Fashion disaster: Online fashion retailer Boohoo dipped 4.6% after Jalal Kamani brother of founder Mahmud Kamani sold around £14.8m worth of shares

MARKET REPORT: Boohoo sunk as owner’s brother sells shares

Online fashion retailer Boohoo dipped after the brother of one of its founders sold around £14.8m worth of shares.

Jalal Kamani, 57, brother of Mahmud Kamani, 53, sold 7.7m shares at around 191.2p each, according to filings.

The businessman is a member of the Kamani retail dynasty, which has spawned some of Britain’s fastest-growing fashion websites such as Boohoo and Pretty Little Thing.

He served as Boohoo’s trading director until October 2015, when he resigned.

According to Boohoo’s annual report, Jalal Kamani had held a 6.8 per cent stake, accounting for around 76.5m shares.

Yesterday Boohoo announced that his stake had fallen to 5.98 per cent, representing 68.8m shares.

Fashion disaster: Online fashion retailer Boohoo dipped 4.6% after Jalal Kamani brother of founder Mahmud Kamani sold around £14.8m worth of shares

Fashion disaster: Online fashion retailer Boohoo dipped 4.6% after Jalal Kamani brother of founder Mahmud Kamani sold around £14.8m worth of shares

While it is not clear whether Kamani sold down his stake in stages or all at once, the shortfall of 7.7m represents up to around £14.8million worth of shares, according to Thursday’s closing price of 191.2p.

The sale comes after Boohoo co-founder Carol Kane, 51, sold £10million worth of shares in September and Mahmud Kamani and his siblings Rabia Kamani and Nurez Kamani sold £80.5million worth of shares in June.

On Thursday, Boohoo reported a 100 per cent increase in sales to £228million in the four months to the end of December and said it expects sales growth of 90 per cent for the full-year.

But yesterday its shares fell 4.6 per cent, or 8.75p, to 182.7p following news of the sell-off.

The FTSE 100 ended the week on yet another record high, finishing up 0.2 per cent, or 15.7 points higher, at 7778.64, while the FTSE 250 finished up 0.6 per cent, or 121.4 points, at 20859.35 points.

STOCK WATCH – LIGHTHOUSE

Shares in financial advisory firm Lighthouse jumped after it said sales and profits for 2017 will exceed its targets.

Lighthouse, which will release its full results next month, claims to be the financial adviser of choice for ‘Middle Britain’ – its customers include teachers, care workers, engineers and midwives. It also partners with a number of worker groups and unions, including Unite.

Shares soared 13.7 per cent, or 2.7p, to 22.5p.

Signs that Bovis Homes had recovered from last year’s faulty homes scandal sent shares higher.

The housebuilder jumped 1.4 per cent, or 16p, to 1165p after posting a bullish trading update and pencilling in a hefty rise in profit this year.

It said that strong customer demand, attractive mortgage rates and initiatives such as the Help To Buy scheme have helped drive sales.

Bovis completed 3,645 homes in 2017 – a slowdown from 3,977 in 2016. It said the average selling price for its new-build homes increased by 7 per cent to £272,000 from £254,900 a year before, while the average selling price for its private homes increased to £334,000.

Bovis added that it had seen a ‘significant’ improvement in customer satisfaction.

Last year Bovis was rocked by a profit warning and a barrage of complaints from customers over shoddy workmanship.

It was forced to set aside £10.5million to deal with the scandal, which saw the abrupt departure of former boss David Ritchie after 18 years at the company – including eight as chief executive.

He was replaced by Greg Fitzgerald, 54, the former chief executive of Galliford Try, who was brought out of retirement in April to lead the builder to a turnaround.

Since his appointment, shares in Bovis have surged more than 25 per cent. Bovis’s revival comes after rivals were hit by concerns over the British housing market.

Shares in Persimmon and Taylor Wimpey slumped after the pair issued trading updates earlier this week, amid anxiety over falling house prices, weak wage growth and the impact of Brexit on the economy.

Persimmon finished up 0.2 per cent, or 4p, at 2647p while Taylor Wimpey jumped 0.7 per cent, or 1.35p, to 197.85p.

Also up was packaging company Mondi, which jumped 1.1 per cent, or 21.5p, to 1923.5p after Investec gave it a ‘buy’ rating.

But Sirius Minerals fell 2.5 per cent, or 0.6p, to 23.3p after it said its D-Walling – a key step in the building of its £2.1billion potash mine in Whitby, North Yorkshire – was two months behind schedule.

Posted on; DailyMail>>

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