Burberry shares spike after billionaire reveals stake

Burberry, which manufactures its iconic coats in Castleford and is planning a Leeds factory, has seen its shares spike following a disclosure by a Belgian billionaire.

91 year-old Albert Frère, the richest man in Belgium, acquired a 3% stake in the company it was revealed, through his vehicle GBL Energy.

Shares in the FTSE100 fashion house rose to a high of £17.63 yesterday following the announcement, a 5.9% increase and the highest since May 2015.

Plans for a factory of the South Bank of Leeds have been put on hold while management changes occur. 

Chief executive Christopher Bailey is set to hand over to Marco Gobbetti immintently.

Revenues have improved recently at the £2.5bn fashion house, with third quarter underlying revenues up 4% to £735m. It had been hit by poor performance in the Far East, but whilst still struggling in the Americas, Burberry improved in China and other Asian markets, prompting the rise.