Royal Bank of Scotland profits double but chief warns over Brexit slowdown to economy. Royal Bank of Scotland Group (RBS) chief executive Ross McEwan today issued a stark warning about the risks to the economy from Brexit, even as he unveiled a massive dividend hike, of which £1 billion will go to the government. McEwan, the Kiwi who can be credited with rescuing a bank destroyed by Fred Goodwin, said: “It is clear that the economy is slowing. That will start to be felt. We are starting to feel it.” McEwan said the Bank of England, not usually regarded as overoptimistic, could be underestimating the hit to the economy, since big companies have been holding off investment for at least the past year. “If this goes on for a long period of time we’re going to see the economy slowing down more than the Bank of England suggested,” he added. RBS saw profits double in 2018 to £1.6 billion. It is paying a final dividend of 3.5p a share and a special dividend of 7.5p a share, far higher than City analysts had pencilled in and £1.6 billion in total.
Stobart Group claims victory in High Court battle with Andrew Tinkler. Logistics firm Stobart Group Ltd. (STOB) on Friday welcomed a high court judgement which it claimed left it victorious in a fight with rebel shareholder Andrew Tinkler. A judgement was today announced after a hearing in November 2018. Stobart was suing ex-boss and 5.91% shareholder Tinkler, accusing him of conspiring to harm the firm. Tinkler had a strategy dispute with the board. Tinkler denied wrongdoing and counterclaimed, saying his dismissal and the result of a controversial AGM vote were invalid. Southend airport owner Stobart today pointed to a number of key findings in the judgement, including that the dismissal of Tinkler as a director was lawful. Judge Jonathan Russen also found Tinkler acted in breach of his fiduciary and contractual duties to Stobart in many ways, including criticising the board’s management and improperly sharing confidential information with retail tycoon Philip Day.
Premier Foods drops plans to sell off Ambrosia custard brand. Under-pressure Mr Kipling cakes maker Premier Foods (PFD) on Friday axed plans to sell off its Ambrosia custard brand for a possible £100 million. In a move that could disappoint some shareholders who have seen a tough three years at Premier Foods, the company today said talks with potential suitors for the custard and rice pudding division have concluded. The manufacturer said it has been in detailed discussions with a small group of potential buyers since New Year. However, it added: “The board has concluded that in the present business climate the [sales] process will not result in a satisfactory financial outcome.” When Premier Foods first announced it was eyeing a disposal in November it did not give a price. Analysts predicted it could go for £90 million or £100 million.
Millennium & Copthorne Hotels suffers Brexit-induced recruitment woes. Millennium & Copthorne Hotels (MLC) on Friday reported lower profits and warned Brexit is making it harder to hire staff in London. The FTSE 250 operator of hotels in areas such as Knightsbridge, Kensington and next to Chelsea football club said it has faced difficulties in recruiting EU workers in the capital. They account for more than half the firm’s London workforce. That is one of a number of headaches the hotelier is facing. It also pointed to UK wage rises, and competition from the growth of Airbnb. Kwek Leng Beng, the group’s Singaporean billionaire chairman, said: “The hospitality industry faced a range of geopolitical and global headwinds in 2018, many of which look set to continue in the current year.”
New Italian oil and gas legislation is continuing to cause havoc. This session it was the turn of Global Petroleum Ltd. (GBP), exploring in the country, to warn that the permits it has applied for will face delays. This week the populist Five Star Movement pushed through an 18-month suspension on offshore oil and gas exploration. While it shows it is serious about green issues it opens the government to potential lawsuits from energy companies. Global will now focus on its assets in Namibia. Chief executive Peter Hill said: “The publication by the Italian Government of a clear hydrocarbon plan would be a welcome development for all operators in the region although the coming 18 months is likely to be an uncertain period for the industry. “We are, to an extent, insulated from much of it pending the appeals process on our Applications and our objective will be to bring this court process to a satisfactory conclusion before the end of the moratorium on exploration activities. “We still believe that the permits we have applied for contain good prospectivity and we remain of the view that in time our Italian assets could provide material upside for our shareholders. “Global intends to focus on the Company’s Namibian acreage where we are particularly excited about the prospects within our new Namibia Block 2011A, designated PEL 0094, located in the Walvis basin.”
