Man Group (EMG) tech arm AHL keeps hedgie motoring as assets rise. Man Group’s tech-driven hedge fund AHL division helped cushion $700 million (£535 million) of outflows as retail investors shunned Japan. AHL, which also employs scores of people with PhDs, was the stand-out performer at London’s only listed hedge fund, attracting inflows from investors and boosting fund performance by $500 million. Around two thirds of AHL funds are now in the territory where they start to earn performance fees, paid when fund returns jump over a certain hurdle, which will benefit the company. AHL’s good run contributed to a rise in assets under management to $112.3 billion at the end of March.
WH Smith boss reverses no-deal Brexit stockpiling. The boss of WH Smith (SMWH) on Thursday said he will start selling some of the drinks, stationery and chocolate he stockpiled as Britain is now not expected to leave the EU until at least Halloween. Chief executive Stephen Clarke said “we’ll have to unwind [the stockpiling] and build it again” to avoid products going off. WH Smith has spent about £5 million to also store extra pens, notepads and diaries in case of a disorderly Brexit. Pre-tax profits at the retailer edged down 1% to £81 million for the six months to February 28 but that’s mostly because it now tends to make more money in the second half of the year, boosted by summer travel spending and back-to-school products.
Ted Baker set to revise HR policy after ‘forced hugs’. High Street fashion chain Ted Baker (TED) will overhaul how it handles HR complaints and offer staff training following an investigation into inappropriate behaviour by its founder. Ray Kelvin, 63, who started the business in 1988 with a men’s shirt shop in Glasgow, resigned last month. He was accused of massaging employees, kissing their ears and asking some to sit on his lap as well as imposing a culture of “forced hugging”. The fashion chain launched an independent investigation into the claims, led by law firm Herbert Smith Freehills. The probe identified “several areas for improvement” in Ted Baker’s policies, procedures and handling of HR-related complaints but stopped short of making any comment on the specific allegations against Kelvin.
IAG and easyJet gain height on relief over delay to Brexit. Airline backers welcomed a decision by EU leaders to hand Theresa May a Brexit extension until October 31. The move in Brussels means airlines can, for the time being, remove Britain crashing out of the bloc without a deal from their list of headaches, which also includes rising fuel costs and overcapacity in the market. Just last week budget carrier easyJet (EZJ) admitted that bookings had succumbed to Brexit uncertainty, with would-be passengers holding off buying flights in fear of how the Brexit process will end. That sent the shares tumbling. But easyJet flew to the top of the FTSE 100 today, up 45.5p to 1101.5p. Shares in British Airways owner International Consolidated Airlines Group SA (CDI) (IAG) rose 20p to 535p, and the City also piled into travel company TUI AG Reg Shs (DI) (TUI), sending the shares up 20.4p to 736.6p. Cantor Fitzgerald analyst Robin Byde said: “The European airlines are rallying as the risk of a demand shock with a disorderly Brexit abates.” He pointed to the Brexit delay period getting the airlines through the crucial summer season.
The blue-chip index was down 10.82 points to 7411.09 points as the Square Mile digested the Brexit extension implications.
Grafton Group Units (GFTU) shares rose after it said it has agreed a €131 million (£113 million) deal to buy Dutch company Polvo, which specialises in ironmongery, tools and ventilation systems.
Outsourcer G4S (GFS) was still making gains after the Evening Standard yesterday revealed Canada’s Garda World Security is considering a takeover offer, triggering a 20% surge in the share price.
On AIM investors checked into budget accommodation group easyHotel (EZH). The chain said UK demand has “softened” amid political and economic uncertainty, with London growth being offset by weaker regional performances. However, chief executive Guy Parsons said it is outperforming competitors. First-half revenues rose 47% to £7 million and the shares leapt 2.5p to 69p.
Online clothing retailer Quiz (QUIZ) was in fashion as it posted a 12% jump in full-year sales to £130.9 million. The AIM-listed firm cheered international and digital growth, and tried to reassure investors about work with Debenhams.
