineworld confirms it is in advanced discussions to buy Regal: Cineworld has confirmed it is in advanced discussions to acquire US cinema chain Regal. It stated: “The board of Cineworld notes the press speculation regarding a potential acquisition of Regal and confirms that it is in advanced discussions with Regal, the second largest cinema chain in the United States, and is finalising due diligence in relation to a possible all-cash offer to acquire 100% of Regal at a price of US$23.00 per share, (valuing it at $3.07bn). It is currently intended that Cineworld would fund a potential acquisition of Regal through a mixture of incremental debt and a material equity raise by way of a rights issue, including a commitment to full subscription from Cineworld’s 28% shareholder, Global City Holdings NV. The proposed financing of the potential transaction will allow the enlarged group to continue its current strategy of investment in the business, as well as to maintain its policy of progressive dividends. Cineworld would only proceed with the potential transaction in circumstances and on terms which it believes would be accretive to shareholder value. Cineworld’s present strategy is to evaluate all opportunities to complement its organic growth. In keeping with this approach, it has continued to monitor possible selective acquisitions that have the potential to enhance its existing operations, and which allow it to expand into new markets. The potential acquisition of Regal would provide Cineworld with a highly attractive platform in the world’s largest cinema market. Shareholders are advised that there can be no certainty that the discussions between Cineworld and Regal will lead to any agreement or as to the timing or terms of any such transaction. If it takes place, the transaction would be classified as a reverse takeover for the purposes of the Listing Rules of the Financial Conduct Authority and completion of any transaction would be conditional on Cineworld shareholder approval.”

Britvic reports turnover and Ebita growth: Britvic has reported revenue increased 7.7% to £1,540.8m with organic revenue up 2.5% for the 52 weeks to 1 October 2017. Adjusted Ebita increased 5.1% to £195.5m, with organic adjusted Ebita up 5.6%. Profit after tax decreased 2.5% to £111.6m, including £24.7m of planned costs related to the business capability programme. Chief executive Simon Litherland said: “Britvic has again demonstrated the resilience of our business, delivering another strong set of results. We have grown both organic revenue and margins whilst continuing to progress our strategic priorities. I am particularly encouraged that we have increased the proportion of revenue generated from innovation and accelerated the returns from the business capability programme. While April 2018 brings uncertainty with the introduction of the Soft Drinks Industry Levy in GB and Ireland, we are well placed to navigate it thanks to the strength and breadth of our brand portfolio and our exciting marketing and innovation plans. This, combined with our continued focus on revenue and cost management, means we remain confident of making further progress next year.” Of the UK market, he added: “The GB soft drinks market, as measured by Nielsen, has for the first time in several years seen value growth ahead of volume. Thanks to disciplined revenue management we have led the value growth in the soft drinks category and successfully protected our profitability in response to rising costs driven by underlying cost inflation and the weakening of sterling. Margins improved in the second half of the year following the implementation of revenue management changes. In the carbonates category, we have continued to focus on no and low-sugar offerings. Despite a highly competitive grocery market, Pepsi MAX has continued to gain volume and value share and we have seen an excellent performance from the R Whites brand, following the introduction of a premium range last year. In GB stills, whilst we have seen a decline in revenue, our performance trajectory has improved year on year and, encouragingly, we have returned to volume growth. Robinsons and Fruit Shoot have faced pricing pressure in grocery, largely due to aggressive private label and branded competition. Whilst we anticipated a weaker final quarter, it was worse than expected due to the poor weather in July and August. Warm weather during the school holidays is particularly beneficial to our portfolio of still brands. We have continued to benefit from a strong performance in our portfolio of immediate refreshment packs, while in the leisure channel we have won or retained major accounts such as Mitchells & Butlers, Marston’s and KFC. Our recent innovations, which we believe offer significant future growth opportunities, have performed well and now represent 5.4% of total revenue. Purdey’s, a healthier, more natural energy drink, is resonating with consumers and increased its retail value by 55% this year. In the second half of the year we launched Robinsons ‘Refresh’d’ and we are really pleased with its early performance, achieving £4m retail sales value in 19 weeks since its launch. This ready-to-drink format offers naturally sourced ingredients and no added sugar, enabling consumers to enjoy tasty, healthy hydration at only 55 calories per bottle.”